HomeMy WebLinkAbout4 Rate Increase Agenda Item #
wI� �I� t �iil��ir �itu iM�l�fl�u�uut
PAW
Staff Report
To: Board of Directors
From: Peter Holzmeister
Date: June 30, 2006
Subject: Staff report for public hearings
Why this matter is before the Board: This matter is a staff report serving as an
introduction to the first two public hearing that follow. The first hearing asks for public
input on the proposal to increase water rates by six percent for 2007 and again in 2008.
The second hearing asks for public input on the proposal to establish a billing surcharge
of$6.65 per month on Donner Lake customers to help pay the cost of reconstructing the
Donner Lake water system.
History: We have been discussing the need to secure financing for water capital
projects. We retained the services of McDonald Partners to help us arrange for long
term financing. Sandra's report to the District recommended that we improve our cash
reserve position and provide funds for anticipated increases in operating costs. This
action would place our water fund in a stronger position in the view of the investment
banking world and help us secure the financing.
The Board has held several meetings where we discussed the need for constructing
water facilities, the need to secure long term financing, and the need to improve our
cash position. The Board has held lengthy discussions and has cautiously moved to the
point were we are ready to hold public hearings.
New information: In order to help the public understand the full picture leading up to
and culminating is a decision about increasing rates. Staff is preparing a power point
presentation covering the water system needs, the financial picture of the District's water
fund and options available to us. That presentation is still being edited but will be ready
for presentation prior to the public hearings.