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4.1. ERMUSR 03-09-2010
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4.1. ERMUSR 03-09-2010
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3/5/2010 4:55:01 PM
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City Government
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ERMUSR
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3/9/2010
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Operating Operating expenditures increase 3% annually. <br />Expenditures <br /> Additional staffing in 2012 (1 position) and 2018 (1 position). <br />Target Cash Across enterprise funds the amount used as a target cash reserve amount <br />Reserve at year-end differs slightly. A standard target is next Year's principal and <br /> interest and six monthly operating expenditures which does not include <br /> de reciation which is a non-cash item. <br />Water Fees <br />There are two components to the Utilities water fee: <br />Meter Charges are fixed monthly fee based on the size of meter in the home or business. A <br />typical residential home would have a 5/8" meter and a commercial business would have a <br />1.5" meter. The meter charge is typically established to recover fixed administrative and <br />general expenses, which are fixed regardless of the amount of water used. <br />Usage Fees are based on the metered use of water. The Utility currently has a tiered system <br />to promote conservation of water resources. <br />Proposed rate changes <br />We are recommending no increase in the monthly meter charges for 2010 through 2013. <br />Beginning in 2014, we are recommending a 3% annual increase to the meter charge to keep <br />pace with increases in administrative costs. <br />The proposed rate increase to the usage fee for 2010 is 3% for residential/commercial users <br />for all the Tiers. <br />Av "~ a M~ntl! :Bill 2009 2414 3°lo ncreaee <br />Average user $15.00 $15.23 <br />5,000 ons er month <br />Commercial user $374.17 $385.04 <br />av . to ten <br />Connection fees <br />Connection fees are paid at the time a builder or homeowner pulls a building permit. The <br />Commission previously discussed a $500 increase for 2010 and 2011. Going forward I am <br />modeling a 2% yearly increase, which we will have to review yearly. <br />Cash balances <br />Cash balances are very important to accommodate fluctuations in revenues (weather related) <br />and to fund capital improvements. I have established a target cash reserve amount as <br />including 6 months operating expenditures and next year's principle and interest payments. <br />This is consistent with how other enterprise funds view the cash balances/reserves. I will go <br />
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