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Residents battle hike in power
by Chad Phares
Jun 15, 2005 | 82 views | 0 0 comments | 1 1 recommendations | email to a friend | print
BOUNTIFUL -- Amid strong words from angry residents, the Bountiful City Council approved its 2005-06 budget Tuesday night -- which will push Bountiful electric rates 6 percent higher. By July, they will exceed those of Utah Power. Several called for the city to raise property taxes instead of charging more for services from Bountiful City Light and Power. Beginning July 1, Bountiful residents will see the power hike on their bills. Much of the increase in money received will go to paying for the $4.4 million increase over last year's budget. #

During the public hearing portion of the meeting, city resident Hugh Williams told the council he disagreed with the moving of finances from the power fund into the general fund.

"You brag about a low property tax rate, but it wouldn't be so low if you used the general fund to fund things," Williams said.

Resident Vernon Kunz agreed, adding that the estimate of $3.69 extra a month shouldn't have been proclaimed a $3 increase, but instead an increase of $4.

"That offends my mathematical sense," Kunz said. "Whoever did this would have failed my math class."

Part of the reason for the rate increase of Bountiful Power and Light is because of difficulty in obtaining power from Lake Powell. City Manager Tom Hardy said that Bountiful's power purchase and production costs have increased from $7.3 million to more than $14 million in the last five years.

"Why not turn it back over to Utah Power and then we could charge higher property taxes?" Kunz asked. "Maybe we should ask the citizens of Bountiful if they would rather increase revenue through property taxes or through power bills."

Council member R. Fred Moss told Kunz that the city has discussed doing some of the things he mentioned. "The concern is service," Moss said. "One complaint I've heard is that Utah Power and Light's system is not as reliable as Bountiful's.

While City Manager Tom Hardy said he philosophically agrees that the city should sell to Utah Power if rates are going to be consistently higher, he doesn't believe that time has yet come.

"For 10 years our rates stayed the same or went down," Hardy said. "As these rates have gone up, we've tried to decrease others."

Hardy told those at the meeting that it is possible that Bountiful's rates could drop below the rates of Utah Power again. The total budget for the 2006 fiscal year is $52.8 million. Last year's budget was approximately 48.4 million.

The largest budget increase is in the water fund. The budget for the fund will rise from $2.6 million to $5.3 million. The principal reason is the construction of a new water department building and warehouse area.

The city is budgeting $1.74 million for fire protection. This money will go to the South Davis Metro Fire Agency.

the city budget no longer incudes the sewer fund because the assets of the fund were transferred to the South Davis Sewer District.

The 2006 fiscal year will also b the last year of budgeting for the recreation center, which is scheduled to be completed by October 31, 2006.
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