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MEMO TO: Mayor and City Council <br />FROM: Clerk-Administrato <br />DATE: March 18, 1983 <br />SUBJECT: 1983 WATER & SEWER SYSTEMS MAINTENANCE AND CAPITAL <br />IMPROVEMENT PROGRAM <br />The following is a summary of the staff recommendations contained in <br />the earlier portions of this report. <br />Water System and Fund <br />1. Set water rates at a level sufficient to insure that annual <br />sales revenues cover the costs of annual operating costs, <br />depreciation of equipment purchase with Water Enterprise funds, <br />and contingency. A rate of .70/1,000 gallons or a .15/gallon <br />increase over the present rate of .55/1,000 gallons would be <br />required. <br />2. Establish an annual maintenance program with an average annual <br />cost of $42,500 to be funded out of non -sales revenues. <br />3. Approve a capital improvement program during the period 1983-1985 <br />C <br />at an estimated cost of $328,800 to be funded with cash -on -hand <br />in the Water System Contribution Fund and an interfund loan <br />from the Special Capital Projects Fund to be repaid over a <br />period of 10 years at 8% interest per annum. The loan would be <br />repaid from non -sales revenues. <br />Sewer System and Fund <br />Establish an annual inspection, maintenance and system improvement <br />program at an annual cost of $33,100 to be funded by a $1.75/REC/ <br />quarter rate increase for a new rate of $29.75/REC/quarter. <br />DFP/p£