By Dennis Volkert
Sturgis City Commission on Wednesday approved an increase in rates for electric, water and wastewater, in a multi-year plan.
It involves electric rates for 2024-27 billing periods, beginning Oct. 1 of each year.
Water and wastewater is for 2024-26, with the same start date.
The overall increase is 2.0 percent each fiscal year for wastewater and 6.9 percent for water. For a typical in-city resident, that’s estimated at $7.67 per month, city controller Holly Keyser said.
She told Sturgis Sentinel the “dollar impact” for a standard residential customer is about $4.
In a summary to commissioners, Keyser said the increases are similar to prior adjustments and necessary to maintain financial viability.
“Electric rates are increasing 4.9 percent overall plus or minus 3.2 percent on individual rate classes related to the cost of service,” she said.
Commissioner Marvin Smith cast the lone “nay” vote. After the meeting, Smith told the Sentinel he is against raising rates in general.
“I voted against the tax increase, too,” he said.
The city commission is required to approve utility rates for the ensuing fiscal year, based on code of ordinances, on or before Sept. 1, as part of the annual budget process.
For several years, the city has worked with Utility Financial Solutions to assist with financial management and rate design. Funding is intended to be self-sustaining, to meet key financial targets for operating income, cash reserve and debt coverage, Keyser said in her summary for the commission.
This year, long-term financial projection studies were conducted in the water and wastewater utilities. Results were presented June 17 during a budget session.
In a separate matter Wednesday, commissioners unanimously approved a proposal from Emergency Vehicles Plus for the purchase of a Ford F-550 4×4 Wheeled Coach ambulance and associated Stryker cot and power-load system, for just over $376,000.
Ryan Banaszak, public safety director, said it will become the primary response unit in the department’s fleet, which currently has three vehicles. The lowest-mileage vehicle will become the secondary unit. The highest-mileage ambulance rotates into “reserve” position, for use when ambulances are used for patient-transfer or when the department has a high volume of calls.
Banaszak suggests retaining the fourth ambulance, to be stored for emergency use if a vehicle is damaged or out of service for a significant period. That unit also is available as a retnal to rescue departments outside of the city, bringing a potential source of revenue.
Prior to the regular meeting, commissioners held a work session to discuss potential changes to the city’s downtown parking policy.
In 2017, the commission approved an ordinance to guide the use of city-owned parking lots. That process involved several work sessions with the board and community members.
With recent development downtown, such as apartment complexes and new or reconfigured areas, officials intend to review the plan and explore revisions. The work session was step 1 in the process.
