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Lanett consultant recommends raising residential utility rate from $10 to $22
Summary
A consultant told the Lanett City Council the city should consider raising the residential utility rate from $10 to $22 based on 2022 data; the council did not vote and residents asked why commercial customers were not targeted.
At a Lanett City Council work session on Aug. 19, 2024, Jim Marshall, utility consultant for Jackson Thornton, Inc., recommended the council consider increasing the residential customer utility rate from $10.00 to $22.00 to cover operating costs identified in a rate study based on 2022 city data. Mayor Jamie Heard presided over the meeting, which began at 5:00 p.m.
Marshall said the study first established how much revenue the utility needs to operate and then calculated customer rates to meet that need. "In his opinion, the city needs to consider an increase to the residential rates from $10.00 to $22.00," the minutes recorded, and Marshall added that the proposed residential rate would remain lower than surrounding rates. He also said the data indicated commercial customers were already paying their fair share.
Citizen Denize Zachery asked why the recommendation targeted residential rather than commercial customers. According to the minutes, Marshall said that, based on the 2022 data the study used, commercial customers were already contributing a proportionate share of revenue.
The consultant provided handouts to council members during the presentation. Council members did not take a formal vote or adopt any rate changes at the work session; the recommendation was left for the council to consider at a future meeting. The work session adjourned at 5:58 p.m.
