Argenta News - Bad News, More Bad News and Good News

Bad News, More Bad News and Good News

Written by Scott Miller

Wednesday, July 25 2007

For those of you not addicted to watching NLR City Council on Channel 4 on Monday nights (probably most normal people) you may not be aware NLR is proposing to raise your sewer bills in each of the next five years to pay for much needed plant expansions and required upgrades. The City proposes to raise your sewer bill 9% in October of this year, 8% next year, 7% the year after and 2% each of the following two years. A public hearing will be held on the sewer rated increase will be held on August 27th at the regular City Council meeting. (more on this farce in the next post). This is the bad news.

The more bad news is that the NLR Electric Dept customers are looking at another rate increase in January to pay for the increased cost of buying power. Projections by others have ranged from 5% to 15% for the electric rate increase. This has been made worse by the recent flooding on the Arkansas River, which reduces the amount of power the City can generate at it's hydro-electric plant at Murray Lock & Dam. Every day the river is high and the hydro plant does not generate power means more power NLR has to buy and likely higher electric rate increases in January. Pray for hot, dry weather. Preferably a drought.

Finally the Good News...The 1% sales tax levied to pay for the ballpark and senior citizens center will go off on October 1st. The purchase of everything from clothes to fast food will be 1% cheaper starting October 1st.

I don't know how the math works, but I suspect in the wash with the sales tax reduction, we will be paying less even with the electric and sewer rate increases

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Comments (4)

Written by equalizer, on 25-07-2007 23:29
Scott wrote: "I don't know how the math works, but I suspect in the wash with the sales tax reduction, we will be paying less even with the electric and sewer rate increases"
Let's see Scott, a raise [in] your sewer bill 9% in October of this year, 8% next year, 7% the year after and 2% each of the following two years as well as a 5-15% increase in electric rates will create a lower bill once the 1% ballpark tax comes off? Are you serious? The reason you can't do the math is because the math doesn't exist! Do you think about what you write or do you just spout babble? Please, in the future try to do a little research and post fact and not some sort of made up magic math.
THE EQUALIZER HAS ARRIVED!!!

Written by amymelisa, on 26-07-2007 14:15
Maybe I'm wrong but I'm betting Scott was being sarcastic. As for the electric increase, is there any group forming to oppose this? And is it already a done deal?

Math Counts
Written by scottmiller, on 27-07-2007 00:02
Equalizer, I appreciate your comments, but the math is important. No one likes taxes or tax increases, but tax increases like most things in life must be kept in perspective. Yes, 9% seems high for next year with nearly 25% over 5 years. But the average sewer bill is less than $15.00 per month so the increase is less than $1.40 per month next year and less than $4.00 per month five years from now. This means if you spend more than $140.00 on groceries, clothes, bar bill, etc. per month this year you save money. Even five years out the sewer bill is still a wash with less than $400 a month in spending when things will be even more expensive due to inflation. Also don't forget about about the additional 3% reduction in sales tax on groceries, which if you spend $300.00 per month on groceries, about washes out a 10% electric rate increase. Of course, these sort of taxes are regressive and cost more for those that are the poorest and we should look for ways to lessen the impact on those who can least afford it

Electric Rate Opposition
Written by scottmiller, on 27-07-2007 00:08
Amymelisa,
ACORN has had representatives speak about the electric rate increase hardships at recent NLR City Council meetings. So far they appear to be the only opposition. I suggest you call ACORN if you want to help oppose any electric rate increase, I am sure they would appreciate any help or support.