2001-05-21 - Laserfiche WebLink

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94 PUBLIC HEARING: UTILITY RATE REPORT ORDINANCE Mr. O'Connell explained that consideration of the mility rate report and rates is an extension of the budget process. Mr. O'Connell said that most of the cost to the City for the three utilities is purchase of service costs. Ms. Rita Scott, Director of Finance, explained that the utilities are designed to be self-supporting over time. The budgets consist of cost of service, operating costs, and capital costs. The rates are proposed to increase by the following amounts: water - 8.6%; wastewater- 12.3%; and gas- less than 1%. Ms. Scott said that an increase of $50,000 is proposed for the Gas Assistance Program (GAP) and $50,000 is proposed for a programmable thermostat rebate program. The public hearing was opened, bm as there were no speakers, the public hearing was closed. Responding to a question from Mr. Toscano, Ms. Scott said there is no change in the payment in lieu of taxes. Mr. Toscano said he would be interested in squeezing the budget to try to fmd even more money for the Gas Assistance Program and would be interested in being more aggressive in expanding the gas system. Mr. Toscano presented the following questions or comments for staff's consideration: he would like the gas extension policy to be reviewed to see if it should be changed; he would like a report of subdivisions considered for gas and why they were accepted or rejected; why is there a drop in City gas customers; how much in gas fund were used to reduce the rates; what was the working capital fund last year and this year, is a 60 day fund still a reasonable target or could it be reduced to 55 days; and he would like to consider as a condition of the Gas Assistance Program participation in the programmable thermostat program or requirement of installation of a water blanket. Ms. Scott said that the GAP could be increased without much change in the rates, but Mr. Toscano said he does not want the rates to increase. Mr. Lynch said he is glad to see City residents using less water. Ms. Richards expressed concern that less water consumption has resulted in rates going up which could be a disincentive for the conservation program. Ms. Scott said that is true, but if consumption continues to grow in the long run it will be even more expensive. Mr. Cox asked if the University of Virginia's water consumption is being tracked, and Ms, Scott said their consumption rate has been pretty steady. Mr. Caravati said the fact that the University's consumption has remained steady reflects their conservation efforts since the University's population has increased. Mr. Lynch said he understands that the University pays a lower price because of the contract negotiated with them, and asked when the contract will be renegotiated, and would that result in lower rates for City residents. Mr. O'Connell said there is no schedule for renegotiation of the contract with the University, but long-term water supply questions will likely force a revisiting of the contract. Ms. Richards noted that many of the operating costs of the system, such as billing, do not need to be applied to the University.