| In 2001 staff and a rate consultant reviewed the Wastewater
Fund's rate model to evaluate the need for adjustments. The model indicated
that an increase could be deferred several years in favor of other enterprise
fund increase but should be reviewed annually. As part of the budget process
staff has done that and is proposing an increase as part of the budget for
FY 2004-05.
Operational cost increases for the Wastwater Fund are projected to be 16%
in FY 2003-04 and another 4.4% in FY 2004-05 as compared to operational revenues
decreasing 0.5% in FY 2003-04 and increasing 3.3% in FY 2004-05 with this
adjustment.
Increased costs relate to personal services including added benefit costs,
power and chemical costs and debt service on the DEQ loan not covered by
the portion of the Food & Beverage Tax revenue allocated here. Revenues
are thought to have "flattened" due to changes in water consumption in winter
months from weather and conservation. Wastewater rates are based upon winter
time water consumption and a drop in water consumption could negatively impact
the amounts charged in the Wastewater Fund.
Miscellaneous Charges and Connection Fees established by the previous resolution
remain in effect, unchanged until revised by separate Council Action.
The increase would be effective for bills prepared on or after July 1, 2004
beginning with Cycle Seven. |
