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Show Rates will Take Effect in June. City Council Approves New Water Rate Structure The water consumption fees coupled with an estimated $100,000 in water connection fees will give the city a $756,143 operating budget for the water department next year once an $18,857 opening balance deficit is subtracted. Of that the city plans to spend $362,500 for repairs of the existing system and capital improvements. An estimated $200,000 from water development fees has been placed in a separate fund to be used to purchase water rights. Initially the City Manager proposed a $900,000 annual budget for the water department. depart-ment. That figure has been cut down based on estimates esti-mates that water connection fees will generate less revenue this year due to an anticipated down turn in new construction. After more than two months of deliberation, the City Council has adopted a new water rate structure for Park City that will take effect in June. The city has spent two years installing water meters on all Park City property and the rate structure approved last Thursday will be applied to monthly meter readings to produce a bill for residential and commercial users alike. According to City Manager Arlene Loble, the new rates x will bring equality to water consumption in Park City by assessing consumers for the amount of water they use. Previously users paid a flat S5 monthly fee for an unlimited amount of water. Because users will now be paying a monthly bill based on consumption, the City Manager hopes the new rates will encourage a higher level of water conservation in Park City. Additionally the new rate structure will generate an estimated 5675,000 for the water department next year which makes it a largely self-sufficient government entity. Previously water development develop-ment and connection fees were a primary source of revenue for the water department. depart-ment. Under the" new proposal, the city would be able to maintain a constant level of service even if the fees generated by new development were substantially substanti-ally reduced. The new rate structure calls for all users on standard city lines and meters to pay a $7.50 monthly fee for 3,000 gallons of water. Water used above the 3,000 gallons will cost $1.52 per 1,000 gallons. For the small conservative user, particularly in Old Town where lot sizes are traditionally small, monthly bills should range from $7.50 to $10 in winter and probably between $10 and $15 during summermonths when lawns are watered. In newer residential neighborhoods with relatively large lot and yard sizes households can expect to pay between $10 and $15 in winter and between $15 and $30 per month during the summer. The figures are estimates only and residents will get a better idea of the future cost of water in Park City when sample bills are mailed out early in June. In July users will receive an actual bill for water consumed in June. Senior citizens will get a cost break in their monthlv bills. |