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Show DflLTON TV S I -TV VCR STEREO J & APPLIANCE REPAIRS 5 577-2545 I Guaranteed Service Reasonable Prices 0 t IN PflHGGITCH I S TUESDAY O FRIDAY 9 J INQUIRE AT SEARS J Answers II to frequently asked questions about -ZL J V the municipal power bond election. A Q Will my taxes go up if a municipal power system gets started in Panguitch? They could! If the revenues from the power operation don't cover the expenses, the city will have to dip into its general tax revenues to make up the difference. Unless the city cuts back on some other expenditure, an additional tax levy on Panguitch citizens could be required to make up the deficit. AQBut won't there he enough revenue from the sale of electricity to cover the expenses of the new power system? No one knows for sure because a thorough engineering analysis hasn't been done. Even if Panguitch duplicates UP&L's system, UP&L plans on staying in Panguitch and competing for customers. That being the case, Panguitch may not sign up as many customers as it needs to have a financially stable operation. ) Will Panguitch have lower rates than UP&L? A No one knows for certain. A detailed engineering report has not been compiled. Without such a study, people who claim the rates will be lower are only guessing. QBut some people claim Panguitch's rates would be lower than UP&L's because the city will get power from the federal dams at rock-bottom prices. Is this true? A Panguitch may get some power this way, but not nearly enough to lower the rates to a level of some cities in Utah that receive taxpayer subsidized federal hydropower. The most Panguitch could expect to get of this federal power is about 20 of its total needs. Long-established municipal power systems that have substantially lower rates than UP&L often receive 80 or more of their power from the federal dams. Why doesn't UP&L just sell out to Panguitch? A We want to continue to be a part of the community, to build upon the partnership already established, such as helping with economic development. We've also invested a lot of money to be able to serve Panguitch. If we "sold out," we would never truly be compensated for that investment. Municipal power advocates only want to take over our power distribution facilities. They wouldn't want to compensate us for the other two-thirds of our business the generation and long-distance transmission of electricity. AQThe city proposes to sell up to $2 million in general general obligation bonds. What is a general obligation bond? General obligation bonds are like a second mortgage on your home. If the city can't make the bond payments, state law requires the city to raise taxes to do so, regardless of any limitation that may otherwise exist on the amount of taxes the city may levy. In this situation, if the city should fail to raise taxes, the bondholders have the right to go to court and force the city to raise taxes. uinli (paid political advertisement) IJ Q J Q W 1 & LIGHT COMPANY |
