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HomeMy WebLinkAboutA001 - Announcement of public information meeting on April 16, 1985 AME9CITY OF AME II S, IOWA 500,0 515/232-6210 ALL-AMERICA CITY 1982-1983 ANNOUNCEMENT OF PUBLIC INFCRMATION MEETING ON NEW?ATFR POLLUTION CONTROL PLANT PROJELT AND PROPOSED SEWER RATE INCREASE Tuesday, April 16, 1985 - 7:00 p.m. Ames City Council Chambers 621 Main Street Dear Ames Resident: April 5, 1985 I would like to ask your help in disseminating information about a very important meeting coming up Tuesday, April 16th, which affects all Ames citizens. You are invited to this meeting to discuss with City staff plans for the new wastewater treatment plant and proposed rate schedules to provide financing needed for the local share of construction cost. Water Pollution Control Project. Planning for the WPC project began in 1975. A Facilities Plan (preliminary engineering report) was completed in 1979 and was approved by the City Council in 1979 and again in 1980. The report recommended that a new wastewater treatment plant be built at a site halfway between Ames and Cambridge. That plan was reviewed and approved by state and federal agencies in 1981 and 1982. It is anticipated that a federal grant will be received this summer or fall and that construction of the interceptor serer to the site will begin this winter. Construction of the new plant itself should begin late in 1986 with completion expected in the summer of 1988. Sewer Rates. The federal grant is expected to cover approximately half of construction costs, leaving the other half to be financed locally. Sewer rates were raised 50% effective July 1984 in anticipation of this need. The serer bill for a typical family of three is now $9.50 per month for 600 cu.ft/mo. A staff report to be presented to Council on April 9th proposes an addi- tional rate increase of 25% effective this July. This would raise the typical sewer bill from $9.50 to approximately $12.00 per imnth. A fur- ther increase to approximately $15.00 per month is anticipated for mid- 1986. The staff report outlines these two alternative rate proposals. The saire result could be obtained by other combinations. - Retain the minimum bill at $3.00 per month and raise the unit rate from $1.30 to $1.70/100 cu.ft. - Raise minimum bill to $3.50 and raise the unit rate from $1.30 to $1.65/100 cu.ft. It would be greatly appreciated if you would inform the other members of your organization as well as your friends and neighbors of this very impor- tant meeting. We look forward to seeing you on April 16th so that we can explain has these projects will affect you personally. Sincerely,IL N IiJQ� . Steven L. Schainker City Manager /lw c: Mayor and City Council PROJECTED SEWER SERVICE CHARGES IN FY 1988-89 Initial Year of New Treatment Plant Operation Minimum Bill (IF NO ALLOWANCE) $1 .50/month User Charge For Wastewater Treatment $0.43/100 cu.ft. For Sewer Eng'g. + Maint. 0.39/100 cu.-Ft. For Debt Service 1 .38/100 cu. ft. TOTAL $2.201100 cu.ft. Typical Bill for Family of 3, for 600 cu.ft./month: Minimum Charge $ 1 .50 User Charge, 600 cu.ft. @ $2.201100 cu.ft. 13.20 TOTAL CHARGE $14.70/month Typical Bill in Present Format: Minimum Bill (INCLUDING 100 CU.FT. ALLOWANCE) ($1 .50 + $2.20) $ 3.70 User Charge, next 500 cu.ft. @ $2.20/100 11 .00 TOTAL CHARGE $14.70/month INCREASED SEWER SERVICE CHARGES CITY OF AMES, IOWA rxvvzi AMES Betty Jo Harker, Director, Finance Department Alice Martin, Assistant Director, Finance Department Thomas W. Neumann, Assistant Director, Water & Pollution Control Department Harris F. Seidel , Director, Water & Pollution Control Department Partners in T.P.I .R. Consultants, Ltd. April 1985 • r 1 - INCREASED SEWER SERVICE CHARGES • CITY OF AMES, IOWA April 1985 Outline Introduction and Scope History of Sewer Service Charges Contractual Agreements - Iowa State University - National Animal Disease Center - City of Kelley - Contract Amendments Wastewater Volumes Billed • New Water Pollution Control Project - Facilities Plan - Changes in the Grant Environment - Elements of Project Financial Capability - Revenue - Expense - Proposed Bond Issue - Cash Flow Projection Rate Proposals - Present Billing Pattern and Yield - Specific Proposals - Effect on Consumers' Bills • Introduction and Scope The purpose of this report is to outline a proposed rate increase which is the second in a series of rate increases needed to support construction of a 66-inch interceptor sewer to the new water pollution control plant site and a new treatment plant there. This project is the realization of a Facilities Plan first approved by (then) Iowa DEQ in December 1981 and by U.S. EPA in early 1982. An updated Facilities Plan Addendum was submitted to Iowa DWAWM in December 1984. Approval is expected in the spring of 1985. It is anticipated that Ames will receive a grant offer in federal FY 1984-85, or more specifically in late summer of 1985. This grant offer will be contingent on our being ready to proceed to construction. This includes the financial base to support our • share of the cost. Present sewer revenue comes from two types of customer billing. The first, which is based on the established rate schedule, includes all customers with City sewer service except Iowa State University, the National Animal Disease Center, and the City of Kelley. These three customers are all billed through individual contracts under which they pay actual treatment costs plus appropriate overheads based on metered wastewater flow volumes. Since these three contract customers are not affected by ordinance rate changes, this rate proposal will deal only with usage, billing, and revenue for those customers covered by the conventional rate schedule. • • History of Sewer Service Charges The first sewer service charge enacted by the City of Ames went into effect in December 1946. This was in advance of construction of the present waste treatment plant which was a joint effort of the City and Iowa State University. The money was used for construction and to help support a bond issue for the City's share of the project. The rate remained the same until the next increase in the fall of 1958. In 1971 a new sewer service rate schedule was enacted which included a number of changes. One result was to bring the number and range of rate steps into agreement with the water rate schedule adopted in 1969. A multiple dwelling rate feature was added, similar to that initiated for water in 1970. Perhaps the most interesting change was a summer beautification rate • which eased the blow for summer watering. While still having to pay for all water used during the summer months, customers were relieved of sewer charges on the excess water, based on a computer comparison with previous winter water use. The summer beautification rate was canceled in July 1977 as part of the same ordinance which included water conservation measures and use restrictions. This was a part of the community' s response to the severe 1976-77 local drought. A modest adjustment in sewer service charges was enacted in December 1973, primarily with the purpose of reducing the minimum bill and the allowance on the minimum bill , again corresponding to changes made in the water rate schedule. The result was a reduction in sewer service revenue of about two percent. In the spring of 1979, the City Council enacted an ordinance providing • for a two-stage sewer rate increase. The first stage, effective with bills paid beginning in July 1979, provided approximately 72 percent increase in revenue yield. The second stage became effective with bills paid starting in January 1980 and provided an additional 32 percent increase in yield. Taken together, these two increases resulted in approximately 125 percent rise in revenue for the same billing volume. The 1979-80 rate increase also represented a departure from the traditional declining block rate structure which had been used since 1958. After the first 100 cubic feet, the rate became a flat or uniform amount per 100 cubic feet regardless of the volume used. The 1984 rate adjustment represented an increase of approximately 50 percent. The monthly minimum bill for an allowance of 100 cubic feet per • month was raised from $2.00 to $3.00. The unit rate for all use above 100 cubic feet per month was raised from $0.86 to $1 .30/100 cubic feet. The rate ordinance was passed by Council in final form on May 15, 1984, effective with collection beginning in July. i Sewer Service Charge Schedules Ames, Iowa Adopted • December 1946 (in effect) First 5,000 cu ft/mo $0. 