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Vlll-A-1 <br /> MEMO <br /> To: Honorable Mayor and City Council Members <br /> From: Tom Montgomery <br /> Subject: Annual Utility Rate Review <br /> Date: February 29, 2000 <br /> WATER RATES - CURRENT RATE: $1.30/1,000 GALLONS <br /> NO CHANGE RECOMMENDED <br /> Water rates are recommended to stay at$1.30/1,000 gallons. Assuming 2% annual <br /> growth and water usage based on a five year average, estimated water revenues for 2000 are <br /> $968,000. Excluding capital expenditures which are funded from WAC funds or replacements <br /> which are funded from Water Fund balances (annual depreciation accumulation), and setting <br /> aside$150,000 for depreciation,2000 expenses are estimated at$978,000. While expenses are <br /> estimated to be$10,000 more than revenues,the estimated shortfall is small enough that rates do <br /> not need to be raised. <br /> WASTEWATER RATES • CURRENT RATE: $2.25/1,000 GALLONS <br /> NO CHANGE RECOMMENDED <br /> Wastewater rates are recommended to stay at$2.25/1,000 gallons. Averaging wastewater <br /> usage over a five year period, estimated wastewater revenues for 2000 are$1,238,000. <br /> Excluding capital expenditures for replacements and rehabilitation which are funded from <br /> Wastewater Fund balances (annual depreciation accumulation), and setting aside$100,000 for <br /> depreciation, 2000 expenses are estimated at$!,250,000. While expenses are estimated to be <br /> $12,000 more than revenues,the estimated shortfall is small enough that rates do not need to be <br /> raised. <br /> WAC. SAC, & INTERCEPTOR SEWER CHARGES <br /> Charges Current Rate Recommended Rate <br /> WAC $1,115 $1,140 <br /> SAC $590 $605 <br /> Interceptor Sewer $300 $305 <br /> Council adopted a resolution in 1993 that updated utility connection fees and indexed <br /> these fees to the American City and County magazine construction cost index. This index <br />