It’s a perennial event for Bountiful City. Transfer funds from the power company into the City’s general fund. They do this by overcharging power users to the tune of $2 million. Effectively, the city has been able to use the city-owned power company as a cloaked taxing entity through rate manipulation with the added bonus of avoiding truth-in-taxation hearings. Better yet, because of this, the city can (illegitimately) claim that residents have “lowest property tax rates of any of the twenty largest cities in the state”.
Enough background, on to the predictable stuff. This year, the city increased the transfer from Bountiful Power and Light by about $250,000 (from $1.96 million to $2.2 million). Last year, the city more than doubled the “customer charge” of the power bill (from $1.67 to $4) and I warned:
It will be worth watching if the power fund transfer to the city jumps… in the coming year.
While I was off on the exact jump (see the linked post), apparently, I was right with my warning.