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It is recommended the Council adopt an increase above what is recommended in the 2009 Rate <br />- Study. While rate increases are never popular, it is imperative that the enterprise funds are self <br /> sufficient and not reliant on outside funding sources like cellular leases. Staff analyzed two <br /> methods of increasing the rates over a 4 yr period. <br /> Example 1: <br /> Proposed Annual <br /> Rate 15% 10% 10% 9% Increase <br /> Increase of 7% <br /> 2013 2014 2015 2016 2017 2017-2033 <br /> Base Rate $28.04 $32.25 $35.47 $39.02 $42.53 <br /> Tier 1 Rate $2.50 $2.88 $3.16 $3.48 $3.79 <br /> Tier 2 Rate $3.14 $3.61 $3.97 $4.37 $4.76 <br /> Tier 3 Rate $4.71 $5.42 $5.96 $6.55 $7.14 <br /> Example 2: <br /> Proposed Annual <br /> Rate 11°/a 11% 11% 11% Increase <br /> Increase of 7% <br /> 2013 2014 2015 2016 2017 2017-2033 <br /> Base Rate $28.04 $31.12 $34.55 $38.35 $42.57 <br /> Tier 1 Rate $2.50 $2.78 $3.08 $3.42 $3.80 <br /> Tier 2 Rate $3.14 $3.49 $3.87 $4.29 $4.77 <br /> Tier 3 Rate $4.71 $5.23 $5.80 $6.44 $7.15 <br /> Example 1 has a higher initial increase with subsequent lower yearly increases after, while the <br /> second is a uniform increase over the next four years. Both examples bring Orono's water rates <br /> in line with surrounding communities and keep the overall fund trending toward being self <br /> sufficient and not reliant on cellular leases (see Exhibit E). It is staff's recommendation to follow <br /> the proposed rate increases <br /> Besides just increasing rates, staff evaluated other changes to the Water Fund. These included <br /> moving up a couple of large projects and issuing a $2,000,000 bond to pay for them and pushing <br /> � <br />