By Myrna Trauntvein
Times-News Corspondent
Mona will need to collect a higher rate for the natural
gas utility in order to meet the demands of the bond
obtained to pay for the participation of the city in the
Juab Rural Development Agency (JRDA).
The vote to raise the cost to the consumer was delayed
until the first council meeting in February. By then a clear
picture of the percentage per customer needed to raise the
money would be better formed.
"Greg Ogden, our CPA and auditor, said the interest
revenue total needs to be approximately $8,000 higher than
it is," said Scott Nelson, city secretary. "We should have
$68,000 to comply and we have approximately $60,000."
A rate increase will be necessary in order to meet the
demand of the law governing the bond and the restrictions
placed on such a bond.
One concern of council members is the seeming
unfairness of those living in the city being required to pay
more than those living in the county. Both Mona City
residents and Juab County residents living near Mona are
serviced by the same pipeline and obtain the natural gas
from the city.
"I presented the problem to JRDA members at board
meeting," said Doran Kay, council member. "I discussed the
need to raise rates to get the revenue necessary for the
bond and it was decided to continue with the current policy.
JRDA would not set the city rates, that was up to the
individual city government, and though a change in Juab
County charges may be forthcoming it would not be
immediately."
In his estimation, said Rick Schnurr, that meant that
county residents were getting a free ride. They were using
the utility without paying for the bond as those who lived
in the city boundaries were doing.
"I discussed these ideas with them," said Kay. "We
discussed that a rate increase would be a political
issue."
"Can we tell those in the county to go through the
county to get service?" asked Schnurr.
Kay said Mona City Council had no control over the
rates set by JRDA. However, to his way of thinking, he said,
it would not be wise to give up the county service area.
"Doesn't the county have to collect the same 125
percent that we do?" asked Schnurr. If that were the case,
he said, they should also have to raise rates in order to
meet requirements.
The city could raise the rate for a new home
connection in the county. Perhaps that would make it so that
those living outside the confines of the city boundaries
would still help pay for the bond which provided
service.
"We are paying the bond for a city system if we live
inside the city limits?" asked Nelson. "Who bonded for the
county system?"
In other words, he said, was it because the county or
JRDA bonded for the county system that they were unwilling
to raise the rates now?
"I already expressed my opinion, the city council's
opinion," said Kay. "Mike Seely (county administrator) said
it was an issue the county commission may consider in the
future." Mona will need to collect a higher rate for the
natural gas utility in order to meet the demands of the bond
obtained to pay for the participation of the city in the
Juab Rural Development Agency (JRDA).
The vote to raise the cost to the consumer was delayed
until the first council meeting in February. By then a clear
picture of the percentage per customer needed to raise the
money would be better formed.
The proposed natural gas rate increase for Mona is 5
percent. This should be enough to bring in the needed
revenue.
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