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ORANGE COUNTY <br />BOARD OF COMMISSIONERS <br />ACTION AGENDA ITEM ABSTRACT <br />Meeting Date: June 12, 2007 <br />Action Agenda <br />Item No. ,~ a~_ <br />SUBJECT:. OWASA Water and Sewer Rate and Fee Proposals <br />DEPARTMENT: County Manager PUBLIC HEARING: (Y/N) No <br />ATTACHMENT(S): <br />OWASA Letter and Attachments <br />INFORMATION CONTACT: <br />Michael A. Clarke 919-918-3651 <br />Ed Kerwin 919-537-4211 <br />Paul Thames, County Engineer <br />919-245-2303 <br />PURPOSE: To present OWASA's water and sewer rate proposals for FY 2007/08 for BOCC <br />review and questions. <br />BACKGROUND: As a follow-up to information OWASA presented to the BOCC in April 2007, <br />OWASA wishes to provide additional information focusing on two areas: <br />1. How much revenue does OWASA need to continue providin tq he high quality water and <br />sewer services expected by its customers, and for what purposes <br />OWASA will not adopt a budget for FY 2007/08 until June. However, OWASA's Preliminary <br />Budget identifies total~expenditures of $46.6 million. $28.4 million will be funded from <br />operating revenues (compared with $27.O million in the current budget). Proposed <br />expenditures for the next year are: <br />$18:4 million Capital Improvements <br />$18.5 million Operations, Maintenance, Capital Equipment <br />$ 9.7 million Debt Service <br />$46.6 million Total <br />As shown, OWASA's Capital Improvements and Debt Service (for Capital Projects) totals <br />$28..1 million or 60 % of the overall budget. <br />OWASA recognizes the need to properly fund the renovation and replacement of aging and <br />inadequate facilities and, for several years, capital program costs have comprised the <br />majority of its annual budgets. The true cost of water and wastewater services includes the <br />essential cost of renewing and updating utility assets to protect their value, functionalities <br />and sustainability. <br />