10/100 cu ft All over 5,000 cu ft/mo 0.05/100 cu ft Minimum Bill (500 cu ft allowance) - $0. 50/mo September 1958 First 500 cu ft/mo $0. 201100 cu ft Next 500 0. 16 Next 4,000 0. 14 All over 5,000 0. 10 Minimum Bill (500 cu ft allowance) - $1.00/mo March 1971 (effective May 1971) First 300 cu ft/mo $0.667/100 cu ft Next 700 0.38 • Next 9,000 0. 28 Next 90,000 0. 22 Next 400,000 0. 20 All over 500,000 0. 16 Minimum Bill (300 cu ft allowance) - $2.00/mo Multiple Dwelling Rate - $1. 50/unit ; 300 cu ft allowance Summer Beautification Rate for Residential Customers: "Water usage billed during the summer months , May through October, in excess of the monthly average billed during the previous winter months, November through April , shall not be charged for sanitary sewer service. " December 1973 First 200 cu ft/mo $0.75/100 cu ft Next 200 0.40 Next 600 0.38 Next 9,000 0.28 Next 90,000 0.22 Next 400,000 0.20 All over 500,000 0. 16 Minimum Bill (200 cu ft allowance) - $1. 50/mo Multiple Dwelling Rate - $1. 25/unit ; 200 cu ft allowance/unit July 1977 Sumner Beautification Rate Canceled as Conservation Measure Sewer Service Charge Schedule continued April 1979 • (effective July 1979) First 100 cu ft/mo $2.00/100 cu ft All over 100 0.60 Minimum Bill (100 cu ft allowance) $2.00/mo (effective January 1980) First 100 cu ft/mo $2.00/100 cu ft All over 100 0.86 Minimum Bill (100 cu ft allowance) $2.00/mo May 1984 (effective July 1984) First 100 cu ft/mo $3.00/100 cu ft All over 100 1 .30 Minimum Bill (100 cu ft allowance) $3.00/mo History of Sewer Service Charges (assuming single-family water use of 600 cu ft/month) • Column 1 Column 2 Column 3 Sewer SerVice Bill Consumer rice Index jus a or Rate Date for 600 cu ft Base Year 1967 - 100 (Col . 1 _ Col . 2) Dec. 1946 $ .60 58.5 $1 .03 Sept. 1958 1 . 16 86.6 1 .34 May 1971 3. 14 121 .3 2.59 Dec. 1973 3.06 133.1 2.30 July 1979 5.00 218.9 2.28 Jan. 1980 6.30 233.2 2.70 June 1980 6.30 247.6 2.54 Dec. 1980 6.30 258.4 2.44 June 1981 6.30 271 .3 2.32 Dec. 1981 6.30 281 .5 2.24 July 1982 6.30 292.2 2. 16 Dec. 1982 6.30 292.4 2. 15 July 1983 6.30 299.3 2. 10 Dec. 1983 6.30 303.5 2.08 Feb. 1984 6.30 305.2 2.06 July 1984 9.50 Dec. 1984 9.50 • Contractual Agreements Iowa State University In 1947 the City of Ames and Iowa State University entered into an agreement for a joint effort on wastewater treatment. Each had dealt with this problem separately for decades before. In fact, the initial treatment plants built by ISU on campus in 1898 and by the City in 1904 at the present site of University Inn were among the earliest in the country. The 1947 contract provided for sharing the cost of the new joint treatment facility placed in service in the fall of 1950. The sharing of both capital and operating costs was to be based on proportion of flow contributed by each party, and this continues to the present as the key element in this agreement. A 1972 amendment provided for payment of • operating costs by ISU to the City on a monthly basis rather than annually as before. National Animal Disease Center A generally similar agreement was negotiated with the USDA in 1959 for utility services to NADC. The initial agreement provided for billing operating cost charges based on flow and strength of the effluent from the NADC site. However, since effluent strength has been consistently very similar to domestic waste strength, the agreement was amended in 1971 to provide for charges by the City based on volume of waste alone. Strength charges can be reinstated at any time if waste