HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 11/06/2001 - ITEMS RELATING TO UTILITY RATES FOR 2002 AGENDA ITEM SUMMARY ITEM NUMBER: 34 A-C
FORT COLLINS CITY COUNCIL DATE: November 6,2001
STAFF: Wendy Williams
David Agee
SUBJECT:
Items Relating to Utility Rates for 2002.
RECOMMENDATION:
Staff and the Water Board recommend adoption of the Ordinances on First Reading.
FINANCIAL IMPACT:
These Ordinances increase annual Water Fund operating revenues by approximately 6%,
Wastewater Fund operating revenues increase by about 2% and Storm Drainage Fund operating
revenues increase 45%. Approval of the rate ordinances will ensure that the Water,Wastewater and
Storm Drainage Funds will meet or exceed debt service coverage requirements.
EXECUTIVE SUMMARY:
A. First Reading of Ordinance No. 192, 2001, Amending Chapter 26, Article III, Division 4
Relating to User Rates and Charges for Water.
B. First Reading of Ordinance No. 193,2001,Amending Chapter 26,Article IV,Division 4 of
the Code of the City Relating to Wastewater Fees and Charges.
C. First Reading of Ordinance No. 194, 2001, Amending Chapter 26, Article VII, Division 2
of the Code of the City Relating to Stormwater Fees.
As proposed in the 2002-2003 budget, the three ordinances increase the City's utility rates for
customers inside the City limits by 6%for water service and 2%for wastewater service. Stormwater
rates increase by 45% for all customers. Electric rates do not change. The proposed changes will
become effective on billings issued on or after January 1, 2002. The Water Board reviewed and
recommended the rate changes in conjunction with its discussion on the 2002-2003 budget.
Additionally,the proposed water and wastewater ordinances eliminate the rate differences between
inside and outside city customers. Historically,the rates paid by customers outside the City limits
were one and one half times higher than the water and wastewater rates paid by customers inside
DATE: November 6, 2001 2 ITEM NUMBER: 34 A-C
the City limits. The cost to provide service inside and outside the City limits no longer supports the
different rate levels. In 1994 Council directed staff to"freeze"the outside City rates until the inside
rates "caught up". With the proposed increases for 2002, the outside rates are now close to
equivalent to rates inside the City limits and in a few cases,customers outside the City may pay less
than they would on inside City rates. Staff recommends that the water and wastewater rates for
customers outside the City limits be established at the same levels as for like customers inside the
City limits beginning in 2002.
The table below shows the impacts of the proposed rate adjustments on a typical single family
residential customer's monthly bill.
I
Typical Residential Increase Increase
Utility Customer 2001 2002 $ %
Water
(160,000 gal. per year) $32.16 $34.09 $1.93 6.0%
Wastewater $16.19 $16.51 $0.32 2.0%
I (5,600 gal./mo. WQC)
Electric $31.98 $31.98 $0.00 0%
(500 kWh per month)
Stormwater
(8,600 sq. ft. lot, light $8.13 $11.79 $3.66 45.0%
runoff)
Total Utility Bill $88.46 $94.37 $5.91 6.7%
BACKGROUND:
Water
If approved by City Council,water rates for all customer classes inside the City limits will increase
by 6%. The increase is necessary to pay debt service for the Water Treatment Facility Master Plan
and to fund the operations and maintenance of the City's water system. Separate rates for customers
outside the City limits will be eliminated and customers outside of the City limits will pay the same
rates as similar customers within the City limits. Historically these customers had higher rates than
inside city users.
A housekeeping change is also included in the water rate ordinance. The term"minimum"has been
replaced by "base" in order to clarify that the fixed monthly portion of the rate is in addition to the
charges for water usage.
It is anticipated that future water rates will increase an average of 6% in 2003. No water rate
increases are currently projected during the years 2004-2006.
Wastewater
This ordinance will increase wastewater rates for all customers inside the City limits by 2%in 2002.
