HomeMy WebLinkAboutA004 - Council Action Form, April 9, 1984 + ITEM #
DATE April 9, 1984
COUNCIL ACTION FORM
SUBJECT: Report on Increased Sewer Service Charges
BACKGROUND:
The plan for financial support of the water pollution control project was
developed for, and continues to include, a series of three sewer rate
increases as follows:
May 1984 - 50% rate increase which was implemented as scheduled
May 1985 - 25% rate increase as described in the accompanying
report
May 1986 - 25% rate increase depending on recommendation of our
financial consultant at that time
The sewer bill for a typical single family of three is now $9.50/mo. for 600
cu. ft. of water use per month. The target for this proposed rate increase
is an overall revenue increase of approximately 25 percent. This will raise
the typical family sewer bill to the range of approximately $11 .50 to
$12.00/mo.
The accompanying report offers two alternative rate proposals.
A. Retain the minimum bill at $3.00/mo. and raise the unit rate
from $1 .30 to $1 .70/100 cu. ft.
B. Raise the minimum bill to $3.50/mo. and raise the unit rate
from $1 .30 to $1 .65/100 cu. ft.
Either alternative will result in approximately a 25 percent increase in
overall revenue. Under either proposal , the increase will vary for
individual customers. For some, the increase will be more; for others, the
increase will be less than 25%. Also,the same overall revenue increase could
be obtained by a number of other combinations of minimum bill and unit rate.
A public information meeting will be held in the Council Chambers at 7:00
p.m. Tuesday, April 16, to explain the rate proposals to those interested and
receive comments and suggestions.
ALTERNATIVES:
1 . Accept the report and request the City Attorney to draft a sewer rate
ordinance based on Proposal A above ($3.00 minimum bill ; $1 .70/100 cu. ft. )
2. Accept the report and request the City Attorney to draft a sewer rate
ordinance based on Proposal B above ($3.50 minimum bill ; $1 .65/100 cu. ft. )
3. Accept the report and request the City Attorney to draft a sewer rate
ordinance with detail on minimum bill and unit rate left open for staff
recommendation following the April 16 public information meeting.
Council Action Form
Page 2
Date: April 9, 1985
MANAGER'S RECOMMENDED ACTION:
It is the recommendation of the City Manager that the Ames City Council adopt
Alternative No. 3 above.
COUNCIL ACTION: