HERMANN – Hermann residents are looking for ways to insulate themselves against yet a second significant electricity rate increase in as many years. And, city officials concede, there could be a third rate bump in the fiscal year that begins in July of 2027.

For now, the Hermann Board of Aldermen is mulling a recommendation from the three-member Utility Advisory Board (UAB) for a 9.5-percent rate increase effective July 1, which is the start of the city’s Fiscal Year 2027. This would be in addition to the 10-percent rate bump put in place last July 1.

The increases are City Hall’s effort to make up for a $300,000 deficit on the Electricity Division’s bottom line during the past several years. The initial thought of city officials a year ago was a three-year schedule of rate increases to wipe out that deficit — increases of 10 percent, 7.5 percent and 3.5 percent, respectively for this fiscal year (FY 26), next fiscal year (FY27) and the fiscal year that begins July 1, 2027 (FY 28).

Those amounts total 21 percent, which city administrators said was the amount of rate increase needed to erase the $300,000 deficit. The three-year plan for rate increases was agreed to as a way to lessen the impact on electricity customers.

The recommendation for the 9.5-percent rate increase from the UAB was formally made in a letter from Chairman Brian Chorley to City Hall. It was presented to the Board of Aldermen at its Tuesday, May 26, session. The board could take up the issue at its June 8 session.

Meanwhile, Mayor Bruce Cox opened the board’s second regular session of last month with a mild admonishment of the community regarding a low turnout for the Memorial Day Service in City Cemetery.

“I notice every year the crowd gets a little bit smaller and a little bit smaller,” he said, noting that this year’s ceremony attracted about 75 people, not counting the members of the local VFW Post and others directly involved in the ceremony.

A military veteran, the mayor emphasized the purpose of Memorial Day. “That day is meant to recognize the people who gave us our freedom,” he said., in closing out the Mayor’s Report for this BOA session.

City Administrator Patricia Heaney in her report to the aldermen pointed out that four applicants were being considered for the position of Parks & Recreation Department foreman. Two interviews had been conducted and two were pending, she said. The remaining two interviews were to be conducted in the coming days with a hiring recommendation possible by the end of last week. If a preferred candidate emerged from the field of applicants, the aldermen might be asked to approve a hiring through an email vote, she said.

The city administrator hailed the lack of action in the Missouri General Assembly regarding a bill that would have repealed sales taxes on food items. Municipal government officials opposed the legislation, citing the concern of losing a major source of revenue. However, Heaney said, municipal officials expect the proposal to be reintroduced in the 2027 General Assembly session.