characteristics change sufficiently to make this necessary. • • City of Kelley In the fall of 1975, a contract was signed with the City of Kelley which was developed in a similar manner. Payment is made monthly based on estimated operating cost and volume contributed. Construction of the Kelley sewer system was completed in the late fall of 1978. From a pumping station in Kelley, wastewater is discharged through a 4-inch force main northward along the county road to the intersection of State and Oakwood, then by gravity line down to the Worle Creek sewer. For all three contracts, waste treatment charges are adjusted to actual costs following each fiscal year, eliminating any concern over which party is temporarily ahead of the other. Contract Amendments All three contracts are currently being reviewed and revised to bring • them into conformance with EPA grant regulations and for general updating. Each will be brought to the City Council for review and acceptance. In each case, the basic concepts will continue unchanged. EPA's primary requirement in this area is that all users share in operating, maintenance, and replacement costs in proportion to their actual use of the facilities. Also, it is necessary that the City of Ames clearly have the right and obligation to develop and maintain a system of user charges to accomplish this. • • Wastewater Volumes Billed A summary of wastewater volumes billed over the last 16-year period is presented. Volume billed to NADC is based on records from a continuous flow metering station at the southwest corner of the site on Dayton Avenue. These data are of particular interest because they show the dramatic effect of a steady and continuing water conservation effort at this facility. This conservation program was planned and directed by Jack Kennedy, former Chief Engineer of NADC. Wastewater flow from the ISU central campus is measured at a continuously recording meter installation at Beach and Lincoln Way. In addition, the wastewater contribution (based on metered water use) from all other facilities is added to the flow discharged from central campus to • provide the total wastewater volume shown in the attached table. This involves some 16 separate facilities including the Iowa State Center, Vet Med group, all off-campus housing, and ISU farms. All other customers are billed on the rate structure as established by City ordinance. Metered water use is the basis for billing. The severe drought of 1976-1977 was responsible first for unusually high water use as the drought was developing and then sharply reduced water use in response to water conservation measures. After several "normal " years, a modest drop in water use was again experienced in FY 1981-82 because of conservation measures in the summer and fall of 1981 , followed by plenty of precipitation in the spring of 1982. • WASTEWATER VOLUMES BILLED • Ames, Iowa All in million cu ft per year ISU, All Other NADC Kelley All Facilities Customers Year (by Contract) (by Contract) (by Contract) (Rate Schedule) Cal . 1968 8.7 65.4 96.0 1969 10.2 67. 1 94.6 1970 9.2 67.0 103.2 1971 9. 1 67.9 109.0 1972 8.4 69.0 95.3 1973 8. 1 67.4 101 .3 1974 7.0 60.5 101 . 1 Cal . 1975 6.4 64.2 1092 (e) FY 1975-76 5.5 65.4 1132 (e) • 1976-77 5.0 70.5 132.5 1977-78 4.9 67.8 109.7 1978-79 6.3 .2 75.5 121 .7 1979-80 5.3 .6 75.2 128.3 1980-81 3.9 .6 71 .2 136.2 1981-82 4. 1 1 . 1 67.6 128.8 1982-83 5. 1 1 . 1 72.3 132.6 1983-84 5.2 1 .4 72.8 143.4 1984-85 4 (e) 1 (e) 72 (e) 140 (e) • New Water Pollution Control Project • Facilities Plan Engineering work on a Facilities Plan for a new treatment plant was first completed in 1979. Required public hearings were held, and Council voted unanimously to accept the project and proceed, following regulatory approvals. At the request of EPA, a series of four public participation hearings were held in the spring of 1980. The additional questions raised required additional engineering and site review. Finally, in December 1981, the Iowa DEQ issued its letter of approval for the Facilities Plan