City’s New Budget Will Not Include Tax Increase

TVA Regional Director Tim Weston (standing, white shirt) and Customer Service Manager Dawn Best (standing right) told Aldermen that the first phase of the new rate structure would be implemented in April.

By Jack Gurner
Reporter

WATER VALLEY – The City budget for the upcoming fiscal year is projected at $2,640,150, just $116,250 above the current year.

Mayor Larry Hart described the new budget as pretty much in keeping with the past year’s budget.

“The current year’s budget has performed well,” Hart said at the August first Tuesday City Board meeting. “We are well within our expenditures and our revenues have performed well also. We’re probably going to run a little bit ahead in sales tax, which we weren’t anticipating for the year.”

Revenue from all sources is projected at $2,851,489.00. The Mayor emphasized there’ll be no increase in the current millage rate of 37 mills.

“Our department heads and those in responsible positions have done a good job of managing and overseeing the operation,” Hart added.

The proposed budget will be published in the Aug. 26 Herald and the budget hearing will be held Sept. 7 at 6:30 p.m. before the regular monthly meeting.

Among other actions at the Aug. 3 meeting, the Board of Aldermen:

•  Heard from representatives of TVA who explained upcoming changes in the wholesale cost of electrical power.

TVA Regional Director Tim Weston and Customer Service Manager Dawn Best told Aldermen that the first phase of the new rate structure would be implemented in April. “This rate change is going to be revenue neutral to TVA,” Best said. “Meaning that we are not going to be taking in any more revenue in April than we are right now.”

Under the new rate retail customers will pay a little more in the summer months, a little less in the “shoulder” months (fall and spring) and more in the winter.

Best said that rate would be in effect until Oct. 2012 at which time “the whole world changes.” That is when the “time-of-use” rates go into effect.

Under the “time-of-use” rate structure, wholesale customers – like the Water Valley Electric Department – will be charged more during peak use hours; from noon until 8 p.m. during the summer and from 4 a.m. until 10 a.m. in the winter.

“It’s going to challenge people to think about a different way of doing things. A different way of operating their home. A different lifestyle,” Best said. “If they can do that, they’ll save quite a bit of money.”

Alderman Larry Bell asked how the Electric Department would know what time of day the customer was using electricity.

Electric Department Manager Joe Newman explained that his department would be using smart metering technology that would allow the customer’s meter to be read remotely throughout the day and the information transmitted to the office.

He added that public education is key to making the program work.

• Approved the use of American Municipal Services, a collection agency that will collect delinquent utility bills or delinquent fines at no cost to the City.

The company adds their collection fee to the amount charged to the delinquent account, Hart told Aldermen. He said both Chief Mike King and Newman have checked the company’s credentials.

• Accepted a bid of $117,982.25 from The Hydro Hawk of Starkville for the SCADA system.

• Heard from Mayor Hart that the City had received two grants from the Appalachian Regional Council. One was for the just discussed SCADA system and the other was $250,000 for the sewer rehab project.

The City is now awaiting action on the Community Development Block Grant portion of the project.

• Heard a report from the Mayor that the burned-out house on Clay Street was being demolished and removed.

“This will be an incentive for us to start dealing with other burn-outs in the City,” Hart said.

• Entered executive session during which Aldermen hired Margie French and Patrolman Luther Folson full-time from part-time status.

• Adjourned after just over 50 minutes.