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Mr. Kenneth R. Thompson <br /> May 20, 1985 <br /> Page 2 <br /> service to the orange Heights area. The results of this <br /> analysia.are presented below: <br /> Sewer Chargea <br /> User class Typical Total MOnthl ange Heights <br /> Monthly Water Orange Heights Or <br /> Sewer Built by sewer Built by <br /> User class Usage al <br /> ic <br /> Monthly <br /> Usage <br /> the Hillsborough <br /> 22.16 <br /> < 000 $22.85 <br /> 4,000 gals/mo 3,000 gals/mo <br /> 0 10 000 49.92 43.51 <br /> > 4,000-10,000 6.000 <br /> '000_ 0 ,000 83,20 72.21 <br /> >101000-20j000 13r000 36707 <br /> 000 428.98 <br /> H>29,00074#000 I <br /> a. Rates cited• are based on construction of the Base Bid and <br /> Alternates A and C. <br /> 2. Under the. second option, the County would construct the <br /> gravity sewers located in orange Heights and agree to <br /> limit sewer charges to these customers- to the prevailing <br /> Hillsborough "outside" rate (currently $9.00 per month) . <br /> Upon annexation by the Town, sewer charges to the <br /> customers in Orange Heights would be reduced to the <br /> prevailing in-town rate. <br /> The economic implications of this proposal are somewhat <br /> difficult to evaluate since several different factors <br /> e involved. Assuming no growth in the number of <br /> are <br /> County sewer customers outside of the orange Heights <br /> area, the $9 .00 per month limit on charges to customers <br /> in orange Heights Would not produce sufficient revenue <br /> to offset the County fixed expenses (debt service plus <br /> O&M) . We estimate that the potential short fall in . <br /> revenues would be approximately $1,750 per year which is <br /> equivalent to roughly $1.25 per month for the remaining <br /> sewer customers. while this would indeed increase the <br /> cost of sewer service to the remaining customers, a very <br /> modest growth in the number of sewer customers on the <br /> County system could totally eliminate the need for any <br /> increased charges. <br /> Annexation of the orange Heights area by the-Town of Hillsborough prior to any growth in <br /> the number of County sewer customers would further <br /> increase the revenue deficit that would have to be <br /> offset. <br /> Either of the two options discussed above appear to be <br /> economically- viabile. Assuming the Town of Hillsborough can <br /> afford to fund the gravity Portion of the collection facilities <br /> in orange Heights, the savings in construction cost realized by <br /> the County would lead to lower monthly sewer charges for the <br />