MEMORANDUM

To:     Mike Wildgen

          City Manager

From: Debbie Van Saun

          Asst. City Manager

Re:     Water and Wastewater Rates

Date:  November 2, 2004

The attached documents are provided in response to information requests from the Commission at the September 21, 2004 meeting during discussion of the water and wastewater rates:

· Two Rate Options – Black & Veatch has prepared two rate options – a modified declining block rate and a uniform by class rate – through 2009.  Both have been designed to provide the revenue necessary to operate and maintain the water and wastewater systems, including the completion of the various CIP projects.

Alternative Rates by Black & Veatch

Water and Wastewater Rate Powerpoint Presentation

· CIP For Water and Wastewater – these two charts are color coded to identify which capital improvement projects (CIP) are primarily needed to meet the following requirements: anticipated system growth; EPA & KDHE (regulatory); and improvements to system reliability or transmission capacity.  Many of the improvements made to the wastewater treatment plant over the past decade have addressed regulatory requirements associated with the NPDES permit allowing discharge to the Kansas River.  Note that the wastewater projects from 2005 through 2009 are primarily growth related or designed to improve system reliability.

CIP Attachment for Water CIP  Attachment for Wastewater

· Composite Billing – using the uniform by class rate structure, this chart projects three residential billings for all City utility-related services from 2005 through 2009.   Composite Billing

· Large User Billing – using 2004 monthly usage figures for several large users, these charts compare the existing rates to the uniform by class 2005 rates for both water and wastewater.   Industrial Users