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amount of direct subsidy) would effect rates prior to holding a public hearing on increasing <br />the sewer rates, we assume that rate increases could not be set prior to the end of this <br />year at the earliest. It is our belief that the entire issue of setting rates (by means of <br />working through sample rates with the Raftelis model) and determining how any rate <br />subsidy will be calculated, funded, administered, etc., will require the BOCC to set aside at <br />least an hour and possibly more to discuss the issue in a less structured environment such <br />as a work session. Unfortunately, we have been advised that currently no work session <br />opportunity exists where this issue could be discussed prior to the end of this calendar <br />year. <br />Given this situation, it is unlikely that the BOCC will be able to deliberate on this issue, hold <br />a public hearing and give guidance to the staff on rate increase/direct subsidy policy before <br />March or April 2009. This timetable would give us some two or three months to impose <br />rates sufficient to recover the costs that the BOCC determined (by decreasing the subsidy) <br />in fihis year's budget process should be recovered. That, in turn, will result in a slight <br />increase in the rates cited above, assuming that CIP and fund balance funding is included <br />in the rates. However, once all of the cost and funding issues have been resolved, we can <br />easily generate annual rate recommendations based on increased sewer treatment and <br />operating costs as well as increases in the customer base with the attendant increase <br />sewer flows and tap on fees. <br />If I may provide additional information or clarification of this information at this time, please <br />advise. <br />