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<br />DRAFT REPORT
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<br />In January 2005, thelJte'at which the City is chargedf9!$flectricity~ consumption
<br />under its electric load aggregation agreement increased ,by~over49%,"resulting in
<br />a forecasted increase of approximately $450,000 in annual electricity costs.
<br />The City continues to experience a decline in water purchases. In addition,
<br />1)~p,a_skaJII has 'significantly reduced its ~oIl~UIppti(m over 'the past yeW'. Tenaska
<br />III anticipates IP~!C_h~sirtg"'a:ljpfo'xiriiately"one.-thiid'Of itt3'rece.nt'msloridil 'levels
<br />for the upcoming year.
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<br />7""".,'..'''::'1''''....'1~~~._~..~.~[.~. ..:,,", -.....".".. C,'" ~... , - . '''',''-''
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<br />The City' s ~~i[~~!~~,~~~,:~.~~~~.~~!~r_}at~~_,:ar.e." ~ot,_.ge,n~~~!~g"_~~f!i~~~n.t,i
<br />~.reve1iue.to-piee~.forec~1ed,.expencfifille.f
<br />
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<br />L.\..,. . ' '.."~_" :;.l,..;.u.:_....\-,..:...~..:u.:~-....;;..:....,:,.;. .,.........:...;.... ._.- ,<....' .-'
<br />," ~".. ,""" ~"_'." ~ " .. _, ,_...........:"'\._.f',........-.."I'.-..... ,,..."""';"".,,...:-........,,,,.,,..............,-";..J'....,.... ..._'_::'.,~...P.....,~',....'... ,-._..-,"," --.'" .........~ "
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<br />::!~~.~.~~~~~~~:~~a.h~:.vj~:~~~~~I..~!;il_i.~'~ .,.~P~E~t~~__r~~er:es._.ar~ ~.. n.eed of I
<br />:::r~Bf.~~~~~JIt-is imperative that the City maintain a healthy operating reserve
<br />because of the composition of the Water Utility's revenue stream (five customers
<br />make up approximately 40% of the Water Utility's revenues from rates). A loss
<br />or decline in consumption of one of these customers could result in a significant
<br />financial strain for the City.
<br />g. In an effort to control cost, over the last few years the City has reduced its level of
<br />spending on cash funded capital replacements. However, for the City to maintain
<br />. reliability and quality of service, additional cash capital outlays beyond the City's
<br />current budgeted amount must be made.
<br />h. Waste'transporters using the City's wastewater treatment facilities are currently
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<br />c.
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<br />d.
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<br />e.
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<br />f.
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<br />charged $33.00 per 1000 gallons disposed. Many of these disposals are of
<br />significant strength; however, the City is not currently surcharging waste
<br />transporters for excessive strength loadings.
<br />i. Water service contract with Tenaska III expires October 1,2005.
<br />j. Contract customers are estimated to produce the following water revenues:
<br />. Campbell Soup $1,107,436
<br />. Lamar County Water Supply District $705,534
<br />. Tenaska III $275,645
<br />. Lamar Power $230,688
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<br />City of Paris, Texas
<br />Water and Wastewater Cost of Service Study
<br />May 2005
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