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<br />DRAFT REPORT <br /> <br />C. Recommendations <br />a. It is recommended that the City's retail water and wastewater rates be increased to <br />offset the forecasted shortfall, as well as to start replenishing the Water and <br />Wastewater Utility operating reserves and funding a capital replacement fund. <br />Based on a review and discussion of rate design alternatives with City Staff, the <br />fo ...)0 ,,,,'Q~VO\"'I'\''tI,'' <br />agreed upon proposed rate design for City Council consideration is provided in <br />Section IX of this report. Additional rate design alternatives that were considered <br />are included in Appendix D. The following shows the increase in the average <br />Residential and Commercial monthly bills assuming the rates under the proposed <br />rate design to be presented to City Council. <br /> <br /> RESIDENTIAL <br /> Billing Units Water / Current Proposed Percent / Dollar <br />Meter Size Wastewater (CF) Monthly Bill Monthly Bill Increase <br />5/8" and 3/4" 750/600 $43.35 $46.40 7.0% / $3.05 <br /> <br />COMMERCIAL <br /> <br />Current <br /> <br />Proposed Percent / Dollar <br />Monthly Bill Increase <br />$73.75 6.0% / $4.17 <br /> <br />Meter Size <br /> <br />Billing Units (CF) <br />1,000 <br /> <br />Monthly Bill <br />$69.58 <br /> <br />5/8" and 3/4" <br /> <br />b. It is recommended that the City establish and maintain an operating reserve of at <br /> <br />least 60 days of operation and maintenance costs. <br /> <br />c. It is recommended that the City establish and maintain a capital replacement fund <br />funded by internally generated cash of at least $400,000. <br /> <br />d. It is recommended that the City begin immediately funding the operating reserve <br />and capital replacement fund. The proposed rates incorporate $200,000 for the <br />operating reserve fund and $200,000 for the capital replacement fund. <br /> <br />e. It is recommended that next year the City increase its water and wastewater rates <br />to reflect an annual contribution of $400,000 to the operating reserve fund, until <br />such time that the operating reserve requirement of 60 days of operation and <br /> <br />City of Paris, Texas <br />Water and Wastewater Cost of Service Study <br />May 2005 <br /> <br />3 <br />