Plutonic Panda
05-21-2014, 11:22 PM
From The Mustang Times
Utility rates in Mustang could increase later this year after the City Council discussed the budget for Fiscal Year 2014-15.
City Manager Tim Rooney gave a presentation on the overall budget at a special meeting on Thursday evening and said he expects to propose a utility rate increase of 7 percent to the City Council by the first of October.
"Mustang’s utility rates have not been raised since 2005," Rooney said. "More than 50 percent of our water comes from Oklahoma City and they have increased their rates twice since 2010."
Since 2010, Rooney said Oklahoma City raised their monthly base rate from $9.24 to $13.75, a 48 percent increase, and the rate for per thousand gallons from $2.01 to $2.35, a 16 percent increase.
Rooney said Oklahoma City charges Mustang a rate of $2.35 per 1,000 gallons of water, up to 15 million gallons of water per month. That rate jumps to $5.25 per 1,000 gallons when over 15 million gallons are used a month.
"The amount of water we use from Oklahoma City fluctuates, but we have used as much as 40 million gallons a month," Rooney said. "The penalty for using over 15 million gallons a month is huge and something the city pays for. This is not the only reason we need to increase our rates though, the cost of maintaining our water lines is also increasing."
During the summer months, more than 50 percent of Mustang’s water supply is from Oklahoma City, Rooney said.
"One of the reasons we need to use their water is because of the arsenic levels in our own water and we need to blend our water with Oklahoma City’s water to correct those levels," he said. "As far as us relying on Oklahoma City for water, I don’t see that changing."
Rooney told the City Council that he and his staff plan to propose the rate increase in October.
"We should increase our rates whenever Oklahoma City increases their rates," he said.
Rooney said the proposed rate increase would not include the mandated Consumer Price Index increase approved by the City Council in 2009.
- Mustang Times, Utility rates may increase later this year, officials say (http://www.mustangpaper.com/contentitem/372419/1586/utility-rates-may-increase-later-this-year-officials-say)
Utility rates in Mustang could increase later this year after the City Council discussed the budget for Fiscal Year 2014-15.
City Manager Tim Rooney gave a presentation on the overall budget at a special meeting on Thursday evening and said he expects to propose a utility rate increase of 7 percent to the City Council by the first of October.
"Mustang’s utility rates have not been raised since 2005," Rooney said. "More than 50 percent of our water comes from Oklahoma City and they have increased their rates twice since 2010."
Since 2010, Rooney said Oklahoma City raised their monthly base rate from $9.24 to $13.75, a 48 percent increase, and the rate for per thousand gallons from $2.01 to $2.35, a 16 percent increase.
Rooney said Oklahoma City charges Mustang a rate of $2.35 per 1,000 gallons of water, up to 15 million gallons of water per month. That rate jumps to $5.25 per 1,000 gallons when over 15 million gallons are used a month.
"The amount of water we use from Oklahoma City fluctuates, but we have used as much as 40 million gallons a month," Rooney said. "The penalty for using over 15 million gallons a month is huge and something the city pays for. This is not the only reason we need to increase our rates though, the cost of maintaining our water lines is also increasing."
During the summer months, more than 50 percent of Mustang’s water supply is from Oklahoma City, Rooney said.
"One of the reasons we need to use their water is because of the arsenic levels in our own water and we need to blend our water with Oklahoma City’s water to correct those levels," he said. "As far as us relying on Oklahoma City for water, I don’t see that changing."
Rooney told the City Council that he and his staff plan to propose the rate increase in October.
"We should increase our rates whenever Oklahoma City increases their rates," he said.
Rooney said the proposed rate increase would not include the mandated Consumer Price Index increase approved by the City Council in 2009.
- Mustang Times, Utility rates may increase later this year, officials say (http://www.mustangpaper.com/contentitem/372419/1586/utility-rates-may-increase-later-this-year-officials-say)