HomeMy WebLinkAboutMinutes - 2/16/1994 - Finance and Personnel Committee (4) Finance Committee
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February 16, 1994 Finance Committee Meeting
Water and Sewer Rate Increases
To Recommend Increases to the City Council
Effective November 1, 1994
Back�round
The Water �nd Sewer funds established by the City operate as enterprise
funds. The significance of this designation is that the salaries,
operating expenses, and capital costs of providing drinking water and
treating sewage are paid for out of revenues produced solely from the sale
of water and the treatment of sewage. User fees, not tax dollars are used
to funfl the operation of these necessary utilities.
Water Rates - City water rates are $1.00/1,000 gallons of inetered water
�... use. Water is billed bi-monthly using the services of Ni-Gas meter
readers. Readings are taken through meters located on the outside of the
water users building. A minimum two month water bill is $4.00. A typical
monthly bill for a family of 4 is approximately $15.00. Water rates were
last increased from $.75/1,000 gallons to the current rate of $1.00/1,000
on November 1, 1992. Prior to that, water rates were increased from
$.65/1,000 gallons to $.75/1,000 gallons on July 1, 1984. Smaller, more
frequent revenue increases are recommended to keep up with the increasing
costs of water and sewer operations.
The detailed financial information shown on the following pages bears out
the necessity to periodically increase water and sewer rates to fund
operations. Increased costs are caused by Federal and State mandates
(i.e. lead compliance, dechlorination, wetlands mitigation, effluent
standards), salary and benefit increases, increasing costs of chemicals,
electricity, general operating expenses, and the addition of public
benefit pay�nents out of the Water and Sewer Fund (i.e. Country Club
� Estates) . �t the end of this memo, the effects of a 5%, 10%, and 15%
increase in aater and sewer rates are shown.
� er and Sewer Rates � �
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WATER FUND
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1989-90 1990-91 1991-92 1992-93 Y-T-D 1993-94
Actual Actual Actual Actual Through 1-31-94
REVENUE
Interest 50,612 26,607 18,265 9,863 5,573
Water Sales 472,378 546,425 497,398 463,073 439,716
Penalties 13,055 14,280 18,932 13,028 11,660
Connection Fees 43,141 35,065 22,720 18,025 11,700
Meter Sales 23,461 14,992 14,791 10,334 9,326
Other Income 2,966 995 1,647 2,426 1,577
TOTAL �5� S� �4 73.753 S�Z�Q 479.552
Expenses
Salaries 152,263 189,416 202,912 222,009 177,512
Employee Insur. 9,668 13,972 15,963 19,352 14,613
Uniforms 1,228 1,083 1,677 1,777 1,050
Postage & Meter 1,853 2,010 3,443 4,573 3,828
Telephone 3,694 3,785 4,626 4,533 3,580
Travel, Training
& Dues 269 193 635 750 202
Office Supplies 1,196 1,701 2,375 2,456 589
Contractual 8,786 7,061 18,012 13,763 10,632
Materials & Supplies 23,926 28,773 12,186 9,181 5,706
Utilities 64,325 56,963 81,779 74,670 61,804
Gasoline & Oil 6,150 7,729 7,355 6,711 5,464
Repair & Maint.-Bldgs. 5,191 4,766 5,002 3,184 1,775
Rep. & Maint.-Vehicles 2,052 2,138 7,124 3,813 4,369
Re. & Maint.-Equipmt. 11,121 8,276 6,892 22,018 4,337
Rep. & Maint.-System 10,445 16,439 24,907 25,992 18,718
Water Meter Purchases 44,473 34,206 40,251 28,090 15,884
Fire Hydrants 8,105 6,038 7,089 7,928 5,674
Property Damage 0 0 0 372 0
Contingencies 627 657 720 443 544
Transfer - U.B.I. 0 42,424 41,181 40,384 31,773
Transfer to IMRF 0 0 38,000 43,500 32,625
Transer-Mun. Bldg. 0 0 125,000 0 0
Capital Outlay 29s337 26,231 109,056 77.253 21,733
TOTAL �$4 4 �J Z�� 613.410 422.421
Water and Sewer Rates
Page 3
NATSx BATES
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Various Rate Increases
5.0% 10.0% 15.0%
Monthlv Use Current Rate $1.05/ $1.10/ $1.15/
$1.00/1,000 aal 1,000 Aal. 1,000 Aal. 1,000 Aal.
