Utility Board Mins 02-10-1987Minutes
Minutes of Special Work Day of the Sanger Utility Board
February 10, 19g7
Call to Order The meeting was called to order
by the chairman, Herb Arledge.
Roll Jack Burkholder was absent.
Old Business
at 9600 A.M.
City Manager, Steve Shutt, presented needs of the
city at the present time. A 25% raise in water
rates was suggested by him to care for present
and future needs. Revenue is needed to maintain
and/or develop the followings
1. Maintenance operation budget
2. Existing debt service (and future debts)
3. Capitol improvement program (on -going)
!�. Depreciation (Replacement cost for existing
system.)
Figures for the actual cost of the above is not
available at the present time. Mr. Shutt stated
that he could have the cost of 1, 2, and 4 very
soon with number 3 to be factored in.
Report John Henry presented a chart with various scales
showing rate increases and how these increases
would effect the small as well as the large
consumer. He also had charts comparing rates
with Denton and Pilot Point.
Motion After studying the charts and discussing the pros
and cons of each scale, Carol McNeil made the
motion to recommend the rate that placed the
largest increase on the consumers who use the
most water, raising the minimum from $ti.00 per
1,000 gallons to $9.00 per 2,000 gallons and
$1.20 per additional 1,000 gallons.
After discussion the motion was to include the
following statements
Based on the data we have at this time,
we recomment a minimum increase after and
only after, the council has developed an
accounting system to accommodate: a maind
tenance operation budget, an existing debt
service, a capitol improvement program,
and a depreciation fund.
John Henry seconded the motion which was carried
unanimously.
Adjourn: Carol McNeel made the motion to
was seconded by Her. �
ad ' ourn�i
Recommendation of the Sanger Utility Board
February 10, 19S?
As Sanger grows and new demands are made on the existing facilities,
the need to update, improve and expand our present water system is
obvious. We have been unable to get an exact figure on the cost of
a gallon of water from the time it leaves the ground until it reaches
the consumer. Without this figure, it is difficult to justify a
raise in rates until a more sophisticated budget system is developed.
Therefore, the Sanger Utilities Board makes the following recom-
mendation to the Sanger City Council:
Based on the data we have at this time, we recommend
a minimum increase after and only after, the council
has developed an accounting system to accommodate
the following:
1. a maintenance operation budget
2. an existing debt service
3. a capitol improvement program
1�. a depreciation fund
'We recommend raising the minimum usage rate from
$8.00 for 1,000 gallons to $9.00 for 2,000 gallons
and from $1.00 per additional 1,000 gallons to $1.20
per 1,000 gallons. This would increase revenue
collected by 20% and would place the largest in-
crease on the consumer who uses the most water.