Dear Editor,
As long time former elected officials of the City of Natchitoches, we are greatly concerned by the recent unprecedented actions by the present City administration to increase Utility rates on the citizens and businesses in Natchitoches. This action was passed by the City Council to raise Utility rates in order to generate additional revenue to fund questionable City expenditures.
In 1926 the City of Natchitoches dedicated a new power plant with the sole purpose to provide reliable, continuing low-cost electrical service to the citizens of our city. For almost 100 years, the city’s utility rates have been some of the most competitive rates in the state, providing sustained affordable cost of living to our citizens, and a basis for economic growth in our area. When the power plant became antiquated and less efficient, it was replaced in favor of purchasing power from CLECO with larger, more efficient generating units. Natchitoches retained its electrical distribution system (utility poles, wires, substations, etc.) This arrangement allowed the city, low-cost dependable electric power.
The rate structure consists of a Power Cost to the City, plus a Base Rate applied by the City, that would fully fund the needs of the Utility Department, including Bond Reserves, Utility Reserves, and Capital Projects. This system, with proper management, historically provided affordable rates and met the needs of the Utility Department. At the end of every physical year, after all obligations had been met, any available Surplus funds were transferred to the City’s General Fund to provide one-time capital expenditures that would benefit All citizens, such as street overlays. This amount annually would usually range from $1 -$1.5 million. After the recent rate increases, the City has budgeted to transfer $6,300,000(6 million,300 thousand dollars) to the General Fund of the City. This is in addition to multiple thousands(?) of Federal Dollars gifted to the city during and/or after COVID.
Instead of providing affordable utilities to you, the public, the city administration has chosen to use utilities to TAX you, since they are maxed out in Sales Tax the public can be charged in Natchitoches. Most public taxes need a Referendum Vote by the Citizens to be legally enacted. This Tax took only 3 votes from the City Council and the Mayor’s signature. Even Independently owned Utilities have to have the approval of the Public Service Commission to implement a rate increase. Is this taxation without representation?
The businesses and citizens of Natchitoches are now experiencing the highest utility bills ever recorded. After pushing a large portion of our population over the utility delinquency cliff, the City administration is now patting themselves on the back and taking credit for establishing a” Utility Assistance Fund” for those who can not pay their utility bills. The $250,000 Tax Payor Utility Assistance Fund is your money being redistributed because of their rate increases. How long can the city sustain paying for utilities?
To minimize the impact of the rate increase on the citizenry, the City Administration decided to implement ONLY ½ of the passed increase in 2023. The remaining ½ is to be implemented after the city elections in 2024. If you think your Utility Bill is high now, it is only going to get Higher!
As a “taxed body”, the public must fully understand the implications of the present Policies of this Mayor and Council. There is no excuse not to be fully informed of the actions of your City Government. The Public must provide oversight of uncontrolled Spending and Balanced Budgets!
If you feel using your Utilities as a “Tax” is and will be, a burden on you as a citizen and on our vital businesses that we need so desperately for survival of our fragile economy, personally contact the Mayor and Council members to express you displeasure and encourage them to RESCIND the Utility Rate Increase. NO MORE TAX and SPEND!
Thank You for Your Interest,
/s/
Wayne McCullen
Councilman-at Large 1980-2000
Mayor 2000-2012
/s/
Don Mims
Councilman-at-Large 2000-2020
/s/
Jack McCain, Jr.
Councilman District 1 1988-2012
