Highland City Council approves new budget as electricity rates set to rise slightly

Highland has a new budget, and with it comes a small increase in electricity rates.

Highland’s Department of Light and Power had not increased rates for five years, but in that time, operation and maintenance costs had risen 15 percent, according to the report issued to the city council last week. An independent consultant was brought in to do a cost of service analysis, and it recommended increasing electric rates to guarantee financial viability and make necessary improvements in Highland’s electric system.

“It is important for the city to continue investing in the system infrastructure in order to preserve the system reliability or degradation will take over,” wrote Daniel Cook, director of Highland Light and Power in a memo to the city council.

The increase is approximately 1.5 percent, and is estimated to raise approximately $130,000 in additional revenue for the city’s electrical service, according to the report.

Interim City Manager Chris Conrad said they have estimated the increase will cost the average Highland household approximately $20 a year.

Councilwoman Peggy Bellm said it was important for residents to realize they were not just customers of the Highland power utility, but its owners as well.

“I try to remind residents that when we raise rates, we are also raising our own rates,” Bellm said. “We have to be responsible for maintaining that business.”

The proposal was approved in a unanimous vote.

The council also approved the city’s overall budget, which sets expenditures at $59.4 million against anticipated revenue of $55.4 million and existing balances of $98.9 million.

“We kept it pretty simple this year and budgeted very conservatively with the uncertainty of continued pandemic impact, changes in how the state is collecting online sales tax this year and the potential for a reduction in the local government disbursement payments that was proposed in the governor’s budget plan,” Conrad said.