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PROPOSED WATER/SEWER RATES Administrator Wright reviewed his memo as follows: TO: The Honorable Members of the DATE: September 14, 1982 FILE: Board of County Commissioners FROM: SUBJECT: Proposed Water/Sewer Rates REFERENCES: An analysis of available data indicates a rate equal to'$12.50 for the first 3,000 gallons and $2.25 for each additional 1,000 gallons of metered water will be necessary to fund the utility department for the 1982/83 fiscal year. This proposed rate further assumes that sewer ser- vice charges will be billed at the same rate as water service. The proposed rate will generate $1,497,040. This amount, plus $66 000 in service charges, will generate $1,563,040 in total revenue, or 149,514 more than the $1,513,526 expense budget. The rate includes all customers that are immediately available. It does not include potential customers that have not paid impact fees. Engineers estimate this potential number to be from 200 to 250 units. Based on average residential consumption of 5,500 gallons per month, the proposed fee results in a bill of $18.13. If the water customer also has sewer service, then the bill would be $36.26. Under the Farmers Home Administration minimum mandated bill of $8.00 for the first 2,000 gallons and $2.00 for each additional 1,000 gallons, the average water bill would be $15.00 a month. This rate, however, would generate only $1,273,008. Coupled with the $66,000 in service fees, total revenues would amount to $1,339,008, or a shortfall of $174,518. There is approximately $350,000 in impact fees on hand. With next years anticipated growth, this account could grow to around $420,000 or more. I would encourage the Commission to continue retaining impact fees in a reserve account for at least two years. Secondly, I would recommend the impact fees be increased to where at least $750 per customer could be escrowed to reduce future debt and provide capital for expansion. A two year moratorium on the expenditure of impact fees, coupled with the higher rate, would result in a $600,000 to $.700,000 reserve in a short period of time. Interest from this account, plus anticipated impact fees and customers, should greatly reduce the demand for future rate increases. SEP 15 1992 95 oxe 51 PAsE I