Meeting Summary
The Stillwater City Council held a special study session to discuss proposed electric utility rate adjustments and a stormwater drainage fee increase. The electric rate study highlighted flat revenues, increased costs, and concerns from rating agencies, recommending an increase in fixed charges and elimination of declining block rates. The stormwater study revealed that the current fee, unchanged since 1997, is insufficient to cover program needs and regulatory compliance, proposing a significant increase to address infrastructure and water quality issues.
Upcoming Community Events
Electric Utility Rate Study Town Hall
5:30 PM, City Hall (in-person and Zoom)
Water, Wastewater, and Stormwater Rate Study Town Hall
City Hall (in-person and Zoom)
Financial Matters
Electric Utility Rate Study
Presentation and discussion of electric utility rate study results and recommendations, indicating a projected deficit of $2.9 million (5%) for FY25, growing to $5.9 million (10%) over five years if no changes are made. Cumulative loss could reach $21.7 million.
Stormwater Drainage Fee Study
Discussion on increasing the stormwater drainage fee, which currently generates $310,000 annually, to address significant capital and maintenance needs, regulatory compliance, and unfunded mandates. The proposed increase would generate approximately $858,000 annually.
Coming Up
Watch For
- Water and Wastewater rate study presentations (October 2nd City Council meeting)
- Presentation of average residential and commercial utility bills reflecting proposed rates (October 16th Council meeting)
- Electric rate design resolution and recommendation (November 6th Council meeting)
- Further discussion on long-term stormwater rate adjustments and a Capital Improvement Plan for stormwater.
Announcements
- Citizen Request Tracker available on the new website (stillwaterok.gov/report) for reporting concerns.
- Free Park and Ride shuttle service for OSU football games from downtown.
- Multiple street and bridge construction projects ongoing; motorists advised to use caution and allow extra travel time.
- City is accepting applications for a citizen representative for the electric trade position on the Building Trades board.
- Stillwater Electric Utility department's apprentice team won several events at the 2023 Municipal Electric Systems of Oklahoma (MISO) Line Workers Rodeo.
Agenda Summary
2A: Presentation and Discussion of Electric Utility Rate Study
Lauren Smith and Lisa Vetter presented the findings of the electric utility cost of service and rate design study, highlighting the need for rate adjustments due to flat revenues, increased costs, and concerns from rating agencies. Recommendations included increasing fixed charges, eliminating declining block rates, and aligning small commercial class rates.
2B: Presentation and Discussion of Stormwater Rate Study
Zach Henson presented on the stormwater drainage fee, which has not changed since 1997. The presentation outlined the program's needs, current funding shortfalls, and proposed rate increases to address capital projects, maintenance, and regulatory compliance.