A perfect storm of rate increases is brewing at City Hall.For the first time in recent memory, four utility rates may increase at the same time. It's a rare occurrence, but residents need to look at the reasons behind the hikes before tempers flare.Three of the four increases are due to escalating wholesale costs. Providers of city water, electricity and landfill services all have increased their fees. Passing those rate hikes onto residents is the logical action.Though the Wyoming Municipal Power Agency rates rose in January, the city has waited to tack the increase onto local electric bills. The city has absorbed the cost of the spiked rates since January, amounting to more than $40,000. By the time July rolls around, that cost will be around $66,000.If the Powell City Council approves the proposed fees, July is the soonest that local utility bills will reflect the increased rates. Residents and businesses should be grateful for the six-month delay.The fourth proposed increase, for sewer services, comes at the recommendation of an outside auditor and the city finance director. Last year, the utility's budget was barely in the black. To remain viable —and in compliance with state law —the utility must have an operating income.Each utility has its own budget, where revenue and expenses are tracked. These are entirely separate from the general fund, where city departments — including the aquatic center, police, streets, parks, etc. — are tracked.For those wary or simply curious about city finances, the preliminary city budget for the fiscal year 2009-10 can be perused at the Powell Branch Library or online at www.cityofpowell.com.No one wants to see four utility rates increase simultaneously — but, while proposed rates are not welcomed, they are justified.

A perfect storm of rate increases is brewing at City Hall.

For the first time in recent memory, four utility rates may increase at the same time. It's a rare occurrence, but residents need to look at the reasons behind the hikes before tempers flare.

Three of the four increases are due to escalating wholesale costs. Providers of city water, electricity and landfill services all have increased their fees. Passing those rate hikes onto residents is the logical action.

Though the Wyoming Municipal Power Agency rates rose in January, the city has waited to tack the increase onto local electric bills. The city has absorbed the cost of the spiked rates since January, amounting to more than $40,000. By the time July rolls around, that cost will be around $66,000.

If the Powell City Council approves the proposed fees, July is the soonest that local utility bills will reflect the increased rates. Residents and businesses should be grateful for the six-month delay.

The fourth proposed increase, for sewer services, comes at the recommendation of an outside auditor and the city finance director. Last year, the utility's budget was barely in the black. To remain viable —and in compliance with state law —the utility must have an operating income.

Each utility has its own budget, where revenue and expenses are tracked. These are entirely separate from the general fund, where city departments — including the aquatic center, police, streets, parks, etc. — are tracked.

For those wary or simply curious about city finances, the preliminary city budget for the fiscal year 2009-10 can be perused at the Powell Branch Library or online at www.cityofpowell.com.

No one wants to see four utility rates increase simultaneously — but, while proposed rates are not welcomed, they are justified.