The 8,500 customers of Vicksburg’s natural gas system will see a drop in rates beginning Nov. 1.

About two weeks after Mayor Paul Winfield announced on Oct. 2 the city would be reducing its rates to consumers, the Board of Mayor and Aldermen Monday voted 3-0 to cut the city’s base gas rate by 5 percent, or 35 cents, from $7 per 1,000 cubic feet to $6.65.

The city’s rate structure will not change, and the price reduction will appear as a negative number on bills, said Howard Randolph, president of Utilities Management Corp., the city’s gas consultant.

The lower gas rate is a result of a lower price the city is paying for gas before distribution.

Winfield said the cut “will mean minimal savings to our constituents, but we hope to be able to provide bigger savings at a later date as our gas fund becomes healthier. Compared with other municipalities, our system is in good shape. Other systems are raising rates.”

The gas rate change was not on the agenda Monday, but added during the meeting.

South Ward Alderman Sid Beauman, who at past meetings objected to amending agendas with the last-minute issues, did not object to including the gas rate.

Beauman said later he was able to talk with Randolph about 15 to 20 minutes before Monday’s meeting. Randolph, he said, was able to bring him up to date on the gas rates.

Randolph said the rate reduction was possible because Utility Management bought gas for the city from ConocoPhillips, the city’s gas supplier, for November, December and January at locked-in prices, meaning the city will pay that price even if the market price changes.

He said Utility Management still has to buy gas for February and March, adding, “If we have a hard winter and the price of gas increases, the (price) will go up and the consumer’s price will also go up.”

Monday afternoon, the November price of gas was $3.48 per 1,000 cubic feet. The futures price for February gas was about $3.90, and $3.87 for March.

“This was an issue that required quite a bit of serious discussion,” North Ward Alderman Michael Mayfield said. “If we hadn’t taken our time with this, we could have had some serious trouble down the road. We were fortunate to find someone who really knows the market and can keep an eye on it. We’re glad to be able to return some costs to the citizens.”

City officials had discussed reducing the price of natural gas since mid-April, when natural gas prices dropped to below $2 per 1,000 cubic feet.

The board on April 25 delayed reducing gas rates until May 7, and then until June, but there was no further discussion on the rates until Oct. 2, when Winfield announced the 5 percent reduction.