| Show Water Sewer Water Proposal How Do We Pay For it li Big Question on Bond Bod The proposal facing voters on November 2 authorizing the sale by Moab City of in general obligation and revenue revenue revenue re re- re- re venue bonds has elicited one question How flow do we p pay y for It If lf we want It During turing the past three weeks we have endeavored to explain as much as space permits the vari various us phases of the water and sewer project Now because because because be be- cause officials and voters alike are concerned over the admittedly admittedly admittedly admit admit- high mill levy h In this city we will attempt to outline the I financial situation To be sold if the voters say so are 50 thousand in general gen gen- eral cral obligation bonds and thousand in revenue bonds Previously there had been discussion dis dis- dis of selling all revenue bonds to take advantage of the intended method of payment and because bonding companies compan compan- ies les were interested in taking all revenue bonds They the bonding companies had not shown such an Inclination before before before be be- fore but have changed with the brightened future outlook for Moab the city has been In In- formed I The determination to sell approximately approximately approximately ap ap- ap- ap proximately half of the total In general obligation bonds was the result of suggestions by the city's fiscal agent Peters Peters Pe Pe- Pe- Pe Writer and Christensen of Denver Colo Cob They said that a a. a better Interest rate could be obtained on the G. G O. O bonds In the overall bond proposal will be a retirement of thousand In revenue bonds now outstanding The figure figur might well vell be subtracted from the total bond as It Is a ment already determined by vote The purpose of or this bond retirement retirement retirement re re- re- re Is to insure a better betterIn In Interest erest proposals by the purchasers pur purchasers purchasers pur pur- chasers of ot the new bonds to cut administrative and andi to reduce the number or of auditing auditing audit audit- ing periods To explain the Involved administration administration administration ad ad- ministration of the now outstandIng outstanding outstanding out out- standing bonds that h have ve been sold to finance meeting growth projects of the past and their relation to a new bond issue is difficult In simple terms It might be compared to the In Involvement Involvement In- In involvement of a fifth mortgage on a home One tries to start over The total bond Is Ia scheduled to be paid off In a thirty year period based on conditions now The basic ingredients in the ability to pay are the number of connections now the volume of ot water use now and the addItional additional addi add factor of ot water that could be sold If it It were available avail avail- able The last factor can be explained explained ex by what happened last summer When storage is depleted depleted depleted de de- de- de only 78 thousand gallons gal gat- Ions lons per hour can be sold That was Vas the flowing supply The demand reached at times thousand gallons per hour but you you cant can't sell seU It If you dont don't have it From questions the voter wants to know what It will cost him to water his lawn to I take a shower to wash his car carand carand carand and to feel teel assured that a fire In fri his home or place of business business bustness busi bust ness can be fought efficiently with enough water City officials say that there is no Intention of raising the mill levy to pay for the proposed propos propos- ed project What the residential and business rates are Is set by ordinance and can be learned other than here What they will be and arid what will be the difference to the extent that they are firm now follows The average user of 10 thousand thousand thou thou- sand gallons of wat water r per month now pays Under the new rates the minimum charge o or for gallons gallons gal gal- gal gal- lons Ions or less would be changed to a minimum charge of ot for 2000 gallons or less The usage over the gallons was Vas charged at 17 c cents per thousand gallons Under new rates the charge would be 22 cents per thousand over 2000 gallons per month I 1 The result would be that a auser auser auser user like the one above would pay on the new rate per month or an Increase of 57 cents per month Using the same figures a awater awater awater water user of 24 thousand gal gal- Ions lons a month now pays a month He would pay a month or an increase of pen month For For- Fora a heavier water consumption consumption con con- of thousand gallons gallons gal gal- lons Ions per month the present month The new rate would be 2406 constituting a difference difference differ differ- ence of for that month It should be pointed out that the use figures above are for summer use and can not be be- computed over twelve months They are maximum figures Nine water users taken from city files and covering the range from high to low use show an average Increase In cost of 1550 a year year or approximately approximately approximately a month To find your exact cast requires a knowledge knowledge know know- ledge of your water consumption consumption tion for tor the twelve months Commercial users would have an Increase in the minimum minimum mini mini- mum charge from for gallons to 3 for the same amount Past that point the rates J-ates for the proposed schedule schedule schedule sched sched- ule are arc 30 cents per thousand over the minimum to 50 thousand thousand thou thou- sand gallons 26 cents for each thousand between 50 and thousand gallons per month 23 cents per thousand between thousand and a half million rail mil lion and 19 cents per thousand for the next half hatt million one OM million g gallons would cost cost I the user 16 cents per tho thousand d. d Rates to outside of city users users us us- ers would be double as they are now Sewer charges also would see an adjustment under the new rates but It cannot be as firmly firmly firm firm- ly Jy stated That Is due to the stated Intent of the city to adjust ad adjust adjust ad- ad just rates only In the amount sufficient to pay for the im im- im- im From present studies it appears appears appears ap ap- ap- ap pears that the minimum residential residential residential resi resi- charge would approximately approximately approximately double from the present State and National averages officials state The amount that this would be under the approximation above is Is t by how how- much could be saved In the administration ad administration ad- ad d- d ministration of the system The chief saving would come If plans for the abandonment of the old computation based on gallons of water used become become be be- come concrete Commercial users users us us- users us- us ers have complained that Water water wa Wa- ter consumption is not necessarily necessarily an indication of sewage volume The complaint appears to have merit and a new new system tem tern is under study A simpler base bae Is sought A proportionate minimum rate increase to residential charge would appear probable The number of toilet facilities will also be a factor according to present Information Next Week What happens to the Moab water supply and storage system 24 hours a day |
