PUD board okays preliminary budget in 2-1 vote

 

September 3, 2015



Two votes were enough to pass the preliminary 2016 budget reflecting a 5 percent rate increase for all systems at Tuesday’s Wahkiakum County PUD Board of Commissioner’s meeting.

Commissioners Gene Healy and Bob Jungers voted to approve the budget while Commissioner Dennis Reid voted against it.

“In four years time, we have a 20 percent increase on our water systems," Reid said. "It’s really hurting people. I’m just not in favor of raising water and electric at the same time because people are having a hard time with the bills.

"A 20 percent increase in four years especially on the western Wahkiakum water system, already the highest cost public water system in the state—and now it’s going to be higher. And we’re tacking on electric bills being higher too? It’s too much burden for people. There is nothing wrong with the way the budget was prepared I just have a problem with the price.”

Healy commented that if he had any qualms that it would be the rate increase for the Puget Island water system.

“There are other things that I think that we need to make sure we don’t lose sight of,” General Manager David Tramblie said. “We’re pursuing the potential for a new water source for the Puget Island water system and that’s an unknown cost. There are so many variables out there. I understand the concern but we also have to keep in mind that our operation costs are never going down.”

“We’re required to pass a preliminary budget,” Tramblie continued. “This is a budget that I proposed. Nothing says this is set in stone.”

The budget and rate hearings are scheduled for October 6 and the budget will remain on the commissioner’s agenda while they continue to discuss the issue. A final budget must still be approved by the end of the year, and Healy said the commission should support it unanimously.

“We should have one more chance to weigh in,” Healy said. “By the time we go to a public hearing, we should be one faced on this.”

The board also tackled the water adjustment policy, which had been challenged by two Grays River customers at a recent meeting. Healy had followed up by doing some research and talking to other PUDs around the state.

“Their policies are all more liberal than ours,” Healy said. “As a general rule, they are writing off half. They are writing off the production cost plus a small administrative fee. Most of them require a technician to go out and make sure the leak is fixed.”

“The policy is a one time forgiveness, right now 25 percent of the amount over and above normal usage,” Tramblie said. “If you think that is not forgiving enough, I can see maybe going to 50 percent because that probably brings you pretty close to the difference between your retail rate and your cost of production rate without going through those numbers on an annual basis. Remember there are only a handful of customers each year who take advantage of this. We do try to verify that it was in fact a break and not some other form of usage."

They will continue to discuss the matter at the next meeting.

In other business, Tramblie reported that a grant had come through to study the feasibility of a consolidation of the Town of Cathlamet and the PUD’s water systems, which should be completed in January. The PUD is also trying to find funding for a project to locate a new water source for the Puget Island water system. He also said that crews had finished the Shannon Road electric and water replacement project.

“We’re losing a lot of nitrogen from the old transformer at the Grays River substation,” Tramblie said, “It points out the need to replace old infrastructure down there. I threw the number out of $800,000 for the Grays River substation rebuild recently, but I think it’s going to be closer to $1 million.”

There are approximately 500 meters on the Grays River substation according to Auditor Erin Wilson.

The next meeting is scheduled for Tuesday, September 15 at 8:30 a.m. in the PUD meeting room.

 

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