DISCLAIMER

 

06-0877R


RESOLUTION AMENDING RESOLUTIONS 06-0613, 06-0614, 06-0616, 06-0617 AND DIRECTING RECALCULATION OF UTILITY RATES, SETTING A DATE FOR IMPLEMENTATION.

BY COUNCILOR NESS:

     The city council finds:

     (a)  The rates charged to consumers by the various utilities were set by resolutions 06-0617, 06-0616, 06-0614 and 06-0613;

     (b)  These rates were calculated by adding together the operating revenues at the previous rates, the revenue increase needed to pay for increases in operating expense, and revenue increase needed to fund other post employment benefits (OPEB) and then deriving rates from this total revenue increase;

     (c)  The anticipated events which were the basis for including the revenue increase needed to fund OPEB have not fully developed.

     NOW, THEREFORE, BE IT RESOLVED:

     (a)  The rates set by Resolution 06-0613 for the customer charge for use of wastewater facilities (sanitary sewer) shall be recalculated by excluding $561,000 (revenue increase need for OPEB only) from the amount of total revenue increase needed;

     (b)  The rates set by Resolution 06-0614 for the customer charge for water shall be recalculated by excluding $669,600 (revenue increase needed for OPEB only) from the amount of total revenue increase needed;

     (c)  The rates set by Resolution 06-0616 for the customer charge for stormwater management shall be recalculated by excluding $189,600 (revenue increase needed for OPEB only) from the amount of total revenue increase needed;

     (d)  The rates set by Resolution 06-0617 for the customer charge for natural gas shall be recalculated by excluding $920,500 (revenue increase needed for OPEB only) from the amount of total revenue increase needed;

     (e)  In performing the recalculations set out herein, the only change from numbers used to calculate the old rates shall be the exclusions of the amounts (OPEB) set out in this resolution;

     (f)  The recalculation and the new rates shall be shown on a public document filed with the clerk on or before December 23, 2006;

     (g)  Any prior rate that is inconsistent with this resolution is rescinded;

     (h)  The new rates created by this resolution shall be implemented January 1, 2007.


STATEMENT OF PURPOSE:  This resolution creates new utility rates which are lowered. The rates are lower because they do not include amounts to fund retiree healthcare in the manner planned when the old rates were established.