Ordinance 1834-91 - Laserfiche WebLink

• of which was financed by $11 .6 million in State and Federal grants and a 20% share from outlying districts which shared in the benefits of the project. NEW DEBT SINCE '88 (DOE LOANS) Since 1988, Utilities has acquired $2.25 million in Public Works Trust Fund Loans, and has agreed to a $15.4 million loan from EPA to finance CSO projects. These loans require an increased annual expense for debt service of about $3.2 million per year for 5 years. EXTRA O&M COSTS AT WPCF With the increased capacity and complexity of the Water Pollution Control Facility, comes the need for greater staffing and associated increases in operation, maintenance and replacement costs for the entire treatment system. O,M, & R costs have risen 51 % between 1989 and 1991 . In 1985 the Water Pollution Control Facility was staffed by 3 full time employees. Currently, the Water Pollution Control Facility has a staff of 28 full time employees with needs projected to be 35 full time employees within three years. SLUDGE MANAGEMENT COSTS Proper handling and utilization of the residual solids from the wastewater treatment process is now a major operating expense. Rising from $0 in 1985, the cost of sludge management now averages about $1 .5 million per year and will continue to increase. SINCE 1988, NEW RATE PREDICTED TO BE $16 - $20 When plans were made to expand the Water Pollution Control Facility and the CSO Plan was adopted, Utilities approached Administration and explained that an increase in sewer rates would be needed to pay for construction of the new plant and CSO projects and for O,M & R upon completion of the new plant. At that time it was estimated that the monthly rates for residential customers would rise to $18 - $20 per month. However, the City was able to obtain a construction grant from EPA. After issuing the 1988 revenue and refunding bonds, Utilities decided to hold off on the increase until the bond proceeds and grant had been spent. Now, these funds have been used in the construction of the Water Pollution Control Facility, the South End Interceptor, and for other sewer projects. Utilities is in need of a user rate increase to fund increased debt from EPA loans, the cost of complying with State-mandated CSO abatement, the O&M cost of the new treatment process, the rising cost of sludge management, future capital projects, and to continue operating and maintaining the WPCF and our sewer collection system. Page 3