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14 <br /> Substantial treatment costs <br /> >$10.35 per 1,000 gallons of metered sewer flow <br /> >Substantial inflow & infiltration (I&I) — 30% <br /> >Greater than Efland total rate revenues <br /> •Requires annual subsidies from County General Fund <br /> >Ranging from $80k in '05 to $106k in `07 <br /> Current Rate Structure <br /> •No change since 1987 <br /> •Minimum charge results in inequities for low use customers <br /> >Presents challenges to low-income customers <br /> >Low use customer pay higher cost per unit <br /> •Usage charge below cost of service <br /> >Below cost of treatment <br /> 0300% across-the-board increase required for full cost recovery <br /> Revenue Requirements <br /> •Based on FY 2009 operating budget <br /> >$207k in O&M expenses <br /> >$144k for treatment costs <br /> >$40k eliminated from original budget <br /> >$0 capital improvements <br /> Operating costs escalated at 3.0% annual inflation <br /> >Anticipated shortfall (subsidy?) $142k <br /> Capital costs through 2017 <br /> >$1.7 million to extend service to additional customer <br /> >$490k for pump rehabilitations & manhole collars <br /> Rate Recommendations <br /> Rate Structure Modifications <br /> Eliminate minimum usage allowance <br /> •Introduce revenue neutral monthly base charge <br /> >Per customer account charge of $5.20 <br /> >Maintain $4.50 per 1,000 gallons of water use <br /> >Customers below 3,000 gallons of water use receive benefit <br /> >Customers with 3,000 gallons of water use or higher pay more <br /> •More equitable and fair to low use and lower income customers <br /> Alternative Rate Programs <br /> •Maintain current rates <br /> >Shortfall (subsidy) of $142k <br /> >Shortfalls increasing over time with no increase <br /> •Increase rates by 150% on January 1 <br /> >Recovers $40k eliminated from budget <br /> >Shortfall (subsidy) of $100K <br />