8.0. SR 04-26-1993 - Laserfiche WebLink

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~~-~ . deal of administrative work. There should be no mistake made in that either the Utilities Commission or the City Council will be subject to criticism for whatever happens if additional revenues are required through a new fee or a fee increase. A WIF on new development will miss some existing development when they connect unless another mechanism is also put in place. For example, a WIF may not be enforceable on the 350 homes existing in the western area of the City between the two rivers. A WIF on these people may be possible, but it may require more rules and work. On the other hand, a WAC increase will get all new connections. A comment has been tossed around that indicates that existing rate payers should not pay for future improvements. I must indicate that this is not the way the water system has operated in the past, nor is it the way the sewer system operates. RECOMMENDATION . As previously noted, my recommendation is different from the recommendation from Bill. I do not believe that a WIF is necessary. I believe that the immediate needs of the system can be financed over 30 years, if the system experiences modest growth, by using the existing WAC and using less than half of the operating profits. This will still allow for funds to be built up for future needs. The recent increase in the WAC from $300 to $700 appears to sufficient to meet immediate future needs. If it is not, it is recommended that this WAC increase gradually to avoid the criticism that recently took place with the big WAC increase. The basis of this recommendation include the fact that finances are available, and that no new rules or regulations or administrative work that is associated with the WIF is needed. The financing of the water system improvements in this manner is identical to the financing of the WWTS improvements. Two things are clear when looking at this situation. First, the improvements should not be ordered until the need exists and the question then becomes does the need currently exist or not? Another point that needs to be restated is that the City Council and Utilities Commission can finance the water improvements in any manner deemed appropriate. It is a policy issue on what mechanism should be used and it is a financial analysis issue on how much is needed. WAC increases or a new WIF can be implemented at any time. There is no perfect right or wrong answer to this situation, but it certainly seems that the issue can be addressed in a fair and equitable manner. .