Lets rewind for a moment.

Ordinance 2681, Before the Great Falls City Commission, October, 2003.

This Ordinance noted ” The City Commission may issue bonds, payable from the revenues of the electric utility, to design, construct, acquire, install and improve, from time to time, electrical utilities in accordance with the provisions of Title 7, Chapter 7, Part 43 and 44 of Montana Code Annotated. If bonds are to be issued that are payable in part from the general fund or taxes levied by the City, such bonds may be issued only if approved by the electors of the City in accordance with Title 7, Chapter 7, Part 41, M.C.A.”

City Manager John Lawton reported that this proposed ordinance would allow the City to establish an electric utility.

Commissioner Rosenbaum moved, seconded by Commissioner Beecher, that the City Commission adopt Ordinance 2861 as amended on final reading.

Mayor Gray stated that while this ordinance was not slated for a public hearing, he would entertain comments from the public.

Commissioner Hinz asked what the difference was between a municipal utility and a co-op?

John Lawton replied stating co-ops were owned by their customers. Municipal governments were owned by the tax payer.

Ordinance 2861 passed.

Ordinance 2925, Before the Great Falls City Commission November 1, 2005.

Mayor Gray declared the public hearing open.

Ms. Wiggins concluded stating that she supported the coal plant and believed it was a great project. However, she was not certain that tax dollars should fund its construction and operation. She asked the Commission to consider the fact that lawsuits would be filed which could ultimately increase the cost of power and that the Department of Environmental Quality could impose severe mercury standards which could cripple if not eliminate any chances of building and operating the proposed plant.

Commissioner Beecher addressed Ms. Wiggins concern about using tax dollars for the construction of the coal plant. He explained that the funding for the plant would be through revenue bonds and that tax dollars would not be used for its construction.

Mr. Lawton further explained that the ordinance before the Commission was to restructure the Electric City Power company the Commission created about 18 months prior. Electric City Power would be wholly owned by the City.

Commissioner Hinz asked if the non-profit entity the ordinance created would remove the decision making authority from the City Commission. Mr. Lawton stated that the Commission would retain the basic powers which included setting rates and selling bonds for the electric utility. The non-profit board would make recommendations to the Commission and would not have independent authorities.

The actual text of 2925 states in part:

“WHEREAS, the City intends to authorize the issuance by the Corporation of certain bonds, notes or other evidences of indebtedness on behalf of the City, the interest on which is intended to be excludable from the gross income of the holder under the Internal Revenue Code and intends that both the City and Electric City Power, Inc. shall comply with the requirements of Revenue Procedure 82-26, 1982-1 C.B. 476, or any successor thereto, in the issuance of such bonds, notes or other evidences of indebtedness;