CC WORKSESSION PACKET 10302018 - Laserfiche WebLink

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Sewer Rates: As part of the annual rate adjustment process the sewer treatment and collection system costs are categorized as fixed in nature or flow volume driven. The 2019 budgeted sewer costs are comprised of $477,265 in fixed costs and $784,407 in flow volume driven costs (usage), see table below: OPERATING DEPRECIATION OVERALL FIXED 406,312 35% 70,953 70% 477,265 38% USAGE 753,998 65% 30,409 30% 784,407 62% 1,160,310 100% 101,362 100% 1,261,672 100% The Multiyear approach to sewer rates also includes the phase in of the flat fee. As part of the transition process the usage rate growth was expected to decelerate as flat fee was phased-in. Based on estimated actual results for 2018 and updated 2019 budgeted costs that expectation is reflected in the proposed rates for 2019. Proposed 2019 Sewer rates are below: 2018 2019 Per 1000 gallons Rates Rates $ Increase Sewer Usage rate 4.69 4.69 - Qtr. Collection system charge 6.40 9.60 3.20 The above rates are projected to produce $1,213,153 in revenues in 2018. At this level of revenues the operating income before depreciation is budgeted to be $52,843. The sewer budget is attached as Exhibit B. The recommendation’s impact on 2018 billings is reflected below: 2019 Tier Rates 4.69 4.69 4.69 4.69 4.69 4.69 2019 Usage levels 4,600 7,500 15,000 22,500 30,000 37,500 Fixed Fee 9.60 9.60 9.60 9.60 9.60 9.60 Usage 21.57 35.18 70.35 105.53 140.70 175.88 2019 Billing 31.17 44.78 79.95 115.13 150.30 185.48 2018 Billing 27.97 41.58 76.75 111.92 147.10 182.28 DIFFERENCE 3.20 3.20 3.20 3.20 3.20 3.20