Board of Aldermen Work Session, Friday, September 11, 2026

The City of Starkville Board of Aldermen held a work session on September 11, 2026, focusing primarily on the electric utility department's projects and proposed rate structure changes. The utility director presented a detailed overview of the electric department's financial challenges, including a $375,000 deficit despite a recommended 2% rate increase generating approximately $650,000 in revenue. The presentation highlighted rising operational and maintenance costs, increased material prices, and the lack of capital improvement projects since 2023, which have led to an aging electric system and a negative reinvestment ratio. To address these issues, the department proposed incremental 2% rate increases over the next three years to fund critical capital projects such as pole replacements, fleet upgrades, voltage regulation installations, and smart grid technology enhancements. The board discussed the necessity of these increases to maintain system reliability and financial sustainability, with consensus on the need for proactive rate adjustments. Additionally, the meeting included routine consent approvals for various city agenda items, including easements, grant matches, airport and engineering matters, and departmental claims and financial statements.