The two reserves cited here are ‘one time’ pools of funds, there is not a need to newly replace the reserve in each successive year. Is that right?

Slide 6*:   Perhaps I misheard, but the two reserves cited here are ‘one time’ pools of funds---are they not? It appears we hope to grow them over time (as the value plant and operating costs may increase), but if they remain untapped, there is not a need to newly replace the reserve in each successive year. Is that right?

* FCS Group Presentation

  1. We are starting the analysis with $8.9 million in cash. We are funding $1.6-$2.5 in cash every year, and spending $1.6 million per year on average from FY2020 through FY2024 before Phase V. Over 5 years we accumulate the additional funds needed to build the project, and assure compliance with our NPDES Permit. Our projections into the future are sufficient to meet the needs. After the projected increased growth from new accounts, adjustments will be modified. It is likely that they will be even closer to base inflationary numbers of 1.75-2.00%
  2. As discussed in the previous answer, the upcoming cost driver is Phase V. Once the City gets through this project, if the annual CIP, besides the two large projects, stays below depreciation levels, depreciation funding may be adjusted and increases reduced. This assumes no need to fund future Phases of the treatment plant. After the 5-year period covered by the study rate adjustments will be re-evaluated, with future CIP taken into consideration.

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1. How will these changes affect my residential water and sewer bills?
2. What is the estimated/possible impact for a specific customer?
3. Is the Phase 5 for the Water Reuse & Reclamation Facility (WRRF) the phase that deals with effluent temperature reduction?
4. How do car washes fit into the scheme?
5. Should there be some consideration of the more commercial aspects of “churches” that extend beyond their primary use?
6. Do the water rate computations include the capital costs of maintenance and/or replacement of the reservoirs/water towers?
7. Some explanation of how water use and sewer use are going up 0.85 and 0.75% per year when the population growth is a pretty steady 1.0 - 1.2% per year. This does not, on the surface, make sense.
8. Has/is the U of I been part of this process? It seems they will be impacted by the sewer rates and assuring they know what’s being contemplated is necessary.
9. On slide 19 of the presentation, “multi-family” Is listed as a “non-residential” use. But on slide 24, it seems to reappear as a residential use. I was a bit confused on that - clarification please?
10. Are the rates based on actual cost of service to deal with the biosolids/FOG produced? How did we parse-out those rates?
11. Does the study include enough “buffer” to allow for sufficient funds to be generated if users decrease their consumption/output dramatically in order to reduce their costs?
12. What if many of the commercial clients ask for, and are granted a reduction in their classification? Has the impact of that on the revenue stream been contemplated?
13. The two reserves cited here are ‘one time’ pools of funds, there is not a need to newly replace the reserve in each successive year. Is that right?
14. Slide 24*: Where does the data for flow/BOD/TSS for the various accounts come from? Why are BOD and TSS always the same figure, for a given customer?
15. Two Classes jump +/- 5% COSA. Does that mean we won’t uniformly apply the 2.25% annual increase to sewage costs to all customers in this rate cycle?
16. What is the total cost UI should expect to pay in the coming years for sewage? With declining enrollment, should volumes be reevaluated?
17. Non-Residential - Low, - Medium, - High. Almost identical # of customers, but higher ccf for medium. Confused by difference between flows and % fund allocation for high and medium.
18. What have other communities done in response to virus, delay for a year?
19. Adversely affected customers, will the City be conducting outreach?
20. How does the General Facilities Charge (GFC) apply to existing buildings that are being split?
21. Shouldn’t Multifamily use the same kind of consumption based system as the Non-residential class?