Fairhope's Utility Rates on the Rise Again

ELECTRIC GOING UP ANOTHER 5.7%                  

At the last Council meeting, Councilmember Kingrea and Mayor Kant said that electric rates had been increased by 5.7% in mid-July to offset rising wholesale electricity costs.

Kingrea: "So . . . don't be surprised . . . when your next bills are bigger."

Mayor Kant said the increase by the city's electricity supplier (AMEA) was due to higher costs for coal-generated power.

Council President Mixon said later that the actual wholesale increase was closer to 9%, but the city chose not to pass on the whole amount to its customers at this time.

Kingrea: ". . . base rate increase was authorized by the Mayor on July 14th . . . it is a mystery to me why we (the city) don't deal with these issues in an upfront fashion, i.e. make a public announcement."

BIG WATER/SEWER HIKES POSSIBLE NEXT YEAR

Also, city Finance Officers announced recently that significant water/sewer rate hikes may be needed next year to offset the high cost for sewer plant upgrades ($3 million) -- and a new water tower and water main north of town (about $6 million).

(Councilmember Kingrea said it was his understanding the Water/Sewer Department wasn't even "breaking even" currently.)

According to Finance Committee member Mac McCawley, the hikes could be as high as 50% -- if offsets/spending cuts can't be found elsewhere.

Currently, about 60% of its utility profits (electric, gas, water/sewer) are transferred to the city's general fund -- for daily operating expenses to run the city.

SPENDING CUTS NOT FORSEEN

When the Times asked the Mayor and Council if they thought there were any areas where spending could be cut back (instead of raising rates), no one responded.







Comments

Anonymous said…
Rate increases= tax increases on every citizen. This is getting ridiculous. You know where you guys can cut? How about cutting the city employee numbers back to 2005 levels for a start? It's like we have Congressional Democrats running things...can't find a thing to cut (it's all "essential" I'm sure), but can't raise rates/taxes fast enough. Idiots. Vote 'em all out. Bad as insurance companies with their continuous rate increases. This is why people are stupid to EVER vote for a tax increase on themselves...they hit you bad enough when you DON'T get a vote on it!
Anonymous said…
The truth is its not the politicians fault, Americans expect too much from their government. The line of citizens coming to city hall looking for handouts is long and growing.

There's not going to be a clean sweep either, because nobody's crazy enough to want those lousy/thankless jobs anyway!
Anonymous said…
I am sick and tired of everytime you turn around, COF is increasing something. If I could afford to move away from here, I would. My brother did just that! Unforunately, I'm not in that position. He could, I can't, but believe you me, Fairhope anin't all it's cracked up to be. I have lived here for 36 years, and I don't have a choice. These people need to GET out. I love living here, but can no loner afford to.
Anonymous said…
These things always hurt the little gusy most. the richer ones dont care.
Anonymous said…
Let me get this straight...the cost to the city is going up 9% and the city is only increasing our cost by 5.7%? And people are complaining? And you wish to move out of Fairhope to a city where the cost of electricity would be increased by the full 9%, or more??? Amazing!!
Anonymous said…
It's "amazing" people can still afford the luxury of running an A/C...well, at least for a little while. It's not really the local politicians' faults...in the Obama Economy EVERYTHING goes up...except home values and paychecks. The 40% or so that still approve of Obama's job performance must have REALLY low expectations...or are just stupid.
Anonymous said…
Of course, this is an old subject, but allow me to bring it up again for the many Fairhope residents who were overcharged on a recent utility bill.

My July 1, 2017 bill is for a 36 day usage (from meter reading date to billing date) at $4.9225 per day. My July 28, 2017 bill is for a 28 day usage at $9.1853 per day.

How can an 8 day shorter usage at a $4.2628 increase per day be justified? Many residents have questioned their increased bills in person and by telephone, but I have not spoken to anyone who was satisfied with answers given.

Perhaps enough citizens can implore the City Council members for answers that will result in a credit to our accounts for the overcharged amounts.