Planned Utility Rate Increases Dumped
Planned utility rate increases for gas, water and sewer which were to go into effect June 1 won't happen.
The GMSA Trust Authority board, which manages the city's utility company, voted 5-0 to allow the increases to take effect as planned, but the City Council voted 3-2 to abate the increases, and 4-1 to allow an emergency clause to take effect on the matter. Voting to abate were Larry Parham, Gary Trippensee and Mike Davenport, with Mayor Gary Bishop and Terry Ryan voting against; however, the emergency clause required 80% approval so Bishop then flipped and voted with the GrovePAC candidates, who had made an election issue out of the increases.
The increase would have amounted to $2.06 a month for 62% of utility customers and 30 cents a month for 41% who use the minimum amounts each month.
Now, $360,000 will have to be transferred from the city's Capital Budget to make up the GMSA shortfall to keep it from floundering.
The meeting Wednesday night lasted nearly four hours and got off to a strange start after Mayor Bishop altered the previously posted Council Agenda items, moving #4, the 2007-08 budget, up to #1.
During the middle of the meeting he left for about an hour to hold his Wednesday night Prayer Session. Councilman Parham continued to attack bike paths, alleging that a bike path was being paid for by GMSA instead of the city. Allegations of misuse of GMSA funds were made and the council urged a delay in the rate increase implementation until the "numbers can be scrubbed." A joint "study group" will be appointed that can avoid the Open Meetings Act requirements, with two councilors and two GMSA board members to have separate meetings with city staff to find the scrubbings. The matter will eventually be dumped into the lap of a new city manager, when that hiring is made.
GMSA department heads pleaded for money for spare pumps, motors and other parts; two generators would cost $143,000; a wastewater pump at $98,000; a water intake generator at $67,000, with none of this in the GMSA budget for 2007-08. The water plant is maxed out at 85% of capacity in the summer months.
"We are cut to the bone," Gary Harrington said. Ryan said 'we have no opportunity to plan for the future, avoiding the increase is not in the best interests of the city. We are leveraged out."
Audience member Bill Miller of Grove told the Council "we all know why you want to kill the increase, you made an election campaign out of it."
GMSA does have a proposed $100,000 in the budget for replacement of water meters at a cost of around $42 each, which will mostly be used in the south part of the city where up to 50% of the water is disappearing, members were told.
Other department heads appeared before the Council, asking for items not in the budget.
Police Chief Ivan Devitt asked for four additional police officers to bring the department up to what it should currently be, new four-wheel drive vehicles, and better salaries for staff, who currently make $8.25 an hour. City staff has proposed $9.00 an hour, but Devitt noted that a new airport mowing position will pay $11.00 an hour.
David Adzigian asked for $150,000 for the Grove Industrial Development Authority to buy additional land for new industry which may come to Grove and was told $200,000 is in the proposed budget for roof repairs to the current Civic Center. The Fire Department asked for one additional fireman, which would bring the city to an ISO Rating of 4 from 5, which would save homeowners around 5-18% a year on their insurance premiums, but stated that adding three firemen would bring the ISO Rating to a 3. Four firemen at a time are required for entering structure fires.
Final budget approvals will be made around June 15.
Labels: Council Meetings