Minimum Bill $ 2.00 � 2.10 2.20 2.30
5,000 gallons $ 5.00 $ 5.25 5.50 5.75
10,000 gallons $10.00 $10.50 11.00 11.50
15,000 gallons $15.00 $15.75 16.50 17.25
20,000 gallons $20.00 $21.00 22.00 23.00
25,000 gallons $25.00 �26.25 27.50 28.75
Current year estimated revenue from water
sales only: $530,000
@ $1.05/1,000 gallons $556.500
@ $1.10/1,000 gallons $583,000
@ $1.15/1,000 gallons $609,500
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( er and Sewer Rates � �
i age �}
SEWER FUND �
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Actual Actual Actual 1992-93 Y-T-D 1993-94
1989-90 1990-91 1991-92 Actual Throu�h 1-31-94
REVENUE
Interest Earned 50,612 26,607 78,048 51,747 23,984
Sewer Sales 699,053 788,762 786,798 805,246 702,476
Penalties 15,730 16,202 20,065 19,080 16,823
Connections 61,183 96,920 77,000 25,825 24,600
Recapture Fees 170 209 0 1,802 91
Debt Service 200,224 244,097 233,072 243,214 200,907
Other Income 406 3,386 5,011 8.091 6,119
TOTAL 1.027.378 1.176.183 1.199.994 1.155.005 975.000
EXPENSES
Salaries 187,333 262,524 285,587 298,374 212,658
Employee Insurance 8,900 13,669 16,377 17,471 13,122
Uniforms 2,739 3,805 4,040 2,965 1,750
Postage & Meter 1,826 2,022 3,427 4,389 3,873
Telephone 3,571 4,719 4,966 3,989 3,319
Travel, Training, &
Dues 243 576 563 512 417
Office Supplies 1,260 1,596 3,446 1,510 495
Contractual 2,564 15,126 21,604 11,981 11,244
Materials & Supplies 31,644 47,959 47,640 46,692 43,690
Utilities 157,453 198,806 214,246 214,653 156,740
Gasoline & Oil 6,652 7,087 5,972 6,419 5,178
Rep. & Maint.-Bldgs. 2,586 1,885 6,485 3,262 2,864
Rep. & Maint.-Vehicles 8,098 5,986 4,480 2,149 2,419
Rep. & Maint.-Equipmt. 16,772 14,753 17,836 12,690 17,384
Rep. & Maint.-Lift St. 4,861 3,827 3,551 1,724 1,748
Sewer Line Repairs 2,211 2,446 2,091 4,227 1,367
Sludge Disposal 20,195 44,430 47,939 56,369 40,420
Contingencies 935 520 380 856 754
Transfer to U.B.I. 0 342,284 333,194 326,741 257,071
Transfer to IMRF 0 0 47,000 55,000 43,747
Transfer - Mun. Bldg. 0 0 125,000 0 0
Capital Outlay 40,511 387�600 130,355 34,257 40,500
TOTAL 500.354 .361.620 .326.179 1,102.23Q 8b0.760
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Water and Sewer Rates
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SEWBg RATES
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Various Rate Increases
Current Rate 5.0% 10.0% 15.0%
Monthlv Use $1.50/1,000 gal. $1.58/ $1.65/ $1.73/
of inetered water use 1,000 aal. 1,000 aal. 1,000 �al.
Minimum Bill. $ 6.00 $ 6.16 6.30 6.46
5,000 gallons $10.50 $10.90 11.25 11.65
10,000 gallons $18.00 $18.80 19.50 20.30
15,000 gallons $25.50 $26.70 27.75 28.95
20,000 gallons $33.00 $34.60 36.00 37.60
25,000 gallons �40.50 $42.50 44.25 46.25
Unmetered water $13.20 $13.86 14.52 15.18
Current year estimated revenue from sewer
sales only: $851,000
@ $1.58/1,000 gallons $896,000
@ $1.65/1,000 gallons �936,000
@ $1.73/1,000 gallons $981,000
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