The increase is needed to fund the operations and maintenance of the City's wastewater system and
DATE: November 6, 2001 3 ITEM NUMBER: 34 A-C
to finance capital improvements. Separate rates for customers outside the City limits will be
eliminated and customers outside of the City limits will pay the same rates as similar customers
within the City limits. Historically these customers had higher rates than inside city users.
The wastewater rate ordinance also eliminates the classification of users "Category I: Special
Without Agreement". There are no customers in this rate class and it is no longer needed.
Current projections indicate an additional 2% wastewater increase in 2003. An annual 2.5% rate
increase is projected for the years 2004-2006.
Stormwater
The proposed ordinance increases stormwater fees by 45% for all customers. The increase is
necessary to fund the operations and maintenance of the City's stormwater system, to pay debt
service and to accelerate the citywide capital improvements program. Current projections indicate
an annual 10%increase will be necessary in the years 2003 and 2004,7%in 2005,and 6%in 2006.
The proposed rate increases are in accordance with the Stormwater Financing Plan adopted by City
Council Resolution 2001-93.
The ordinance also eliminates the minimum monthly bill for stormwater service. The minimum
applied to only five customers with lot sizes less than 380 square feet. This is a house keeping
change to simplify administration of the rates.
Electric
• No electric rate increases are projected for 2002 or 2003. It is currently projected that a 2%increase
may be necessary in 2004 and in 2006.
Summary
Although it has been necessary for the City to raise utility rates over the years, a comparison with
inflation shows that increases to the total City utility bill for a typical residential customer have been
less than inflation since 1985. The graph below shows the overall increases in monthly utility
charges for a typical single family residential customer in comparison with inflation. The typical
residential customer is defined as electric use of 500 kWh per month,metered water use of 160,000
gallons per year, wastewater with 5,600 gal./mo. winter quarter consumption, and stormwater for
a 8,600 sq. ft. lot with light runoff.
•
DATE: November 6, 2001 4 ITEM NUMBER: 34 A-C
Fort Collins Utilities Compared with Inflation
(Typical Residential Customer with Electric, Metered Water,Winter
Quarter Wastewater,and Stormwater)
$120
$100
$so
$60
$40
$20
I
$0
i 1985 1990 1995 2000 2001 Proposed
Total Utility Bill t Inflation 2002
I
i
ORDINANCE NO. 192, 2001
OF THE COUNCIL OF THE CITY OF FORT COLLINS
AMENDING CHAPTER 26,ARTICLE III, DIVISION 4
OF THE CODE OF THE CITY OF FORT COLLINS
RELATING TO USER RATES AND CHARGES FOR WATER
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows:
Section 1. That Section 26-126 of the Code of the City of Fort Collins is hereby
amended to read as follows:
Sec. 26-126. Schedule A, flat rates for unmetered water use.
When the use of city water is not metered, the monthly rate to be charged for
each flat rate water service shall be the sum of the total charge for the dwelling units
(A)plus the lot charge (B):
A = For a building containing only one(1)dwelling unit:Twenty-fem dollars
and eighty four eents($24.84)Twenty-six dollars and thirty-; ' a',`-L*]yhts
4
($26.33); for a building containing only two(2) dwelling units: 44rof
Thirty-seven dollars sAd t4veaty-
seven,cents($37:27).
B = For each lot: Add to the dwelling unit charge fifteen and
___.__ tenths
eents (S9.157)- sixteen and six-tcaths cents.($0.166) per one hundred
(100)square feet of lot area if the building includes one(1)dwelling unit.
If the building includes two (2) dwelling units, add to the dwelling unit
charge fourteen and seven-tenths
cents($9.147)per one hundred(100) square feet of lot area.
Section 2. That Section 26-127 of the Code of the City of Fort Collins is hereby
amended to read as follows:
Sec. 26-127. Schedule B, meter rates.
