Sikeston electrical rate increase approved

SIKESTON, Mo. -- A more than 14 percent increase in electrical rates and a new restriction on mobile homes being brought into or moved to another location in the city are now official.

Council members approved the two ordinances after second readings during their monthly briefing session Monday.

The electrical rate increase is necessary because the electrical system did not meet required debt service coverage for fiscal year 2014, because of the uncertain future of the wholesale power market, and the Sikeston Board of Municipal Utilities received a negative outlook from the Fitch Rating Service, according to materials presented in previous meetings.

"Everybody pretty much knows what this is about," Mayor Jerry Pullen said.

The total increase of 14.3 percent on residential users, which is expected to generate approximately $2.5 million in additional revenue for BMU, will go into effect in two stages.

The first rate effective Monday will increase the rate 7.1 percent. Based on average use, the increase will result in bills received on or after Oct. 1 being $5.20 higher.

The remaining 7.2 percent increase starts April 1, so bills on or after May 1 will go up $5.46 for an average user.

Commercial rates will be raised about 16 percent and the industrial rate will go up 6 percent to remain competitive in attracting new and/or expanding industries.

The second ordinance amended city code to classify mobile homes 15 years or newer as class A mobile homes and those older than 15 years as class B.

Now, only class A mobile homes can be moved onto a lot zoned for mobile homes. This includes mobile homes moved from another lot in the city in addition to those being brought from outside the city.

Class B mobile homes can remain where they are now but not move within the city.

The amendment will also require specific types of anchoring for mobile homes.