Comments on: Draft City Budget Raises Utility Rates

By: Electric payer

Electric payer — Mon, 19 Oct 2009 19:17:13 +0000

Also, this is a 2 year budget, watch for the next year budget (2011)to do the same increases…will that mean 10%+ increases in 2 years?

By: Electric payer

Electric payer — Mon, 19 Oct 2009 19:15:41 +0000

Perhaps there should be a citizen advisory committee of inside and outside the city limits. Most Utilities have this, we do not.

By: david5eaward

david5eaward — Mon, 19 Oct 2009 03:37:03 +0000

The council members should nominate 7 board members within and outer city limits to represent public concerns once every few months. Of the 7 members, 4 members should consist of business owners since they are the ones creating jobs and revenue for the city. Remaining 3 members can be of any background,profession…whatever makes him/her tickle the fancy.

That should satisfy those who are not being represented. I was wondering if those living outside city limits utilize the harbor and it’s free amenities?

By: anon

anon — Sun, 18 Oct 2009 17:29:35 +0000

The city has also transferred 500K from the EEF to the Sewer MRRF a few years back. After the city pays back the money it took from the EEF we could talk about asset replacement. The administration has been using the EEF as a cash cow to pay for anything they want for years. I agree with Dave on this one, if you live out of town you have no representation.

By: mariannackeil

mariannackeil — Sun, 18 Oct 2009 00:38:24 +0000

The bond payment for SMIC will be paid off very shortly, so the income from SMIC is supposed to go to pay the debt.

By: Dave Paperman

Dave Paperman — Sat, 17 Oct 2009 18:57:49 +0000

Thank you for the explanation. It is good to have this fairly significant number up front and out in the open. Is there a long term plan to have the SMIC user groups reimburse the Electric utility fund for the ‘loan’?

By: mariannackeil

mariannackeil — Sat, 17 Oct 2009 16:34:50 +0000

The amount transferred was approximately 1.6 million. These transfers stopped in 2006. The council has developed a plan to repay the funds. Chugach raised rates twice since 1993 that the previous councils never passed on to its customers. The city was notified that rates were raised effective October 9 again. This rate increase will be passed on effective January 1. Part of the problem was the transfers, but the main problem has been the absorption of the rate increases.

By: Dave Paperman

Dave Paperman — Sat, 17 Oct 2009 03:11:32 +0000

One important item left out of this article is the effect of Electric Enterprise Funds used to subsidize other city business areas, in specific the harbor and SMIC industrial development.

How many hundreds of thousands or millions of dollars of the Electric Enterprise Fund (Specified to only pay for capital costs related to ensuring the long term health of the electric utility) have been spent on bond payments or other expenses to make up deficits on the SMIC and Shiplift area, in specific the Dock near the shiplift, whose bond payments (if I remember correctly) used to regularly come out of the Electric Utility Enterprise Fund? The electric utility and its customers (many of whom are completely unrepresented as we live outside the city limits) should not subsidize the harbor, SMIC, or other for profit projects.
If these funds were used for their intended purpose of electric utility infrastructure maintenance and construction, would the utility be in the current shape that it is in vis a vis the tremendous maintenance backlog?