Daily Sitka Sentinel

Assembly Holds Off On Utility Bill Subsidy

By SHANNON HAUGLAND
Sentinel Staff Writer
    The Assembly held a discussion Tuesday night on a program to help low-income Sitkans pay their utility bills, but in the end decided to hold it over until next month for a vote on first reading.
    Bob Potrzuski and Kevin Knox co-sponsored the ordinance, which would set up a program offering up to $65 a month to qualifying families.
    The vote was 5-2 to postpone the final discussion until March 13.        The program would be funded this year with $400,000 already in the budget for this purpose.
    The amount of subsidy per qualifying family would depend on the city funds available each year, divided by the number of qualifying families.
    Families would qualify through their qualifications in other programs: the National School Lunch Program, the Supplemental Nutrition Assistance Program, Medicaid or Baranof Island Housing Authority.
    Potrzuski said he and former Assembly member Tristan Guevin started working on the program to help offset the effect of the electric rate increases on struggling families. Guevin and Potrzuski said at the time they would support the increase only if funding were available to assist those most harmed by the raises.
    “Members of the Assembly are trying to protect the most needy,” Potrzuski said. “The bottom line is we want to try to help folks that need help.” While he felt the rate increase was needed, he also knew some couldn’t afford “another dime” in electric bills.
    Knox also worked on crafting the ordinance.
    “We tried to make it as least onerous as we could,” Knox said of the qualification process.
    Finance Director Jay Sweeney said the program would have an administrative cost and take time from city staff, including problem solving and interpretation.
    “We can accomplish it but it would stretch the finance department,” he said.
    The electric rate increases of 15 percent across the board were implemented to cover the cost of the Blue Lake dam upgrade, and the electric infrastructure.
    “In the summer, (when rates go) from 12 cents to 19 cents a kilowatt hour this is even more necessary,” Potrzuski said. Other utility rate increases were approved for water, garbage and wastewater.
    Questions were raised about the logistics and costs of running the program, the affordability for the community and sustainability.
    Aaron Bean asked whether even the maximum subsidy would be helpful to families, and wondered whether the ordinance used the best standards for qualifications.
    “If they’re not able to pay their bill now what purpose would this serve?” Bean asked.
    Richard Wein questioned whether the city could afford the subsidy, given the looming $3.5 million deficit the city is facing in fiscal year 2019.
    “This may be best considered after we get through the budget process,” he said. More data is needed to determine the potential number of qualifying households, and noted the high number in this community qualifying for federal assistance programs, he said.
    Potrzuski said he recognizes the proposal may be “flawed,” but is determined to provide a program to help those who are struggling.
    “Help me fix this,” he said. “Criticize if you will but it will help the people of Sitka. ... It’s a promise a past Assembly made, and I would love to help fulfill that promise.”
    Ben Miyasato said he is also concerned about families leaving town because they can’t afford to stay.
    Citing the guidelines used in federal programs, Knox said the program is intended to help the most needy – single-person household income of $20,000, $28,000 for a two-person household, or about 130 percent of the federal poverty amount.
    “We’re talking about people who make very, very little,” Knox said. “We’re trying to get something out there, we’re trying to help people who need help.”
    Wein said he is not against the idea, but thinks more work needs to be done on the total possible number of qualifying households.
    With $400,000 available, the maximum $65 per month could be provided for up to 513 households per year, one Assembly member said.

Park Lease
    On another item, the Assembly approved a lease of property at the Gary Paxton Industrial Park to O’Brien and Son’s Construction.
    The company plans to lease lot 7 (32,789 square feet) for a year, with an option for three successive years, at $1,000 per month. The rent would go up each year by $100 per month.
    O’Brien plans to remove the rock being stored on a concrete slab left by a previous tenant. He will be required to leave the lot graded level with the concrete slab with a covering of two inches, minus finish. Garry White, GPIP director, said the improved lot will benefit GPIP for future uses.
    O’Brien said he has other plans in the works. He answered a few questions from Assembly members who voted unanimously in favor of the lease.
    “I’m thrilled to see another business that wants to do business at the park,” Mayor Matt Hunter said.