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HomeMy Public PortalAbout06-14-2011 water and sewer TOWN OF 1630 WATERTOWN Office of the Town Manager t Administration Building 149 Main Street `y Watertown,MA 02472 Phone:617-972-6465 Michael J. Driscoll Fax:617-972-6404 www.watertown-nta.gov Town Manager towntngrC-hvatertown-nta.gov To: Honorable Town Council From: Michael J. Driscoll, Town Manager Date: June 8, 2011 RE: Fiscal Year 2012 Water & Sewer Rates As you know, the Fiscal Year 2012 Water and Sewer Enterprise Budgets were discussed at the May 24, 2011 Committee of the Whole Meeting. Mr. Christopher P.N. Woodcock, President, Woodcock and Associates, Inc. provided an Informational Presentation on the Proposed Water and Sewer rates and charges for Fiscal Year 2012. At that meeting, Mr. Woodcock recommended the current Fiscal Year 2011 Water& Sewer rates and charges be adopted for Fiscal Year 2012 (see attached Review document). It is anticipated the Honorable Town Council will take formal action on the Fiscal Year 2012 Budget at its regular meeting on Tuesday, June 14, 2011. Therefore, I respectfully request a First Reading on an Order establishing water and sewer rates and charges for Fiscal Year 2012 be placed on the June 14, 2010 Town Council Agenda. The Public Hearing and consideration of rate schedules and fees designed to raise sufficient revenues to support the Fiscal Year 2012 operation of the services provided to customers of the Town's Water/Sewer System would be scheduled for the June 28, 2010 Town Council Meeting. Thank you for your consideration in this matter. ce: Gerald S. Mee, Jr., Superintendent of Public Works Phyllis L. Marshall, Town Treasurer/Collector Thomas J. Tracy, Town Auditor LEGAL NOTICE OF PUBLIC HEARING The Town Council of the City known as the Town of Watertown hereby gives notice of a public hearing on Tuesday, June 28, 2011, at 7:15 PM,in the Richard E. Mastrangelo Council Chamber, at which time the Town Council will consider alternate rate schedules and fees, designed to raise sufficient revenues to support the Fiscal Year 2012 operation of the services provided to customers of the Town's water/sewer system. All rates are based on a multi-step rate structure in which the rate per 100 cubic feet of water increases with consumption. The water rate schedule would maintain the current structure of usage tiers for consumption. PROPOSED WATER & SEWER RATES (Use at 110 million ou ft/yr) WATER Current Proposed FY 11 Rate FY 12 Rate Use/auarter /100cuft /100cuft 0-3000 cu ft $3.61 $3.61 3001 -30,000 cu ft $5.62 $5,62 All Over 30,000 cu ft $8.87 $8.87 Irrigation $8.87 $8.87 Service Charoe Meter Size /Quarter /Quarter 5/8 $5.54 $5.54 3/4 $5.89 $5.89 1 $6.95 $6.95 11/4 $8.37 $8.37 11/2 $8.37 $8.37 2 $12.24 $12.24 3 $40.78 $40.78 4 $51.34 $51.34 6 $76.01 $76.01 Fire Charoes / uarter / uarter $243.00 $243.00 SEWER Current Proposed FY 11 Rate FY 12 Rate Use[auarter /100cuft /1oocuft 0-3000 cu ft $7.26 $7.26 3001 -30,000 cu ft $9.37 $9.37 All Over 30,000 cu ft $12.57 $12.57 Consumption from a second water meter for irrigation purposes would be charged at the highest tier rate. As with the current water/sewer rate structure, sewer rates are based on water consumption. A copy of the proposed Water/Sewer Rate and Fee Alternatives, including the proposed rate for each tier of consumption and the percentage of increase over the current rate for each of the Alternatives to be considered by the Town Council is available for inspection at the Administration Building, 149 Main Street, Watertown,MA 02472 in the Town Council Office, Monday through Friday, 10:00 am to 2:00 pm, and at the Town Clerk's Office, Monday through Thursday, 8:30 am though 5:00pm, on Tuesday evening up to 7:00 pin, and Friday, 8:30am through 2:00pm. . aJ�9 : !+ � {� z ; } , �� �> . �\ e ^ e «: ~ � � �\ ° , . ~ \ ram, � , &f . . � . \# 2 e � \ � , \ tz\ \/ 5 . © , , . � . . ; . e . \� _ ` k . , �� � � ` � , © - z y . . � § a , � � . � » . z . : , �% �� d< . - 2 ; \ k \\ � � ` � ttix.. Histuric 145,000,000 140,000,000 135,000,000 130,000,000 1251000,000 120,000,000 n5,000,000 110,000,000 105,000,000 1001000,000 FY94 FY95 FY96 FY97 FY98 FY99 FYoo FYo1 FY02 FYo3 FYo4 FY05 FYo6 FY07 FY08 FY 09 FY 10 FY n Note that FY 2oo8 sales reflect additional volumes due to conversion to quarterly billing Wlimated Revenue6`s ---C—ur �ent Rates Water Sewer Sales First 3,000 cu fi 707,059 cu ft @ $3.61 $ 2,552,484 706,058 cu ft @ $7.26 $ 5,125,977 Next 27,000 cu fi 266,533 cu ft @ $5.62 $ 1,497,917 262,443 cu ft @ $9.37 $ 2,459,087 Over 30,000 cu fi 90,584 cu ft @ $8.87 $ 803,477 88,532 cu ft @ $12.57 $ 1,112,846 Irrigation 35,824 cu ft @ $8.87 $ 317,758 Service Charae Meter Size 5/8 9,768 @ $5.54 x4 $ 216,459 3/4 30 @ $5.89 x4 $ 707 1 235 @ $6.95 x4 $ 6,533 11/4 0@ $8.37x4 $ - 1 1/2 19 @ $8.37 x4 $ 636 2 71 @ $12.24 x4 $ 3,476 3 16 @ $40.78 x4 $ 2,610 4 16 @ $51.34 x4 $ 3,286 6 0@ $76.01x4 $ - Fire Services 154 @ $243.00 x4 $ 149.688 Totals $ 5,555,030 $ 8,697,910 s ojected FY 2012 Expenses & Revenues Water Sewer Personnel $ 7821616 $ 347,498 MWRA $ 21638,812 $ 51591 ,351 Other Enterprise Expense $ 3307136 $ 398,478 Capital (incl Debt) $ 4937024 $ 17175, 100 Indirect Costs $ 1 ,308,092 $ 1 ,250,071 Budgeted Expenditures $ 51552,680 $ 81762,498 Estim. Annual Revenues $ 51555,030 $ 896973910 • o Propose-% d re Charges by ze Service Size $/Quarter 2 $15.00 3 $40.00 4 $85.00 6 $240.00 8 $510.00 10 $920.00 Current Charge = $243/quarter for all sizes dirq= ct Coowbsts From Study in 2007 - updated prior analysis a Charges related to administration, overhead, and benefits that are part of the true and full costs (Personnel, Purchasing, Finance, Benefits, etc.) DOR Enterprise Fund Guidance: ® "Indirect costs are generally appropriated as part of the General Fund operating budget and are allocated to the enterprise fund as reported on Schedule A-2." ® "Identifies a total service cost - Consolidating direct operating, direct capital, and indirect costs (e.g., enterprise-related costs appropriated in the General Fund operating budget) helps a community to readily identify a total service cost and determine funding sources." • "Any services provided by other departments and indirect expenses should be reimbursed to the General Fund through inter-fund transfers from the enterprise fund." Water & Sewer Rates should recover true and full costs