It won’t happen right away, as city officials proposed a transfer of funds from the electric utility reserve fund to cover immediate needs. The rate change would likely take place in the fall, according to city manager John Thacker.
“Our resource costs have increased 15 percent over the last few years,” said Thacker. He said the city’s power utility is running at an annual deficit of around $450,000, which would quickly drain its reserves of $3 million.
“When we raise rates to recover from the deficit we’ve been running,” he said, “we’ll also include a percent increase to cover a transfer to the general fund.”
For more information check out May 17 addition of the Davis Clipper.