Yet, again, Bountiful City will be raising the power rates for users (Housing, power issues on Bountiful agenda):
Other agenda items included consideration of a power department bond and also included adoption of a power rate increase of 5 percent. That would boost the “average” rate per month by about $4.85.
As I’ve said before, Bountiful City effectively uses Bountiful Light and Power (BL&P) as a de facto taxing means as it transfers and average of $2 million (I think it was $2.2 million this year) from BL&P to the city’s general fund each year. The tactic also happens to be a nice way to avoid truth-in-taxation hearings. The city power rates are already higher than Rocky Mountain Power, this will further increase the disparity. For a history of Bountiful City using BL&P for revenue manipulation click here.
For what it’s worth, Bountiful is also looking at issuing bonds for the BL&P. Based on the above report, it appears that public comment will be taken on the bonds (but not the rate increase):
Adoption of a resolution was to be considered for sale of up to $16.5 million in electric revenue bonds.
An interest rate of not more than 7 percent over no more than 25 years payoff is proposed. The bonds would be used to help fund purchase of natural gas turbines and other improvements at the 200 West substation.
A public hearing will be held Oct. 12 to receive any input on the proposal, including potential impact of bond sale on the private sector.
UPDATE: It’s official – they raised the rates and have authorized the bond. Wonder what good the Oct 12 public hearing will do for the bond. I guess they’ve authorized it but haven’t issued it…yet.