Manchester Democrat. [volume] (Manchester, Iowa) 1875-1930, 1920-02-25

|nEOULI III MUNlulPAL
OWNERSHIP AT AMES
(F,rom The Ames Daily Tribune
Light and power rates for electric
energy supplied by the Ames Munich
pal plant was raised 20 per cent last
night by the city council at their
second February meeting. The in
crease was made at the suggestion OF
City Engineer Manager P. F. Hop
kins The council passed resolution
providing for the increase.
Hereafter the first 20 X. w. hours
will cost 10 cents as compared to the
present II cents. This Is the basis
from which the other rates are fig
.ured. Below are given both the new
and the old rates.
New Light Rates.
First 20 X. w. hours, 10 cents.
Next 80 X. w. hours, II cents.
Next 100 X. w. hours. 3 cents.
All over 200 K. w. hours, 61s cents.
Old Light Rates.
First 20 X. w. hours, IL cents.
Second 20 X. w. hours, 10 cents.
+ Second 40 X. w. hours, 8 cents.
Second 80 X. w. hours, cents.
Second 16O X. w. hours, 5h cents.
New Power Rates.
First 100 X. w. hours, Z cents.
Second 100 X. w. hours, s cents.
Over 200 X. w. hours 5 cents
Old Power Rates.
First 100 X. w. hours cents.
Second lOO: X. w. hours, 5 cents.
Second 200 X. w. hours, 4 cents.
Second 400 X. w. hours, 311k cents.
New Cooking Rate.
Cooking rate OF 5 cents per X. w.
hour on separate meter.
Old Cooking Rate.
Cooking rate Of 3k cents per X. w.
hour on separate meter
At regular meeting Of the coun-
ell on February 2, the financial con-
dition and the general situation Of
the municipal light and water plant
were informally discussed. Since
that time a more thoro investigation
of the factors which have brought
about the present condition has been
made and statement published re-
Gently in the Tribune. IL
Hopkins Explains Situation
Last night Engineer Hopkins pre-.
scented q formal statement OF condi-.
tions to the council, attaching thereto
= copy Of his statement published In
the Tribune.
ut should be borne In mind" he;
says, that this is not condition
which has developed suddenly. From
March 31st 1916, to March 3lst, 1919,
the increase In operating expense
(which does not include new additions
to the plant) was 100 per cent, while
the increase in revenue over the COR
responding period was p, per cent?
During the past year, the operating
expense has Increased 40 per, cent
against an increase In revenue OF ga.
per cent. 1t is plain that the revenue
has not kept page .es 4 With 1ls. the operating
expense. II
Greater Revenue Needed. "A,
The electrical distribution system
is badly In need Of rebuilding and
eventually a new boiler and coal ham
ding machinery will have to be in
stalled at the plant. To fihaaSee those
aig1eatef nnevenueIwil have
10 abe forthcoming. Ino I'M face lof
the increased operating costs q This
can only be obtained by an increase
In the rates. It is believed that a
20 per cent. increase in the rates will
take care Of the situation as It is not
probable that the rate Of increase.
of the operating expense will continue
while the output of the plant is show
ing steady growth which should leave
4 reasonable surplus margin
The new rates suggested by En-;
gineer Hopkins were embodied in
resolution and passed by the council
last night. The minimum charge will
continue at $1.O0 per month. The
customary 10 per cent. discount for
payment Of bills on or before the 18th
Of the month will be continued. Rules
now in force will remain the same.
new rule has been added, as fol-
lows: Where service is disconnected
because OF non-payment OF bills,
charge of 500 will be made for re-
newal of service"
Changed Water Charge.
Commenting on the water rates, En-
gineer Hopkins said: "The water
rates are fair average of rates pre-
yailing in Iowa cities. But the pres
ent minimum charge of so cents is
hardly sufficient to pay the expenses
Of reading the meter, billing and col
lecting and maintaining service. A
rs cents service charge should be
added, making the minimum monthly
charge rs cents" This change the
council made. The added service
charge will, it is estimated, produce
a revenue of about $4,000 per year or
approximately enough to pay the
charges.
Is is believed that this $4,000, with
about $4,000 from the tax levy, new