ROBERTSDALE, Alabama --- The Robertsdale City Council approved a five-year contract with Southern Company Wholesale, a distributor for Alabama Power, at its meeting Monday night.

Utility customers have most likely already noticed an increase in electrical rates, which were approved in the city’s annual budget in September, said Mayor Charles Murphy.

“What we’re looking at is that we have to give a two-year notice at the end of the contract in order to go in a different direction, so we have to give notice in 2016 and the contract will run through the end of 2018,” Murphy said. “If we do nothing, then the contract will continue until we stop it.”

Customers will see an average rate increase this year of about 7 percent, Murphy said. On average residential customers were paying about 10.8 cents per kilowatt hour. That will increase to about 11.2 cents per kilowatt hour, Muphy said, or an increase of about a half-cent per kilowatt hour.

“The average customer will see an increase of about $10 to $12 per month,” Murphy said. “Even with the rate increase our rates are still among the cheapest around.”

Murphy said Robertsdale Utility’s rates were compared with Baldwin EMC, Riviera and the City of Fairhope.

“We figured we’re still about a year behind their rates,” he said.

The rate increase is due in large part to a change in the way the rates were scheduled, Murphy said. In the past, rates were done in a block system with Robertsdale in the same block with Troy and Evergreen to designate rates. Rates are now done individually.

The rates will be reassessed annually and more increases could be forthcoming, he said.

“We just have to wait and see what the market does,” he said. “Right now one of the biggest concerns is a change in EPA regulations of coal-fueled generators stiffening regulations for emissions.”

The city currently has about 2,500 residential customers, a total of about 3,200 customers, Murphy said.

The Council voted unanimously Monday to approve the contract. Council member Ruthie Campbell was not present at Monday’s meeting.

In other business Monday, the Council voted to approve improvements to the city’s splash pad facility.

The city budgeted $6,000 for improvements for the coming year, said City Engineer Greg Smith. The Council approved Monday the construction of a metal fence running along Pennsylvania Street on the north side and Park Avenue on the west side of the facility at a total cost of about $3,800.

The Council also approved the construction of a pergola for the facility at a cost for materials of $650. Smith announced that the city had received a donation from Aaron and Andy White to build a 10-foot by 16-foot pergola at the facility. City workers will be used to build the project.

The remaining money will be used to build benches or picnic tables underneath the pergolas, Smith said.

In other business Monday, the Council:

• Voted to donate $200 to the Central Baldwin Youth Basketball League which will be used to purchase uniforms for the league.

• Voted to donate the use of the digital billboard to promote the Robertsdale High School softball team’s Breakfast With Santa fundraiser event at the Robertsdale Volunteer Fire Department and renew the city’s sign at the softball complex at a cost of $150.

• Reappointed Bob Sanders and Brenda Breedlove to the city’s Zoning Board of Adjustments.

• Approved utility account write-offs of $50,000 for 2013.

• Approve a half-day for city employees on Monday, Dec. 31 beginning at 1 p.m.

• Purchased two trucks for the engineering department on the state contract from Long Lewis Ford of the Shoals at a cost of $21,808.50 per truck.

• Approved the ABC license application for off-premise retail beer and wine sales for the Dollar General on Highway 90.