as completed two years earlier. This was followed by a FONSI (Finding of No Significant Impact) statement by EPA in early 1982. In 1984 it became necessary to update the Facilities Plan because of the • 5-year interval since its completion in 1979. This included bringing all cost estimates up to date and recalculating the cost per local household to reflect the change in federal grant support from 75 percent to 55 percent of eligible project costs. The cost effectiveness of each alternative was again evaluated, resulting in confirmation of the selection of a new plant at the new site downstream. A further review of technical options resulted in modification of the treatment method to the TF/SC or trickling filter/solids contact process. The Facilities Plan Addendum was submitted to DWAWM in December 1984, and approval is expected in the spring of 1985. The completed Facilities Plan consists of a trunk sewer to a new site approximately 412 miles downstream and a complete new water pollution control plant on that site. The new plant is planned for approximately twice the present capacity of the existing plant and will be designed for much higher • treatment efficiencies. Total estimated cost of the project was $27.8 million based on fourth quarter 1978 estimating costs. Changes in the Grant Environment • For a number of years, eligible water pollution control projects received 75 percent federal grant funding, although the delays in such funding seemed interminable. In recent years, major changes have been made in the rules of this game. Four years ago, federal grant funding was blocked, then authorized again; informed judgment seems to be that such grants may be completely terminated in the next several years. However, cities with pollution control problems will still be under a mandate to meet a 1988 deadline for compliance even if this must be done essentially with local funds. During the last year, the administration of the wastewater construction grant program in Iowa underwent either an "agonizing reappraisal " or a "return to reason and equity", depending on the viewpoint. Suffice it to say that the return to an emphasis on pollution control needs, as expressed in • DWAWM's priority points rating system, elevated the Ames project from No. "nowhere" and 1992 scheduling to No. 2 right behind Des Moines and the probability of funding within the next year. The current priority list shows Ames eligible to receive $3.85 million grant support in federal FY 1985 and $4.4 million in FY 1986. Since the needs of the Des Moines project are so large, the best we can hope for in subsequent years would be continuation of grant funding at the level of $4.4 million per year until completion sometime in 1988. i Elements of Project • The project will include two major elements. 1 . Construction of a 66-inch interceptor trunk sewer from the present plant to the new plant site. The design of the interceptor was done by City engineering staff, and the work of obtaining easements along the route is nearly complete. 2. Construction of a complete new secondary treatment plant at the new site. RCM Associates, Inc. , the consulting engineering firm which prepared the Facilities Plan was authorized in January 1985 to begin the design process, and work has begun on preparation of plans and specifications. Estimated construction costs based on June 1984 estimating data are summarized as follows: Interceptor Sewer $ 5.76 million • Treatment Plant 20.87 Land 1 .00 Contingencies, Eng'g. , Legal , Admin. , Etc. 5.40 TOTAL $33.03 million Financial Capability • Revenue Recent and current revenues are shown in Table 1 . As mentioned earlier, revenues from NADC, ISU, and Kelley are based on sharing of actual operating costs, then calculated on proportion of flow contributed by each to the plant. The large increase in revenue budgeted for FY 1985-86 is predicted from an assumed 25 percent rate increase for regular billing customers. This is in accordance with information previously provided to the City Council during budget