The Houston City Council voted down a 3% electric rate increase as it races toward adoption of a new budget and heard presentations from potential quadplex project managers during a meeting Monday, Dec. 2.
2025 BUDGET, ELECTRIC RATES
As the end of the year approaches, the council and administrator are tasked with finalizing the 2025 budget. A point of contention has been a potential electric rate increase.
Three individuals – Morgan Patterson, chamber president; Kevin Stilley, chamber board member; and Joe Honeycutt, city treasurer and former council member – provided comments. Patterson stated that business owners and the elderly would suffer the most and asked the council not to raise rates. Stilley and Honeycutt stated their prior experience on the board and understanding of the difficulty of the position. Stilley believes the electric component of the city budget is profitable already and asked if the company the city buys power from has raised rates. He believes it will in the future and the city will be forced at that time to raise rates, so they should avoid an unnecessary raise now. Honeycutt believes the city should do small increases every year to avoid any substantial changes. Last year there was no increase. He also stated that the reserves are for disasters. Three other individuals filled out a card to speak but either left or declined when their name was called.
Tim Ceplina, Ward II alderman, said he believes a 2.5-3% increase every year would be a reasonable adjustment. He stressed the importance of reliability, viability and scalability of the city’s utilities, stressing that profits should be used for updating the system and he noted he also hates to pay increased rates. Ceplina and Sam Kelley, Ward I alderman, stated that the city cannot depend on reserves for major infrastructure projects. The city has approximately $6 million in reserves, according to council members.
Mayor Viki Narancich stated that the city could make money by enticing individuals to move here rather than raising rates for existing customers. She asked the council what increased income from a rate increase would be used for. Kelley and Ceplina stated that a plan would have to be formulated with the help of the electrical department. Don Romines, Ward III alderman, stated that the city is not a “social club” but rather a business and should be run like one. He believes the increase would be small for each individual.
Narancich and Ward I Alderman Fred Stottlemyre questioned why the increase was put into the draft budget. Stottlemyre believes even a 2.5% increase is too much. Narancich stated she believes there is a disconnect between the council and the people they serve. Angie Gettys, Ward III alderwoman, said she believes the city has “lost its compass” on long-term planning through several administrator changes. She believes money has been spent on things that shouldn’t have been a priority and felt unprepared to make a decision on an increase until another budget workshop happened.
Kelley made a motion for a 3% increase in 2025 to be used for maintenance, improvement and infrastructure needs within the electrical department. Ceplina seconded the motion. The motion failed with Kelley, Ceplina and Romines voting yes and Stottlemyre, Ward II Alderwoman Sheila Walker and Gettys voting no. Narancich – tasked with voting in the case of a tie – voted no.
A decision on the 2025 budget was postponed until after the next budget meeting. A workshop is planned at 6 p.m. Thursday, Dec. 12 at city hall.
TWO COMPANIES PRESENT ON QUADPLEX PROJECT MANAGEMENT
Two companies – Mid-State Pipeline of Belle and Byrne and Jones Sports Construction of Bridgeton – gave presentations to be the project manager for the quadplex project on Thomasville Road.
Mid-State Pipeline spoke on the $4 million sports complex it is nearing completion on in Belle that features two baseball fields, two softball fields, an indoor infield, two basketball courts, batting cages, a golf simulator, a gym and concession area. A representative believed it can use similar cost-cutting techniques in Houston to build a reliable facility that won’t require intensive maintenance. The facility in Belle will have three full-time employees. The company expressed the need to diversify the facility’s offering with several sports and activities to make it sustainable.
Byrne and Jones touted its position in the sports facility construction industry and ability to be an all-in-one service for designing, engineering and building. They presented a $5.25 million base bid that could change based on detailed decisions the city could make. No action was taken. The council plans to make a decision at its next meeting.
OTHER MATTERS
- Rick Bond and Roxanna Guevara, Beauty Bar, spoke to the council about starting a salon downtown that would serve alcohol to clients. The council stated they didn’t need anything from the business pertaining to alcohol since they are not selling it and have a state license. The business is planned to open next year on Grand Avenue between Lilia’s Taqueria and Missouri Grappling Academy.
- Final readings were done for two ordinances pertaining to nuisance violations.
- The council authorized Narancich to sign documents to complete the airport lighting project and begin the reimbursement process.
- Kelley and Romines expressed disinterest in a proposal to change meetings to once a month. No action was taken.
- A Memorandum of Agreement (MOU) with SeniorAge Area Agency on Aging concerning the city’s transit system was postponed so the city could clarify details of the agreement.
- The council authorized City Administrator Lloyd Wells to sign documents pertaining to wastewater system grants.
- Narancich was authorized to sign a work agreement with the South Central Correctional Center for inmate services from April 1, 2025 to March 31, 2026. The crew performs public grounds work under supervision.
- Members approved moving a Certificate of Deposit valued at approximately $105,000 from The Bank of Houston to West Plains Bank for a 12 month, 4.2% interest agreement.
- Members acknowledged that 2025 trash service rates the city pays to GFL Environmental are increasing. The rate hike is approximately 4%.
- Wells was tasked with researching what surrounding towns do for building permit fees to determine a better fee structure for the city.
- The council approved $100 in additional holiday income for full-time, part-time and fire department personnel. The same amount was given last in 2023.
- A new pump for watering the greens of the golf course is still delayed in arriving. The Tennessee manufacturer is the hold up, according to Mortensen.
- A draft copy of the 2023 audit has been received by the city. A presentation from the auditors will take place at a future meeting. Fred Stottlemyre, Ward I alderman, stated he would like to see a new auditor next year, to avoid the same individual auditing for several years in a row.
- Members agreed to send out a letter for fiber internet sign-ups and allow the chamber to include membership applications to alleviate postage costs for the chamber. The agreement is for addresses inside city limits and is not to exceed $500.
The meeting adjourned at 8:49 p.m. No closed session was held.
