MEMORANDUM

To:     Mike Wildgen

          City Manager

From: Roger Coffey

          Utilities Director

Re:     water/wastewater rate recommendations for 2006

Date:  June 1, 2005

As you know, the 2004 Black & Veatch Report on Revenue Requirements, Costs of Service, and Rates for Water and Wastewater Service projected rates for a five (5) year period, 2004-2009.  The Report is based on a Capital Improvement Plan recommended in the December2003 Water Master Plan and the December 2003 Wastewater Master Plan.   For the year 2006, a 9% increase in revenue requirements for wastewater which incorporates Excess Strength Surcharges (BOD> 350 mg/l and TSS>300 mg/l) and a 4% increase in revenue requirements for water are recommended in the Report.  For the year 2006, the Report recommends $2.41 per 1,000 gallons for rural water districts and wholesale customers.

A household using 6,000 gallons of water a month in 2005 would pay a $17.97 water bill and $30.52 sewer bill; in 2006 that would change to $18.63 and $33.30 respectively.  Please feel free to contact me if you have any questions.

c:       Debbie Van Saun, Asst. City Manager

          Ed Mullins, Finance Director

att. (1)