NOE ee they espe

B. Kirk, DATE: January 05,1989
City Administrator,

Administration Committee

1989 Water and Sewer Rates

RECOMMENDATION:

That there be no change in user rates for 1989.

BACKGROUND & COMMENTS:

Attached are copies of the proposed budgets for our two utilities which indicate that once
again we can get by without an increase in the user fees for this year, as a matter of
interest the last increase in utility rates was in 1983.

My only concer with the proposed budgets is in the amount of capital expenditures which
are funded from current user rates ($84.500 in the Water Utility and $28,700 in the Sewer
Utility), while this is sufficient for 1989 it may well be that in following years rate
increases may be required to increase this amount. To address this concem, the Engineer
and I will try to work out a Capital program covering the next five years or so later this
year.