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HomeMy WebLinkAbout013-92 Ordinance Amended --. ..,~. _._-~-~---~.......~ RECORD OF ORDINANCES Dayton Legal Blank Co. Form No. 30043 Ordinance NOonJ:~..~~___(~1D.ended) Passed.---u . ------- --- mJ9.n. AN ORDINANCE AllBNDING SECTIONS 929.05 AND 929.06 I OF THE CODIFIED ORDINANCE ESTABLISHING THE USER FEES AND CAPACITY CHARGES FOR THE WATER SYSTBlf ,- WHEREAS, the City of Dublin has a contract with the City of Columbus for water services; and WHEREAS, the City of Dublin is responsible for the cost of operation and ~ maintenance of the system as well as related capital improvements; and WHEREAS, an analysis of projected revenue and expenses, including capital improvements, has been completed by the CPA firm of Coopers & Lybrand; and WHEREAS , it is necessary to amend the user fees and capacity charges to provide funds for a portion of projected expenses, including capital improvements, of the water system; and WHEREAS, the City of Dublin recognizes the business community's concerns in regard to fees for taps used to supply fire protection only and has reduced that fee with the understanding that efforts will be made by the business community and City staff to work with the City of Columbus to recoup a portion of the fee charged by the City of Columbus for fire protection; and WHEREAS, the fee for taps used to supply fire protection only will be reviewed and evaluated two (2) years after the effective date. NOW, THEREFORE be it lrdained by the Council of the City of Dublin, Ohio, I State of Ohio A of the elected members concurring: SECTION 1. That Section 929.05 of the Codified Ordinances is amended to read as follows: 929.05 WATER SURCHARGES ,,-,. I (a) The following rates are charges for water service and use and are based on metered consumption of water: Effective Date Rate Per 1,000 Cubic Feet ~ July 1, 1992 $2.75 January 1, 1993 3.20 January 1, 1994 3.65 January 1, 1995 4.10 January 1, 1996 4.55 (b) These rates are in addition to the water rates charged by the City of Columbus. (c) Moneys received from the use of the water system shall be deposited in a separate fund (Water Fund) and used for the payment of the costs to operate and maintain the system and to make capital improvements to the system. SECTION 2. That Section 929.06 of the Codified Ordinances is amended to read as follows: 929.06 CAPACITY CHARGES (a) No person shall make a service connection or any part thereof, unless he has been issued a permit to do so by the city. (b) The following fees shall be charged for permits issued to tap into the water system: Diameter Effective Date of Tap 07 /01/92 01/01/93 01/01/94 01/01 /95 01/01/96 -.., 0.75 $1,100 $1,350 $1,500 $1,500 $1,500 1.00 2,156 2,646 2,940 2,940 2,940 1.50 5,145 6,315 7,016 7,016 7,016 2.00 9,156 11,237 12,485 12,485 12,485 3.00 19,603 24,058 26,732 26,732 26,732 4.00 31,281 38,390 42,656 42,656 42,656 6.00 69,599 85,417 94,908 94,908 94,908 (c) In the event a tap is subsequently enlarged, the difference between the charges for the two tap sizes shall be paid. I (d) These fees are in addition to any charges made by any other governmental agency. .__..~-_..,..~-~ ,_......,,,;..~<....'.."' ,....-.~,- ....'.,."".<.,""',1 .L....~ '"''''.~o'f'--''~-'''._".'''~- ,.,,,., .~"-' '...'...,....- .J l~ I ".~... ....11 J,. .f .,. .. .._'""__,.............,_"".,.~_'~'roO<"".,- , ~._--"".'-"." --_._~....- _'_~.'4 RECORD OF ORDINANCES Dayton Legal Blank Co. Fonn No. 30043 --- Ordinance No. 13-92 (Amended) Passed. _______. . _________ ________________19 - --~----- ------..