05/10/1989 Meeting - Laserfiche WebLink

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e e e Public Works cleaned 1.5 million lineal feet of sewers, did preventative maintenance of 244,000 lineal feet of sewers, excavated over 8,000 lineal feet of channels, swept and flushed over 38,400 curb miles of streets, cleaned over 7,000 catch basins, and picked up over 11,500 cubic yards of leaves. Mr. Jessie reviewed a chart and maintenance cost since budgets for FY90 and FY91. increase in the operations several years. summarlzlng the budget for local sewer operation FY87. The chart also depicted the proposed In general, the chart reflected a moderate budget, without adding new programs, over the past Mr. Jessie reviewed a chart summarlzlng the local sewer capital budget since FY87. He said in prior years, much more support from sewer user fees went toward capital expenditures. In response to concerns about increasing sewer fees, capital programs were reduced significantly (approximately 32 percent in FY88 and 38 percent in FY89). Mr. Jessie said the proposed budgets includes an increase in capital funding. Mr. Jessie described the process for distributing user fees. These fees are collected by Eugene Water and Electric Board (EWEB), who distributes the revenue to the City Finance Division where it is split into a regional fund and a local fund. The regional share goes to MWMC to pay for wastewater treatment. The local share funds storm drainage, sanitary service, and limited capital needs. Summarizing his presentation, Mr. Jessie said there are three trends in local sewer rates. These include moderately increasing operation costs, a large need for infrastructure improvements, and moderate growth in the customer base. The projected budget increase in FY90 will be 6.1 percent and 4.4 percent in FY91 for a typical single-family dwelling. There are four trends in regional sewer rates: declining administrative costs; moderately increasing operation costs; larger than anticipated reserves; and a moderate growth in the customer base. These add up to a projected budget increase in FY90 of 2.2 percent and of 2 percent for FY91, for a typical single-family dwelling. Mr. Jessie said currently the monthly sewer rate for a typical single-family dwelling is approximately $11.04. The proposed monthly rates would increase to $11.51 for FY90 and to $11.89 for FY91. Mr. Jessie said the proposed rate structure will allow for single year rate changes. There are two advantages associated with this type of structure: there is no overcharging in the first year to pay for cost increases in the second year, and it will result in smaller percentage increases in the first year for the majority of users. Ms. Andersen reiterated an earlier point that there will be a shift in the local capital increment that will be included in the proposed rate. She said when developing the budget and capital program for FY90, staff had originally anticipated that the regional rate would be increasing substantially. This MINUTES--Eugene City Council May 10, 1989 Page 5