November 3, 2023 at 12:02 p.m.
Utility referendum info campaign declarations are scrutinized by council
With just days remaining before the utility commission’s future physical existence goes to voters in North Branch— city officials last week were still getting a handle on the facts behind the plan.
The questions for all voters in North Branch to weigh in on, November 7 will be to: abolish the independent utility commission and allow the city (council) to takeover the water side of utility operations. And, to approve the city absorbing the water division of the utility.
North Branch Water & Light electric distribution network assets have already been sold to East Central Energy.
The utility commission is charged under state law with getting the word out and educating voters.
The utility was created by a ballot decades ago and it will need to be un-created by ballot.
Mayor Kevin Scheiber asked council when they reached the referendum “update” on last week’s agenda, if there are any questions. He alluded to social media statements about the utility, made by un-named council members, and called some remarks “irresponsible.”
The mayor looked around the council and stated, “If you have a beef say so now.”
One issue that came up in the meeting is the inferior quality of the marketing materials, as stated by some of the council members.
Language in utility commission mailers, etc. was called “intimidating” and lacking detail, or “bullet points” in text. Council member Neider declared that the letter produced for marketing the vote, “stinks” and contains no actual facts.
An expense cited in the marketing materials announcing a $400,000 fiscal hurdle if the referendum is a failure, was questioned.
Public Works Director Shawn Williams said it is “a real number,” but when pressed the city financial director explained the city has only been involved in utility operations for about a year and budget nuances are still becoming clear.
Williams promoted instead the potential savings if the city takes over and utility revenues no longer need to support a commission entity as well. Plus, in blending the water into city public works, there are 13 people cross-trained to be on call compared to the two or so employees working for the utility before.
Council member Peter Schaps said his concern is if the electricity generators (used for peak on-demand power) which the utility was unable to sell can feasibly be operated and maintained by the city. He’d like projections and numbers developed for this.
Williams responded that, ...“ the solid answer is 2024” to have a clearer financial track record and give a better idea of on demand power operation and costs associated with five diesel generators.
City Administrator Renae Fry suggested citizens can search out utility audits on-line for the fiscal situations of prior years.
Mayor Scheiber said the May 17, 2023 Water and Light meeting packet is a good place to start.
Scheiber added the yes vote on abolishing the commission doesn’t mean the Public Works Director will be running things alone, nor the City Administrator. He said council will have the control.
In other council business: the payout per year of service to retired firefighters (upon reaching age 50) was upped to $5,000 from $4,000 now. The firefighter is vested at 20 years. They get 60 percent at 10 years of department participation.
Council was reminded the lump sum “pension” is not directly funded by city taxpayers. Investments and balances are sufficient to support the increase.
Chief Kevin Grote said having a decent pension is a tool for attracting and retaining firefighters in the volunteer program. North Branch firefighters deal with the same toxic, traumatic fires as the paid, professional fire departments in urban areas do, they just get called fewer times. And, firefighters are North Branch residents, he added.
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