aie
eed ait
arn

B. Kirk DATE: January 16, 1991
City Administrator

FROM: Audit Committee
SUBJECT: 1991 Utility Budgets and Rates

RECOMMENDATIONS:

That Council approve the proposed rates for 1991 water and sewer as handwritten
on the attached rate schedules to the bylaws.

That Council approve the proposed utility budgets for 1991.

BACKGROUND & COMMENTS:

General

The last time the water and sewer rates were increased was in 1984.

The rates should be set to bring in sufficient dollars to cover all operating and maintenance
costs as well as providing funds to replace the physical plant when required.

WATER UTILITY

A proposed budget for the Water Utility is attached.

Operating and Maintenance

The major changes in costs and other revenues are:

an increase of $77,000 in water purchases resulting frorn increased rates charged by
the sVWD as well as increased consumption (due to growth, this is offset by
inc . sed revenue from the new properties)

ction in costs of $21,273 resulting from the removal (it is now all paid off) of
erm debt repayments from the budget. The only remaining debt is a result of
aterest free loans from Genstar regarding the servicing of Citadel Heights. The
{ remaining to Genstar is being repaid through the levy of development cost
rges to new properties within the same water service area as Genstar.

Continued Page 2

iy

an fi

ae talt