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Home My WebLink About2007-06-25 07-234 ORDERItemNo. 07 234 Date: June 25, 2007 Item/SubjecC ORDER, Establishing Sewer Rates to go into Effect for Accounts Billed Stating January 1, 2008 and July 1, 2006. Responsible Depmtmenb Wastewater Treatment Plant/Clty, Council Commentary As part of this years budget process, the Finance Department updated the Sewer Fund Proforma, a multi-year projection of anticipated sewer fun0 revenues and expenditures. That process indicated Me need for a sewer rate increase to maintain an acceptable cash position in the fund. These projections Indicate that rate Increases of six percent will likely be necessary In January 2888 and July 2008. These rate changes are coordinated such Mat Me Bangor Water District and Sewer Fund will implement rate increases during the same year calendar year. Gry Council members present for the budget review unanimously agreed W bring this Order to Me full Council for approval. Department Head Manager's Comments: Based on our financial projections and under the assumption that no significant additional mandates from state or federal government will impact the sewer fund In the roar -term future, we anticpate that these rate increases will be sufficient to carry Me sewer fund through the pedad required to pay off Me debt associated with Me secondary treatr cert plant. Associated Information: Copy of Proforma City Manager Legal Approval: CrySolicitorV Introduced for ZC Passage Fist Reading Page _of_ _ Referral 07 234 Assigned to Councilor Gratvick ]we 25, 2007 CITY OF BANGOR T (TIME.) order, Establishing Sewer User Rates To Go into Effect For Accounts Billed Starting January 1, 2088 and July 1, 2008, By to Qty Ckaxp ofthe Q'ry Of &n .' ORDERED, That the following sewer user ate is adopted effective January 1, 2008 and represerms a 6.0% Increase over the current rate: Quarterly Monthly gag. Minimum Minimum $1.72/HCP $%.69 $18.86 AND, BE rr FURTHER ORDERED THAT The following sewer user rate is adopted effective July 1, 2008 and represents a 6.0% increase over Me rate set January 1, 2008: Quarterly Monthly Rate: Minimum Minimum $5.00/HCF* $60.00 $20.00 *Hunt red Cubic Feet The rates provided above shall be applied to all accounts billed on or after the effective dates listed above. This Order supersedes all prior Council Orders establishing volume -based sewer rates, I9 CITY CODXCn Juste 25, 2007 motion nage and: Seconded fox P sage R 07-2U Pass O g D 8 8 ©� p1lEgJ gatablfahinS Sever Over Yates to 0o Into Effect. for Mcoustel-gilled Starting January 1. 2008 and July 1. 2008 A,slped to Pro Forma Operational Results- W WTP Debt Service 816Ur0 Debt Ser4ce Budget (3,337,556) (3,214,853) (2,877,852) (2,83,853) (2,629,198) (1,466,615) Now Debt Service FY 08 FY 09 FY 10 FY 11 012 FY 13 FY 34 Ca In Row tram Operations 3500045 34315% 30053 3073152 950153 886498 1754915 Ohages kr$e (user fees) 6,290,931 6,840,624 6,840,624 6,840,624 6,840,624 6,840,624 6,840,624 Opembng Expenditures (3,90,M) (4,036,7M) 4 119 150 4231 201 (4,315,741) (4 403 968 45#365 Op radn9 Cash Flow 2,#1.586 2,803,890 2,726,474 2,609,#I 2,524,803 2,436,656 2,306,259 Ending Cash - ktual Other Cash Inflows (43,812) (262,465) (289,550) (28,105) (273,046) 233,50 Otber Revenues 33,000 33,000 33,000 M,= 33,000 33,000 33,000 Other towns/CRies 136,500 143,000 146,575 146,95 19fi,95 196,575 146,95 COMmttetl S Mces 235,650 244,007 251,3$1 29,150 263,140 269,326 275,716 One Mme Inflows- 0.W% - - - - - - Interotl�me 1)500 17,500 Oder Onsh Inflows 422.00 437.587 430.926 436,725 02,715 9981901 455291 Debt Service 816Ur0 Debt Ser4ce (3,500,045) (3,337,556) (3,214,853) (2,877,852) (2,83,853) (2,629,198) (1,466,615) Now Debt Service (124,000) (161,200) (195,300) (226,300) (257,300) (288,300) Debt Serves Outflows 3500045 34315% 30053 3073152 950153 886498 1754915 N Cash Flow (Y35,809) (190,600) (218,653) (22,085) 17,445 (941) 1,006,635 Beg(mig Cash 802,077 146,268 (43,812) (262,465) (289,550) (28,105) (273,046) Ending Cash - ktual 146,268 (43,812) (262,465) (289,550) (28,105) (273,046) 233,50 Rate Inon ue Effective January Ist 6.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% July Ut 0.006 6.00% 0.W% 0.00% 0.00% 0.00% 0.00% v v