- paae Two (e) For all taps used to supply fire protection only, the rate shall be 20 percent of the rate specified in this section. ,.... (f) Moneys received from the fees shall be deposited in a separate fund (Water Fund) and used for the payment of the costs to operate and maintain the system and to make capital improvements to the system. ..... Section 3. That this Ordinance shall take effect and be in force the on earliest date permitted by law. ~ , 1992. ATTEST: ~A (P~ ~ Clerk of Council I herp"" ~rfify that copies of this O~~"'Wft :., . .' . -#ere posted in the CI>. ftf Olb!;n in accordance with Sect~on 71i ?S fJ~ f,.; )1,10 Revised CoeII. ~ C!-,~ "..... Clerk of Council, Dublin, Ohio ...... ",... ..... ~.".r""";'.'''''''''~''''__~ ... ~ """""., ~'.'.""'-""~."''N<__.'"'''''-.'~'.'''''''''''''~_''' " . . - . Coo~ers certified public accountants 100 East Broad Street in principal areas of the world , Columbus, Ohio 43215-3671 &Ly rand telephone (614) 225-8700 Writer's Direct Number (614) 225 Mr. Timothy C. Hansley city Manager City of Dublin, Ohio Manaqement Summary Rapid residential growth and commercial development in the City of Dublin have resulted in the need for the City to undertake significant water and sewer system capital improvements. This is evidenced by the City of Dublin 1991-1995 Capital Improvements Program which includes approximately $20,500,000 of water and sewer improvements which are described as absolutely critical. The City has historically used income tax revenues to fund most utility related improvements. However management of the City has informed us that the utility projects included in the present program are of such magnitude they will severely limit the potential to complete other normal and desirable projects (typically funded by income taxes) in a timely manner. As a part of a program to address this trend Coopers & Lybrand was asked to assist the City of Dublin in a review of utility system use, expansion plans, operating costs and financing requirements. We were asked to develop specific user fee and capacity charge rate recommendations that would reduce by approximately 50% the income tax revenues required to fund utility improvements while at the same time implementing a rate structure that more closely reflects the cost of the services being provided. Specific proposals for user fees and capacity charges reflecting gradual implementation of a cost based rate structure, are summarized on pages 3 and 4. Separate rate structures have been recommended for the water and sewer systems to insure an appropriate level of accountability in connection with the sewer improvement financing package. The scaling of capacity charges by tap size reflects the present City of Columbus rate structure. In developing the rate structure consideration was given to the comparable surcharges imposed by other municipalities and unincorporated areas currently experiencing rapid development. The January 1, 1992 rates for selected comparable systems are provided on pages 5 through 7. This information was obtained during our discussions with representatives of the various systems and has been standardized on the basis of City of Dublin average customer usage. ~...., ,--"-",-~~.~~~.._"._._._"."_..._._-~,--_.<. , oc:tc-:-; .'ti!! !.Hr.''W11~ ~ Our project included assisting in developing a statement of Projected Receipts, Expenditures and changes in Water and Sewer Fund Cash Balances for 1992-1996 assuming implementation of the rate structures described on pages 3 and 4. The information used in the development of these statements was obtained from your operating and capital improvement budget reports, and related engineering information and discussions with City administrators. These statements are presented on pages 8 and 9. In summary the projected financial statements indicate that with an annual general fund subsidy of approximately $900,000 a rate structure can be implemented that, in 1996, would recover 75% of existing system operating costs through user charges and 72% of the - average cost per new connection as capacity charges. Our :project scope did not include either a compilation or an examl.nation of the projected financial statements and we therefore can express no assurance of any kind on them or their achievability. In accordance with the terms of our engagement, the accompanying projection and this report are restricted to the internal use of the City of Dublin and may not be shown to any other party for any purpose. This restriction is not intended to limit the distribution of this report which is a matter of public record. ~~ Columbus, Ohio March 9, 1992 - - -~",--,~....