and planning sessions. Similar increases are not shown for contract customers. However, they do participate in capital costs, as well as operating costs, and will eventually also be paying their fair proportionate share of impending construction costs. Expense Recent and current expenses are shown in Table 2. Wastewater treatment operation has traditionally been the major expense item in the Sewer Fund, but each year more of the public works and administrative support activities are financed from this "cash cow". Two major land acquisitions have been made and both completely paid for. The 257-acre Wagner farm was purchased in 1981 for $783,850, and final payment was made in January 1984. A 40-acre wooded tract was purchased from Terry Hathaway in 1982 for which complete payment of $84,750 was made at the time. Final settlement for the Banks property will complete plant site acquisition. TABLE 1 • WPC - Sewer Utility Fund Revenue Summary - $1 ,000' s FY FY FY FY FY 1981-82 1982-83 1983-84 1984-85 1985-86 Meter Sales (estimated) ( ub dgeted) Regular Billing 1 ,234 1 ,330 1 ,426 1 ,950 2,500* NADC Contract 19 13 17 30 60 ISU Contract 130 116 131 120 126 Kelley Contract 4 3 4 3 5 TOTAL BILLING 1 ,387 1 ,462 1 ,578 2, 103 2,691 Other Revenues Interest Earned 229 179 209 90 90 Farm Land Rental 3 42 22 25 25 Miscellaneous 5 6 17 21 21 EPA Grant Participation 18 - - - 7, 175 • (55% of eligible costs) - ISU Capital Participation 5 40 + + (est. 25% of local 45%, = 114% of total costs) Sale of Revenue Bonds - - - - 4,650 TOTAL NON-BILLING 260 227 288 136 11 ,961 GRAND TOTAL REVENUES 1 ,647 1 ,689 1 ,866 2,239 14,652 * Assuming 25% rate increase effective June 21 , 1985 + ISU indicates it may pay its share through amortization payments rather than up-front capital participation. • TABLE 2 WPC - Sewer Utility Fund • Expense Summary - $1 ,000's FY FY FY FY 1982-82 1982-83 1983-84 1984-85 1985-86 (es�ima ed) (Tucge ed) Operations WPC-Wastewater Treatment 140 292 328 168 174 Supporting Plant Operations 135 14 17 206 198 P.Works-Sanit. Engineering 51 41 82 88 92 Sanit. Sewer Maint. 76 86 105 82 92 Finance-Customer Services 76 82 88 93 99 Other finance Services 25 28 35 37 40 General Administration 194 174 173 207 201 Depreciation — 67 74 81 119 399 TOTAL OPERATING EXPENSE 764 791 909 1 ,000 1 ,295 Non-Operating Expenses Interest Expense 21 31 11 -- -- Transfer to Internal Service and other funds 72 11 4 -- -- 0 TOTAL NON-OPERATING EXPENSES 93 42 15 -- -- TOTAL EXPENSES 857 833 924 1 ,000 1 ,295 Capital Improvements Land Acquisition 868 -- 2 15 15 Plant Maintenance 62 81 23 52 20 WPC Plant 8 15 2 -- -- Sanit. Sewer Rehab. 92 62 187 114 100 Infrastructure Study 57 -- -- -- -- F.D. Conversion 1 1 24 100 100 Treatment Impr./Pumping -- 5 -- -- -- Outfall Sewer -- 228 -- -- -- WPC Plant Construction -- -- 266 2,630 13,800 TOTAL CAPITAL 1 ,088 392 504 2,911 14,035 GRAND TOTAL EXPENSES 1 ,945 1 ,225 1 ,428 3,911 15,330 • • The amount shown in FY 1985-86 for WPC Plant construction is $13.8 million. This includes $5.0 million for the Interceptor Sewer and $8.8 million for the Treatment Plant, all as shown in the Capital Improvements Plan approved earlier by the City Council . It is not possible to predict at this writing how closely actual construction outlays will match those estimates. • Proposed Bond Issue • In preparing the FY 1985-86 budget for the activities included in the Sewer Fund, a revenue bond issue of $4,650,000 was proposed. This was in recognition of the need for borrowing to support project construction, while acknowledging that the size of the bond issue needed was subject to many uncertainties at that time. To be consistent with the approved budget, the bond issue is still assumed to be $4,650,000. It appears that it will not be needed until late 1985. The actual size of the bond issue can then be determined based on construction underway, grant participation, and our cash position. Therefore, no speculation is included here on interest rate, term, etc. • Cash Flow Projection • A simplified cash