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Serving Northern St. Louis County, Minnesota

Ely council considers utility rate hikes

Keith Vandervort
Posted 12/27/18

ELY— City council members here considered recommended increases in utility rates for city residents during their last business meeting of 2018, held on Tuesday, Dec. 18.

The recommendations, …

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Ely council considers utility rate hikes

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ELY— City council members here considered recommended increases in utility rates for city residents during their last business meeting of 2018, held on Tuesday, Dec. 18.

The recommendations, from the Ely Utility Commission (EUC), amount to a $1 increase in the fixed fee rate for water service, from $14.25 to $15.25 per month, and an overall three-percent hike in electric rates across all categories. There is no recommended rate increase for sewer service.

A public hearing on the proposed utility rate increases will be held on Tuesday, Jan. 15, 2019, beginning at 4:30 p.m. in the council chambers. The council must authorize the increases before they can be implemented.

Speaking for the EUC’s budget and rate committee, Clerk-Treasurer Harold Langowski said one the major goals of the EUC over the last several years has been to ensure that the operating fund balances for the electric, water and sewer accounts are sufficient to respond to emergencies like freeze-ups and to avoid making major rate hikes.

“In 2018 and 2019, we also need to consider having a rate base that will allow the EUC to pay the debt service on the automatic metering bonds, as well as bonding for improvements in the near future,” he said.

Water and sewer fund balances have increased slightly over the past five years, he said, which is the result of “good budget management” and approved rate hikes. “Those increases are not the result of more usage or new users, however,” he added.

As for the electric utility, several aspects of the rate system were adjusted in 2018 that allowed the cash balance to grow in that account as well. “We are seeing an overall rate increase from Minnesota Power (in 2019) and we will on an annual basis, probably forever,” Langowski said. “Obviously their costs go up on an annual basis as well as our costs.”

The recommended three-percent EUC electric rate increase is largely due to the rising cost of purchased power from Minnesota Power “in addition to our debt service for the meter replacement and other cost increases such as employee medical expenses,” he said.

In other business:

 Mayor Novak corrected erroneous information disseminated by an Ely-based media publication, concerning the availability of free wireless Internet service in downtown Ely. “The Ely Echo retweeted information about free wi-fi here,” he said. “If anyone does see that, it is for Ely, England. We are not set up to provide free downtown wi-fi here.”

Police Chief John Lahtonen informed the council that all seven officers on his force will soon be equipped with and trained on the use of Narcan, used to reverse the effects of an opioid overdose.

Other action, the council:

Approved council and staff attendance at the League of Minnesota Cities 2019 Newly Elected Leadership Conference, and the Legislative Conference on Feb. 20-21.

Approved the council and staff to attend the Coalition of Greater Minnesota Cities Legislative Action Day on Jan. 20 in St. Paul.

Authorized the hiring of Troy Bissonette in the spring for parking and civil enforcement for the summer as a 67-day part-time employee.

Approved the recommendation from the Employee Relations Committee to accept the requests from Steve Krtinich and John Lincicome to use vacation time prior to retirement.

Denied the step one grievance to the overtime offered as required in the law enforcement personnel contract.

Approved the mortgage satisfaction for James Maki, DBA Great Outdoors Bait and Tackle.

Agreed to form an annexation committee, consisting of Mayor Novak, Clerk Langowski, Council Member Heidi Omerza and City Attorney Kelly Klun, to prepare a counter-offer to the town of Morse’s land-swap proposal and report back to the council.

Approved in-kind services for the Wolf Track Classic Sled Dog Race, slated for Feb. 23-24, 2019.

Adopted the city budget for fiscal year 2019 and final tax levy for 2019 as approved last month.

Approved advertising for two EUC Commission seats to replace Angela Campbell, who will begin her term as city council member, and Terry Soderberg, whose term is expired.

Adopted a resolution designating the Ely Senior Center as the city’s 2019 polling place.