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HomeMy WebLinkAbout11 Power Point Glenshire Surcharge Action Item # 11 July 6, 2011 Upgrade ChargeMonthly Glenshire Water System Ordinance to Reduce the Consideration of Adopting an Ordinance to Reduce the 2 End date November 2017− $10.75 per month− To pay off loans a surcharge was accessed•Internal loan $246,000–External loan $1,740,000− 2 loans•Cash & land sales proceeds used to offset costs •All GMWC assets transferred to the District•GMWC customers agreed to pay for improvements•Capital Improvements were required•District acquired Glenshire Mutual Water Co. (GMWC) 2002•Background / History Monthly Glenshire Surcharge Ordinance to Reduce the 3 side parcel listed for sale April 1, 2011-North•December 2009 through March 2011− side of Glenshire Drive-North− Truckee Fire Protection District leased a parcel•side of Glenshire Drive-Sale of parcel on south− February 2009 internal loan extinguished•Background / History Monthly Glenshire Surcharge Ordinance to Reduce the 4 Directed Staff to bring back ordinance to lower surcharge− Discussed options− June 1, 2011 Board Meeting•Majority want to lower the monthly payment•Feedback from the area residents− Adjust end date November 2017 to March 2014− Reduced monthly surcharge from $10.75 to less than $5.00− General options regarding the surcharge•The letter asked for an opinion on two options •Letter sent to all customers paying surcharge in May•-North•New Information Monthly Glenshire Surcharge New Information$ 4.75 urcharge Monthly s1,490Divided by the$ 7,080Average monthly surcharge collections needed75until 11/30/2017Divided by the remaining months$ 531,000 alance of ObligationB217,000-collected balanceGlenshire surcharge 295,000-sale proceeds, less accumulated costsParcel $1,043,000 Outstanding Loan Amount as of 8/25/2011 Monthly Glenshire SurchargeOrdinance to Reduce the 5 Fiscal Impact Monthly Glenshire SurchargeOrdinance to Reduce the 6 neutral to the Districtthe length of the monthly surcharge, would be revenue Either option, to lower the monthly surcharge or to shorten • Recommendation Monthly Glenshire SurchargeOrdinance to Reduce the 7 through November 30, 2017System Upgrade Charge to $4.75 effective August 25, 2011 Adopt the Ordinance reducing the monthly Glenshire Water •