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CITY OF SOUTH SEND <br />STEPHEN ~. LUECKE, MAYOR <br />OFFICE OF THE MAYOR <br />July 9, 2003 <br />Mrs. Karen White, President <br />Common Council <br />County-City Building <br />South Bend, Indiana 46601 <br />RE: Introduction of Proposed Wastewater Utility Rate Ordinance <br />Dear Council esident White~(~/~~ <br />As you know, we need to generate adequate revenue through rates to support the needs of <br />the South Bend Municipal Wastewater Utility. We determined last year that additional revenues <br />were required in order for the Wastewater Utility to continue to serve as a community asset for <br />environmental stewardship and economic development. It was determined that overall revenues <br />need to be increased by 24 percent in order to meet short term needs after 14 years with no rate <br />adjustments. <br />When we approved a rate ordinance in January 2003 based on the Cost of Service Study, <br />there was a court challenge and a determination that technical corrections were necessary. While <br />we are preserving our right to appeal, it is not our intention to resolve matters with our ratepayers <br />through the courts. We have engaged in dialogue with major users in order to craft a pragmatic <br />short term solution to our undisputed need for more revenue to properly operate and maintain the <br />wastewater utilit~~. We believe the attached ordinance with a 24 percent across the board increase <br />for the remainder of 2003 and 2004 and a 5 percent across the board increase in 2005 will allow <br />us to move forward without putting us right back in court. <br />We believe this ordinance will set the stage for fruitful discussions through the Advisory <br />Committee that you and I will appoint without the issue of litigation overshadowing debate. Vde <br />must build a consensus as a community over how to provide stability and predictability of rates, <br />while addressing major issues for permit compliance, such as CSO Long Term Controls and <br />Phase II Stormwater Management. <br />COUNTY-CITY BUILDING • SOUTH ~END~ INDIANA 46601 <br />PHONE 219/235-9261 • FAX 219/235-9892 • TDD 219/235-5567 <br />