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During 1993 maintenance costs are expected to be 45.45% less than 1992 expenses. <br /> Maintenance expense may vary considerably from year to year pursuant to the City's <br /> Long Term Water & Sewer Systems Maintenance and Capital Improvements Plan <br /> adopted in 1983. The Plan advocates a proactive vs reactive approach to system <br /> maintenance in the belief that preventive maintenance is the least expensive option <br /> over the long term. Major activities include: a well inspection and preventive <br /> maintenance of its pumping equipment. <br /> Debt Service costs of $222,578 have been budgeted for 1993 and represent annual <br /> debt service on a $1.5 million bond issue for system improvements. During the Fall <br /> of 1989 and early Winter of 1990, the consulting engineering firm of Short Elliott <br /> Hendrickson performed a study of the City's utility system which evaluated system <br /> capacity, future needs and construction/improvement costs associated with the <br /> projected needs. This engineering study concluded that to provide for the future <br /> needs of users of the water system through the year 2000 the City should: 1) upgrade <br /> its water treatment plants, 2) redevelop a well and install a generator at the ground <br /> reservoir to provide a back-up system of filling the water tower in the event of a <br /> power failure. <br /> To complement the Engineering Study, the City engaged the certified public <br /> accounting firm of Voto Tautges Redpath & Co., LTD to evaluate alternatives for <br /> financing the improvements recommended by the Consulting Engineering.Firm and <br /> to project water rate requirements over a five year period. The Accountant's Report <br /> • proposed a revenue bond issue of $1.5 million to finance the improvements <br /> recommended by the City's consulting engineer. Water rate increases averaging 6% <br /> annually would be necessary to meet debt service costs and operating expenses over <br /> the five year period for which projections were made. <br /> Present water rates of $1.05 per 1,000 gallons of water used would not have been <br /> sufficient to pay for increased operations costs and debt service in 1993. The Utility <br /> Study mentioned above recommends that the 1993 water rate be set at $1.10 per <br /> 1,000 gallons of water used. That rate will allow the Water Fund a projected net <br /> income of $5,989 for 1993. <br /> • <br /> • <br />