Title
Incorporated County of Los Alamos Code Ordinance No. 02-276; An Ordinance Amending Chapter 40, Article III, Sections 40-201 and 40-202 of the Code of the Incorporated County of Los Alamos Pertaining to the Sewage Service Rate Schedule and Determination of Charges
Recommended Action
I move that Council adopt Incorporated County of Los Alamos Code Ordinance No. 02-276; An Ordinance Amending Chapter 40, Article III, Sections 40-201 and 40-202 of the Code of the Incorporated County of Los Alamos Pertaining to the Sewage Service Rate Schedule and Determination of Charges; I further move that, upon passage, the Ordinance be published in summary form.
Utilities Manager Recommendation
The Utilities Manager recommends that Council adopt the ordinance as presented.
Board, Commission or Committee Recommendation
The Board of Public Utilities recommends that Council adopt the ordinance as presented.
Body
The ten-year forecast for the sewer utility presented with the FY2018 budget includes a series of incremental rate increases to generate revenues needed for current operations and to build cash reserves necessary for future infrastructure replacements, most notably the needed replacement for the White Rock waste water treatment facility. We have considered several alternatives as to timing of that plant replacement. Each has different long term cash impacts, and each is presented in this discussion.
Four scenarios are presented. The main differences are when the White Rock plant is designed and constructed, and whether the existing debt on the Los Alamos treatment plant is refinanced. The details of the four scenarios are shown on Attachment A2. While the timing and magnitude of future rate increases varies by scenario, as will be discussed, three of the four scenarios presented show the budgeted 8% increase in FY2018 is necessary. The forth scenario shows only a 5% increase in 2018, but continuing increases farther into the future. It should be noted tha...
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