(a) Affnintuin Base charge. The minimunt-baW,monthly charge for all
metered users inside the city limits shall be as follows:
(1) Residential customers.Residential customers shall pay a mkiintum- e
monthly charge of fourteen
dollars and sixty-nine cents($14.69)for the first dwelling unit. Duplex
residential customers shall pay an additional
eents ($2-..48) two dollars and sixty three,cents( ,63) for the second
dwelling unit. Multifamily residential customers shall pay four dollars
for the
second and each additional dwelling unit.
(2) Nonresidential customers. Nonresidential customers shall pay a
miaitnten monthly charge based on meter size as follows:
Meter Size Monthly
(inches) minimum'
Charges
3/4 $-12.24 12.97
1 34-.16 d :_
1'/2 75.98 80 4
2 134.94
3 1:71.49
4 28:7.61 _ 0*Jk7
6 754.10 809 95
8 1152.40 1221.54
(3) Construction rate.For residential premises under construction(single family
and duplex), a*h dollars attd thirty-
four cer►ts ($8,34);for the first dwelling unit and three dollars and six4yeneeents
11
(53.61) three-dollars and eighty-three cents($193) for the second dwelling unit.
For multifamily and nonresidential premises under construction,one-half(1/2)ofthe
nonresidential minimum base monthly charge for the applicable meter size.
(b) Quantity charge. The monthly water usage shall be billed at the rate of one
dollar and twenty three and six tenths eents(S 1.23 6) 9K p. Xs;en§
($T,3#11)per one thousand(1,000) gallons. For nonresidential customers, monthly
water usage in excess of the specified amounts below shall be billed at ene dollar and
seventy seven and six tenths eerft($1.7 76)-jq'Q"Q ., jght thrq
WIP-11per one thousand (1,000) gallons based on meter size as
follows:
Meter Size Specified Amount
(inches) (gallons per month)
3/4 100,000
1 300,000
1 625,000
• 2 1,200,000
3 1,400,000
4 2,500,000
(c) Colorado State University. In addition to the charges described in paragraphs
(a)and(b)of this Section, Colorado State University shall also pay a monthly meter
fee of one thousand one hundred ten dollars ($1,110.) representing the city's costs
associated with providing metered water connections to the University's foothills
campus.
(d) Service outside the city. Except as otherwise provided in paragraph(c) of this
Section, the monthly charge for water taken through a meter by a user outside the
city limits shall be as fe}iews °t}e hke.Fync!. ' biq tjt�,, m`"
users outside the eity limits shall be as fol4owse
dwelling trait
b. A;9tiresidenfiai eustopners. Exeept as provided in paragraph (e) of tit
based an meter size as fi5llews!
Meter Size Alr whly
(tnehes� nillm"? C-hWT s
�4 $14.15
} _
54.99
—88.39
3 168.28
4 282.2;
8 90943
•
first dwelling unit and five dellarg md twelve eents ($5.12) fer ette!
merAhly eharge for the ftMlieable meter size.
SFeeified amounts below shall be Ibilled at orte dollar and fimof and six tenths
eents
follows!
Meter Size Sneeef edAmeane
( q)
Y4 �eaaee
+ —3eeaee
3 �499;69A
2,509,090
metster meter,the fnorktMy eharge for the eity water FaSsed through the master meter shall
be eamputed es follows!
ft. 44te average-volume of water ttsM Fer tap is determined by dividing
am um of water metered thfough the mEater meter by the number of taps,
b. The eharge for etteh tap is then deferrmirted by ttPFIY'ng to the tmerage
volurne of water used Fer ftp, the rate appheable te etteh tetp for like
serviee inside the eity limits, and
e. The _ _ _ to
be
billed
to
the master
y__ _ meter
_ r is
the _um of
aL_
Section 3. That paragraph(b)of Section 26-129 of the Code of the City of Fort Collins
is hereby amended to read as follows:
• Sec. 26-129. Schedule D, miscellaneous fees and charges.
