Agenda Packets - 1982/10/11 - Laserfiche WebLink

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_ N TO: Mayor 6 Council FROM: Finance Director -Treasurer Brager DATE: October 13, 1982 RE: UTILITY MAINTENANCE AND RECONSTRUCTION FUNDING At a recent budget session there was some discussion of establishing a charge for water and sewer system repair and re- construction. It was my understanding that a charge of $5.00 to be divided equally between the water and sewer funds was discussed. Such a charge could be established on a per account basis per quarter; i.e., $2.50 per water account and $2.50 per sewer account. If established, such a charge would generate $27,350 per year for the water fund and $27,440 per year for the sewer fund based upon the present number of water and sewer accounts ( 2,735 water; 2,744 sewer). Staff feels that if Council wishes to implement such charge, that consideration should be given to adjusting the present rate structure to account for it rather than establishing a separate charge for it. Staff believes that maintenance and reconstruction of the existing system is a cost of doing business and should be part of present rate structures. It is further felt that retaining one rate for water and one for sewer is more easily understood by our customers and also would be easier to administrate. The higher users of both the water and sewer systems would pay proportionately more than the lower users. If the rates were to be adjusted to raise on an annual basis the same amount as $2.50 per account per quarter, it would require an adjustment in water rates of $0.07 per 1,000 gallons and $1.46 per REC per quarter. Staff would recommend that any money raised in this manner be put into a special account which could only be drawn upon after receiving Council approval. If you have any questions do not hesitate to contact me.