NVDAILY.COM | Local News
Posted March 14, 2012 | 7 Comments
Utility rate study OK'd
By Kim Walter -- email@example.com
FRONT ROYAL -- Town Council has received and approved a proposal from Burton & Associates to conduct an updated $29,400 study that would analyze in- and out-of-town utility rates.
The state requires that the town update the study in order to justify the rates, and to be aware of current utility consumption. The last study was done two years ago for the fiscal year 2010-2011 budget.
Town Manager Steve Burke explained that the last study was only done on users and connections in town, and looked only at associated revenue instead of expenses.
Councilman Thomas Sayre was the only one to vote against the study. He said, "I'm not completely sold on spending the $29,400 on this. We don't have to spend the money."
"Sure, you could not spend the money and then take care of the legal fees when you can't explain why you're charging the rates that you are," Parker said. "It's a necessity."
In a letter to Burke, Burton & Associates said work can begin on the study "upon receipt of a notice to proceed," and the study is estimated to be completed within 90 days after receiving all required data.