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5.1. ERMUSR 11-17-2009
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5.1. ERMUSR 11-17-2009
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11/18/2009 2:37:30 PM
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City Government
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ERMUSR
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11/17/2009
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~.~w <br />Water Date Inca-ease <br />~Ie have been calculating different scenarios for a water rate <br />increase. Between a 2%, 3% and 5°/® increase, the 5°/® option seems <br />to be the best. ®ur data shows that 5 Units is about average for our <br />elderly population. <br />A 3% increase would be $0.25 per month, or $3.00 per year. <br />At the rate of 5 Units per month, we would generate approximately <br />$46,000.00 per year. Net to reserves is a deficit of $138,000.00 <br />minus the $46,000.00 from the increase we would still have a <br />deficit of $92,883.00. <br />An increase of 5% would be $0.40 per month or $4.80 per <br />year. At the rate of 5 Units per month, we would generate <br />approximately $74,000.00 per year. Net to reserves deficit is <br />$138,000.00 minus the $74,000.00 from the increase our deficit <br />would be $64,883.00. <br />I know that we have some fairly expensive projects coming <br />up in the near future and I feel strongly that a 5% increase is not <br />excessive. A 5% increase is something I feel the homeowners can <br />absorb now. If next year brings high rainfall and water usage is not <br />increased, without this small increase in rates we will add to our <br />deficit very quickly. <br />Thank you, <br />Dave Berg <br />
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