City Passes Automatic Utility Rate Hikes

Cordell’s utility ratepayers will see an increase on their utility bills early next year, as the council enacted a three percent increase to water, electric, sewer, and garbage rates effective Feb. 1, 2020. The rates will increase by an additional three percent on Feb. 1 of each successive year, indefinitely.

“Whereas, the City Council and Mayor of the City of New Cordell, Oklahoma have determined that it is in the best interest of the City and its citzens that an Ordinance be passed adding a new Chapter to Title 3 Finance and Taxation providing for an automatic annual increase in the City’s utility rates of three (3%) percent for electric rates, sewer rates, water rates, and garbage rates without action from the City Council, as follows....” the new ordinance read.

The ordinance also specifically preserves the right of the council to increase rates beyond the statutory three percent should they deem such to be “needed to meet the needs of the City and its citizens.”

During the council session, members argued about the wisdom of instituting an automatic increase, with proponents arguing having an increase earlier in the year would help the city during its budgeting cycle in May and June, and help the citizens by making increases during times of lighter use. Opponents argued the city should openly vote for any increases as they are needed and not just automatically trigger them without council discussion.

The vote was 4-2 in favor of the automatic rate hike, with members Steve McLaughlin, Vona Hicks, James Newman, and Vicky Dunlap voting in favor and Zetta Penner and Earlene Smith voting against. Cheryl Wedel and Kelly Maddox-Tilley were not present at the meeting.

The council rejected a move to enact the city’s emergency clause, which would have made the new ordinance effective immediately. The vote was the same as the ordinance vote, but required a threefourths vote of the entire council to approve.