03/19/2001-CC-Minutes-Work SessionMINUTES: CITY COUNCIL WORKSHOP
MARCH 19, 2001
Kincaid, Councilman Carroll McNeill, Councilman Andy Garza,
PRESENT: Mayor Tommy .
Councilman Glenn Ervin, Councilman Craig Waggoner, Councilman Joe Higgs
OTHI�RS
PRESENT: City Manager Jack Smith, City Secret enzAElect is Super nt ndentRMike Pr ter,
Administrative Assistant Samantha R >
Streets Supervisor John Henderson, Billing Clerk Esmeralda Wilkerson, Auditor
Bill Spore, Jerry Jenkins, Fred Yeatts
1, Mayor called meeting to order.
2, Discuss Electric Rates and Power Cost Adjustment.
Bill Spore addressed this item. He went over a handout of the current rate schedule, and
explained it to the Council.
Mr. Spore indicated in the future, if they don't adjust the rates, the profit will be negative.
Discussed the utility billing compared to Brazos cost.
Discussed Brazos old rates compared to their new rates.
Mr. Spore went over the rates if increased .006 cents, and if increased by .007 cents.
These are the rates for if the base rate is raised, and they do not go with a fluctuating
power cost.
The new proposed rate woi.�ld be .04025 if the rate0w07s increased by .006. The proposed
rate would be .04125 if the rate was increased by
The amount that represents the power cost, directly equals the power cost.
Mayor asked if the .007 was enough of an increase.
Mr. Spore indicated that would be the minimum he would go.
Councilman McNeill asked what the rate would need to be to make sure the City makes a
profit of $400,000.00 as per the budget.
Discussion.
Bill Spore explained the spread that makes more profit is from the power cost on up.
That spread needs to be increased.
Discussion regarding what it would take for the City to gain revenues.
Mr. Spore indicated they needed to add .008 to the customer's bill. He suggested the base
rate be increased .006.
Mr. Spore indicated every .001 that we increase the bill gives the City $35,000 more
revenue according to last years bills.
Discussion regarding the demand rates.
Discussion continued regarding the rates.
Discussed variable rates.
Councilman McNeill asked how difficult it would be to make a formula that would
produce a profit of 38%.
Mr. Spore indicated he would be able to calculate that fairly easy.
Mr. Spore and the City Secretary went to figure the calculations requested.
3. Meeting Adjourned.
ayor ommy Kincaid