~.""",..~.............", '~~",""'.c'_~'..~0_"'_ ._"..~'w,,~........~"' 1 city of Dublin Proposed Capacity Charges Water Diameter --------------Effective Date------------- of Tap 7/1/92 1/1/93 1/1/94 1/1/95 1/1/96 ------------------------------~----------------------- 0.75 1100 1350 1500 1500 1500 1. 00 2156 2646 2940 2940 2940 1.50 5145 6315 7016 7016 7016 2.00 9156 11237 12485 12485 12485 .-- 3.00 19603 24058 26732 26732 26732 4.00 31281 38390 42656 42656 42656 6.00 69599 85417 94908 94908 94908 Sewer Diameter --------------Effective Date------------- of Tap 7/1/92 1/1/93 1/1/94 1/1/95 1/1/96 ------------------------------------------------------ 0.75 800 1000 1200 1400 1600 1. 00 1707 2133 2560 2987 3413 1.50 4373 5467 6560 7653 8747 2.00 7573 9467 11360 13253 15147 3.00 15787 19733 23680 27627 31573 4.00 24640 30800 36960 43120 49280 6.00 56000 70000 84000 98000 112000 .., - ,j- -. ~._---"'~~--"..~..,..... " ~'~'."_.~"--."-'-._~''''--~.''-.~-'''''-"~._''~~~---~~''-''''''~'''.~.~."","^ "--- -".----,...,.,,...'-"""....,,..".,.". . ...~"."~,"" ,.""._."'"-,,~.......;..""",-~- ~, city of Dublin Proposed Monthly User Surcharges Per thousand cubic feet --------------Effective Date------------- 7/1/92 1/1/93 1/1/94 1/1/95 1/1/96 --------------------------------------------- 'c;~ Water 2.75 3.20 3.65 4.10 4.55 Sewer 4.75 5.65 6.55 7.45 8.35 -4- ~"- -... ~=""=."~-_._.~ ~ .",CI 1 , 1992 WATER AND SEWER RATES FOR SELECTED MUNICIPALITIES CAPACITY CHARGES Water Sewer Total Capacity (1) Capacity (1) Columbus 804 750 1554 Contract Areas: New Albany Columbus 1045 750 New Albany 175 130 1220 880 2100 Dublin (existing) Columbus 1045 750(2) Dublin 176 100 1221 850 2071 Dublin (proposed) Columbus 1045 750(2) Dublin 1100 800 2145 1550 3695 separate Systems: westerville (3) 275 750 1025 Pickerington 2060 2060 4120 Jefferson W&S District 3000 3000 6000 -- Delaware County 2260 2400 4660 ( 1) Assumes 3/4" water tap and excludes tap installation, meter and frontage charge. (2) 1992 sewer tap fees are allocated 33% to Columbus, 67% to Dublin. (3) Westerville has its own water system; contracts with Columbus for sewer. -5- . ""'_.~"'~~,~==_'-"~,~~_,.~,v..,.".~..,_.. \ 1992 WATBR AND SBWER RATBS POR SBLECTBD MUNICIPALITIBS QUARTBRLY USER PEES Water Sewer Total Usage (1) Usage (1) Columbus 32.16 52.83 84.99 Contract Areas (2) : Dublin - existing 46.74 49.86 96.60 Dublin - proposed 50.79 64.86 115.65 Grove City 54.00 59.76 113.76 Groveport 46.33 55.17 101. 50 Hilliard 45.34 53.41 98.75 New Albany 41. 79 49.86 91.65 Upper Arlington 44.10 57.29 101.39 Worthington 44.27 52.34 96.61 Separate Systems: westerville (3) 60.66 54.66 115.32 pickerington 47.88 38.61(4) 86.49 Jefferson W&S District 80.64 80.64 161.28 Delaware County 135.30 69.00(4) 204.30 ( 1) Assuming 1100 cubic feet per month of water usage and no deduct meter adjustments for sewer. (2) All City of Columbus contract areas have the same basic quarterly rate of 41.79 for water and 49.86 for sewer. Differences are a result of local surcharges. (3) Westerville has its own water system; contracts with Columbus for sewer. (4) Quarterly minimum which is greater than usage charge. -6- -. -~~.- . 1992 SUBURBAN SURCHARGES (QUARTERLY) Wa'ter Sewer MuniciDalitv Surcharge Surcharge Total Columbus Contract Areas Grove City 12.21 9.90 22.11 Groveport 4.54 5.31 9.85 Hilliard 3.55 3.55 7.10 Upper Arlington 2.31 7.43 9.74 Worthington 2.48 2.48 4.96 Dublin - existing 4.95 - 4.95 Dublin - proposed 9.00 15.00 24.00 -" -7- .