4/13/1999 - Laserfiche WebLink

Home Browse Search

The User Charge Study recommendations have incorporated all these concerns and although the following recommendations will not satisfy every concern, the proposed changes go a long way to improve the inequities in the current rate structure. ANALYSIS Prior to finalization of the "Utility User Charge Study Executive Summary" (see attached) and completion of the user charge computer model, it is recommended that the Board of County Commissioners approve the rate recommendations finalized by the Utility consultant and the Utility Advisory Committee. A copy of the draft Final report is available in the Office of the County -Commission. The primary goals of the user charge study were: * To achieve greater equity among user classes and maintain all rate scenarios as revenue neutral (no excess revenue generated) * That revenue sufficiency be achieved for the five year planning period (debt service plus coverage equaled or exceeded) User charge model assumptions: * ERU growth factor for single-family, manufactured homes, multi -family and commercial customers would equal 1%, 0%, 1% and 0.75% per annum respectively, commencing October 1, 1999 and ending September 30, 2003. ERU growth is assumed to be added evenly throughout the twelve months of each fiscal year. * Fiscal year 1998/1999 O&M expenses and non operating revenue based upon 1998/1999 approved budget. * Inflation for O&M expenses assumed 3% per year. * O&M labor expenses escalated according to Teamster's Union contract, annual debt service payments based upon no new borrowing during the five year planning period. Renewal and replacement (R&R) annual transfers of 5% are utilized for ongoing renewal and replacement of the water, sewer and sludge systems. * The existing capital improvement program (CIP) is used for capital projection. It is assumed that the user charge rates will be annually indexed for inflation at a rate of 2.5%. Final rate recommendations: During several workshops with the Utilities Advisory Committee and having received substantial public input, a number of rate scenarios were considered and modified during the process. Final recommendations coming before the Board of County Commissioners today are as follows: 1. That the existing residential class be broken out into single-family residential, multi- family and manufactured home communities with commercial remaining as a distinct class according to land use as per County Code. 2. That base facility charge adjustment factors of 1.0 and 0.85 be applied to single-family, multi -family and manufactured home communities respectively. 3. That the base facility charges be reduced for all classes and the volume charges be adjusted to provide a conservation incentive and give customers greater control over their bills. APRIL 13, 1999 41 BOOK 103 PAGEL t