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<br />-3- <br /> <br />FisCAl Year <br /> <br />Estimated Water <br />Fund H.evenue <br /> <br />1979- 80 <br />1980- 81 <br />1981-- 82 <br />1982- 83 <br />1983- 84 <br />1984- 85 <br /> <br />$668,000 <br />678,000 <br />690,000 <br />702,000 <br />715,000 <br />727,000 <br /> <br />The establishment or revision of a water rate schedule provides almost <br />infinite options to a rate-setting authodty. Complex analysis, utilizing <br />expert consultants, can often be justified; but only four approaches, in the <br />case of a rate revision, ordinarily present themselves: (1) all the rates can <br />be increased across-thc.-board by a certain percentage; (2) certain of the <br />rates can be raised and the others left the same; (3) the rate "breaks" can <br />be manipulated to sell more water at the higher rates; or (4) some combination <br />of the forgoing. Eventually, however, the rate-setting authority (in this case, <br />the City Council) must decide upon which size or class of customer the burden <br />of the increased rates will fall. (See Appendix A) All these approaches to <br />the proposed revised rate schedule WE;re considered by the City Administration. <br />The basic recommendation, however, is to abolish the lowest rate in the current <br />schedule (21$ per thousand gallons) and then to increase all the remaining <br />rates by about 27%. This would create a new rate schedule as follows: <br /> <br /> Rate Per <br /> Consumption Per Month Thousand <br /> First 4,000 gallons $3.50 (minim urn ) <br /> Next 2,000 gallons .70 <br /> Next 100,000 gallons .64 <br /> Next 100,000 gallons .53 <br /> Next 100,000 gallons .46 <br /> All Over 306,000 gallons .35 <br />It is proposed that the out-of-city rates remain doubled. <br /> <br />If this proposed schedule were in place, the monthly cost effect on <br />certain classes of our customers, and as compared to other water utilities in <br />the state, would be as follows: <br />