06-13-1977 Council Minutes - Laserfiche WebLink

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Rc,GULAR MEETING OF THE ORONO COUNCIL, JUNE 13 , 1977 Page 47 � � The Navarre water system was in operation during 1973. Resol- � ution ,�420 dated November 22, 1971, established the water rate schedule of charges. Since its inception the water rate schedule � for the Navarre water system has not been adjusted. During the � past four years there has been substantial growth in the num- ber of units being served by this system. At the end of 1973 � there were 337 units being charged for kater service. That � has grown to over 500 as of the first quarter of 1977. However, it appears that the operating expenses have risen faster than the operating revenues, resvlting in a net operating loss for the period 1974 thru the 1977 estimates. � It appears from our preliminary findings that the revenues � generated by the Navarre wa�er system will fall far short of the amount needed during 1977. For instance, if the first quarter � of 1977 water operating statement is adjusted for the ef�ects of the Long Lake and Chevy Chase areas the net operating loss before depreciation will increase about $350 from ($1, 637) to � ($1 , 987) . We have estimated the total billable gallonsto be pumped in 1977 at 52, 800, 000. The costs to be recovered are: � l. The operating budget of $50, 974 less $2, 400 expenses � allocated to the Long Lake and Chevy Chase areas or a net oper- ating budget of $48, 574 for the Navarre system. � - - 2. The depreciation estirr,ate on the plant, tower, and wells of $6, 416. per year. • The following estimated flat rates are needed to recover the foregoing costs: s • • • (Continued) �