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Regular City Council Meeting <br />June 16, 2003 <br />Page 3 <br /> <br />what the rate increase would generate in revenue. Mr. Stowe said that was <br />correct and it was based off of the 2001-2002 budget. Mayor Fendley said you <br />can back that up by 14% and come up with that number. Mr. Stowe said that is <br />approximately 14% increase over the existing rate. <br /> <br />Mr. Stowe pointed out that the actual water sale has been dropping substantially <br />and the state references about a 14% decline in water sales primarily due to <br />Campbell Soup, and in the wastewater side they were down about 4%. <br /> <br />Mr. Stowe said that at the conclusion of the April meeting, City Council had <br />asked him to meet with Campbell Soup to determine if there was any type of <br />meeting of the minds. There have been a number of meetings with Campbell <br />Soup representatives from New Jersey. He said they discussed their production <br />volumes and the drop in volumes at this Campbell Soup Company facility. No <br />promises were made but it was definitely conveyed to us that they would look <br />favorably at new production lines if they received favorable rates. The <br />discussions resulted in a new type of billing structure and a new approach to <br />servicing Campbell Soup. It will result in approximately $150,000 less revenue <br />from Campbell Soup than what was identified during the study. Mr. Stowe said <br />they were dealing with a zero sum gain. Obviously, if the city loses $150,000.00 <br />in one place it has to be make it up in another place. Mr. Stowe said at this <br />junction this is not his recommendation to the city. His recommendation to the <br />city regarding the Campbell Soup situation is, at this time, they are agreeable to <br />revisiting their rate structure and their policy on an annual basis. He said the <br />city is already two-thirds through this year and it would be impossible to make <br />up the $150,000.00 and it is going to be impossible to hit the revenue target that <br />they have identified. There is going to be a significant shortfall in the city's <br />water and wastewater utility fund for 2002-2003. Mr. Stowe said what he would <br />suggest however, if the city moves forward to start fixing the revenue problem <br />as it is today, realizing that they are looking at data some of it as much as 36 to <br />48 months old, and move toward the future as to whether of not adjustments need <br />to be made in future budgets or what needs to be done. No matter what is done <br />today on budgets, going forward he wanted to emphasize that they are addressing <br />data now as far as the retail basis from this study is some 24 months old and that <br /> <br /> <br />