Posted: 5/30/06
City electric rates take a jump
City passes on increase
By David Heiller
Argus News Editor
The Caledonia City Council approved electric rate increases that average 28% at its May 22 meeting.
The increases are shown in a chart on page five that accompanies this story.
Here are the typical monthly cost increases for the six rate types: residential 40%; commercial 31%; large power (such as Kwik Trip and Caledonia Elementary School) 3%; high school 34%; peak alert (Sno-Pac Foods) 28 percent; dual fuel 37%.
The unanimous vote came after 30 minutes of discussion with Tom Nigon from the firm of PowerPlus Engineering of La Crosse, Wisconsin.
Nigonís company was hired to do an electric rate study. Its purpose was to recommend rate changes due to increasing costs of electricity and other operating and maintenance expenses.
Caledonia buys its power from Tri-County Electric, which raised its rates to the city by about 28 percent on May 1. The city will absorb the first two weeks of the increase. City residents will be paying the increased rates starting from mid-May. It will be reflected in the July billing.
The increase will provide a net income of approximately $150,000. It will give the city an operating margin of about 4%, Nigon said. "It might be a little bit low,î Nigon said of that amount. ìItís certainly not high.î
Most cities are going through the same process, Nigon added. ìYouíre no different than anyone else.î
Nigon said that some cities have their industrial rate subsidize residential rates so people arenít hurt so bad. Councilman Paul Fisch why Caledonia doesnít do that.
City clerk Bob Nelson answered that there are pros and cons, but a higher business rate can discourage new businesses from starting up.
Fisch added that the city would lose $360,000 if it did nothing.
The council will review the rate increase when next yearís audit is done.
PowerPoint Engineering was paid $6,500 for the 22-page study. Nigon said it could be updated for less than $2,000.
Storm water pond
The council approved a $2,000 expenditure to Davy Engineering of La Crosse to do a field survey and description of property that MaCal Developers wants to dedicate to the city. The property, which contains a storm water pond and lift station, is located north or West Main Street near the West Main Terrace.
Zoning administrator Mike Gerardy recommended the plan. The city has sought the property for almost 10 years so that it could improve the pond and meter the flow of water from its 30" outlet pipe, Gerardy said. The waterway will be fixed and trees removed, he added.
Other business
ï Building fix: The council looked at a picture of a steel building owned by Joe Hayes near the city maintenance property. The building has rusted out in several areas due to salt dust sticking to it from a salt pile owned by the city, Gerardy said. He will come back to the council with an estimate to repair the building.
ï Variance approved: The council approved a zoning application for Lincoln and Kim Mittendorf, 1023 E. Grove Street, to build an 8'x44' porch on the south (front) side of their house. It will require a 4' variance to meet the 30' setback requirement.
ï New ladder truck: Fire chief Chuck Gavin told the council that he and Matt Hoscheit had made an offer of $21,500 for a 1971 ladder truck from the Steelton, Pennsylvania, Fire Department. The two men traveled there on May 20 to inspect the vehicle. It will need to be tested by an independent party before the sale is finalized, Gavin said. The city council approved spending up to $28,000 for it on May 8.
Councilman Bob Standish complimented Gavin and Hoscheit on the job they did.
ï Land purchase: The board discussed but took no action on purchasing the strip of land between the China Buffet and the Municipal Liquor Store. It is for sale by Tony Denstad.
ìI donít see why weíd need it,î councilman Gary Klug said.
Councilwoman Randi Vick asked if the city was planning on doing anything with the liquor store. Nelson responded that the city would be more likely to close it than expand it.
ìI donít envision us putting up another building,î Fisch added. No motion was made on the matter.
ï Seasonal worker: The council voted 4-1 to hire Kaleb Augedahl as the park and recreation seasonal janitor/grounds keeper. He will be paid $7/hour for up to 32 hours per week. Fisch voted no. He declined to give his reason for the no vote.
ï Open house, music in the park: Standish reiterated a request from May 8 for the city to hold an open house. ìI would like you to do some thinking on it,î he said.
Vick also brought up an idea from the earlier meeting that Caledonia hold a ìmusic in the parkî event similar to what Spring Grove does during the summer. She thought 7-9 p.m. on Tuesday would work. She will pursue the idea and talk to Caledonia Chamber of Commerce members about it.
Caledonia Argus
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