Agenda - 04-05-2011 - 8d - Laserfiche WebLink

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gallons would result in a revenue to operating expense ratio of approximately 6~°/a, with the remainder of the operating budget, approximately $80,000, being provided by the General Fund. After these two increases have occurred, the Efland rates would be reviewed on an annual basis and adjusted as necessary to account fior inflation or other cost increases. The Mebane out-of-town rate could continue tv be a useful benchmark against which to compare the Efland sewer rate. UNIQUE FEE As the rates have gone up, there has been much discussion regarding the Richmond Hills pump station perpetual maintenance fee of $13.00 per month, which is charged to every sewer customer in the Richmond Hills subdivision in addition to the normal sewer bill. This fee was approved and established by the BUCC in December 2001 as a way to have the residents who use the pump station pay to maintain the pump station. This perpetual maintenance fee was created in lieu of having the developer, Habitat for Humanity, pay aone-time, lump sum amount upfront to cover the maintenance of the Richmond Hills pump station. Because the residents in the Habitat for Humanity subdivision have low incomes, the suggestion has been made to eliminate this fee from the bills. An alternative, but revenue neutral, option to the proposed rate schedule would be to increase the base charge from $10.15 to $12.68 per month. This essentially distributes the $13.00 per month fee that 43 customers were paying to the entire 222 customer base. It results in an increase of $2.52 per month for all customers who do not live in Richmond Hills subdivision, as outlined in "Proposal 2, Alternate Rate increase Schedule" in Attachment ~. Finally, as part of this amendment to the Efland sewer rates, staff suggests removing the rate schedule from the Efland Sewer Resolution and simply including the Efland sewer rate as part ofi the County's existing rate and fee schedule. The Efland sewer rate currently exists in both places, so when a change is made the rate must be changed in both places. The current Efland Sewer Resolution will need to be amended to refer to the County's rate schedule rather than "Attachment A", which is where the rate schedule is located in the Resolution. Thereafter, the only place the rate will need to be amended will be in the County's rate schedule and this can be accomplished during the normal, annual budget adoption process. FINANCIAL IMPACT: Based on the existing sewer rate increase schedule provided at Attachment 2, the Efland Sewer Fund is currently scheduled to be subsidized by the General Fund in the amount of $54,000 for fiscal year 2011-2012 and $7,000 for fiscal year 2012-2013. However, revising the rate schedule as proposed would result in an additional subsidy of $98,000 x$25,000 for FY 2411-2012, $3,000 for FY 2412-2013} over the next two years when compared with projected revenues based on the existing rate increase schedule. Eliminating the Richmond Hills perpetual maintenance fee and distributing this cost to all customers would have no financial impact on the County. There is no financial impact associated with removing the rate schedule from the Efland Sewer Resolution. RECQMMENDATI4N~S~: The Manager recommends the Board: 1. Approve the "Proposal 1" revision to the Efland sewer rate increase schedule; 2. Provide direction on the elimination and re-distribution of the Richmond Hills perpetual maintenance fee as outlined in Attachment 1, Proposal 2, Alternate Proposed Rate increase Schedule 3. Approve the amendment #o remove the Efland Sewer rate schedule from the Efland Sewer Resolution, with the rate schedule to remaindee addressed as part of the County's annual fee schedulelbudgetopproval.