HomeMy WebLinkAboutCOMMITTEE OF THE WHOLE - 11/11/1986 - WATER SEWER RATE STUDY MINUTES
Committee of the Whole
November 11, 1986
9:30 P.M.
PRESENT: Charles Zettek, Village President
Edward Hauser, Village Trustee
Ronald Chernick, Village Trustee V�j3 ,n
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Michael Tosto, Village Trustee +J$6
Joseph BOSSlet, Village Trustee E''^,,,,
Dennis Gallitano, Village Trustee "`s 11*4
ABSENT: James Petri, Village Trustee
STAFF PRESENT: C. A. Willis, Village Manager
Gary Parrin, Assistant Village Manager
George Knickerbocker, Village Attorney
George C. Coney, Director of Finance
Hilda Ingebrigtsen, Assistant Director of Finance
WATER/SEWER RATE STUDY
The Director of Finance presented his study of rate requirements
for the water and sewer systems dated October 24, 1986. The EPA requires
one basic user rate for the sewer system. In order to obtain the final
payout from the Inflow/Infiltration Grant, our current rate composed of
a daily demand charge and commodity charge - average $0.35/1,000 gallons
of water used - must be converted to one basic user rate per 1,000 gallons
used. The current average rate of $0.35/1,000 is adequate to support
the operation and maintenance of the sewer system.
The current average water rate of $1.51/1,000 gallons used is inadequate
to support the operations and maintenance of the water system. Continuing
at this rate would result in an average annual cash flow deficiency of
$1,825,000 for the next five years. The study indicated that in addition
to using the $3,000,000 set aside for softening a rate increase during '
the next four years, it is necessary to increase the current average rate
$0.37/1,000 gallons from $1.51 to $1.88. The new rate of $1.88/1,000
should be adequate through fiscal year ending April 30, 1990. It is possible
an additional $0.30/1,000 might be necessary at that time.
Trustee Gallitano proposed that, that portion of the rate attributed
to fixed costs be added to the property tax. This proposal did not receive
support from the other Trustees.
Mr. Coney recommended that the water and sewer rates be changed from
a combination of a demand charge and commodity rate to a basic user rate
per 1,000 gallons of water used as follows:
Current Recommended Increase
Water Rate $1.51 $1.88 $0.37 24.5%
Sewer Rate .35 .35 - -
$1.86 $2.23 $0.37 19.9%
He recommends the new rates be effective no later than February 1,
1987. The Village Board concurred.