(Atlantic, Iowa) – The Atlantic City Council met this (Wednesday) evening and received a report from Atlantic Municipal Utilities General Manager Steve Tjepkes. He mentioned that in addition to the normal cost increases, their Purchased Power costs are increasing about 10-percent next year (2025). Because of that, and expected local system improvements in their 2025 Capital Projects budget, AMU will be increasing electric rates for the first time in nine-years.

Tjpekes says there will be an average overall increase of 5-percent across all rate classes in 2025. The improvements that are factored-in to AMU’s $2.4-million Capital Improvement Projects Budget, he said, include the replacement of two, 161-Kilovolt (kV) circuit breakers, which are “celebrating their 50th year of being in-place,” Tjepkes said.

On a positive note, Tjepkes said AMU was awarded a National Excellence in Reliability award for reliable electric service, compared to electric companies throughout the country, with an average service availability rate exceeding 99.9%. He said also, AMU’s electric rates are the second-lowest of all 181 utilities. Both the electric and water departments are currently debt-free, according to Steve Tjepkes.

AMU GM Steve Tjepkes

On the water operations side, AMU is planning a 10% overall water rate increase in 2025. What that means is the average residential water bill is $25/month. A 10% increase would add $2.50/per month to that bill.

The utility was awarded a $500,000 CDBG (Community Development Block Grant) to offset a portion of a planned replacement of an underground water storage tank.  The new tank will hold treated water that will be ready to be distributed throughout the system.

The Atlantic City Council passed a resolution approving the Calendar Year (CY) 2025 Budget for AMU, which the utilities’ Board of Trustees approved Monday night, following a public hearing.  The City Council also heard from Nishna Valley Family YMCA Director Dan Haynes, who mentioned the Recreational Center Building will finally be paid-off by the end of the month, through the Local Option Sales Tax (LOST) Fund.

Haynes reminded the Council a project to expand and renovate the recreation center is planned in conjunction with Vision Atlantic and the Charles E. Lakin Foundation, which has committed $6.4-million in grant funds toward the YMCA portion of the Vision Atlantic project.  In other business, the Atlantic City Council acted on approving:

• An order to approve pay application number three to the Henley Group, LLC, for the Sunnyside Park Splashpad Project.
• And, the Second Reading of an ordinance amending the City’s Code of Ordinance, with regard to ATV and Snowmobile use in the City.

Councilman Shawn Sarsfield said there are some misconceptions among some citizens about the ordinance.

The Council held a Public Hearing on a proposed amendment to the Urban Renewal Plan (URP) for the Southeast Urban Renewal District (URD). The hearing was followed by action on passing a resolution to approve the amendment as presented. During their meeting on Aug. 3rd, the Council held a public hearing an passed a resolution adopting the original Prairie Hills Subdivision Project to the Southeast URD.

City Administrator John Lund noted “Amending the Urban Renewal Area to include the new Urban Renewal Project, is a prerequisite to formal debt being incurred and eligible for TIF (Tax Increment Financing) capture under a development agreement, as proposed in a resolution setting the public hearing and date for, approval of a development agreement with Vision Atlantic, which includes an annual appropriation for TIF payments. The council act on [passing] the resolution during their meeting Wednesday evening.

The final order of business for the Atlantic City Council, was act on an Order approving the Annual/Financial Urban Renewal Report, as required under the Code of Iowa.