OSCEOLA, AR (KAIT) - The city of Osceola recently discussed a resolution that would adjust costs for the city's water and sewer customers.
According to Mayor Dickie Kennemore, a part of their 2017 budget includes the cost of power with the Osceola Municipal Power and Light.
Kennemore said they currently have three substations in the city.
However, one of their substations next to the American Greetings Corporation had been reading short.
Kennemore said one of the meters was set incorrectly and it should have been read four times greater than it was.
"Now, that is not a rate increase," he said. "It was simply an under reading of a kilowatt-hours used in one substation. We already had a surplus built into our budget of $446,000. So, that can be charged against the $1.2 million and we have been reserving a capital purchase account so we can instead of borrowing money or budgeting we can reserve funds to improve our water and sewer and municipal electrical infrastructure in the future."
Mayor Kennemore also said they had a budget set up to give credit to residential ratepayers.
But since the city doesn't have excess funds, they will not be giving a one cent credit to users for the last six months.
He said by doing this, the city has cut their budget by $854,000.
"If our budget turns out to be better later in the year, than we may still give a fuel adjustment credit," he said. "It's just one part of doing sound business to keep this city running on a balanced budget and meet the law. And that negative 1$.2 million kind of came out on a left field on us, so we have to do something to keep ourselves out of trouble."
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