Seatac

ns

“MEMO TO: Alderman Ranger November 18, 1976

Mayor & Aldermen
L.D. PollockV
R.A. Freeman
V.G. Borch

FROM: J. Maitiand, Deputy Treasurer

Re: Differential : ewer Rates

As you know since the development of Mary Hill the City has had

different sewer rates depending upon whether the sewer mains were installed by

the developer or by the City. The basis for a different rate is, I believe,
that the users should share equally the maintenance and operating costs and that
the City installed user should bear the cost of debt repayment on the Citw installed

mains.

The outstanding sewer debt carried by the City will amount to $878,647.
at the end of 1976 and will be retired by the year 1992.

The annual debt charges applicable to the City installed users is
$67,700. (see below  ) which if applied over the 3,100 City installed users would
result in a $1.82 monthly charge to cover debt only. The proposed 1977 rate
differential will bring in $1.50 per month or approximately $55,800. in 1977.

As a matter of interest, in 1972 the debt charges relating to the City

installed users represented $67,700. out of a $306,217. budget or 22% of the
budget; in 1976 this $67,700.represents just under 10% of the $683,300. budget.

Annual Sewer Debt Charges

Annual debt charges through 1990 approx. $158,000

less approx. debt charges re:

Broadway extension ~- mainly industrial (28,000)

Trunk lines in original construction (estimate) (30,000)

Recovery from GVS and DD € 9,400)

' Portion of Sewerage Grant applicable to City carried debt (36,400)
plus estimated portion of Sewerage Grant which applies to ;

Broadway extension and original trunk lines 13,500

Annual debt charges applicable to the City installed user

$ 67,700