Editor,
I write in opposition to the Town Council passing an ordinance which would add a 4% franchise fee to the franchise agreement in negotiation now with the Carbon Power and Light (CP&L) which would begin July 1, 2014. This would affect the CP&L bills of the 1032 households and 262 commercial accounts within the Town of Saratoga. This is an anti-business maneuver by this administration that will last for the next 10 years. In the last 10 years our water bills have gone up greatly, despite the “money-saving” wells that replaced the treatment of water from the river. Families are now charged an often unattainable $250 to use the Town pool in our short summer. Charging a franchise fee to CP&L will increase our electric bills as it must be passed down to its customers - it’s a non-profit company we all own. This 4 % fee/tax hurts our citizens on fixed incomes. But it most greatly impacts our schools and our businesses. In January 2014 the 262 commercial accounts were billed $130,301 by CP&L, that’s an average of $497 per month per account, while the 1032 household accounts were billed $126,258. That means our schools and businesses would provide 51% of this tax from ¼ as many accounts. This from a Town administration that is not receiving less income in fiscal year 2014/2015, and has done little to decrease their budget. It is estimated that CP&L collects 2.8 million a year in the Town, so the Town proposed 4% franchise fee would add $112,000. Fifty-one per cent or $57,120 of that fee/tax would be on the backs of our businesses and schools. Last year’s electric bill for CCSD#2 in Saratoga was $120,000 (before sales tax). Four percent added to their electric bill is a $4800 decrease in the CCSD#2 budget. What school program will they have to cut? And I can’t imagine the margin on 2 X 4s is very high and I would bet our newest major employer is also our largest user of electricity who will be hit hard by this fee/tax. Think also of the Town taxing their own large electric bills and the Platte Valley Community Center – will the Town add that back to their budget? This Town has never had an executed franchise agreement with CP&L that charged a franchise fee in 70 years. Why start now and hurt our schools and businesses?
Cindy Bloomquist
Saratoga
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