Minster electric rates may increase

MINSTER - Village council members may increase electric rates to head off looming financial problems in the department.

A study by consultants Courtney & Associates, Findlay, suggested raising electric rates across the board by 5.3 percent, company representative John Courtney told Minster council members at Tuesday's meeting.

Courtney also suggested increasing the $4 monthly customer charge to $10 next year and then increasing it by $2 each year for five years, to a maximum of $20.

Council took no action.

With the dual increases, residential customers who use 1,000 kilowatt-hours per month next year would pay $113.70 per month, up from $101.20. Commercial customers using the same kwh would pay $138.70 per month, up from $118.70.

"What that report determined is that we are not making enough revenue to cover our needs," village administrator Don Harrod said. "What we need to do is adjust those revenues over the next couple years to generate more revenue so we meet our costs."

Without the increase, the electric fund will see a deficit of $539,000 by 2017, Harrod said this morning.

"The rate and customer service increases would simply account for the deficit, not look to make the village a profit," he said.

Courtney, who worked with village officials on the report, said revenues need to rise 6 percent to account for inflation, increasing power costs and planned capital improvements, including projects at the north and south substations.

Council members opted not to take action after hearing Courtney's proposal.

"We want to take a little more time to think this all over, but you have given us more than enough information," councilman Rick Schwartz said.

The village's last significant electricity rate increase took place in 2010, Courtney said. Rates increased at that time from .07854 cents to .0835 cents per kwh.

Also on Tuesday night, council heard first reading of an ordinance redirecting the village's $3.2 million in income tax revenue.

In 2013, council members shifted money from the general and capital improvements funds to pay for the wastewater treatment plant built in 2011.

"We needed to raise $2.7 million and within the next few weeks, we will have reached that," Harrod said.

Instead of reverting back to the previous division, which placed 40 percent into the general fund and 60 percent into the capital improvements fund, the proposed ordinance would flip the percentages with the general fund receiving 60 percent.

"We need more money in the general fund. It's been getting harder to balance that account," fiscal officer John Stechschulte said.

In other business, council members,

• voted to deny a request by Jay and Shirley James to rezone their Cottage Cafe business from residential to commercial.

The planning commission had recommended denying the request because they were worried what type of business may move into the commercial lot if Cottage Cafe closed. The owners have a conditional use permit that allows them to operate the business.

• heard first reading of an ordinance allowing the chief of police to establish residency outside the village limits. Chief David Friend said that his residence is "about six minutes away" from the village limits.

• accepted a bid of $18,000 to sell a surplus piece of equipment from an electric substation to National Power Equipment Inc. of Cleveland. The amount was more than the $17,000 village officials had estimated.

• adopted a resolution thanking former councilman Steve Kitzmiller for his nine years of service to the village.

• accepted the resignation of administrative assistant Angela Bruns, effective Jan. 28.

• learned from Harrod's administrator's report about the first water line break this year on Jan. 10. An 8-inch waterline on Webster Street split in half, he said. Village crews have repaired the pipe but Harrod said frost could cause more breaks in the coming months.