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THIS PAGE SPONSORED BY PETERSON ANTHONY INSURANCE
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11/13/2012
THE FAIRMONT PUBLIC UTILITIES COMMISSION REVIEWED THE 2013 BUDGET PRORPOSED BY CITY STAFF AT A WORK SESSION ON TUESDAY. THE PROPOSAL INCLUDES A 15 PER CENT RATE INCREASE ON WATER RATES. THE INCREASE IS CALLED FOR ACCORDING TO CITY FINANCE DIRECTOR PAUL HOYE IN ORDER TO KEEP UP WITH CURRENT CAPITAL EXPENDITURES AND DESIGNATED RESERVES AND TO FUND DEBT SERVICE ON THE NEW WATER PLANT. AS A REQUIRMENT OF THE P F A LOAN FOR THE PLANT THE CITY COUNCIL APPROVED AN ANTICIPATED WATER RATE INCREASE IN IN 2011 PROJECTING A 10 PER CNER INCREASE IN BOTH 2012 AND 2013. THE INCREASE CALLED FOR IN THE COMING YEAR IS HIGHER THAN PREVIOUSLY EXPECTED BECAUSE THE CITY IS BUDGETING A 6.5 PER CENT REDUCTION IN SALES DUE TO WATER RESTRICTIONS THAT HAVE BEEN PUT IN PLACE.
CITY STAFF IS ALSO RECOMMENDING A 10 PER CENT INCREASE IN WASTEWATER RATES FOR 2013 BECAUSE SEWER SALES ARE EXPECTED TO DECREASE AS WELL. THERE WILL NOT BE AN INCREASE IN ELECTRIC RATES FOR THE NEW YEAR BECAUSE THERE WILL NOT BE AN INCREASE IN POWER PURCHASE RATES FROM S M M P A. WITH THE PROPOSED RATE INCREASES THE AVERAGE RESIDENTIAL CUSTOMER WILL SEE A 7.49 PER CENT INCREASE ON THEIR UTILITY BILL OR 9.50 A MONTH.
THE P U C WILL BE ADOPTING THE PROPOSED BUDGET AND RATE INCREASES AT THE NOV. 27TH COMMISSION MEETING AND THEN THE CITY COUNCIL WILL BE ASKED TO ADOPT THE 2013 BUDGET AT THE DECEMBER 10 TH COUNCIL MEETING.
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ROD HALVORSEN
© 2010 KSUM.
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