07-05-2005 City Council Study Session PacketCity of Grand Island
Tuesday, July 05, 2005
Study Session Packet
City Council:Mayor:
Jay Vavricek
City Administrator:
Gary Greer
City Clerk:
RaNae Edwards
T
u
7:00:00 PM
Council Chambers - City Hall
100 East First Street
Carole Cornelius
Peg Gilbert
Joyce Haase
Margaret Hornady
Robert Meyer
Mitchell Nickerson
Don Pauly
Jackie Pielstick
Scott Walker
Fred Whitesides
City of Grand Island City Council
Call to Order
Pledge of Allegiance
Roll Call
A - SUBMITTAL OF REQUESTS FOR FUTURE ITEMS
Individuals who have appropriate items for City Council consideration should complete the Request for Future Agenda
Items form located at the Information Booth. If the issue can be handled administratively without Council action,
notification will be provided. If the item is scheduled for a meeting or study session, notification of the date will be given.
B - RESERVE TIME TO SPEAK ON AGENDA ITEMS
This is an opportunity for individuals wishing to provide input on any of tonight's agenda items to reserve time to speak.
Please come forward, state your name and address, and the Agenda topic on which you will be speaking.
Invocation - Reverend David McCreary, Faith United Methodist, 724 West 12th Street
MAYOR COMMUNICATION
This is an opportunity for the Mayor to comment on current events, activities, and issues of interest to the community.
City of Grand Island City Council
Item -1
Discussion Concerning Water Rate Increase
Tuesday, July 05, 2005
Study Session
City of Grand Island
Staff Contact: Gary R. Mader
City of Grand Island City Council
Council Agenda Memo
From: Gary R. Mader, Utilities Director
Meeting: July 5, 2005
Subject: Water Rate Information Request
Item #’s: 1
Presente r(s): Gary R. Mader, Utilities Director
At the Study Session of June 21, 2005, Council considered the need to increase the revenue of
the Water Department. At that meeting, Council directed staff to provide a number of
alternatives to the 10¢ per 100 cu. ft. rate change proposed by the Utilities Department. Those
alternatives are;
1) No change in Water Rate blocks up to a consumption level of 1500 cu. ft. per month,
with all remaining rate blocks adjusted to maintain a revenue increase equal to that of
the originally proposed 10¢ per 100 cu. ft.
2) Add 5¢ to each rate block up to 1500 cu. ft. per month consumption, with all remaining
rate blocks adjusted to maintain a total revenue increase equal to that of the originally
proposed 10¢ per 100 cu. ft.
3) Apply at 20% rate increase across the board to all current rate blocks.
The three rate configurations directed by Council, along with the rate schedule recommended
by the Utilities Department and the current rate schedule are included as attachments 1 through
5 respectively. Also attached is a tabulation of the effect of the rate scenarios on customer
billings at consumption levels used for previous comparisons.
Council also asked for a breakdown of the percentage of revenue from each of three commonly
described customer classifications of residential, commercial, and industrial.
Water Department financial records do not distinguish between commercial and industrial.
Any customer not classified as Residential is Commercial. Each of the attached rate schedules
provides a breakdown by residential and commercial classification of the percentage of
revenue derived from each of the two classifications.
