City's electrical rate structure reviewed

As Sidney's electric utility has faced steep rate increases from its power providers, the city is undertaking a financial review to determine how to limit rate increases passed on to its customers.

At a Sidney City Council meeting on Tuesday, Andrew Ross, of the Nebraska Municipal Power Pool, presented an overview of the public utility's current financial status and projected what future growth could entail.

Sidney Interim City Manager Geri Anthony said the study would help the council determine future rate increases.

"And also what the council's philosophy is going to be as far as cash reserves and capital improvements," she explained. "It's kind of a game plan."

While the city has conducted rate studies in the past, Anthony said the current review is more comprehensive.

"It's a tool for the council and for me to use when we're looking at our funds and looking at what we should do," she said.

Electric rates are usually adjusted in September as the city completes its annual budget.

Mayor Mark Nienhueser said any potential rate increase would be postponed until the rate study is completed.

"The good news, I don't think we're going to see a large increase in comparison to what our rate increase has been from our power provider," he said. "We're going to be able to absorb some of that – how much we're going to determine in the coming weeks."

Last year, the rate the city pays to purchase power increased 12 percent. Sidney customer rates were last increased in October 2014 by 10 percent.

As part of the study, the council is examining how much money it needs to keep in reserve to pay for emergency repairs and system improvements.

Nienhueser said some of that money could potentially be used to reduce rate increases in the next 2-3 years.

Also at the meeting:

• Councilors passed a second amendment to an interlocal agreement with the South Platte Natural Resources District.

Two years ago, the Joint East Sidney Watershed Authority was created to address storm water management in the eastern part of Sidney. A nearly $2 million loan from the state will help fund the construction of a network of natural drainages and retention ponds.

The amendment passed on Tuesday specifies the city will be responsible for 80 percent of the first loan payment with the NRD responsible for the remaining 20 percent.

• Tina Hochwender, Sidney economic development director, said the Christmas Kickoff is scheduled for Saturday at Hickory Street Square. The event will begin at 12:30 p.m. with mini train rides, a parade of lights at 5:30 p.m. and then the lighting of the Christmas tree. Santa Claus will also be available for photographs.

Other seasonal events are scheduled to occur in the square throughout the Holiday season, Hochwender added.

• The next Sidney City Council meeting is scheduled for 7:15 p.m. on Tuesday, Dec. 8, in the City Council Room at Sidney City Hall.