(b) The fire hydrant fees and charges shall be as follows:
(1) For installation of meter $10.00
(2) For removal of meter 10.00
(3) For daily rental for meter and fittings 7.50
(4) For water service inside the city,
rate per one thousand (1,000)
gallons water used 1.310 1389
gailens(eater used 1.485
(65) A deposit may be required in the amount of the charges for the anticipated
water usage and rental.
• Section 4. That the amendments to Chapter 26 of the City Code contained herein shall go
into effect with respect to all City utility bills issued on or after January 1, 2002.
Introduced,considered favorably on first reading, and ordered published in summary form
this 6th day of November, A.D. 2001, and to be presented for final passage on the 20th day of
November, A.D. 2001
Mayor
ATTEST:
City Clerk
Passed and adopted on final reading this 20th day of November, A.D. 2001.
Mayor
• ATTEST:
City Clerk
ORDINANCE NO. 193, 2001
OF THE COUNCIL OF THE CITY OF FORT COLLINS
AMENDING CHAPTER 26, ARTICLE IV, DIVISION 4
OF THE CODE OF THE CITY OF FORT COLLINS
RELATING TO USER FEES AND CHARGES FOR WASTEWATER
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows:
Section 1. That subparagraph (9) in Section 26-278 of the Code of the City of Fort
Collins is hereby deleted in its entirety:
Sec. 26-278. Classification of users.
or without the eity limits,that htffe mt ttegetiate4 an agreefflent with tile Gity
eatteerning rates,eharges emd fees for the provision of wastewater ealleetion
Section 2. That Section 26-280 of the Code of the City of Fort Collins is hereby
amended to read as follows:
Sec. 26-280. Service charges established by category.
The schedule of rates for each category described in§26-279 shall be as follows:
Category Class ofcustomer Rate
A Single-family $16.35 $16.68'permonth
residential user(flat
rate)
Single-family $ ?2- i.36 er month plus$1.438 tj,_
residential user per 1,000 gallons of winter quarter water
(metered water use) use
B Duplex(two-family) $25.92 '$26'44per month
residential users(flat
rate)
Duplex(two-family) $9.64 $9.81 per month plus $ .438
residential users $1.467 per 1,000 gallons of winter quarter
(metered water use) water use
C Multifamily residential $1438 :467per 1,000 gallons of winter
user(more than two quarter water use,plus a m4t4nttm base
dwelling units charge of$-1c14$1.16 per month per
including mobile home dwelling unit served
parks)and winter
quarter based
nonresidential user
D Minor nonresidential The greater of 51.438 $1.467 per 1,000
user gallons of water use,measured sewage
flow or winter quarter water use,whichever
is applicable,plus the following applicable
base charge:
Size of
water meter Base
(inches) Charge
3/4 or $ 48S $4595
smaller
1 11.08 11.30
11/2 22-03 22.90
2 34.58 38.33
3 62.46 63271
4 194.84 106 97
6 51433 524.51
8 55838 569.55
• E Intermediate 5+438-# 7„per 1,000 gallons of water
and nonresidential user use,measured wastewater flow or winter
F Significant industrial quarter water use,whichever is applicable;
user plus a surcharge of $1349$1.407 per
million gallons for each milligram per liter
of suspended solids in excess of 250
milligrams per liter;plus a surcharge of
$4.158'$1.181 per million gallons for each
milligram per liter of BOD in excess of 200
milligrams per liter or a surcharge of
$6-3-14$0.728 per million gallons for each
milligram per liter of COD in excess of 300
milligrams per liter,or a surcharge of
$4 943 2114 per million gallons for each
milligram per liter of TOC in excess of 100
milligrams per liter,whichever is
applicable. The user shall either pay this
calculated amount plus the applicable base
charge set forth below:
Size of
water meter Base
(inches) Charge
3/4 or $ 48-5 $4.95
smaller
1 1-1.08 11.30
11/2 22.45 22.90
2 39-58 38.33
3 62..46 63.71
4 104.87 106.97
6 514-23 524.51
8 33838 -569.55
G User outside city.
