8.0. SR 05-03-1993 - Laserfiche WebLink

Home Browse Search

. . . using the WAC and WIF, it may make it fees from everyone either at the time (if a property is already developed or City Council of a development proposal easier to collect both of development or hook up if no approval by the is required). of the WAC is, When question involve the fees If the City and the Utilities move to a breakdown into a WAC and a WCC, then the question that remains should thiS--fee be collected and from whom? This could strictly be a Utilities Commission issue, but may the City Council if the City ends up collecting one of at the time of development. Another question regarding a WAC and WCC that comes to mind is which fee should be $700 and which fee should be $300. Currently the WAC is multiplied by units (currently $700) for commercial and industrial buildings when the facility is hooked up to the utility. In this regard, it may be appropriate to have the WAC be higher than the WCC. The questions regarding the mechanics of collecting these fees that needs to be answered are; how can both of these fees be collected from all new customers, when is this fee collected, and what is the level of City involvement with these fees? NEEDED REVENUES A final question regarding the WAC and WCC is how much revenue is needed to finance the three most immediate water system needs. Above and beyond the three most immediate water system needs, a financial formula needs to be developed whereby funds are reserved for the longer term water system needs and the fee structure must be set up to include future expenses. Again, this could be strictly a Utilities Commission issue if the City is not involved in collecting some of the fees. Regarding how much is needed, everyone should review the chart attached to the 4/6/93 Utilities Commission minutes. In analyzing this chart, it is important to closely review the assumptions that were made in putting together this analysis of water costs. The assumptions include a 30 year bond (which is desired to be less), a low interest rate, a City contribution to both the west and northeast towers, the time frame as to when the improvements take place, a growth factor of 4%, and an increasing number of connections to the water system as growth occurs. The more assumptions that are put into a formula, the more uncertainties there are about the conclusions and, therefore, more questions about what fee level is needed to finance the necessary improvements. One assumption in the chart that I know the City Council wants to discuss is the City contribution for the northeast tower. Whatever conclusion is reached at this meeting, it goes without saying that the revenue stream needs to be closely monitored in the next few years.