[simage=3281,400,y,center]
The Pella City Council met on Tuesday night and the City’s electric utility budget will increase for the 2011-2012 fiscal year. The Fiscal year will begin on July 1st of 2011 and City Administrator Mike Nardini says that of the $40 million dollar budget for the city, the electric budget makes up roughly $22 million dollars of that. Nardini goes on to say that the retail sales over the last 3 fiscal years have decreased 8-9% and that equates to about $1million dollars in lost revenue for the city. As a result of the lack of retail sales, and the need to provide an adequate capital budget for the electric utility, the city is proposing a 4.63% rate increase that would be effective January 1, 2011. Nardini says that should impact most residential customers by an additional 6-8 dollars per month.