-. _~".___..._.~..""~_~~C.=-i..~~'~.""'"~""'_~_'''''''OO"",._____~~_#,..~_ .,-,..~,-" .~_.~ CITY OF DUBLIN STATEMENT OF PROJECTED RECEIPTS, EXPENDITURES AND CHANGES IN SEWER FUND CASH BALANCE for the five years ending December 31, 1996 1992 1993 1994 1995 1996 Revenues: User charges $205,020 $ 510,444 $ 616,980 $ 729,648 $ 848,556 Tap fees 254,600 418,500 493,000 571,900 659,400 Interest 12,000 2,963 17,340 42,441 78,210 General Fund transfer 500.000 500.000 500.000 500.000 500.000 971. 620 1. 431. 907 1. 627 . 320 1. 843.989 2.086.166 Operating expenditures: Salaries/wages 200,000 212,000 224,720 238,203 100,000 Benefits/uniforms 32,200 34,132 36,180 38,351 20,000 Utilities 50,000 53,000 56,180 59,551 25,000 Contract services 150,000 150,000 125,000 100,000 50,000 Pump station maintenance 55,000 58,300 61,798 65,506 Repairs and maintenance 300,000 318,000 337,080 357,305 378,743 West Branch maintenance 15,000 Other 40.250 42.665 45.225 47.938 30.000 827.450 868.097 886.183 906.854 618.743 Capital expenditures 100.000 125.000 125.000 150.000 150.000 Debt service: Existing 194,788 199,187 197,788 190,987 184,188 New 1. 305.743 194.788 199.187 197.788 190.987 1. 489.931 Net cash (required) provided (150,618) 239,623 418,349 596,148 ( 172,508) Beginning cash 200.000 49.382 289.005 707.354 1. 303.502 Ending cash $ 49.382 $ 289.005 $ 707.354 $1.303.502 $1.130.994 See accompanying summary of significant assumptions. -8- "" ~ '-'-~"...~~..~~""" - ..~~~ . , rfi8V C.'.); - f4i,;ft..,t "'~ .li>. i1::' .11!L~ I CITY OF DUBLIN STATEMENT OF PROJECTED RECEIPTS, EXPENDITURES AND CHANGES IN WATER FUND CASH BALANCE for the five years ending December 31, 1996 ~,. 1992 1993 1994 1995 1996 Revenues: User charges $191,352 $ 297,759 $ 352,560 $ 410,427 $ 471,420 Tap fees 170,984 376,650 435,000 451,500 471,000 Interest 12,000 17,790 15,540 17,995 23,844 General Fund transfer 400.000 400.000 400,000 400,000 400,000 774.336 1,092.199 1,203,100 1,279,922 1,366,264 Operating expenditures: Utilities 48,400 51,304 54,382 57,645 61,104 Equipment maintenance 10,000 10,600 11,236 11,910 12,625 Hydrant maintenance 99.000 104.940 111,236 117,911 124,985 157.400 166.844 176,854 187.466 198,714 capital expenditures 100.000 125.000 125,000 150,000 150,000 Debt service: Existing 420,433 429,459 451,929 436,553 421,577 New -0- 408,404 408,404 408,404 408,404 420.433 837.863 860,333 844,957 829,981 Net cash provided (required) 96,503 ( 37,508) 40,913 97,499 - 187,569 Beginning cash 200.000 296.503 258,995 299.909 397,408 Ending cash $296.503 $ 258.995 $ 299,909 $ 397,408 $ 584,976 See accompanying summary of significant assumptions. - 9- -~ 'II , . , CITY OF DUBLIN Summary of Significant Assumptions Employed in Preparation of the Statement of Projected Receipts, Expenditures and Changes in Water and Sewer Fund Cash Balances for the five years ending December 31, 1996 ~., This financial projection presents, to the best of management's knowledge and belief, the expected receipts, expenditures and changes in Water and Sewer Fund cash balances for the five-year periods ending December 31, 1996 ( "the projection period") . The projection assumes construction of the West Branch Interceptor as a 72-inch diameter sewer in tunnel that is placed in service on January 1, 1996. The projection also assumes construction of $4,395,000 of water distribution system improvements during 1992. Accordingly, the projection reflects City of Dublin management's judgment as of March 9, 1992, the date of this projection, of the expected conditions and its expected course of action if such facilities were constructed. The presentation is designed to provide information for the exclusive use of officials of the City of Dublin in considering the potential