Many Saratoga residents spoke out against the Carbon Power and Light’s (CP&L) franchise agreement with the town of Saratoga at the May 20 town council meeting.
As the current franchise agreement will end July of this year, town attorney Tom Thompson asked the council for guidance to draft an ordinance for CP&L’s franchise agreement with the town. Thompson requested the council decide how long the franchise agreement would last, and how much the agreement would charge the power company.
The franchise agreement will have to go through three readings before it is passed by the council.
CP&L’s franchise fee, which was proposed in the May 6 town council meeting, would charge the non-profit, co-operative power company a fee in order to use public infrastructure. General manager of CP&L, Chuck Larsen, said at that meeting the added fee would have to be passed on to their consumers. Larsen said the fee could add anywhere between $2 to $8 a month to the average consumer.
Councilman Steve Wilcoxson said the revenue from the franchise fee would help balance the town’s budget.
“The town needs to make adjustments and get as much revenue as we possibly can,” Wilcoxson said. “If there is a possibility, we would like to take suggestions from the town too.”
Wilcoxson added the only way for the town to recoup the additional revenue without a franchise agreement is through budget cuts.
Councilwoman Judy Welton said charging CP&L a franchise fee is not a best-case scenario. However, she said no action is not an option.
“The town needs more money to accomplish what we want to do,” Welton said. “We don’t see that we are going to get any more funding, from state or federal [funds], so it is up to us.”
But even with the added income it would bring the town, Welton said she is concerned with the additional cost to Saratoga’s residents.
“It’s one of those things that we are damned if we do and damned if we don’t,” she said.
Saratoga resident Leon Hetherington was fed-up with the town’s use of money, and attributed the franchise fee as subsidy for other projects.
“I was told that the town was broke … and yet the next day’s paper said you are spending $180,000 to build a bridge over to Veterans Island — $30,000 of that is coming out of the town,” Hetherington said.
He also said the fee puts several residents in a “very tight spot,” saying there are many who will really hurt from the increases in electric fees.
Saratoga resident and business owner Chris Shannon said the franchise fee would hurt small business owners.
“The profit margins are pretty slim as it is, and this fee is just going to impact our small business owners even more,” Shannon said.
Wilcoxson said the town is running out of options to generate revenue. With the agreement between CP&L expiring at the end of June, he said it comes down to a choice between raising revenues or making cuts.
“It’s one or the other, and I don’t have a problem either way,” Wilcoxson said.
Town Clerk Suzie Cox said the town needs to raise an additional $9,000 in revenue to balance next year’s budget. Revenues are expected to be lower than last year, she added.
However, the mayor and other members of the council said they would welcome all opinions on budget cuts at budget meetings. Budget meetings are advertised in the Saratoga Sun. The council voted three to one in favor of drafting a new franchise fee agreement with CP&L, with Councilman Mike McWain opposing. They voted to a draft a 4 percent fee, for 10 years and a five-year review. They will read over the agreement in future meetings.
The next town council meeting will be held 6 p.m. on June 3 at Saratoga Town Hall.
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