limits: shaltIb the same as• service inside
the co.,'Ih as is inc t}ties
A-Fiandf Fi in this
Single fienily
residential usev
(metered water use)-
Duphex(two fatnily�
residential
users
galiens of winter qtta"er water use
. (metered water use) '
user(mere then two water-=-
dwelling tmi
Fw4es)and wiftter
que"er based
nonresidential ttser
Miner enresidentie!
user
quarter water use,whieltever is apF!ieabk-
Size f Alwrinnem
water meter Ammm
finehesj Gherge
3,4er 8.:i
smaller
+- i r.9
+4- 2 19.64
2- 3r.4 i
} t
6- 253.08
intermediate S2.024 per 1,999 gallons ofwaler use,
user
&re ej hm!imnm
(hrehes)
G
�_tle_
� T
—fT.i9
19.64
2- 3T 1
3-
T 42
-2T3.98
H Special with agreement The rate shall be negotiated
1 Speeial withent $1.645 Fer 4,099 gallons of winter quarter
agreement water ttse
Section 3. That Section 26-282(a) of the Code of the City of Fort Collins is hereby
amended to read as follows:
Sec. 26-282. Wastewater strength or industrial surcharges and categories
• established.
(a) The schedule of wastewater strength surcharge for customers located either
inside or outside the city limits shall be as follows:
Excess over Rate per
Parameter (mg/1) 1,000gallons
BOD 200 60404138S0,001:181
COD 300 0.000714 0.000728
TOC 100 0.002073 0.00211,4
TSS 250 0.001349 0.001 7
Section 4. That the amendments to Chapter 26 of the City Code contained herein shall
go into effect with respect to all City utility bills issued on or after January 1, 2002.
•
Introduced, considered favorably on first reading,and ordered published in summary form
this 6th day of November, A.D. 2001, and to be presented for final passage on the 20th day of
November, A.D. 2001.
Mayor
ATTEST:
City Clerk
Passed and adopted on final reading this 20th day of November, A.D. 2001.
Mayor
ATTEST:
City Clerk
. ORDINANCE NO. 194, 2001
OF THE COUNCIL OF THE CITY OF FORT COLLINS
AMENDING CHAPTER 26 ARTICLE VII DIVISION 2
OF THE CODE OF THE CITY
RELATING TO STORMWATER FEES
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows:
Section 1. That subparagraph (3) of Section 26-514 of the Code of the City of Fort
Collins is hereby amended to read as follows:
Sec. 26-514. Determination of stormwater utility fee.
(3) The base rate for the stormwater utility fee shall be $0ao 09236i7
M0034259 per square foot per month for all areas of the city.
Section 2. That subparagraph (7) of Section 26-514 of the Code of the City of Fort
Collins is hereby deleted in its entirety:
!at or pareel per menth.
Section 3. That the amendments to Chapter 26 of the City Code contained herein shall
go into effect with respect to all City utility bills issued on or after January 1, 2002.
Introduced, considered favorably on first reading, and ordered published in summary form
this 6th day of November, A.D. 2001, and to be presented for final passage on the 20th day of
November, A.D. 2001.
Mayor
ATTEST:
City Clerk
Passed and adopted on final reading this 20th day of November,A.D. 2001.
Mayor
ATTEST:
City Clerk
City Council Liaison Water Board Chairman Water Board Vice Chairman
Chuck Wanner Tom Sanders - 491-5448 John Morris - 491-0185
Staff Liaison Secretary
DeEtta Carr - 221-6702 Kim Vondy - 221-6383
ROLL CALL
Board Present
Tom Sanders-Chairman, John Morris-Vice Chairman, Paul Clopper, Joseph Berquist, Bill Fischer,
David Lauer, Rami Naddy, Ted Brostad, Thomas Brown, Robert Ward
Staff Present
Dennis Bode, Wendy Williams, Dave Agee, Ellen Switzer, DeEtta Carr, Patty Bigner, Bill Switzer,
Brian Janonis, Kim Vondy
Guests Present
Douglas Yadon, Sr. Geotechnical Engineer- Short Elliott Hendrickson, Inc.