flow projection for recent and current years is presented in Table 3. It is based on revenues and expenses as shown in the two previous tables. Thanks to recent rate increases, the Sewer Fund is in strong position; and we are well able to move into project construction now that the grant arrow has come to rest on our number. Even after purchase of the Wagner and Hathaway properties, a special transfer of $1 , 197,246 was made in December 1982 to a Sewer Reserve Trust Fund specifically designated for this project. Another $537,635 was added to the Trust Fund after audit of FY 1982-83. With interest, this Trust Fund now has $2 million available for transfer back as needed for project costs. It will be necessary to maintain a fairly strong level of working capital during the coming years to deal with contract payments and possible slow reimbursment of grant participation funds. TABLE 3 WPC - Sewer Utility Fund • Cash Flow Projection - $1,000's FY FY FY FY FY 1981-82 1982-83 1983-84 1984-85 1985-86 (es ima ed) ( u�g_ef_ed) Beginning Balance 1 ,538 1 ,664 802 438 [999] Cash Inflows Metered Sales 1 ,391 1 ,446 1 ,535 2,038 2,603 Other Operating 19 47 69 53 46 Non-Operating 218 215 195 106 90 Grants EPA Participation - - - - 7,175 Transfers From Sewer Reserve Tr.Fund - - - - 2,000 Bond Issue Proposed - - - - 4,650 TOTAL CASH INFLOWS 1 ,628 1 ,708 1 ,799 2, 197 16,564 Cash Outflows Operations 718 688 814 893 894 Capital Improvements 713 599 667 2,630 12,923 Debt Service 51 41 21 - - Transfer to Int.Svc.& Other 21 11 4 - - Transfers To Sewer Reserve Tr. Fund - 1 ,231 657 111 - TOTAL CASH OUTFLOWS 1 ,503 2,570 2, 163 3,634 13,817 Ending Balance 1 ,663 802 438 [999] 1 ,748 • Rate Proposals • Present Billing Pattern and Yield A summary of various statistical data with regard to the present rate structure and revenue result is presented in Table 4. The data include the number of customers in an array of use categories (200-400 cu. ft./mo. for example) . These rate blocks are no longer used in billing, but they were retained in the data processing system and are of value in rate and revenue analysis. Also shown are average use and average bill for customers in each category and total billing in cubic feet and dollar amount. The data shown are based on the average of recent winter months. The present rate comprises a $3 minimum bill for the first 100 cubic feet per month, then a uniform rate of $1 .30/100 cubic feet for all use above the minimum amount. As shown at • the bottom of Table 4, the average yield from this rate schedule applied to all customers is $1 .45/100 cubic feet billed. TABLE 4 • Sewer Service Customer Billing (Except ISU and NADC Contracts) Present Rate Schedule $3.00 Min. Bill , then $1 .30/100 cu ft Composite Use Pattern Nov. 1984 - Feb. 1985 Total Total Rate No. of Avg. Cu.Ft./ Billed, Avg. Bill Billed, Block Customers Customer Cu.Ft./Mo. $/Customer $/Month Misc.-S 10 -- -- S-Min-A (0-100 cf/mo) 800 -- 70,000 3.00 (min) 2,400 S-Min-B (100-200) 600 135(e) 80,000 3.45 2,070 S-1 (200-400) 1 ,700 306 520,000 5.68 9,660 S-2 (400-1000) 4,850 666 3,230,000 10.36 50,250 i (lA-10M 2,000 2,075 4, 150,000 28.68 57,360 (10M-100M) 135 20,000 2,700,000 261 .70 35,330 (100M-500M) 5 170,000 850,000 2,212.00 11 ,060 S-6 (Over 500M) 0 (ISU & NADC) TOTALS 10, 100 11 ,600,000 $168, 100 Yield - $1 .45/100 cu ft Specific Proposals • As stated earlier, the objective of this second rate increase is to achieve a 25 percent increase in regular billing revenue. This is consistent with the financial plan presented during budget review the last two years and is intended to be made effective late June 1985 so that its effect will cover the next full fiscal year. Rate Proposal A. This proposal holds the minimum bill at $3 but increases the uniform rate for all use above the minimum 100 cubic foot allowance to $1 .70/100 cu. ft. As shown in Table 5, this is sufficient to raise the yield to $1 .81/100 cu. ft. and to meet the 25 percent target increase. Rate Proposal B. In this proposal , the minimum bill is increased