10-14-02 Utilities Committee - Laserfiche WebLink

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• a Utilities Committee October 14, 2002 Page 2 Dr. Varner stated that he would like the estimated revenue projections for the next five (5) years based on the type of customer and size of meters, etc. He stressed the need for the Council to know how to go from point A to point B; since the Administration is requesting $ 19.5 million in revenue. Dr. Varner stressed that the Council needs to know the number of people in each category and how they will be affected by the proposed rates so that they can see where the large increases actually will be. Dr. Varner concluded his remarks by stating that the Council could not base any amount of accuracy on the proposed rates based on the information provided to the Council to date. Therefore such calculations are necessary since they would be essential information. Mr. Dillon stated that the City Administration is requesting that the rate go from $.74 to$2.07 for those customers within the City of South Bend. Mr. Skump stated that basically the Council is requesting information from the$19.5 million figure and then work backwards and provide the detail by category. Council Member King noted that the proposed rates need to be applied to the information contained in Exhibits F and G and then you would have the information which Dr. Varner is requesting. Council Member Kirsits noted that the residential users would be picking up where larger users may be buffered. Mr. Gilot stated that that would be correct. Council President Kelly inquired how dramatic would the increases be for all users. Mr. Skump stated that they are still working on the figures. Council Member Coleman noted that the$19.5 million figure would address all of the items in the proposed capital plan. He noted that the City has been talking about CSO's along as he has been on the Council. Council Member Coleman further noted that he can not believe that the State of Indiana would not give the city some relief in this area. Mayor Luecke stated that they have been lobbying hard but have hat had a receptive audience from the state or IDEM. The cost to the City of Indianapolis is estimated to be$1 billion. Mr. Skump stated that Evansville is looking at a$60 million cost and Anderson is looking at a cost between$60- $80 million,with projects currently under way. He added that under the SRF Loan Program the monthly bills would be$65 per month per customer. Council Member Coleman inquired why the City would not front-end load this and fund it with a bond. Mr. Dillon stated that the City has made various improvements to its 42-year old building; and that the Mayor has chosen to go into debt for short-term projects. He stated that there will not sufficient revenue for 2003 for the 0 & M budget without a rate increase and there would be no capital program in 2003 without a rate increase. Mayor Luecke stated that the City has been spending $46 million per year in capital investment; and that a rate increase is separate from that.