Board Absent
David Frick
• MEETING OPENED/ROLL CALL
Chairman Tom Sanders opened the meeting. The following items were discussed:
MINUTES APPROVED
Paul Clopper made a motion to approve the minutes; Bill Fischer seconded the motion. Motion
carved.
2002-2003 BUDGET REVIEW
Ellen Switzer noted that the Financial Statements have been included in packets. In November,
Council will adopt the 2002-2003 Budget. Utilities have five funds. Appropriations can be
transferred within a fund but can not be transferred between capital projects. Each of the utility
funds is separate from each other. The four enterprise funds are Water, Wastewater, Storm
Drainage, and Light and Power and one Internal Service Fund, (the Utility Customer Service and
Administrative Fund). Costs of the Customer Service and Administration Fund are allocated to the
four enterprise funds based on estimated cost of service. The allocation is Water- 23%, Wastewater
- 15%, Storm Drainage - 10%, and Light and Power- 52%. Final transfers will be based on actual
2002 and 2003 expenses not budget.
The Water Fund is projecting a 0% rate adjustment in 2004 and a 6% increase in 2002 and 2003.
Ellen displayed on overhead a graph of the "Regional Annual Water Bill Comparison(2001 Rates)
Based on Residential Use of 132,000 gallons" which shows the City water rates are at the median.
Policy highlights for the Water Fund indicate that the projected revenue exceeds the debt service
• requirements. Debt service requirements are that we have water bond coverage greater than 1.1.
FORT COLLINS WATER BOARD MINUTES PAGE 2
MAY 24, 2001
Ellen reviewed the Water Fund 2002 budget graph totaling $32.7 million in 2002 and increasing to
$33.5 million in 2003. Operations are about$8.5 million of the full water fund budget with personal
services making up a large portion for the O& M Budget. Water treatment plant has reduced their
staff by two and those positions have been transferred elsewhere. No significant changes in O & M
Budget. The Water Fund payment in lieu of taxes to the City's general fund equals 6%of the
utility's operating revenue and totals$1.34 Million per year. The Utility also pays the City's general
fund for services they provide to utilities which totals about$878,000 per year. A transfer to the
Customer Service and Admin Fund equals about$2.7 Million per year and principal and interest on
an outstanding debt totals about$9 Million a year. Average interest rate is less than 4%. The Minor
Capital Budget for 2002 & 2003 is $2.4Million. Capital Projects is $7 Million per year and includes
Meter Conversion, SW System Improvements, Halligan Reservoir, Gravel Pit Storage Ponds, Water
Treatment Plant Facilities, and the Poudre Pipeline. Dave Agee noted that they were trying to be
conservative in projections but are expecting a 2% growth. Anheuser Busch, in addition to paying
for water,pays a supplemental user fee. Fort Collins has significantly invested in capital, which is
driving the rate increase.
Rates for Wastewater are projected to increase 2%for 2002 and 2003 and 2.5% in 2004. Projected
revenue exceeds the debt service requirements and the fund reserve requirements are being met.
Ellen reviewed the Wastewater Bond Coverage Chart noting that coverage of 1.15 is required to
meet the bond requirement. Dave Agee noted that typically expenses are less than projected and
revenue is higher, a conservative approach to budgeting. No study has been done to determine what
a private utility would pay for pilots; the 6% is set by Council. Ellen pointed out that the
Wastewater Fund Budget would be going down in 2003 from the 2002 budget. Of the $6.7 million
for operations, two-thirds is for personal services. The Water Reclamation Plant has reduced staff by
two. General Fund transfer pilot equals $720,000 per year and payment for administrative services
is $615,000. The transfer to the Customer Service and Admin fund equals $1.8 million per year and
the principal and interest payment totals $5.7 million. The Minor Capital is $1.8 million per year
and the Capital Projects equals $2.1 million in 2002 and$1.2 million for 2003. Operating revenue is
showing a 2% increase for the rates plus projected growth. Total wastewater revenues are estimated
at $18 million per year.
