Laserfiche WebLink
Water and Sewer Subcommittee <br />April 22, 2003 <br />Page 3 <br /> <br />approved almost two years ago to do this study. Mr. Anderson said it was in late <br />December of the year 2001. <br /> <br />Chairman Plata called for a presentation of a report from the City Finance <br />Director on the relative impact of debt service on water and sewer system rates. <br /> <br />Mr. Anderson advised that he went through the study and tried to extract <br />information that would give the Committee an idea of how it is impacting the <br />rates. Mr. Anderson said the debt service currently amounts to 32.2% of the <br />water and sewer's budget. Over all, it will have similar impact on the rates. He <br />said it was hard to identify how it exactly impacts the different customer classes <br />because it impacts each differently. It impacts the contract customers one way, <br />residential customers one way, and the commercial customers one way and the <br />debt is allocated throughout the study. Mr. Anderson said if the city had only <br />one class and everyone paid the same rate, then it would be very simple. The <br />outstanding debt that is water related represents 34.3% of the water portion of <br />the budget. Debt represents 33.3% sewer related budget. The current amount <br />of debt principle that is water and sewer related is $33,940,000.00. Mr. <br />Anderson said of the total debt payment that the city makes annually, 61.65% of <br />that is water related and 38.35% is sewer related. He said that even though the <br />water related debt is higher, it has approximately the same percentage effect on <br />the budget because the water related budget is higher. Mr. Anderson said that <br />from looking at the study, of the water portion of the debt, 65.48% appears to be <br />related to what you might call base cost or average usage cost, and 31.5% <br />appears to be related to extra capacity cost, which is related to the peak flows or <br />meeting the peak requirements of the different customer classes. <br /> <br />Chairman Plata announced that the next item on the agenda was a presentation <br />by OMI Management, Inc., regarding outside management of municipally-owned <br />water and sewer systems. Chairman Plata explained that this is a water <br />management company. <br /> <br />Chairman Plata introduced Shirley Ross, Regional Business Manager for Project <br /> <br /> <br />