By actual number of customers that breakdown is:
Residential 12,721 85.6%
Commercial 2,141 14.4%
Total 14,862
GRM/pag
Council Request #1
Schedule of Rates: Addition of New 500 Rate Block & Add $0.146 to
Remaining Blocks
Rate per 100 cubic feet
Cubic feet per month Proposed Rate
First 500 1.282
Next 500 0.510
Next 500 0.502
Next 2,500 0.648
Next 6,000 0.595
Next 90,000 0.538
Next 100,000 0.460
Next 200,000 0.422
Monthly Minimum (500 CuFt.) 6.410
Amount % of Reve nue
Residential $2,039,715.12 56.51951%
Commercial $1,516,691.00 42.02677%
Federal $52,462.80 1.45372%
Grand Totals $3,608,868.92 100%
Current Annual Revenue $3,070,049.38
Projected Revenue $3,608,868.92
Proposed Revenue Increase $ 538,819.54
Council Request #2
Schedule of Rates: Addition of $.05 1st Three Blocks & add $0.123 to
Remaining Blocks
Rate per 100 cubic feet
Cubic feet per month Proposed Rate
First 500 1.332
Next 500 0.560
Next 500 0.552
Next 2,500 0.625
Next 6,000 0.572
Next 90,000 0.515
Next 100,000 0.437
Next 200,000 0.399
Monthly Minimum (500 CuFt.) 6.660
Amount % of Revenue
Residential $2,086,556.93 57.78815%
Commercial $1,471,680.36 40.75886%
Federal $52,462.80 1.45298%
Grand Totals $3,610,700.09 099%
Current Annual Revenue $3,070,049.38
Projected Revenue $3,610,700.09
Proposed Revenue Increase $ 540,650.71
Council Request #3
Schedule of Rates: Calculate 20% Increase to All Rate Blocks
Rate per 100 cubic feet
Cubic feet per month Current Rate Proposed Rate
First 500 1.282 1.538
Next 500 0.510 0.612
Next 3,000 0.502 0.602
Next 6,000 0.449 0.539
Next 90,000 0.392 0.470
Next 100,000 0.314 0.377
Next 200,000 0.276 0.331
Monthly Minimum (500 CuFt.) 6.410 7.690
Amount % of Revenue
Residential $2,246,115.71 61.19084%
Commercial $1,372,094.40 37.37991%
Federal $52,462.80 1.42924%
Grand Totals $3,670,672.91 99.99999%
Current Annual Revenue $3,070,049.38
Projected Revenue $3,670,672.91
Proposed Revenue Increase $ 600,623.53
GIUD Proposed
Schedule of Rates: Add $0.10 to Each Rate Block
Rate per 100 cubic feet
Cubic feet per month Current Rate Proposed Rate
First 500 1.282 1.382
Next 500 0.510 0.610
Next 3,000 0.502 0.602
Next 6,000 0.449 0.549
Next 90,000 0.392 0.492
Next 100,000 0.314 0.414
Next 200,000 0.276 0.376
Monthly Minimum (500 CuFt.) 6.410 6.910
Amount % of Revenue
Residential $2,132,823.19 59.04872%
Commercial $1,426,685.80 39.49881%
Federal $52,462.80 1.45247%
Grand Totals $3,611,971.79 100%
Current Annual Revenue $3,070,049.38
Projected Revenue $3,611,971.79
Proposed Revenue Increase $ 541,922.41
Current Rate Schedule
Rate per 100 cubic feet
Cubic feet per
Month
F/Y 2003-2004 Rate
Current Rate
First 500 1.255 1.282
Next 500 0.500 0.510
Next 3,000 0.492 0.502
Next 6,000 0.440 0.449
Next 90,000 0.384 0.392
Next 100,000 0.308 0.314
Next 200,000 0.271 0.276
Monthly Minimum (500 CuFt.) 6.280 6.410
Amount % of Revenue
Residential $1,873,003.98 61.00892%
Commercial $1,144,582.60 37.28222%
Federal $52,462.80 1.70886%
Grand Totals $3,070,049.38 100%
Current Annual Revenue $3,070,049.38
Consumption
Level
Council
#1
Council
#2
Council
#3
GIUD
Current
1,500 $11.77 $12.52 $14.06 $13.27 $11.77
50,000 $278.87 $268.47 $249.45 $258.06 $208.06
1,500,000 $6,493.87 $6,149.97 $5,164.45 $5,806.06 $4,306.06
6,000,000 $25,483.87 $24,104.97 $20,059.45 $22,726.06 $16,726.06