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Centerville Water and Sewer Rate Study <br /> Phase 2 Update - June 9, 1999 <br /> Financial Priorities <br /> 1, Quarterly Service Fees meet Annual Operation and Maintenance Costs. <br /> 2, Connection Charges and hook -up charges meet Capital project needs and maintain a <br /> positive cash flow in all infrastructure accounts. <br /> 3. Establish a Capital Replacement Fund (CRF) for all major infrastructure repairs. <br /> Once established by a combination of revenue sources, the CRF should be maintained <br /> by revenue from annual service charges and connection fees. <br /> Phase Two Study Results <br /> Comparison of Rates with Neighboring Communities (Separate Handout) <br /> 1. Sanitary Sewer Rates are less than all Neighboring Communities. <br /> 2. Water Rates are lower than three communities and higher than three communities. <br /> 3. Centerville is only community currently with Storm water Fees; Hugo will adopt <br /> some fees for 2000. <br /> Sanitary Sewer Rates <br /> 1. Increase current service charges from $ 39 /quarter to $ 51 /quarter over next 4 years. <br /> That means an average annual increase of $ 12/year or $3 /quarter. This will close the <br /> current shortfall, which is primarily due to MCES charges. Current average costs <br /> exceed service charge revenues by about 30%. Currently, connection fees and hook- <br /> up charges have paid for this difference. <br /> 2. Reevaluate Sewer Rates in 2005 to look at the 2005 to 2020 period. <br /> 3. Establish a Sanitary Sewer CRF from current Sanitary Sewer Enterprise Funds. <br /> Transfer about $ 376,200 from the current balance of $ 1,215,614 to initiate CRF. <br /> Make annual transfers to the Sanitary Sewer CRF of about $ 41,800 per year with <br /> sewer connection and hook -up revenues or Sanitary Sewer Enterprise Funds. <br /> Water Rates <br /> 1. Increase cuirent service charges from $ 15 to $ 19 per quarter and volume charges <br /> from $ 1.50 to 1.90/thousand gallons over the next four years. This will allow service <br /> charge revenue to meet operating expenses. 1995 -98 service charges were 20 % <br /> below operating costs. <br /> 2. Establish a Water CRF from current Water Enterprise Funds. Transfer about <br /> BRA Project 616-99 -102 1 <br />