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Benson Board reaches consensus to support Option 3 on NCEMPA rate choices
Summary
Town Manager Kimberly Pickett reported Rider 8 debt (~$24,000) will stop in July 2025 freeing $18 million in the debt reserve while the Town's allocation is $118,000; the Board expressed consensus to apply the $118,000 to the 2024 rider over 24 months (Option 3) and accept a 3.5% wholesale rate increase effective July 1, 2025.
Town Manager Kimberly Pickett briefed the Board on NCEMPA rate-committee recommendations at the Jan. 14 work session. She said the Town's Rider 8 debt of roughly $24,000 per month will stop in July 2025, which will free $18 million in the debt reserve overall though the Town's share of available funds would be about $118,000. Pickett presented three options for how towns could treat that allocation and the timing/size of wholesale-rate increases.
The three options Pickett described were: (1) pay out $118,000 to the town and accept a 6.5% wholesale rate increase July 1, 2025 with a planned 3% increase in 2026; (2) apply $118,000 to the 2024 rider over 12 months with a 5.5% wholesale rate increase July 1, 2025 and a planned 3.5% increase in 2026; or (3) apply $118,000 to the 2024 rider over 24 months with a 3.5% wholesale rate increase effective July 1, 2025. The Board reached consensus to support Option 3 and Kim said she would vote for that option at the NCEMPA meeting next week and report back to the Board after the meeting.
The work-session discussion provided guidance to the Town Manager on how Benson will cast its vote at the NCEMPA meeting; no formal Town vote was recorded at the work session itself.