for the construction of the facilities. Accordingly, this projection may not be useful for other purposes. The assumptions disclosed herein are those that management believes are significant to the projection. Although the construction of the facilities and improvements described herein has been included in the City's 5-year Capital Improvements Plan, City Council has not enacted legislation that would authorize construction of such facilities. Even if the facilities were constructed, there will usually be differences between projected and actual results, because events and circumstances frequently do not occur as expected, and those differences may be material. SUMMARY OF ACCOUNTING POLICIES The City of Dublin presently prepares its annual budget on a basis of cash receipts and expenditures designed to demonstrate compliance with the budgetary and statutory requirements of the state of Ohio. GENERAL ASSUMPTIONS 1. The City of Dublin currently contracts for water and sewer services with the City of Columbus under long-term contracts expiring in 1994 and 1996, rel?pectively. It is assumed that the contracts will be renewed or extended during the projection period and there will be no significant changes in terms or conditions during that period. Continued -10- .- ~ 'u.. j IT j r ..'...,.b. CITY OF DUBLIN Summary of significant Assumptions Employed in preparation of the Statement of Projected Receipts, Expenditures and Changes in Water and Sewer Fund Cash Balances, continued for the five years ending December 31, 1996 2. The city of Columbus and the city of Dublin will construct the West Branch Interceptor Sewer using the Tunnel option described in the MS Consultants Inc. Report dated June 1991. 3. The West Branch Interceptor will be completed and placed in service on January 1, 1996. The city of Dublin will abandon the present pumping station upon completion of the West Branch Interceptor. 4. The Environmental Protection Agency (EPA) will, on the basis of the present Infiltration and Inflow Reduction Program and the proposed construction of the West Branch Interceptor, not require construction of a retention basin or other significant improvements to the current pumping station. 5. Water and sewer system improvements included in the City of Dublin 1991 - 1995 capital Improvements Plan will meet growth requirements during the projection period. 6. The proj ection assumes a 6% rate of inflation throughout the projection period. USER FEES 7. The percentage mix of residential, commercial and industrial customers and the average consumption rates will remain constant throughout the projection period. 8. An Equivalent Residential Unit (ERU) is defined as a customer using 1,100 cubic feet of water per month (approximately 280 gallons per day). ERU's for 1991 were approximately 6,700 based on consumption of approximately 89,000,000 cubic feet of water for 1990. ERU's are assumed to increase 4% per year from 1992 through 1996. 9. User fees are assumed to be collected at rates approximating 50% of the average cost per ERU during the proj ection period, for existing system operating expenditures and debt service. The user fees in 1996 are approximately 67% of water system costs and 80% of sewer system costs. continued -11- ~~~ .' .._o____~_=~""~~.............