September 26, 2023 City Council Meeting

TL;DR

The Stillwater City Council held a special meeting to discuss electric utility and stormwater rate studies. The electric utility study highlighted a need for rate increases due to flat revenues, increased costs, and concerns from rating agencies. The stormwater rate study revealed that the current fee, unchanged since 1997, is insufficient to cover program needs and regulatory compliance, leading to a proposal for a significant increase.

Upcoming Community Events

October 10th

Electric Utility Rate Study Town Hall

5:30 PM, City Hall (in-person and Zoom)

October 12th

Water, Wastewater, and Stormwater Rate Study Town Hall

City Hall (in-person and Zoom)

Financial Matters

Electric Utility Revenue Requirement

Projected revenue requirement for FY 2025, an increase from the current 58 million dollar budget.

61 million dollars

Electric Utility Deficit

Projected deficit for FY 2025 at current rates, growing to 5.9 million by FY 2029 if no changes are made.

2.9 Million Dollars

Stormwater Drainage Fee Annual Revenue

Current annual revenue generated by the stormwater drainage fee.

310,000 dollars

Proposed Stormwater Drainage Fee Annual Revenue

Projected annual revenue with the proposed stormwater fee increase (based on 100% collection rate).

858,000 dollars

Boomer Creek Capital Needs

Identified capital needs in the Boomer Creek Watershed.

55 million dollars

Estimated Total Stormwater Capital Needs

Estimated capital needs for remaining unstudied stream miles in Stillwater.

50 million dollars

Coming Up

Watch For

Water and Wastewater rate study presentations (October 2nd)
Presentation of average residential and commercial utility bills reflecting proposed rates (October 16th)
Electric rate design resolution and recommendation (November 6th)
Stormwater Capital Improvement Plan development

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.
Motorists advised to pay attention in construction areas 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 line workers Rodeo team won several events at the 2023 Municipal Electric Systems of Oklahoma (MESO) line workers Rodeo.

Agenda Summary

2A: Presentation and discussion of electric utility rate study

Presentation by Lisa Vetter of LM Vetter Consulting on the electric utility cost of service study, highlighting flat revenues, increased costs, and recommendations for rate adjustments including increasing fixed charges, eliminating declining block rates, and aligning small commercial class rates.

Information Only

2B: Presentation and discussion of stormwater rate study

Presentation by Zach Henson on the stormwater drainage fee, its history, current insufficiency, program needs, and proposed rate increases to update the ERU value and residential/commercial tiered rates.