Lets break this situation down in a nutshell.
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TAXPAYERS NOT JUST RATEPAYERS

Over the years millions and millions of dollars have been diverted from the utility fund and gone directly into the City general fund to cover expenses.  That’s the real reason all of these cities got into the electric business in the first place.  It was a good way to make money: to have the city sell power to it’s residence. 

It also solved a very important problem that most city websites like to taunt as the positive side of being a public power: a reliable electric power supply.  Because, back in the day, most public powers generated there own source of electrical power.  It made a lot of sense too, since most of the “heavy hitters” like CP&L, Duke Power, etc were more concerned about major populated areas.

Things began to change, however, when cities such as Rocky Mount joined a group of 31 other municipalities and formed the Eastern Power Agency managed by ElectriCities.  Under this agreement, all of the cities bought into coal fired plants and nuclear power plants and basically agreed to stop producing their own electricity and to by it from this newly formed group.  Cities thought it was a  good idea at the time, because, even as they gave up control over their own power supply, they thought they could buy it cheaper with the new power agency.

Well, that didn’t happen exactly as planned.  It turned out that building a nuclear power plant was way more expensive (who would have thought).  Plus, as new Federal regulations went into place, the cost of maintaining both nuclear and coal-fired plants skyrocketed.  Top that off with the fact that once Rocky Mount and other cities signed on to the Power Agency Agreement, it became almost impossible to get out of the contract. 

So, Rocky Mount became stuck in a situation: it has to buy it’s power from NCEMPA (Power Agency), the power agency has to be managed (by ElectriCities), Rocky Mount really has no control over the wholesale power cost. And, last but not least, Rocky Mount has to maintain poles, light lines, grids, etc.

But, don’t forget: the real reason all the cities got into the electric business in the first place: to make money for the city.

City governments (and it’s not just Rocky Mount, it’s all over) decided it was better and easier to keep property tax low and use utility money to generate income. Why?

1. If an elected official votes to keep property tax down it’s easier to get reelected. Let’s face it, once somebody get on a city council they tend to enjoy it.  They like going to the retreats, they like making policy, and they like pulling the strings.  They become a mover and shaker in a small pond.

2. Cities can put a positive spin on their town when property tax is lower than their neighbor’s tax.  Or, at least the same.  That’s one of the major ways you rank a city…by property tax.  Just take a look at Money Magazines Top 100 places to live.

Now, I could give you a lot more reasons why elected officials want to keep property tax low, they would include marketing, business strategy within local and regional development, etc.  But, you get the idea.

But, there is still one more important reason that I think is the most important reason of all. It’s called Duck and Cover.

When utility rates go up…who do you blame?  Well, most ratepayers blame everybody: the city, ElectriCities, NCMEPA,  Wall Street, Third World Countries, etc.  Thus becomes the blame game: cities blame NCEMPA (ElectriCities) –that covers them. ElectriCities blames the cost of production (so they duck for cover).  This starts a cycle of duck and cover that goes on and on and on.

So now you know that your light bill goes to help fund Fire, Police, Carolina Gateway, The Chamber, etc.  Over the years, it’s added up to tens of millions of dollars.  Some people –who are in the city limits but are not on Rocky Mount Utilities– get the benefit of these services, but don’t pay for them.

Over the years, getting this information wasn’t easy.  In fact, it’s only been in the last six months that most of this information has come out. 

The key city council leaders in providing this info and trying to make it public has been Reuben Blackwell and Andre Knight.  Believe it or not, both of them have had doors closed to them when it comes to getting the real information.  In some cases, they were shut out completely.  But, they persisted.  They kept the pressure up on the City and the Power Agency.  But, the sad fact is…we still don’t know everything. 

Why It Matters:
Historically, inner-city housing has been been overlooked in Rocky Mount and other cities.  Some (if not most) of the housing stock is without adequate insulation.  Most are in the poorest areas.  The majority rent their homes and are not homeowners, so the landlords  had little incentive to do anything more than the absolute minimum.   So, the poorest of the poor have -for over 20 years- consumed more utility because of poor housing and poor housing standards.  In a nutshell, the poor have contributed to the “general fund” at a higher rate.  Also, historically, the poor either don’t vote or don’t vote on a regular basis.
  But, middle and upper class do consistently vote and are aware of their property tax and property tax hikes.

But, as times change and as utility bills continue to rise, it draws more attention to “where the money goes”.  People who only a few years ago didn’t have a voice are speaking up and being heard.  And, particularly in Rocky Mount, this City council will have to listen.

The Bottom Line:
Any Councilmember who votes against a modest property tax increase will be putting the future of Rocky Mount in jeopardy only for their personal gain to save face and be re-elected. They may tell you it’s because you shouldn’t raise taxes in a down economy.  Frankly, that would be a lie.  Every Council member knows that higher utility wholesale prices are coming and more utility money will be needed to put back into the general fund. By raising property tax this small amount, the Council will be better able to distribute the cost more evenly among all the taxpayers, not just the ratepayers.  AND, THE END RESULT WILL BE SUSTAINED AND LOWER UTILITY BILLS!