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MAR <br />19 <br />1986 <br />�oK <br />97 <br />Assistant Director Barton noted <br />in that at the prior <br />hearing, the Board authorized a 40% increase in rates. Prior to <br />that, the average household was paying a flat fee of $6.00 a <br />month for sewer. The authorized rate at the time of that public <br />hearing was a two part rate - a base facility charge of $1.00 a <br />month and 1.18 per thousand gallons, and that is where we are <br />today. The proposed rate has a base facility charge of $8.46 <br />plus $1.88 per thousand gallons. At the request of the Chairman, <br />Director Barton then proceeded to review the chart on the GDU <br />sewer rate comparison, pointing out that in the past i'f you were <br />an absent owner, you would be rendered a bill for $1.00, and <br />under the proposed rates, you would receive a bill for $8.46, <br />which is the base facility charge. He explained that the base <br />facility charge represents the utility's current fixed expenses <br />spread over the entire customer base - their fixed cost of <br />operation. <br />Chairman Scurlock further clarified that it represents the <br />capacity they have sitting there reserved for each customer and <br />the cost to operate the system while that customer is gone. <br />Assistant Director Barton stressed that 1982 is the base <br />year; any improvements since that test year are not included in <br />the capital amounts they have invested in the utility; and GDU is <br />not asking for a rate of return on those subsequent additions. <br />Chairman Scurlock asked if the fact that we have increased <br />the impact fee percentage would help mitigate future rate in- <br />creases caused by new growth. <br />Assistant Director Barton stated it would affect rate years <br />after 1984 when the impact fee was imposed. He confirmed that as <br />people pay to connect onto the system, whatever they pay, whether <br />it is called contribution in aid of construction or impact fee, <br />reduces the utility's carrying value and accordingly, reduces <br />their investment by whatever is paid. <br />Commissioner Bird asked if staff in analyzing GDU's figures <br />and expenses found anything out of line relative to a system of <br />12 <br />