Laserfiche WebLink
<br />-8- <br /> <br /> Proj. Revenues ,- <br />Fiscal Projected Assuming <br />Year Expenditures Current Charg~ (De fie <br /> ---- <br />1980- 81 $1,053,000 $879,000 ($174, <br />~'- <br />981- 82 1,125,000 897,000 ( 228, <br />UH32- 83 L 197 , 000 915 ~_QOQ_ ~2-, <br />983- 84 1 275.000 933.000 ( 342 <br />a. 984- 85 1,359,000 952,000 ( 407, <br /> <br />-r <br />it ) !)!~p <br />000) $ <br />000) <br />00~1 <br />000 <br />000) <br /> <br />j. Revenues -. <br /> . <br />Assuming Surplus <br />"~.?ed Charge (Deficit ) <br />---,-- <br />1,085,000 $ 32,000 <br />1,124,090 ( 1,000) <br />1,143-2.,.000 (~~OO) <br />1:163,000 ( 112. 000) <br />1,184,090 ( 175,000) <br /> -~ <br /> <br />OVERALL SUMMARY AND RECOMMENDATIONS <br /> <br />The Water Fund and Sewer Fund arc both in serious need of infusion with <br />additional revenues. This is the result of: <br /> <br />1. Conthmed inflationary pressures on operating expenditures; <br /> <br />2. New financial requirements to establish sizeable depreciation <br />accounts for municipal utitilities; <br /> <br />3. Council's understandable reluctance over the years to raise <br />the rates until it seemed absolutely necessary. <br /> <br />One cannot over-generalize in comparing utility rates between cities, but <br />the proposed new rates for Martinsville water and sewer service will still be <br />very competitive in almost every class of usage, as compared to our neighbors. <br />This is particularly the case for most of our residential customers; but the <br />new rates are also quite competitive in the larger 01' industrial categories. <br /> <br />In spite of this, Council must be aware of the possibility that the new <br />rates will have a depressive effect at least temporarily on water use city-wide, <br />resulting in revenues short of the projections. Even if that does not occur <br />and our revenue projections stand up, we still are facing a deficit situation <br />over this and the next four fiscal years (except for the current year in the <br />Sewer Fund). The only hedge against this unfortunate forecast, is to reduce <br />expenditures where we can and to consider additional rate increases in sub- <br />sequent years as they become necessary. <br /> <br />With these understandings before us, it is strongly recommended that City <br />Council immediately adopt the necessary ordinance to adjust the rates discussed <br />herein. <br /> <br />DRE <br />