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Water and Sewer Rates
<br /> March 8, 1984
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<br /> Note: These recommendations do not take into account actions/expenditures required
<br /> as a result of the water contamination problem. It is hoped, although not
<br /> guaranteed, that some or all of the mitigation costs will come from state
<br /> and federal Superfund monies.
<br /> Staff recommends a 5C increase at this time, with a review of the 1985/1986 needs
<br /> at budget time this fall .
<br /> SEWER RATES, -
<br /> The
<br /> ATES -The problem here is much greater (1 would classify it as severe) . A rate increase
<br /> was last implemented in 1981 when rates were raised from 50C to 75t per 100 cubic
<br /> feet. Unfortunately, the increase was not enough to put the fund in the black for
<br /> even one year.
<br /> The following chart illustrates the Sewer Fund since 1973•
<br /> ($) As a Percentage
<br /> Metro Waste of Total Total Total ($)
<br /> Year Charges Expenditures Expenditures Revenues_ Deficit
<br /> 1973 70,000 73.7 95,000 110,000 ---
<br /> 1974 74,400 67.6 110,000 117,000 ---
<br /> 1975 110,000 77.7 141 ,500 154,000 ---
<br /> 1976 118,000 72.8 162,000 160,000 2,000 •
<br /> 1977 157,500 77. 1 204,300 195,000 9,300
<br /> 1978 162,100 68.5 236,600 227,600 .9,000
<br /> 1979 147,000 64.2 229, 100 205,000 24,100
<br /> 1980 174,000 6.7. 1 259,500 200,000 59,500-
<br /> 1981 221 ,000 67. 1 329,500 285,000 44,500
<br /> 1982 236,000 70. 1 332,700 290,000 42,700
<br /> 1983 263,000 77.3 348,000 288,000 60.,000
<br /> 1984 315,000 80. 1 389,000 300,000 89,700 -
<br /> Cumulative deficit 1976-1984 340,800
<br /> The 1983 budget for expenditures was $340,000 and actual expenditures were about
<br /> $348,000 (due to some major unexpected repairs) . Revenues were $288,000, or about
<br /> $12,000 below budget. This makes the 1983 deficit about $60,000 and the 1984
<br /> deficit as shown on the chart will be nearly $90,000.
<br /> An increase from 75C to $1 . 10 per 100 cubic feet would raise $355,000 for 1984 and
<br /> $422,000 for 1985. This would mean a $34,000 deficit for 1984. With an increase
<br /> in City costs and, Metro Waste charges of no more -than 8%,from 1984 .to. 1985, the
<br /> fund would balance" for 1985• (This does not even begin to make up the $340,000
<br /> deficcit in the fund over -the- last- 8 to 10 years.) It also means that a moderate
<br /> *increase would be needed in 1986. •
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