WP Council advances utility rate hikes, FY27 budget

Published 2:30 pm Wednesday, October 21, 2026

West Plains City Council members have taken the first step toward increasing municipal utility rates with a unanimous vote on the first reading of four ordinances, following strong opposition during public comment.

City Administrator Sam Anselm explained the proposed increases applied to electricity, sanitation, water and sewer and are expected to raise average monthly residential bills by $5 to $7 once final approval is granted.

Based on city estimates, total electric charges will see the largest increase at roughly $4 monthly, followed by sewer rates at 72 cents, water rates at 69 cents, and sanitation rates at 16 cents.

During a public hearing held before the vote was taken, residents Lisa Mayhall and Michael Myers spoke against the rate hikes and had more to say regarding city services, including water quality and utility billing services.

Mayhall expressed frustration with city administration, noting she was “very disillusioned by this whole thing.” She cited specific difficulties reaching the sanitation department to empty a rented construction dumpster.

Myers, who noted the couple moved to West Plains from California 19 years ago seeking small-town living, voiced concern over local government spending and community growth.

“I’m from California and I’ve started noticing California mentality pushing growth in this community and a lot of people live in this community because we want to keep it small … small town U.S.A.”

The residents also protested being charged roughly the same amount for water use as for sewer. They questioned the fairness of charging for sewer usage without metering to show proof the water is going into the wastewater system.

Meyer questioned the general legality and constitutionality of taxation, how tax dollars are spent and why the cost of goods and services always goes up, never down.

The proposed rate adjustments were originally presented during a Sept. 29 council work session. Anselm and former city Finance Director Earlene Rich stated at the time that the increases are necessary to maintain current service levels and fund reserves for future capital improvements.

A financial summary provided to the council noted that municipal utilities receive no tax revenue subsidies and rely entirely on customer service fees.

ANSELM WARNS OF ‘TOUGH CONVERSATIONS’ IN 2028

In a separate vote on the first reading of the fiscal year 2027 city budget, Councilman Ron Grennan cast the lone dissenting vote.

“The short version is that we are balanced for the fiscal year 2027,” Anselm explained. “State law requires all municipalities to submit a balanced budget for the year, so that’s the good news. The bad news is that we are drawing from our reserves and especially in the general fund, to the tune of about $2 million dollars, to get that balanced.”

Anselm noted the projected general fund reserve balance at the end of 2027 will sit at about 1%, well below established financial guidelines.

“Best practice is about 17% or about two month’s worth of operations,” Anselm said, adding that finance advisers strongly recommend maintaining that reserve threshold. “We have some work to do, especially for 2028, because we just don’t know how things will play out on the revenue side next year. But if these projections hold true, there will be some tough conversations in 2028 because those reserve funds won’t be there.”

Anselm indicated potential operational cuts may be required to address future shortfalls. In response to an inquiry from Grennan regarding reserve requirements, Councilman Crockett Oaks suggested establishing a formal minimum reserve ordinance, an initiative Anselm confirmed staff has been actively considering.