Cheney service charges, fees, could be precusor to rate hikes in later in 2015
In a harbinger of things to come, the Cheney City Council unanimously approved two ordinances and a resolution updating Light Department service charges and fees and changing how those will take place in the future if needed.
The biggest change made through ordinances W-42 and W-43, adopted at the council’s Aug. 26 meeting, is removing specific service charges and fees under Cheney municipal code chapters 14.04 and 14.08 and inserting the language “established by resolution of the City Council.” Resolution E-248, also passed Aug. 26, then did just that — making 18 changes to 53 items ranging from “After Hours Reconnect Fee disconnect day (up from $120 to $200) to charges for new overhead or underground services.
The council did elect to maintain a majority of the service charges and fees as they were previously listed in both chapters, such as the “Address Correction fee” that stays at $25.
Cheney Finance Director Cindy Niemeier told the council the increases were needed because the department’s utility funds were not covering governmental funds. Mayor Tom Trulove said that eventually, the council is going to have to debate increases in electrical rates in order to cover funding shortfalls.
“The rate show is still ready to drop,” Trulove said.
Councilman John Taves expressed concern over the fact the department hasn’t had an increase in rates since 2001, while the amount the Bonneville Power Administration charges utilities to purchase power has increased 20 percent, with another 7 percent coming up. The Light Department has been using its reserves to balance its operating budget, which Taves said leaves little room for any emergencies or the ability to spend money investing in infrastructure.
“We need to address electrical rates as quickly as others or our cash reserves will deteriorate,” he said. “The council is responsible for electrical rates, and we need to take it seriously.”
Taves said he was not comfortable with the proposed service charges and fees increases, but would not oppose the measures.
John McCallum can be reached at [email protected].
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