City council approves reduced utility rate hike

Feb. 3—McAlester city councilors approved a 3.5 % rate increase on city utilities — after first cutting the recommended 6.5% rate hike in half.

City councilors passed the measure by a split vote during a special meeting at City Hall.

Although City Hall was closed due to the extreme winter weather, city councilors went ahead and held the Tuesday night meeting so claims could be paid and to approve a bid on a new fire engine on an agenda item that needed to be acted on prior to Wednesday.

The item regarding the proposed utility rate increase was listed on the council agenda as "Consider and act upon approval of the annual Utility Rate Increase based on this year's Consumer Price Index of 6.5%."

Before city councilors voted on the proposed 6.5% rate increase, McAlester Mayor John Browne presented a proposal of his own. Browne proposed reducing the amount of the rate increase from 6.5% down to 3.5%.

Browne said the inflation rate had been more than 9% in June, 2022, and it's decreased every month since. Browne said he didn't want to lock in a 6% increase with inflation on a downward trend.

"Let's locking it in at 6% when the inflation rate was getting lower didn't seem like the right thing to me," Browne said Wednesday.

Browne noted that the city council had taken a similar action last year, when the council had been asked to approve a 7% utility rate increase based on the CPI at that time. City councilors ultimately approved a 3% increase for the first six months of the year in 2022. When they checked the situation six months later, the inflation rate had not decreased, so they passed the other half of the 7% increase that had been initially proposed.

Following discussion during this week's council meeting, Browne presented a motion to approve a 3.5% utility rate increase for the first six months of the year, with the city to revisit the matter following a six-month period to see if the amount should be adjusted depending on the CPI at that time.

The measure passed by a 5-to-2 vote of the city council.

Joining Browne to vote "yes" to approve the reduced 3.5% utility rate increase for the next six months were Ward 1 Councilor Weldon Smith; Justin Few, Ward 2; Cliff House, Ward 3; Randy Roden, Ward 4.

Voting "no" were Ward 5 Councilor Billy Jack Boatright and Ward 6 Councilor Kevin Beaty.

Browne said Wednesday he thought initially approving 3.5% of the suggested 7% utility rate increase and then revisiting it six months later to see if it should be adjusted was the fairest way to proceed.

Proposed utility rate hike adjustments brought before the city council shortly after the beginning of each new calendar year are part of an annual consideration of the city's utility rates linked to the Consumer Price Index.

"It's a backwards-looking number," Browne said of the Consumer Price Index. He noted the CPI is figured on a monthly basis, which led to his concern about locking in a rate increase for the entire year.

"Where it gets shaky for me is basing a rate increase on an annual number that's refigured every month," Browne said.

Browne noted money is tight for many residents in the city and around the nation.

"We don't want to charge any more than we have to," said Browne.

Advertisement