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Beall’s rate cut plan can't work, mayor says
Published October 28, 2009
In 2001, Wallace Beall says he probed the Monroe Utilities Network and found numerous examples of irresponsible spending and accounting practices.
On the campaign trail, Beall has said he would take another look at the city’s utilities department budget and find examples of “fat” and trim them, resulting in a rate decrease for the city’s customers.
Without being specific, Beall said there is excessive spending in certain areas now as there was in 2001. While he said he is not privy to city documents now, when he gets into office he will identify these areas and correct them.
“If you do that, then you have a utility rate cut,” Beall said.
And it was Mayor Greg Thompson who was the liaison to the utilities department while the mismanagement was going on, Beall charges.
“I got involved because nobody got involved,” Beall said, adding it was his plan that helped get the utilities department back in the black.
“If we could do it then, we can do it today,” Beall said. “I say they are not being conservative. I’ll ask for this information (when elected). I will go through everything up there.”
Immediately Beall said he could cut back unnecessary training expenses, examine overlapping job duties and work on employee time management.
How much will the average utilities customer save?
“Not just $2 or $3,” Beall said. “I want it to be a recognizable amount.”
Thompson says Beall’s plan is an empty campaign promise.
“There is no fat in the utility budget,” Thompson said. “My concern is he’s said he is going to cut employees. If you cut 10 employees – that’s what — $300,000? You’re only looking at $2 to $3, if that much, off a bill. Do you want to to sacrifice that $3 to put 10 people out of work in the city of Monroe? He’s telling folks what they want to hear. To the average person they think they are going to save $40 and that’s just not there. I’m not going to promise anything I can't keep.”
According to city documents, the 2010 utilities budget and revenue is projected to come in a $34 million — about the same as in 2005.
Making it harder to cut, officials say is that revenue is expected to drop because of lower out-of-market electric sales due to the poor economy.
A lack of new commercial and residential growth will also hurt utilities revenue, city officials said.
Electric revenue will be down by about $1 million and the city has decreased the number of budgeted employees since 2005, according to city documents.
The city also saw an increase in its bond rating — proof, city officials say, the department is run with fiscal responsibility in mind.
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