05-23-1977 Council Minutes - Laserfiche WebLink

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1 , Page 36 � � Members of the Orono City Council May 23 ; 1977 • while our sewer usage is close to maximum now, our water requirements � from the city eventually will be_:at least twice as much as at present. + At the outset in 1967 the school board agreed to pay double the � residential water rate and also agreed to this same �rate for the sewer charge. Our board further agreed to pay an additional 30$ charge to � the City of--Orono on �.op. of- this double eharge___ By__ this method of payment, the school has been paying its share towards the cost of � facilities and, through the additional 30$ charge , we have paid for . Orono' s cost of maintaining the sewer-water lines running over Orono land. The school district has paid these additional charges now for � close to a 10-year period. � - WATER RATES � Two meetings were held this spring with Long Lake and Orono of- . ficials to discuss a possible reduction in water and sewer rates. According to Mayor Farnand, Long Lake is willing to reduce th e water � charge to the school district by one-half, lowering the rate from 90G � to 45� per M gallons . . Before this tentative decision is final , how- � ever, the_ Long Lake council wants to know .what Orono is willing to do for the school. If we do not receive a favorable decision from you, � Mayor Farnand has indicated to us that the Long -Lake council will re- • consider the situation. Faced with a potential doubling of our water , purchased from Long Lake in the future, if the Long Lake council were to change its mind and not grant the reduction, the long-term result would be disastrous to our school budget. Your decision, then, is of � extreme importance to us ! � It is our understanding that your administrators are recommending • that, if Long Lake reduces-its-wate�-rate-by=one-half to the school, then Orono should increase its override charge from 30$ to 60� so that � the same dollars would be generated to the City of Orono. We wish to point out that, due to �he expansion of outdoor site facilities , the � school during 1976 used a greater quantity of water than in previous years and this will continue. This increased your 1976 revenues. � Furthermore, when the two additional schools are added, Orono will gain • revenue dollars from the school which will be generated by the doubling of water consumption over current levels . We feel that to expect the � school to continue to pay 27� above the adjusted Long Lake rate of 45� (constituting a 60$ override) , � given our increased comsumption now and � in the future, would be excessive. If Orono were to allow the 30$ charge to continue, what loss would this be to you? We will answer � this by providing some statistics for your consideration. � During 1976 , water consumption at the high school was 4 , 572 , 800 gallons: At the $1. 17 current rate which includes the 30� charge, � the school paid $5, 350, with Long Lake receiving $4T15 and Orono re- � ceiving $123�. If we go to the new rate of 45� and continue the 30$ charge for a total of 58. 5�, the school would be paying $2675 annually, � with Long Lake receiving $2057 and Orono $618 . The loss to Long Lake � � � . . �