Title
Incorporated County of Los Alamos Code Ordinance No. 02-288, An Ordinance Amending Chapter 40, Article III, Section 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 the Board of Public Utilities approve Incorporated County of Los Alamos Code Ordinance No. 02-288 as presented and forward to Council for adoption.
Staff Recommendation
Staff recommends the motion be passed as presented.
Body
In July the Board heard a preliminary presentation of the proposed Sewer Rate Increase presented for approval here tonight. After discussion, the Board indicated they were prepared with the information provided to move forward with the Public Hearing on this item in August. The remainder of this report and the attachments, therefore, are simply representations of the material presented in July, with a few minor formatting and header corrections, but no substantive changes to the detail provided in the materials.
The ten-year forecast for the sewer utility presented with the FY2018 budget included 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. Several alternatives have been considered as to timing of that plant replacement and financing alternatives. While the long-term projection of rate increases in each scenario that was considered were somewhat different, all include a series of rate increases in the coming years. The scenario adopted by the Board included an 8% increase in FY18 and another in FY19, with declining increases in years following. The FY19/20 budget represents implementation of that scenario, updated to reflect current known conditions and financing decisions that have been or are planned for implementation. $2.5 mi...
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