Memorandum

City of Lawrence

Department of Utilities

TO:	Dave Corliss, Interim City Manager
FROM:	Chris Stewart, Interim Utilities Director
CC:	Debbie Van Saun, Asst. City Manager Ed Mullins, Finance Director Michael Tubbs, Management Analyst
Date:	August 4, 2006
RE:	Water/Wastewater Rate Recommendations for 2007

The 2004 Black & Veatch Report on Revenue Requirements, Costs of Service, and Rates for Water and Wastewater Service projected rates for a five (5) year period, 2004-2009.  The Report is based on a Capital Improvement Plan recommended in the December2003 Water Master Plan and the December 2003 Wastewater Master Plan.   For the year 2007, a 9% increase in revenue requirements for wastewater which incorporates Excess Strength Surcharges (BOD> 350 mg/l and TSS>300 mg/l) and a 4% increase in revenue requirements for water are recommended in the Report.  For the year 2007, the Report recommends $2.47 per 1,000 gallons for rural water districts and wholesale customers.

A copy of the water and wastewater rate recommendations from the Report is attached (corrected 08/04/06).  A household using 6,000 gallons of water a month in 2006 would pay an $18.63 water bill and $33.30 sewer bill; in 2007 that would change to $19.44 and $36.34 respectively.  Please feel free to contact me if you have any questions.