City Council: Tourism and Electric Rates
Sep 23, 2020 12:00AM ● By By Seti LongGRIDLEY, CA (MPG) - Five years ago, Gridley opted not to join the Butte County Tourism Business Improvement District (BCTBID). At Monday's meeting, the City Council reconsidered.
The “Explore Butte County” theme that permeates TBID’s marketing is focused on bringing in tourism and promoting overnight stays in Butte County, where local small businesses would benefit from the dollars spent in communities. A 2% tax assessed on local lodging establishments, which is then passed on to their customers, pays for participation in the TBID. Statistics provided to the council by BCTBID Executive Director Carolyn Denero shares that over the last year, $129 million was spent in Butte County by visitors, and $51 of that was in retail. The goal is for TBID to bolster revenue for already hard-hit small businesses in this area. Proposed marketing avenues for Gridley would focus on Graylodge and Gridley’s status as “The Gateway to Butte County.”
Gridley has been the only larger city in Butte County not participating in the TBID - until now. Council voted unanimously to join the TBID for the next 10-year cycle. Chamber of Commerce President Lynne Spencer and Treasurer Cathy Mills, who voiced their support for the organization, feel the decision is a win for our community.
Switching gears, the Council then looked at a continuing source of contention for the community: the city electric utility rates. The council has been under fire on social media and by community members since it proposed to raise utility rates and other rates on the master fee’s schedule during its June 20-21 budget discussions.
At Monday's meeting, City Administrator Paul Eckert presented a plan to the Council, wherein the City could effectively reduce rates to relieve some of the pressure on its residents. Electric utility rate commodity charge would be reduced by 3% if the following actions were taken:
Reduce the annual transfer from the Electric Fund to the General Fund by $200,000; Reduce Utility Billing staff by one full-time position resulting in an estimated annual utility savings of $66,000. Additionally, replacement of an Electric Line Worker has been delayed for approximately six months; Increase budgeted Electric Department revenues by $150,000 to reflect the implementation of the new annual contract revenue increases resulting from the Biggs electric services agreement.
Additionally, it was recommended that the current 5 tier rate structure be reduced to 3 tiers.
The proposed changes would reduce tier 1 rates from $.162 KWh to $.157 KWh, tier 2 rates from $.224 KWh to $.217 KWh and tier 3 rates from $.346 KWh to $.286 KWh. Life support program base rate would remain at $11.00 min/month.
Council voted in favor of the reduction and removal of rate tiers 4 and 5. Those changes will be reflected in the electric utility rates beginning November 1st, 2020.