Regardless of what we do now I believe there should be a common rate by
the time our debt is repaid in 1992. .

A common rate if in place in 1980 would be $5.85 per month (earlier
proposed rates were $6.75 City installed and $4.75 developer installed).

Closing the Gap

As more City installed users come on line the rate differential should
gradually decrease (in 1977 the rate differential which could be justified
was $1.82 it is now $1.59) but the number of City installed users is not
growing fast enough to avoid having a jump in developer installed rates at
some point in time if we are to come to a common rate.

Another approach which has been suggested a couple of times is to
phase in the increase in developer rates over a number of years. A five
year phase in, could look like: .

1980 “1981 1982 1983 1984 1985

City Rate 6.75 6.95 7.10 7.30 7.50" 7.65,
Increase (3.8%) (3.9%) (2.2%) (2.82%) (2.7%) (2.0%)
Developer 4-75 5.20 5.70 6.30 6.95 7.65 ;
-Inerease (5.6%) (9.5%) (9.6%) - (10.5%) (10.3%) (10.1%)

The $7.65 resulting common rate is based on 54% annual increase on what
the common rate would be in 1980 ($5.85). I£ this five year phase in were
adopted I would propose to increase the other rates in the by-law by 54s% annually,
excepting those which are directly tied to the City installed residential rate.
A 54% increase would resujt in almost an 8% increase in revenues with 24 growth
rate or a 9% increase witt a 3% growth rate.

J. Maitland