Councilman’s Comments

It has been about a year and a half since my last councilman’s comments in October of 2007. During the past several months, we have seen some continued improvement in Gallatin’s financial position. The cash reserves that we have been able to accumulate over the past three years have increased to approximately $425,000. But, just when we think that we are making progress, a couple of major repairs, including a $30,000 sewer pump replacement at the south pump station and a $70,000 repair to one of our water wells, reminds us just how quickly our funds can be depleted.

We will be in the summer months before we know it, and that means street repairs. This will be the second year that we will be able to utilize the ½ cent transportation sales tax to improve our city streets. We’re hoping to do some additional hot mix work off the southwest corner of the square as well as several blocks of cold mix surfacing. We have been able to find the parts needed to repair our older roller, so that will save us at least $5,000 in rental expense this summer.

Another topic that I want to talk about is our electric rates. There have been a few statements made during the public comments portion of our city council meetings that there have been several electric rate increases over the past two to three years. It’s important that everyone know that the last electric rate increase for the City of Gallatin residents occurred in November of 2006. That increase was necessary to stop significant losses in the electric utility. Since then we have seen neighboring utility companies have multiple increases, but your city rate has not changed. Our hopes for the future are that the Municipal Public Utility Alliance (MPUA), our power supplier, will bring five new power plants online by 2013, and they will provide us with a reliable and reasonably priced cost of electric power. While our electric rates have been higher than some neighboring communities, the MPUA has estimated that our cost of power should be fairly stable for the next few years. These new power plants will provide the additional power that the MPUA has had to purchase on the open market in the past. Those purchases can be quite expensive at times. If the MPUA estimates are correct, our rates should remain stable while others increase around us.

Finally, I’ll conclude with a few comments about the water utility. While we have explored the possibility of a new plant to replace our aging system, I believe that several issues will postpone any decision about our water plant for many months. First of all, more homework has to be done on the reliability of our water supply. While we are fortunate to have a new third well in operation, I believe that draw down tests must be completed to show that the aquifer levels are still adequate. This was first done at my suggestion over two years ago and needs to be done again. Secondly, a detailed cost estimate for major improvements to our existing plant will need to be completed. Public comments at recent council meetings indicate that this option needs equal consideration as a new plant. And thirdly, we will have two new alderpersons around the council table after the upcoming election. I believe that these new members need ample time to become familiar with city business before a decision is made about a water plant.

I would encourage all citizens of Gallatin and Daviess County to exercise their voting rights at the upcoming election on April 7. Whether it is the City of Gallatin, other municipalities, local school districts, or township elections, everyone should participate in the privilege we enjoy with this democratic process.