LP&L issued a statement Wednesday saying:
"LP&L's budget and annual audit are public documents. Any member of the public is welcome and strongly encouraged to review them. Public budgets are nothing if not a transparent accounting of where public dollars are allocated. The LP&L budget is just a portion of the greater city budget available on the City of Lubbock website. The Chairman of the Electric Utility Board will present the LP&L Quarterly Update to the City Council tomorrow. The figures put forth by the Mayor, along with all figures associated with the budget, will be open for public discussion."
Thursday's City Council meeting begins at 6:15 p.m. and is open to the public.
Here's the complete text of the Mayor's post from Tuesday:
There has been a lot of bad information disseminated by everyone involved in the recent LP&L issues. The following are some basics facts everyone should know.
|Year||Profit/Loss||Unrestricted Net Assets|
The unrestricted net asset is typically what staff tells the board is reserves. Not exactly accurate but it will normally give a close indication.
Before the rate increase was implemented, the reserves were budgeted to be 48.473,616 at the end of this fiscal year, which is 3,595,141 over required reserves.
In 2012 LP&L lost 3.243 million dollars. The same year they had over 3.1 million dollars in raises with only a net one added employee.
LPL also paid off approximately 5.9 million in debt in 2012 which directly reduced net asset value.
As of June 2013, LPL rates are now higher than the state average. The state average is comprised of mostly for-profit utilities.
All calculations made by the rate consultant used numbers provided by LPL staff and used October 1st 2013 as a start date to determine the calculated rate.
I was told in 2011 as a board member to expect an 8 to 10 million dollar loss and that we would need an immediate 10% rate hike to break even. We made 1.3 million in profit that year without an increase.
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