by Kathy Foster
The Chipley City Council started looking at rate hikes for their natural gas users at their Sept. 10th regular monthly meeting. Tom Jeffrey of the Florida Gas Utility presented the council members with a Natural Gas Rate Study for the City of Chipley based on Fiscal Year 2018 numbers and pointed out the following:
- Chipley’s Natural Gas customers, in fiscal year 2018, generated $231,339 of natural gas margin.
- The City needs to have internally-generated funds to re-invest into the natural gas system either for expansion or for renewal and replacement.
- With these internally-generated funds ($50,000) included in the model, the overall deficit to the break-even point is approximately $139,000.
- This is too much of an increase in one year (rate shock).
- The proposal is to spread the increase over a 2-year period.
- Rate increase proposed for year 1 is $73,692, or approximately half of the overall need.
Rick Taylor, of David H. Melvin, Inc., was also present at the meeting to give coucil members an overview of available grants and pointed out the following:
- Florida Department of Emergency Management (FDEM) – $25 million for Hurricane Michael impacted 9-county area.
- Economic Development Administration (EDA) $587 million in disaster funds available nationwide, with this area allocated $140 million.
- United States Department of Agriculture-Rural Development (USDA-RD) $150 million in additional program funds for Community Facilities Grant program for disaster counties and Washington County is eligible.
Ted Everett, representing the Chipley Redevelopment Agency, was also at the meeting to discuss the needs of that agency and council members decided to hold a workshop session to deal with those issues.
The following agenda items were approved at Tuesday’s meeting:
- Resolution No. 19-35 amending the Personnel Policy to address overtime pay in disaster situations
- Resolution No. 19-36
- Mutual Aid agreement with American Public Gas Association
- Amendment to the FDEP State Revolving Fund Loan
- Special Event Applicaiton for the Merchants of Historic Chipley Trunk or Treat
- Special Event Application for the Chipley High School Homecoming Parade
- Special Event Application for the Dec. 6th Chipley Christmas Festival
- Special Event Applicaiton for the First Presbyterian Church Scottish Festival