By Krista Duhon
news@joplinglobe.com
MIAMI, Okla. — Miami City Council members and the city’s Public Utility Board will meet today in a joint session to discuss the 2008-09 city audit and hear the results of a utility rate study.
The study, recently completed by Economists.com, was conducted at the recommendation of City Manager Huey Long, who advised the council that a review of the city’s utility rates was in order.
The study is comprehensive, according to Tim Wilson, assistant city manager, and is designed to uncover hidden sources of revenue loss as well as make rate comparisons between the city of Miami and other communities.
Wilson, who has discussed the findings with the service provider, said the study has revealed a large water loss that equates to about $350,000 in lost revenue.
“The study has already more than paid for itself,” Wilson said, noting that the city paid $45,000. “The investigation proved that the city is not selling near the amount of water we are producing.”
The loss is being attributed to 30-year-old water meters that remain in service but should have been replaced years ago.
The average water meter has a duration of 10 years, Wilson said. The city has work orders in to replace 700 meters in attempt to capture the lost revenue.
The discussion of overall utility rates and how the city compares with similar communities comes on the heels of a Grand River Dam Authority announcement that it is increasing the city’s purchase price for electricity by 12 percent.
Wilson said the city’s elected officials have some tough decisions ahead of them.
“It is never easy to raise rates,” he said. “It is always easier to make small increases every year. … It has been several years since the city increased rates.”
Wilson said he believes the city is going to have to implement a 12 to 15 percent overall increase in rates to maintain overhead costs for all city services.
“I hope that I am wrong,” he said.
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