Now it was only a matter of time before what started out at 5% and now 7% of the gross earnings of our municipal electrical light and power company revenues had to be factored into the rates. Yet here we are after being told that the city could take these revenues and spend them for other purposes without having to include them into the rates.

You better read the council packets people as they are going to pass resolutions to raise the monthly charges, they are going to ask us to vote for an 8.5% rate increase effective this year followed by a 7.5% increase next year and as you will see rate increases until the end of the report timeline.

Now in the last city council meeting every public statement of mine agreed to be read under an ADA agreement with the city was not read but interpreted by our new city administrator Gordon Zimmerman to reflect what the city wanted the people to think. So in my mind we have a manager who is to be a leader of men nothing more than a fraud as that is what he did.

For instance I attached an attorney opinion that proved the payment in lieu of tax when passed and now the franchise fee was illegal. Mr. Zimmerman took the law which said; ORS 225.270, Use of surplus earnings;

When any city which owns or operates a municipal electric power plant or system or distributing system, has paid principal and interest to date on all indebtedness incurred in connection therewith, and has created and accumulated an adequate depreciation and replacement reserve in the judgment of the officer having control of such plant or system, the city shall, for the purpose of reducing general property taxes within such city, pay to itself not less than three percent of the annual gross operating revenue of such plant or system, or a volumetric charge based upon the amounts of electricity delivered, transmitted or distributed to retail electricity consumers regardless of the source. The volumetric charge shall not be less than the equivalent of three percent of the gross operating revenues of the municipality utility in 1999. The city shall adjust a volumetric charge to end users such that charges established for different customer classes bear the same approximate relationship as the gross revenues per kilowatt hour paid by the classes in 1999.

Oh yes Mr. Zimmerman took this part “the city shall, for the purpose of reducing general property taxes within such city, pay to itself not less than three percent of the annual gross operating revenue” and he changed it and told all of you “the city for the purpose of going to the general fund shall pay to itself not less than three percent of the annual gross operating revenue”.

Well Mr. Zimmerman how can that be? ORS 225.250, Application of earnings;

The earnings of the electric plant or distributing system shall be applied and used in payment of warrants and interest thereon issued in connection with operation of any such plant or system, and also in payment for alterations, improvements, additions or extensions and for redemption and retirement of outstanding bonds, together with interest thereon, and shall be expended only in connection with and for improving such plant or system and not for other municipal purposes, except as otherwise provided in ORS 225.270

You see Mr. Zimmerman that cannot be as the law concerning a municipal utility makes it more than clear it cannot go to the general fund now can it?

Clearly Mr. Zimmerman you forgot that you work for the people. That said it seems you never learned the managers code of conduct. “Act in the best interests of the client; refrain from making inaccurate or misleading representations or statements; not knowingly misrepresent facts to benefit the Manager.”

The fact is your actions put aside all ethic responsibilities you had and since that time I have ensured over 100 people know the truth by sending them my written statements and soon they will see the video of your misrepresentation of my public comments.

My only question to you is when are you going to stop spending these ill-gotten revenue from our consumer owned utility to be spent for other municipal purposes and spend them in the only lawful way allowed under the law? You know to lower our property taxes.  Seems to me that since June 10^th of 2010 with this unlawful taking of our consumer owned electrical power and light company revenue there should be a big property tax burden lifted from the home owner’s backs.

But your actions here Mr. Zimmerman, show me you are no better than the administrator we ran out of town on the rails as you made it more than clear to me where you stand. That is in violation of the law.

Then I see a budget priority in the next council packet to adopt as a budget year 2013-2014 priority; “Electric/Public Works Service Rate Increase.

This was followed by the report from Brown & Kysar Engineering where they are recommending a 8.5% rate increase this year followed by a 7.5% rate increase the following year followed by rate increases until their projections end.

Then to see that 7% unlawful franchise fee being called a rate of return.

Well Brown & Kysar went on to try and justify that using a question for a public utility at the end of their report.

All I can say Brown & Kysar is what part of we are not a public utility but a municipal utility did you not understand?

ORS 757.005, Definitions, for a public utility; (b) As used in this chapter, public utility does not include:
(A)   Any plant owned or operated by a municipality

I hope that clears it up for you? So stop trying to use examples of public utilities in this report as I told you in the town hall: you are comparing apples to oranges to all of us as we know the difference!!!

But again just like our city administrator George Zimmerman tried to do when he changed what the law meant in that attorney opinion; your attempt to do the same thing puts your firm in the same category of unethical professionalism.

So before I put that very legal opinion on this blog the city administrator tried to lie to the people about and Brown & Kysar wants to ignore, let me make it clear. We are the consumer owners of this utility. Just like we the owners of this utility have been telling this city and all concerned. The day this city started stealing from the gross revenues of our municipal utilities in violation of the law and told us that it would not affect the rates and we told you how stupid that was and we meant it.

Now I suggest that this city figure out how to repay the loans back to our consumer owned utility, how to pay back for all these illegal bills that established the unlawful taking of consumer owned revenues in violation of the law. How to pay back the consumer owned utility for financing the budget shortfalls of the fire department for over 6 years. How to pay back the consumer owned utility for things like an ordinance enforcement vehicle, a high priced lobbyist for an Indian Casino and all other unlawful taking from our consumer owned utility. But most of all this city better figure out how to repay the consumers those unlawful taxes taken from the consumers revenue in violation of the law or pay Hood River County to lower or property tax burdens. Or there better be some former and present council members getting ready to cut some very large personal checks from their personal accounts. As we the consumer owners will not vote in favor of this price hike for your unlawful uses of our consumer utility revenues when we made it clear not to do it.

Because there are only 2 choices now as this cannot be factored into the rates as a part of the rates without being voted for. The only choices are to refund the consumers or lower the property taxes.

Now everyone can read the attorney opinion Brown & Kyser wants to ignore and our new city administrator tried so hard to lie to you people about.

Enjoy the reading. (Click to enlarge)

 

Cody