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Everyone remembers what this commission did back in 2013. With the commission's direction and insistence, they passed
Ordinance 2013-40 to reduce Lake Worth's electric rates to parity FPL even though we were told by
Utility Financial Solutions that without significant reductions in the
costs of operations and increases to the general fund contributions, the
proposed 4.5% reduction would not be sustainable after 2014.
The commission, to this day, likes to brag about what they did to get our rates in line with FPL's. What they managed to do was to reduce our revenues and rob reserves. They like to tell us that they are business oriented but they were not when it came to our electric utility. You don't operate a business to lose money.
On September 23, 2015, this Trio voted to dip into our reserves on the Electric Fund in order to tell the people what great responsible commissioners they were by still trying to have rate parity with FPL. The goal was to attract developers to our city, one would assume, but also cementing political votes in the future. McVoy and Maier dissented, and rightfully so.
Maxwell said, "We need to find a way to keep our commitment to the
public...we're thinking out of the box." What he really did was drive
another nail into our coffin by spending more and robbing reserves. The
Mayor said she never agreed to raise electric rates and that they made a
law to have rate parity with FPL. McVoy said that the average monthly
electric bill has stayed flat and rate has very little influence on the
community and that they, as a commission, needed to mange the city
responsibly.
In Saturday's Palm Beach Post, front page, the article was about FPL seeking a $1.325 BILLION rate hike that includes a four year base rate hike with an average rate of more than $13 a month or 43 cents a day.
See my blog of September 25, 2015 and what this trio did...and it was all about 76 cents a month that they denied, having to go into "savings" to break-even. Not good business and certainly NOT good for Lake Worth.
7 comments:
Are you serious? Dipping into reserves?? They have burned through over $12 million in electric utility reserves since they were elected and budgeted to squander more this year (2016). We don't even have 3 months of cash reserves at this point.
Three months is a *minimum* prudent reserve for a utility in Florida, six months is the standard. If a hurricane damages our plant, like in 2005, we don't have enough to fix the damage, pay out-of-state crews to help with line repairs, and keep up with fixed costs that are incurred whether the plant is operational or not. All for less than $10 per year on the average bill?? Where is the Electric Utility Board?? The Finance Board?? Hello??? Can any of these people understand what is happening? Why don't they care? Because politics is more important?
The budget models that were approved by this commission plainly show that the utility is operating with negative net assets and negative Working Capital. That means, for those who may not know, that the utility's short term liabilities exceed short term assets that can be used to pay them. This is irresponsible beyond belief.
The consultant from Burton was literally in shock that they voted not to adjust rates. You should have seen the way they bullied him. The general public does not know what is happening because no one attends budget meetings. Or, rather, budget workshops. In a meeting I would be allowed to address the commission about how they are spending my money, or bankrupting my utility. But not in a workshop. Not ONE WORD of public comment was allowed through the entire budget process.
Commissioner McVoy was so upset that he met with the Utility Director, Asst Director, Finance Director, Budget Analyst, and CM to understand why we are letting this happen. I was in the meeting too. Everyone agreed that rates needed to be adjusted this budget year. They all just shrugged their shoulders and mumbled BS. Unbelievable.
This is what they call responsible leadership? This is what they refer to as "the grownups are in charge"?? They fraudulently manufacture problems that don't exist (the Beach Fund) and recklessly ignore problems that do exist thanks to their stupidity and political pandering. Totally disgusted with these boneheads.
We once had $3.5 million in our Beach Fund. That disappeared too.
And of course water rates went up so for the average utility customer, the bill remained the same. Nothing was gained by this maneuver except it "sounds" good but it is not fiscally sound at all.
These three, especially Scott and Pam, should be nailed to the cross for what they said here but all need to account for this horrible policy. You are right. It was bad politics.
AMEN Lynn, your previous leaders (Director & Manager) tried to tell the CM and Board this but no we chose to run them off instead, not retire but encourage them to leave and now look at us. Embarrassing.
I like lower electric rates
I like lower everything but you can't run a business with the purpose in mind to operate in the red because YOU like lower elec rates. Bad political decision and bad for Lake Worth. There is way too much socialism in this country and giving away kph is not a smart way to be sustainable.
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