The Storm Drainage Fund shows a 45%rate adjustment increase in 2002, 10% increase in 2003 and
10% in 2004, 7% in 2005 and 6% in 2006. Council preferred a combination of pay-as-you-go and a
$15 million bond issue in 2002 to jump-start capital construction. Ellen reviewed the Rate
Comparison graph for the front-range showing Fort Collins at the highest rate. Revenue projections
will exceed the debt service requirements. In the storm drainage fund,the bond coverage is 1.25,
which is slightly higher than water or wastewater. The Storm Drainage Fund 2002 budget shows$9
million,which does not include the $15 million bond issue planned for 2002. Stormwater Fund does
not pay a payment in lieu of taxes. The operations portion of the Storm Drainage Budget, $1.1
million per year is for personal services. No additional employees will be added. The admin
transfer to the general fund is $272,000 per year. The Customer Service & Admin transfer is $1.1
million per year and the principal totals $1.7 million and interest$1.9 million per year. The Minor
Capital equals $1.2 million per year and the capital project budget for 2002 is $905,000 and
$530,000 for 2003. Ellen noted the $15 million bond issue planned for 2002 and that the associated
capital projects are not included in this budget, so those appropriations will have to be made
FORT COLLINS WATER BOARD MINUTES PAGE 3
MAY 24, 2001
• separately. The 2002 Operating Revenue includes the 45% rate increase that has been projected and
the 10%increase for 2003.
In review, if adopted by Council, rate increases will be 6%per year for water for 2002 and 2003,2%
per year for wastewater, and 45% in 2002 for stormwater and 10% in 2003. The projections are to
maintain all bond coverage requirements,to maintain adequate reserve levels and make no
significant change in current policy direction.
Dave Agee noted that a lot of communities handle stormwater through public works so we do not
have their figures to compare. Thomas Brown noted that it would be helpful if information was
summarized in cost per capita. Dave Agee agreed trying to include this in future budget
presentations. David Lauer would like to see closer comparisons to other municipalities including
types of services for their dollars.
Motion
John Morris made a motion to recommend approving budgets and proposed rate increases as
presented. Ted Borstad seconded the motion.
Discussion
Paul Clopper noted he liked the conservative budgeting approach. Tom would like to see about
suggesting an upper limit for principal and interest in the future. Dave Agee agreed that it was a
good idea, and he could possibly bring information to the board during off year for discussion. Dave
Agee noted that the separate Customer Service and Administrative fund budget has made for more
• direct accounting of overhead expenses. Reorganization has helped with staff reduction.
Vote
Approved unanimously.
• ted Water Production Summary - Dennis Bode referred the Board to handout "Treated
Water nthly Summary." He noted that in June, 3,874 acre-feet of water was used, which is
about 100/c a e the average projections for an average month. July is currently close to the
average. Dennis p ' ed out on the graphs in Boards packet that year-to-date, the city is close to
94.5% of average.
Committee Reports
Water Supply-Tom Brown: Committee in d reviewed the draft of the water supply policy
for the City. Committee addressed issue o£ren er, specifically the letter sent to the Mayor
from the County Commissioners. The letter proposes the of a point system for deciding
priorities among potential entities that wish to rent our surplus er. Committee members
seemed to be sympathetic to the goal of preserving agriculture land en spaces in Larimer
County. The committee noted five concerns with the suggested point syste
1. The system of points doesn't do much to effectively preserve open space because it i s
very few points for conservation easements or other long term decisions to set land aside.