Natural gas rates see fourth hike this year|[05/24/08]
Published 12:00 am Saturday, May 24, 2008
The rate customers in Vicksburg pay for natural gas will go up again in June, marking the fourth increase this year, city officials voted Friday.
Although Alderman Michael Mayfield voted for the adjustment, going against his recent pattern of dissent about gas rate increases, it was not without verbal disagreement.
“This upsets me deeply that we have to continue raising the gas prices,” Mayfield said after Friday’s meeting. “But the city doesn’t have the money in its coffers to pay the bill. We can’t control the market, but then you have four or five increases in a matter of four or five months, it does a lot of damage to the community.”
In the meeting, Mayfield told Mayor Laurence Leyens that the city should “pay for the necessities, not the amenities,” referring to trees and flowers that have filled Vicksburg’s landscape since Leyens took office seven years ago.
“People love the aesthetics, but sooner or later we’re going to look at what we’re going to do,” Mayfield said.
Leyens recanted by saying seven years of landscaping wouldn’t make up for the cost of one year’s gas supply. Since coming into office, Leyens has continually defended the city’s response to rising gas costs and touts Vicksburg as one of the only cities in the state still selling gas instead of contracting out the service. By doing that, customers don’t pay an increased fee other companies would tag on to gain a profit, Leyens has said.
The city charges a minimal residential bill of $12.10 per thousand cubic feet each month. Added to that is a gas price adjustment, which will be raised from $5.94 this month to $6.81 charged on June bills, said Strategic Planner Paul Rogers, who purchases gas for the city’s 7,000 customers. The increase means people will pay $18.91 for the first thousand cubic feet. Since summer temperatures will reduce the use of gas for heating, June bills will average $23.02 for a family using 1,100 cubic feet, typical for summer months, said Tim Smith, purchasing director for the city. Under the old rate, customers with the same use would have been charged $22.06. For larger families, where usage is twice that, a June bill would be $41.65, up from $39.74 under the old rate.
“It’s a formula we’re following. If we don’t do the adjustments, we’ll end up owing $4.5 million,” Leyens told Mayfield in the meeting.
He provided Mayfield with a “list of options” to identify the city’s current plan as the only option. He said, by not increasing the rates, the city would either have to shut off all gas, cut services in other departments, prepare to go bankrupt or go to jail for not paying for the gas.
“It’s irresponsible of us to just ignore this,” Leyens said. “It’s a tough place to be. But, we still have the lowest gas rate in the state.”
Mayfield said he intends to have a “serious sit-down” next week with Leyens, South Ward Alderman Sid Beauman, who was not at the meeting, and Rogers next week to try to find a resolution.
“We need to see if we can find a way to minimize the pain we’re inflicting on those people,” Mayfield said.
On the agendaIn a Friday meeting of the Board of Mayor and Aldermen, the board:Commended Edna Hadad, who is retiring after 30 years of service with the city.Approved board meeting minutes for April 15 and April 21.Awarded a sealed bid for purchasing service department uniforms to Fashions Inc., and rejected bids to rent service department uniforms from Unifirst, Cintas and Same Day Cleaners.Authorized the city clerk to advertise for sealed bids for mini trucks.Authorized the issuance of purchase requisition in the amount of $1,654.86 to Sunbelt Fire Inc. for the purchase of a coil evaporator for a Vicksburg Fire Department truck.Approved budget amendments to decrease administrative services by $44,000 to be transferred into the general fund to increase advertising for the Miss Mississippi Pageant; an increase of $20,000 for recreational services; and an increase of $14,000 for improvements to the Vicksburg Senior Center.Approved a request for sponsorship for the Miss Mississippi Pageant.Approved payment to Vicksburg Warren E-911 in the amount of $141,840.93 for the city’s share of 14 dispatchers’ salaries, matching benefits and insurance for January through April.Adopted a resolution acknowledging and affirming Warren County’s designation of the boundaries of the Emmitte W. Haining Industrial Center and surrounding area and designated it a slum or blighted area for a Community Development Block Grant to rebuild a bridge.Adopted a resolution to declare property on the side of L.D.’s Kitchen surplus and sell it to owner Larry “L.D.” Prentiss to store cooler and air conditioners for $4.96 a square foot.Discussed eight dilapidated buildings and overgrown lot codes and authorized Victor Gray-Lewis, director of buildings and inspection to cut, clean and demolish properties.Approved a budget modification request for fiscal year 2008 TRIAD grant program.Approved a request from the Vicksburg Fire Department to close South and Washington streets, Mulberry and South streets and Washington and Veto streets, for a lawn mower race during the firefighters conference May 30 from 5:50 until 6:30 p.m.Approved a request for advertising in the amount of $500 from the Red Carpet Bowl Committee for the Red Carpet Bowl Football Classic Aug. 29.Approved a request for advertising for June 2008 from the Main Street Program.Approved a request from the Main Street Program to purchase promotional items for the Vicksburg Farmers’ Market.Approved reports from the marshal, privilege license, city sexton and monthly tax collection.Approved the claims docket.In an executive session, the board authorized 29 pay adjustments, one in the water treatment plant, 11 in the police department, four in the fire department and 13 in the parks and recreation department; discussed 13 employment matters, 11 summer students in the administration department and one each in the water treatment plant and human resources; and discussed two terminations, one each in the accounting department and the fire department.The board will meet again at 10 a.m. June 2.