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Item 7c <br />Proposed 1995 Sewer Rates (SR95:52) <br /> <br /> Randall Lure presented the staff report. <br /> <br /> Ms. Dennis asked what the cost to the City is for the senior and low-income discounts. <br /> <br /> Ms. Rossi indicated approximately $35,000 for the senior discount and approximately <br />$15,000 for the low-income discount. <br /> <br /> Mr. Pico inquired if the seniors could receive a low-income discount as well. <br /> <br /> Mr. Lum indicated only one 20% discount is given to seniors. <br /> <br /> Ms. Mohr inquired that if the seniors were limited to a low-income discount only, instead <br />of giving a discount to anyone who is older, what the difference in cost would be. <br /> <br /> Mr. Lum indicated there are about 1200 seniors who qualify for the discount and it is <br />estimated that about 500 would qualify for the low-income discount anyway. <br /> <br /> Mr. Tarver indicated the DSRSD costs from 1986-87 were a little over $2 million. In <br />1994-95 that figure is $4 million. He did not see the same kind of rate increases in the City <br />facilities even adding capital and replacement accruals. Why are DSRSD costs going up so <br />much? <br /> <br /> Ms. Rossi indicated three years ago the LAVWMA costs were moved from local costs <br />to regional and part of this big jump is a result of that. The debt service increase is a result of <br />the cross-town sewer disbursement and costs. Another contributing factor is the fact that <br />DSRSD implemented replacement funding in that period and from 1983 to present there were <br />some large increases. <br /> <br /> Craig Lawson, representing Dublin San Ramon Services District (DSRSD), indicated the <br />replacement programs were implemented at 5% per year plus inflation to make up for past <br />unfunded depreciation. That causes a rate increase of just over 1% each year above inflation. <br /> <br /> Ms. Mohr asked if the 1% is a permanent feature. <br /> <br /> Mr. Lawson indicated it is permanent until the unfunded depreciation is made up, which <br />is estimated to be 45 years in the future. The alternative is to have a 20-25 % rate increase now <br />and then future increases would be for inflation only. This is designed to catch up by the time <br />the funds are needed. There are facilities which DSRSD, the City and LAVWMA jointly <br />participated in and about $90 million is unfunded. A little over $5 million a year for <br /> <br />02/21/95 <br /> - 12- <br /> <br /> <br />