Murray to hear proposed electric rate changes Oct. 20, after $19 million power bond

The Murray City Council will hold a public hearing at 6:30 p.m. Oct. 20, 2026, in the council chambers at City Hall on a proposed ordinance amending 11 sections of the city code relating to electric rates, according to a notice issued by the city. ^[1]

The notice describes "proposed rate increases and changes to applicable electrical service schedules." It says a copy of the proposal is available at the city's finance and recorder offices and on the city website starting Oct. 9. The notice itself does not list the proposed rates. ^[1]

The agenda for the council's Oct. 6 committee of the whole meeting listed a 45-minute discussion of the same ordinance, presented by Greg Bellon and consultants from Utility Financial Solutions, LLC. ^[2]

What the budget said in August

The budget the council adopted Aug. 11 says a master plan has been finished for the Power Fund and "a rate study is being completed as this budget is being drafted. There are currently no rate increases scheduled." It says the fund's power cost adjustment "is available to quickly respond if the cost of power increases beyond the set level." ^[6]

The budget says the Power Fund plans to use $7.7 million of reserves, all for capital projects, most of them bond funded, and that its revenue exceeds operating expenses by $134,829. ^[6]

The fund summary projects the Power Fund's reserve balance falling from $27,808,082 to $20,098,421. ^[8] The budget also rolls forward $6.1 million of bond-funded power projects from fiscal 2026. ^[7]

On Sept. 15, the council appropriated another $5,750,817 from Power Fund reserves for infrastructure improvements. ^[9]

Recent results and the 2025 bonds

In May 2025, the Power Fund sold $19,090,000 in revenue bonds at a 4.61% coupon to finance the rebuild of a substation, the rebuild of natural gas turbines, the purchase of two transformers and other power system improvements, according to the city's audited fiscal 2025 report. ^[3]

The report says the city raised power rates in August 2024 by 7% to 14% depending on rate class, the second of three annual increases. It says purchased power costs rose $1.4 million, or 5.48%, in fiscal 2025. ^[4]

Management's discussion says operating revenue rose $5.6 million and the power cost adjustment generated $1.2 million, offsetting most of the higher cost of purchased power. ^[5]

The Power Fund's total net position rose $80,483 in fiscal 2025, after decreases of $12 million in fiscal 2023 and $5.2 million in fiscal 2024. Its restricted and unrestricted net position fell $779,492, to $14,849,578, which the report describes as about 32% of annual operating revenue. ^[3][4]