HomeMy WebLinkAboutWater Board - Minutes - 08/28/2003Excerpt from Water Board Minutes in reference to recommended approval of the Water,
Wastewater and Stormwater Budgets:
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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.