Mill Park Voters Set to Cap Utility Rate Hikes at 3 Percent

The Mill Park City Council placed a utility rate stabilization referendum on the November 3 ballot that would cap annual increases in residential electricity and water charges at 3 percent for five years. The measure would apply to all single-family homes and apartment units served by the municipal utility district.

Global energy price swings recorded in 2025 have raised local distribution costs, prompting the council to seek voter approval for the cap rather than continue the existing formula that ties rates to wholesale market indexes. City budget documents from fiscal year 2026 show that utility revenues must cover debt service on two aging substations completed in 2022.

Monthly Costs for Mill Park Residents

Under the current schedule an average household using 650 kilowatt-hours of electricity and 8,000 gallons of water pays $142 per month. The proposed cap would prevent the 7 percent increase scheduled for January 2027, keeping the same usage at roughly the present amount instead of adding about $10 to the bill.

Multi-unit buildings would see the same percentage limit applied to master-metered accounts, with property managers required to pass savings through to tenants under existing rental disclosure rules. Fixed-income residents in the 12 census tracts where median household income falls below $48,000 would retain the largest share of any avoided increase, according to the city's 2025 demographic profile.

Next Steps for Voters

The city clerk will mail a 12-page voter information pamphlet by September 15 that includes the full text of the ordinance and a fiscal impact statement prepared by the independent budget analyst. Ballots will be mailed starting October 10, with in-person voting available at 14 polling sites on election day.