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<br />¿¿-~ <br /> <br />with future contributions anticipated to increase by 6% for the remaining two years. A <br />supplemental payment to the SaSA Facilities Replacement Fund. identified in the SaSA <br />Capital Reserve Fund, covers the cost of the outfall replacement. <br /> <br />The increase to the sewer service charge to customers is calculated by applying the <br />amount of the budget increase against the 26,388 active sewer accounts and determining <br />the additional charge each customer must pay in order to meet the budget demand. In <br />order to balance revenues and expenditures arid continue to provide a high level of <br />service, an additional $28.18 per year or $2.35 per month increase on the sewer service <br />charge is needed for all customers. The proposed new monthly charge is $26.27, which is <br />a 9.8% increase to the current $23.92 per month charge. <br /> <br />Additionally, staff is recommending an increase of 1.0% to the monthly surcharge for <br />commercial and industrial user classifications, as established in Chapter 27, Article IX Fees <br />and Charges of the Municipal Code. The table below reflects the proposed 1.0% change <br />in charges to these user classifications for wastewater discharged based on each 100 <br />cubic feet of wastewater discharged or deposited into the sewerage facilities in excess of <br />the first 1,000 cubic feet covered by the fixed basic service charge. The increase to the <br />rate is calculated using the escalation formula defined by the U.S. Bureau of Labor <br />Statistics and is based on the annual adjustment in the Consumer Price Index-Urban (San <br />Francisco - Oakland - San Jose) from 2003 to 2004. <br /> <br />User Cateaories Current Rate New Rate <br />Retail Commercial $2.18 $2.20 <br />Restaurants' $3.64 $3.68 <br />Supermarkets $3.62 $3.66 <br />Institutional and Public $2.10 $2.12 <br />Hospitals $2.25 $2.27 <br />Industrial $1.86 $1.88 <br /> <br />The proposed increase in sewer bills will not change the City's position in the <br />benchmarking study (attached) of other neighboring agencies: Redwood City remains in <br />the top five most cost efficient sewer service providers among the surveyed agencies. <br /> <br />Alternatives <br />There is not a viable, financially sound alternative to provide for the increased cost of <br />sewer services to the community. The City Council could decline to raise the service <br />charge, which would result in lost revenues and a fund deficit of approximately $743,746. <br /> <br />2 of3 <br />