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HomeMy WebLinkAboutWater Board - Minutes - 08/28/2003Excerpt from Water Board Minutes in reference to recommended approval of the Water, Wastewater and Stormwater Budgets: ' � . ' _ � ;?.iris ` i s i:u;_ ', i•, '- 1 - �d'iiCi 4 and nut+ City Council Liaison David Roy Staff Liaison DeEtta Carr 221-6702 Water Board Chairman Water Board Vice Chairman Tom Sanders 491-5448 John Morris 491-0185 Secretary Leslie Mooney 416-2703 Roll Call: Board Present Ted Borstad, Tom Brown, Jim Finley, Bill Fischer, David Lauer, Rami Naddy, Tom Sanders, Robert Ward and Doug Yadon Board Absent John Bartholow and John Morris Staff Patty Bigner, Dennis Bode, Carrie Daggett, Donnie Dustin, Kevin Gettig, Susan Hayes, Marsha Hilmes-Robinson, Brian Janonis, Leslie Mooney, Sue Paquette, Bob Smith, Dennis Sumner, Bill Switzer, Ellen Switzer, Mike Smith and Wendy Williams Guests David Wright Meetine Convened Chairman Tom Sanders called the meeting to order at 3:08 p.m. Review of Proposed 2004-2005Review of Proposed 2004-2005 Budget — Ellen Switzer— Ellen Switzer Ellen Switzer, Acting Finance Director, presented a summary of the proposed Water, Wastewater, Stormwater and Utilities Customer Service and Administration budgets for 2004 and 2005. Water Board Meeting Minutes August 28, 2003 Page 2 Water Fund Ellen stated that there are no water rate increases projected at this time but revenues are currently approximately 20 percent less than what was projected in 2003. She said that because of the watering restrictions and changes in rate structure, the financial situation will have to be reassessed after the summer billing period to determine if rate adjustments will be necessary in 2004. Ellen displayed a rate comparison chart which depicted the average customer's winter use of 5,900 gallons per month and the average summer consumption of 21,000 gallons per month and compared costs with other cities along the Front Range. The chart showed that Fort Collins' winter rates were the highest among the cities surveyed. The Board questioned the reason. Bill Switzer, Utilities Rate Analyst, replied that it could be that other cities did not have as high of a fixed component to their rate as Fort Collins and he thought that the other cities' rates looked rather low. He said that if we assume that our only variable costs are the cost of electricity and chemicals then our fixed costs would be approximately 97 percent. Board member Bill Fischer asked if the Halligan Reservoir project will be funded to the fullest capacity of 40,000 acre feet. Brian Janonis, Water Resources & Treatment Services Manager, replied that it is funded for what the City's water needs are but if other entities join and contribute it will be cheaper. Wastewater Fund Ellen stated that there is a proposed 5 percent increase in wastewater rates in both 2004 and 2005. Revenues have decreased 4.9% as a result of the water metering program and lower water usage resulting in a lower winter quarter consumption rate for most customers. She explained that since all customers now have water meters, the wastewater rates are based on the customer's average water billing for the months of December, January and February and are then set at that rate for the entire year. Mike Smith added that last year's conservation programs also contributed to lower waste water bills for customers. 5tormwater Fund Ellen stated that in accordance with the approved Stormwater Capital Financing Plan the 2004 rates will increase by 10 percent and in 2005 by 7 percent. She stated that Fort Collins has the highest rates of the cities surveyed across the Front Range. Utilities Customer Services 6 Administration Fund Ellen explained that this fund provides support services to all of the utilities including billing customer service, meter reading, finance, information technology and administration. She stated that no salary increases have been budgeted for employees for 2004 and 2005 and that there are no significant changes from the 2003 budget. Board member Rami Naddy made a motion, seconded by Board member Ted Borstad to accept the proposed 2004-2005 budget as presented and recommend it be adopted by the City Council. Yeas: 8; Nays: 0; Abstain: 1.