
The need-to is obvious; the how-to is another matter.
The Alexandria City Council Finance Committee this week reviewed and sent on to the full Council mid-year budget adjustments that again point out the growing gap between revenue and expense.
A sales tax-based General Fund needs regular fund infusion from the Utility Fund.
That system is approaching the point that it needs major investment in electricity production and distribution, not to mention water, gas and wastewater operations.
This fiscal year the General Fund will not get a transfer from Utility Fund income, using prior year earnings instead to close the gap.
Reviewing the mid-year amendment, Mayor Jacques Roy stated it plainly — something has to change.
The obvious action is an increase in rates, last done 40 years ago, yet still anathema to most.
At-large Councilman Jules Green summarized, saying people are unhappy with that kind of talk, wondering why with sales tax revenue growing a rate change is necessary?
That revenue is the overwhelming portion of General Fund income.
The Utility Fund depends on system-generated revenues for operating expenses and big-ticket upgrades.
Less and less is available each year fiscal year to help keep the General Fund afloat.
If city officials want to continue moving some earnings to the General Fund there has to be enough left to make the Utility investments needed.
That means rate changes, or General Fund cutbacks.
Neither has much appeal. The administration can, and likely will, make recommendations, but the decision is the council’s.