to $3.50 per month for the first 100 cu. ft. , and the uniform rate of $1 .65/100 cu. ft. is established for all use above that allowance. As shown in Table 6, this will also provide the desired 25 percent increase in revenue. Many other combinations would meet this objective as well . Effect on Consumers' Bills Tables 7 and 8 are designed to show the present monthly bill for an array of monthly use amounts or quantities; the new or increased monthly bill resulting from the proposed rate increase; and the percent increase at that use level . Again, many other combinations are possible. However, under current EPA regulations, a uniform rate to all users is a requirement. • TABLE 5 • Sewer Service Customer Billing (Except ISU and NADC Contracts) Rate Proposal A $3.00 Min. Bill , then $1 .70/100 cu ft Total Total Rate No. of Avg. Cu.Ft./ Billed, Avg. Bill Billed, Block Customers Customer Cu.Ft./Mo. $/Customer $/Month Misc.-S 10 -- -- S-Min-A (0-199 cf/mo) 800 -- 70,000 3.00 (min) 2,400 S-Min-B (100-200) 600 135(e) 80,000 3.60 2, 160 S-1 (200-400) 1 ,700 306 520,000 6.50 11 ,050 S-2 (400-1000) 4,850 666 3,230,000 12.62 61,200 S-A (1 -1OM) 2,000 2,075 4, 150,000 36.58 73, 160 • ri-1 M (1 O 1 3 5 20 000 2 70 1( 00 ) 0,000 34 .30 46,080 S-5 M M (100 -500 ) 5 170,000 850,000 2,891 .00 14,450 S-6 (Over 500h1) 0 (ISU & NADC) TOTALS 10, 100 11 ,600,000 $210,500 Yield = $1 .81/100 cu ft • TABLE 6 • Sewer Service Customer Billing (Except ISU and NADC Contracts) Rate Proposal B $3.50 Min. Bill , then $1 .65/100 cu ft R Total Total Rate No. of Avg. Cu.Ft./ Billed, Avg. Bill Billed, Block Customers Customer Cu.Ft./Mo. $/Customer $/Month Misc.-S 10 S-Min-A (0-100 cf/mo) 800 -- 70,000 3.50 (min) 2,800 S-Min-B (100-200) 600 135(e) 80,000 4.08 2,450 S-1 (200-400) 1 ,700 306 520,000 6.90 11 ,730 S-2 (400-1000) 4,850 666 3,230,000 12.84 62,270 S-A ( 1 -10M) 2,000 2,075 4, 150 000 36.09 72, 180 M(1O -100�1) 135 20,000 2,700 000 331 .85 44,800 S-5 (100M-500M) 5 170,000 850,000 2,807.00 14,030 S-6 (Over 500r�) 0 (ISU & NADC) TOTALS 10, 100 11 ,600,000 $210,200 Yield = $1 .81/100 cu ft • TABLE 7 Sewer Service Rate Proposal A Minimum Bill remains at $3.00/month for the first 100 cu. ft./month. For all use after the first 100 Cu. ft. , the uniform rate is $1 .70/100 cu.ft. Quantity Monthly Bill Monthly Bill Cu. Ft./Month Under Present Rate Under Proposed Rate$ 3.00 Increase 0 $ 3.00 (min) _ (min) _ 100 3.00 (min) 3.00 (min) __ 200 4.30 4.70 300 9 5.60 6.40 14 400 6.90 8. 10 500 17 8.20 9.80 19 600 9.50 11 .50 700 21 10.80 13.20 22 800 12. 10 14.90 900 23 13.40 16.60 24 1 ,000 14.70 18.30 1 ,500 25 • 21 .20 26.80 26 2,000 27.70 35.30 3,000 27 40.70 52.30 28 4,000 53.70 69.30 5,000 29 66.70 86.30 29 6,000 79.70 103.30 8,000 30 105.70 137.30 30 10,000 131 .70 171 .30 12,000 30 157.70 205.30 30 15,000 196.70 256.30 18,000 30 235.70 307.30 30 20,000 261 .70 341 .30 25,000 30 327 426 30 30,000 392 511 40,000 30 522 681 30 50,000 652 851 60,000 31 782 1 ,021 31 80,000 1 ,042 1 ,361 100,000 31 1 ,302 1 ,701 31 200,000 2,602 3,401 31 300,000 3,902 5, 101 31 TftBLE 8 Sewer Service Rate Proposal B • Minimum Bill increased to $3.50/month for the first 100 cu. ft./month. For all use after the first 100 cu. ft. , the uniform rate is $1 .65/100 cu.ft. Quantity Monthly Bill Monthly Bill Cu. Ft./Month Under Present Rate Under Proposed Rate Increase 0 $ 3.00 (min) $ 3.50 (min) 17 100 3.00 (min) 3.50 (min) 17 200 4.30 5. 15 20 300 5.60 6.80 21 400 6.90 8.45 22 500 8.20 10. 10 600 23 9.50 11 .75 24 700 10.80 13.40 24 800 12. 10 15.05 24 900 13.40 16.70 25 1 ,000 14.70 18.35 25 1 ,500 21 .20 26.60 25 2,000 27.70 34.85 3,000 26 • 40.70 51 .35 26 4,000 53.70 67.85 26 5,000 66.70 84.35 26 6,000 79.70 100.85 8,000 27 105.70 133.85 27 10,000 131 .70 166.85 12,000 27 157.70 199,85 27 15,000 196.70 249.35 18,000 23 27 5.70 298.85 27 20,000 261 .70 331 .85 25,000 32 27 7 414 27 30,000 392 497 40,000 27 522 662 27 50,000 652 827 60,000 78 27 2 991 27 80,000 1 ,042 1 ,322 100,000 27 1 ,302 1 ,652 27 200,000 2,602 3,302 300,000 27 3,902 4,952 27