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Chairman Bird inquired about the effect of the $600,000 <br />on consumer rates. <br />Mr. Faucher again gave the example used before, rioting <br />that in 1978 it cost $1500 to connect someone to the system, <br />and they changed this to $500 in contribution charges <br />leaving $1,OA0. Essentially that $1,000 is collected over <br />the 35 year average life of the facility and the $500 is <br />collected up -front. Later on, as the cost of providing -that <br />service increased and the connection charge went to $2,500, <br />they increased the contribution charge from $500 up to <br />$1,500, thereby keeping the same $1,000 to collect over the <br />35 year average life of the property. <br />Chairman Bird called Ruth Page of 2954 Sunrise Dr., who <br />did not wish to speak. <br />Mr. Zambataro_swore in Norma Kragon of 1760 14th Ave., <br />S. W. Mrs. Kragon stated that when they bought their <br />property in 1961, their contract stated that within 10 years <br />streets and utilities would be in, and they could build. <br />They waited 13 years before they built; they now have lived <br />there ten years; and to this day, they still do not have <br />sewer and water. There are a few other houses in their <br />vicinity, and they all have their own wells and septic <br />systems. Mrs. Kragon asked if they are going to have to pay <br />a high price for having sewer and water run to their homes, <br />or if they can refuse the water and just take the sewer? <br />She also wished to know if they can pay the connection fee <br />in advance at today's prices rather than waiting until they <br />run the line out and then paying a much higher price. <br />Mr. Fancher stated that the price you pay when you <br />connect to the system is based on what the regulated charge <br />is at that point in time. <br />Mrs. Kragon noted that they are retired people living <br />on a fixed income and emphasized she would like to start <br />paying this fee now. <br />W <br />NOV 91993 <br />