By Bob Strohm
bstrohm@wbcowqel.com
Electric rates for Galion residents will be raised for the first time since 2005 after City Council approved the third reading of the new electric rate ordinance. The new rates will go into effect Aug. 1 following Tuesday’s unanimous vote.
The new rates result in an increase from $.0845 cents per kilowatt hour to $.1075 per kilowatt hour. The rate change approval didn’t get passed without a few members of the public voicing their concerns over the rate adjustment.
Former law director and City Council member Roberta Wade spoke out against the rate change during the public address to council portion of the agenda.
“We are not talking about a small increase. We have people struggling to make payments as it is. Why are we always looking at raising the rates on them,” Wade said. “Someone from council needs to be the champion for those people that are struggling.”
Wade also noted that with the increase those who use 500 kilowatts in an average month will see a 10-percent increase on their electric bill.
Galion resident Nathan Meredith didn’t agree with the rate change either noting that it could cause residents of Galion to move out creating a situation similar to that of Detroit.
“People move out and you would be left with abandoned structures,” Meredith told council. “Abandoned structures equal crime which makes people suffer. Raising rates is bad for everyone.”
After Wade spoke, Galion Mayor Tom O’Leary asked Council member Michael Richart how many meetings had taken place on the electric rates. Richart answered that there had been 12 meetings as well as two previous readings of the ordinance.
The mayor asked Richart if during that time anyone came to those meetings to voice their concern for the rates. Richart responded that prior to tonight there had been no one at those meetings voicing a complaint.
During the discussion O’Leary asked how much a 10-percent increase would mean for electric rates for someone using 500 kilowatts. The answer to O’Leary’s questions was a $3 to $4 increase. O’Leary then noted that while the electric rates were rising that the water and sewer rates for Galion residents was decreasing to $1.75 for water, and $1.74 for sewer.
With the passage of the ordinance, the rates for electric would be lowered to high end users to try to keep the current businesses in Galion while also trying to attract new business. It was noted that the main reason that Hydraulic Technologies Inc. will be closing down their Galion plant was due to the high cost of the electric rates.
During discussion prior to passing the bill Richart responded to Wade’s assertion that council wasn’t championing for its citizens.
“We are championing for the citizens because we are citizens,” Richart said. “It is distasteful that those coming in tonight haven’t attended any of the other meetings or readings. This is something that has been discussed for a long period of time.”
Galion City Council approved the issuance of bonds in order for the city to purchase four new trucks. The bonds will pay for a 75-foot ladder truck for the Galion Fire Department at a cost of $695,000, two trucks for the city’s street workers for $65,000, and one truck for the city’s sewer workers for the cost of $39,000.
Council passed with emergency an amendment to the fiscal recovery plan for a change in appropriations of $350,000 to the water fund in order to fund an additional waterline down Ohio 598, and $10,000 for a revolving loan fund for hotel renovations, and a decrease in $45,000 from the RCF fund for the 598 project due to not borrowing the money from the fund.