Centralia City Light Director Ed Williams said it would be difficult not to raise utility rates in 2010, as he’s facing one of the most difficult budgets he’sr seen in more than 30 years.
“If we wish to make any of the capital improvements it will be necessary to have some increase,” Williams said, noting the Bonneville Power Administration also has increased the city’s rates by 7.5 percent next year.
He put forward a budget for the utility department to city council members Wednesday night at a 2010 budget workshop that took into account a potential 4 to 7 percent increase in rates, and a potential bond city councilors could pass.
Williams said all of the department’s funds would go toward paying BPA’s rate increase if rates were not increased, and without improving sections of the city’s outdated electrical system that are “downright dangerous,” Centralia could face an extended power outage if equipment failed at the B Street substation, among other places.
“You have to invest in infrastructure,” Councilor Ted Shannon told councilors Wednesday. “A lot of these capital projects are geared towards having a functional electrical system, and it doesn’t seem like there’s a lot of fat.”
Williams cautioned councilors about the impacts of not increasing rates for 2010.
“You can keep the lights on through 2010, then we start to pay the piper in 2011,” he said. “I start to lay off staff, I turn away customers, I can’t pay BPA, just some terrible stuff.”
Centralia City Light customers would not see a change in their bill until early next year when the rates would be set.
City Manager Patrick Sorensen recommended the council consider some rate increase as the department had an “inadequate” number of staff, and any layoffs could create safety issues.
When asked by councilors, Sorensen said he was still looking into whether selling the old utility department would be an option.
“We need to get to a point where we have all the answers,” he said. “There are a lot more complicated legal issues.”
Councilors wanted more information and a prioritized list of all the projects before they approve the department’s budget before the end of the year.
shadetree
There's not a lot of fat?????Excuse me! Why should there be ANY fat? Let me come in and look at your operational needs and books and I'll change my mind publicly in the town square if I can't find enough cuts to stave off any rate hike.' Put your money where your mouth is...I have
shadetree
Great! When two out of every ten of your neighborhood are out of work you want to raise rates and make it even harder on them. Does this guy get elected or appointed or worse yet like our great nation leader, anointed?When will people ever learn that no one in government will never see a tax or rate hike they don't love to pieces.
sarabeth
The infrastructure needs to be updated. It is sad that the city ignored this for so many years. If they had kept up with things over the past few decades, it would not have been necessary to do it all at once. I would prefer a rate increase next year and getting the work done to more frequent outages and dangerous flaws in an outdated system that could cause not only fires but injuries. We have been enjoying better rates than many other areas for a long time - I hope our city continues to keep its own utility department.