HomeMy WebLinkAboutA002 - Council Action Form dated April 14, 1992 ITEM #
DATE April 14, 1992
COUNCIL ACTION FORM
SUBJECT: Water and Sewer Utility Finances Final Rate Report
BACKGROUND:
During the past several years, the Water Fund reserve has been drawn
down to cover major capital improvements to the water utility. This reserve
has now been depleted, and additional funds are needed for projected
operations and capital improvements. Water rates were last increased in
1978.
Sewer rates were last increased in 1985 to finance construction and
operation of the new WPC Plant. Because Ames was more successful than
anticipated in securing federal and state grants for construction, the
current sewer rates are more than adequate to cover current and projected
expenses. Thus, a decrease in the sewer rate can be made at this time
which will offset a significant portion of the proposed water rate increase
for most utility customers.
A council workshop was held in November 1991. Since then, numerous
options have been reviewed with council during budget presentations.
Council has previously approved the minimum bill and revenue projections
for the 1992-93 budgets. The only remaining issue is the type of water
rate structure (either flat rate or declining block rate) that is to be used.
The Final Rate Report on Water and Sewer Utility Finances was distributed
earlier to council. Council must now select the water rate structure and
pass on first reading the rate ordinances to put the new water and sewer
rates in effect.
ALTERNATIVES:
1. Select either the flat rate or declining block rate structure for the
water rate increase. Pass on first reading the water and sewer rate
ordinances. The second and third readings of the ordinances will be
scheduled for April 28.
2. Do not approve the rate revisions at this time.
MANAGER'S RECOMMENDED ACTION:
It is the recommendation of the City Manager that City Council pass on first
readings the water and sewer rate ordinances as outlined in Alternative No.
1 above.
COUNCIL ACTION: