In the 2014 Utah State legislative session, a bill was passed which requires municipalities to do a more transparent notification of this fact to customers of the City utility system. A written notice explaining that there are certain unpaid services and the notice of and holding of a public hearing to take input on this practice are required to be provided to each utility customer.
This is the notice which was mailed to utility users in the last few days.
The total amount of unbilled services for the fiscal year ended June 30, 2014, is calculated to be approximately $489,000 for water and $650,000 for electricity.
The majority of the unbilled water is for some City parks and landscape strips which are not currently able to be served by irrigation or reuse water. This totals $357,000 or 73% of the unbilled water. The majority of the unbilled electricity is for our Water System to provide power to City wells and pump stations. This totals $548,000 or 84% of the unbilled electricity.
The amount which each utility customer pays in their bill to the City utility system for the net transfer of water and electric services is estimated to be $1.35 per month.
The notice which was mailed does not cause an increase in the cost of the water and/or electric services to our utility customers as a result of the notice. This is a practice which has been followed for a number of the years by the City and the costs included in this notice are already included in the rates utility customers are currently paying.
The public hearing, as part of the proposed 2014-2015 fiscal budget hearing, is scheduled for Thursday, June 19 at 5:30 pm in the St. George City Council Chambers.