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Kaysville City eyes power rate increase
by Louise R. Shaw
May 27, 2010 | 2561 views | 0 0 comments | 7 7 recommendations | email to a friend | print
KAYSVILLE — Like most government entities and many individuals and families, Kaysville City will be tightening its belt a bit this coming year, with projected revenues down about 3.5 percent.

That means no cost-of-living increases for employees again this year, no new vehicle purchases – with the exception of the police department, and scaling back on capital improvements and other projects. It also means a proposed increase to power rates of about 7.5 to 8 percent.

“There’s been no increase in our operating costs,” said Dean Storey, city finance director, of the utility, “but our resource costs have gone up. We have to buy power and then turn around and sell it. We’ve seen those costs increase about 25 percent.”

The last increase in the power rates was in May of 2007, when rates went up 7.5 percent, Storey recalled.

The Kaysville City Council adopted a tentative budget for 2011 last week, and has scheduled a hearing for public input at 6 p.m. on Tuesday, June 1, in the city council chambers at 23 E. Center Street. Final action on the budget is set for June 15.

“Our first priority is to maintain our capacity to serve,” said City Manager John Thacker of the proposed budget, which includes no reductions in positions, but no additions either.

In Kaysville, the amount available in the general fund this year is $9,075,504, whereas last year’s budget was $9,380,772. The drop is attributable to a decline in sales tax revenue, according to Storey.

Residents could see an impact as a result.

“There will be a decrease in services because of aging equipment that we’re not replacing,” said Thacker.



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