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<br />I <br /> <br />I <br /> <br />MEMO TO CITY MANAGER <br />DATED OCTOBER 12,1979 <br />RE: UTILITY RATE STUDY <br />PAGE 2 <br /> <br />Therefore, the proposed rates of the consultants plus the <br />additional revenue from the University will yieldan approximate <br />$294,963 annual increase in revenues or about a 30.66 increase over <br />present revenues. <br /> <br />Should the Council opt to bill the apartment/trailer home dwellers <br />on the 100% residential rate, another $167,714 would be generated. This <br />would mean a total increase in revenue of $462,677 or 48.J%. <br /> <br />PROPOSED RATES WITH 52% APT. BILLINGS <br /> <br />224,980 Additional Revenues <br />69,983 Additional University Revenues <br />294,963 Total Added Revenue <br />962,000 Existing Revenue <br />1,256,963 Total Utility Operation <br /> <br />PROPOSED RATES WITH 100% APT. BILLINGS <br /> <br />392,694 Additional Revenues <br />69,983 Additional University Revenues <br />462,677 Total Added Revenue <br />962,000 Existing Revenue <br />1,j24,677 Total Utility Operation <br /> <br />The San Marcos Academy is currently under the same rate structure <br />as the University. We would propose they be placed in the same <br />category as the University in the new rates i.e. pumpagc x evapor- <br />ation/irrigation x commercial rate. There would be additional <br />revcnue from this action but due to the limited size of the Acadcmy <br />compared to the University, the change would have a minor impact on <br />the Utility Fund revenue picture. <br /> <br />The projections listcd above are for a full year at the higher <br />rates. Since the rate increase will not be implemented until about <br />December 1, the actual amount of additional revcnue for 79/80 fiscal <br />year will be about 17% less due to the 2 month delay in the rate <br />adoption. <br /> <br />We considered the Acting City Manager's memo of October 9, ]979 <br />(copy attachcd) which recommended adjusted rates other than tll0SC <br />considered by the rate consultants. To arrive at revenue not using <br />the consul tant I s figurcs would requirc -a revicw of the- proposal by <br />rate consultants to determine additional revenucs. <br /> <br />The only firm figures we are able to give you at this timc are <br />revenues based on the consul tant' s proposed rate structure. Wc are <br />