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HomeMy WebLinkAboutMINUTES Utilities Committee 2005-11-17RECORD OF PROCEEDINGS Town of Estes Park,Larimer County,Colorado,November 17,2005. Minutes of a Regular meeting of the UTILITIES COMMITTEE of the Town of Estes Park,Larimer County,Colorado.Meeting held in the Municipal Building in said Town of Estes Park on the 1 7th day of November 2005. Committee:Chairman Jeffrey-Clark,Trustees Newsom and Pinkham Attending:All Also Attending:Administrator Repola,Public Works Director Linnane, Utilities Supt.Goehring,Finance Director McFarland,Office Manager Button Absent:None Chairman Jeffrey-Clark called the meeting to order at 8:00 a.m. LIGHT &POWER DEPARTMENT Reports 1.Light and Power Dept.Financial Report —Dir.McFarland reviewed the report. 2.Proposed 2006/2007 Rate Increase —Dir.Linnane provided the Trustees with an overview of the proposed 2006-2007 electric rate increases.He indicated that the strength of the Light &Power Fund has allowed the department to decrease the rate increase by one-third from the rate increase projected for 2006. Discussion centered around several primary areas: •The need to achieve and maintain a $2 million Light &Power Fund Balance.This will provide bond companies an indication of the Town’s financial health and help the Town maintain its “A”rating for future renovations of the Marys Lake Substation.Bond companies are assured an operating plan is in place and structured rate increases are an integral part of such a plan. •The need for the electric rate structure to stay in line with costs tIE: increases in fossil and combustion fuel costs,increases in O&M costs). Town Administrator Repola stated that in the past the Town has not kept up with the cost of doing business. •The need to have a fund balance which equals 90 days O&M. •By rebuilding the fund balance,there will be funding available for future capital projects. •Comparisons between the rates of other Colorado utilities and the Town’s proposed electric rates.Town Administrator Repola noted that our electric costs would always be higher than many areas due to the fact that our revenues per mile are lower;the Town serves fewer customers per mile. Dir.Linnane provided the Trustees with articles illustrating the rate increases proposed or approved by other utilities for 2006.Loveland, Longmont,Fort Collins,Berthoud,Xcel Energy are a few of the Colorado municipalities/utilities that would be raising rates that exceed 2.5%in 2006.Dir.Linnane noted that when those increases are taken into account,Estes Park will move downward in the comparative rankings. A public hearing is scheduled at 7 p.m.Tuesday,Nov.22,2005 in the Board Room in Town Hall to discuss the proposed two-year rate increase.Trustee Pinkham emphasized the importance of providing the public with easy to understand facts and figures during staffs presentation.A brief PowerPoint presentation will be used for that purpose. C RECORD OF PROCEEDINGS Utilities Committee —November 17,2005 -Page 2 WATER DEPTARTMENT Reports 1.Water Financial Data —Dir.McFarland reviewed the report. There being no further business,Chairman Jeffrey-Clark adjourned the meeting at 9:05 a.m. Laurie Button,Office Manager APPROVEDr221J5] TOWN OF E$TE$PAR!( BOARD OF TRUSTEES