Edmond Life and Leisure - April 24, 2025

President’s tariffs may affect city hall budget

By Richard Mize Oklahoman.com

Could Edmond Electric utility customers wind up paying directly for President Donald Trump's tariffs?

"I'm watching the tariffs closely," Director Glenn Fisher told the Edmond City Council during this week's 2025-2026 city budget workshop, providing a public glimpse of what executives and owners of many private businesses are wrestling with in boardrooms all over the country: Day-to-day uncertainty over Trump's plans.

The city's water and wastewater, and solid waste budgets face challenges, as well, as the council heard.

Edmond Electric keeping eyes on Trump's tariffs

Unforeseen tariffs could hit Edmond Electric's budget and rattle the city's budget because the utility is owned by the city, and its revenue helps support police, fire, streets and parks, and other city services.

"I have been yo-yoing like everyone else on tariffs because one of my concerns is if there are tariffs on steel, on aluminum and other metals, it will directly impact our material costs, for transformers, conductors, things like that," Fisher said.

Trump imposed aggressive tariffs on steel and aluminum imports in March, sparking worldwide economic disruption and affecting China, Japan, South Kora and India. Large national economies fired back with tariffs on American products. The tariffs threaten industries needing steel and aluminum.

Ward 2 Councilmember Barry Moore grumbled slightly because Fisher, in his slide presentation, indicated no significant cost increases were expected over the next fiscal year. "But there could be," Moore said.

Fisher: "Will tariffs be there?"

Moore: "Who the hell knows?"

Fisher: "I don't."

Fisher said, "I did not budget to ac-

count for those (tariffs) because when we were doing the budget, they were not even on the table yet. So, it's a gamble. I don't know. It's a concern of mine. ... I've been trying to figure out where everything happens to be — today. But it may change tomorrow."

Fisher added: "It can have an impact on us. We do have reserve balances for those type of things. We keep a reserve for contingencies and emergencies, and things like that. So if there are price increases we can't account for, we can dip into reserves to cover those costs."

Moore: "You've got to have a budget that allows you to do your work. So if you see, in the next 30 days, something haywire on these tariffs, come back and see us because you've got to adjust your budget."

Later, Fisher told The Oklahoman by email: “Currently, Edmond Electric does not foresee any base rate increases for its services in the upcoming 5-year budget window. Base rates are used to recover our day-to-day costs of operations, including the cost of purchasing electrical materials such as transformers, conductors, meters and meter bases. ...

"I am not anticipating a base rate increase. If it became necessary, it would be done through City Council since they have to formally approve the rate ordinances.”

The cost of wholesale power is also an issue. It's passed along to customers, and adjusted monthly, up or down — and shown on customers' bills — as the price of natural gas fluctuates. Fisher said it hasn't changed since last July.

"I'm watching the tariffs closely," Director Glenn Fisher told the Edmond City Council during this week's 2025-2026 city budget workshop, providing a public glimpse of what executives and owners of many private businesses are wrestling with in boardrooms all over the country: