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12.18.04

M.U.D. won't start early on rate increases
by Nancy Gaarder, Omaha World-Herald

John McCollister must live in an opposite world.

The longtime member of the Metropolitan Utilities District board did what politicians rarely do: He proposed raising rates.

To pay for a new water plant, M.U.D. expects to raise water rates for seven years in a row, beginning in 2007.

McCollister on Friday offered a resolution to begin the increases in 2006, but at a smaller amount. Doing so, he said, would cost customers less.

"Long-term," he said, "if you take a small raise now, it means a lower raise down the road."

The measure failed on a 4-3 vote.

Voting with McCollister for the measure were Mary Kay Begley and Jack Frost. Voting against it were Tom Dowd, Mark Doyle, Dave Friend and Tim Cavanaugh.

Friday's meeting was convened to vote on the 2005 budget. The $428.9 million package was approved unanimously. It includes a 60-cent increase in natural gas customers' monthly service charge. For residential customers, the charge will become $10, effective next month.

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