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CC PACKET 10222019
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CC PACKET 10222019
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10/16/2019 3:16:17 PM
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10/16/2019 3:14:06 PM
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Sewer Rates: <br /> <br />As part of the annual rate adjustment process the sewer treatment and collection system <br />costs are categorized as fixed in nature or flow volume driven. The 2020 budgeted <br />sewer costs are comprised of $490,191 in fixed costs and $762,530 in flow volume driven <br />costs (usage), see table below: <br /> <br /> OPERATING DEPRECIATION OVERALL <br />FIXED 412,237 36% 77,953 70% 490,191 39% <br />USAGE 729,122 64% 33,409 30% 762,530 61% <br /> 1,141,359 100% 111,362 100% 1,252,721 100% <br /> <br /> <br />The Multiyear approach to sewer rates also includes the phase in of the flat fee. As part <br />of the transition process the usage rate growth was expected to decelerate as flat fee was <br />phased-in. Based on estimated actual results for 2019 and updated 2020 budgeted costs <br />that expectation is reflected in the proposed rates for 2020. <br /> <br />Proposed 2020 Sewer rates are below: <br /> <br /> 2019 2020 ($ Decrease) <br />Per 1000 gallons Rates Rates $ Increase <br />Sewer Usage rate 4.69 4.64 (0.05) <br />Qtr. Collection system charge 9.64 12.80 3.16 <br /> <br />The above rates are projected to produce $1,249,355 in revenues in 2020. At this level of <br />revenues the operating income before depreciation is budgeted to be $142,546. The <br />sewer budget is attached as Exhibit B. <br /> <br />The recommendation’s impact on 2020 quarterly Sewer bills is reflected below: <br /> <br /> <br /> <br />35
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