~_"'''"'"'''"''"'''__~"._ - ,,~~"' ~" . \ CITY OF DUBLIN Summary of Significant Assumptions Employed in Preparation of the Statement of Projected Receipts, Expenditures and Changes in Water and Sewer Fund Cash Balances, continued for the five years ending December 31, 1996 The City of Dublin water user charge being collected at January 1, 1992 produces quarterly revenues of approximately $5 per ERU. The City of Dublin has historically not collected a sewer charge although legislation was enacted in the past that authorizes a rate that would approximate $2 per quarter per ERU. The projection assumes user charges will be increased effective July 1, 1992 and on each succeeding January 1, throughout the projection period. The average number of ERU's and the assumed quarterly user charges by year for each fund are as follows: 1992 1993 1994 1995 1996 Average number of ERU 6,834 7,090 7,345 7,601 7,857 Sewer user charge $15.00 $18.00 $21.00 $24.00 $27.00 Water user charge $ 9.00 $10.50 $12.00 $13.50 $15.00 (Note: The table reflects 1992 rates effective July 1, 1992; the rates for the first six months of 1992 are assumed to remain at existing levels). TAP FEES 10. Tap fees are assumed to include all receipts that will be. due upon the connection of a new customer to the system. Water tap fees are assumed to be collected during the projection period at rates approximating the average cost per new connection for debt service related to additional capacity. Sewer tap fees are assumed to increase over the projection period to a rate that will result in the tap fee representing approximately 60% of the average cost per new connection at January 1, 1996 when the West Branch Interceptor is placed in service. Existing Sewer and Water Fund debts are assumed to relate entirely to the current users. The debt to be issued in 1996 related to the West Branch Sewer is assumed to relate 25% to existing users and 75% to future capacity based on peak flow analysis. The debt to be issued in 1992 related to water distribution system improvements is assumed to relate 25% to existing users and 75% to additional capacity. Continued -12- ,-, ~ ."",~,--.,^,.^,^,,--'- .. ., """ ,. , . CITY OF DUBLIN Summary of Significant Assumptions Employed in Preparation of the Statement of Projected Receipts, Expenditures and changes in Water and Sewer Fund Cash Balances, Continued for the five years ending December 31, 1996 Dublin tap fees at January 1, 1992 are $176 for water and $100 for sewer per ERU. The City of Dublin also receives two-thirds of the capacity charge assessed by the city of Columbus under the ~- terms of their agreement. At January 1, 1992, the Dublin share of the Columbus charge is $500. The proj ection assumes these will be increased effective, July 1, 1992, and each succeeding January 1, throughout the proj ection period. The number of additional ERU's and assumed tap fees by year for each fund are as follows: 1992 1993 1994 1995 1996 ERU growth 134 279 290 301 314 Sewer tap fee $1,300 $1,500 $1,700 $1,900 $2,100 Water tap fee $1,100 $1,350 $1,500 $1,500 $1,500 (Note: The table reflects 1992 ERU growth for the six-month period July 1 through December; the first six months are assumed to be collected at existing rates). OPERATING EXPENSE ASSUMPTIONS 11. operating expenditures are based on the City of Dublin's 1992 budget. 12. The projection assumes all Water Fund expenses will increase at the annual inflation rate of 6% and that no additional expenses ~ are assumed to be incurred as a result of ERU growth during the projection period. 13. Sewer Fund operating expenditure assumptions are as follows: . Salaries/wages, benefits, utilities, pump station maintenance and other - For the years 1992 - 1995 these expense items are assumed to increase at the rate of inflation. For 1996, these expense assumptions have been reduced to reflect the assumed abandonment of the current pump station. . Contract services - Contract services relate primarily to the Infiltration and Inflow Reduction Program and are assumed to decrease annually to reflect the phase down and completion of the program. continued -13- "_<~~ ~-""'-. 1. - -, {on - 1 r , .. . -, CITY OF DUBLIN Summary of Significant Assumptions Employed in Preparation of the statement of Projected Receipts, Expenditures and Changes in Water and Sewer Fund Cash Balances, Continued for the five years ending December 31, 1996 rf""'" . Repairs and maintenance - This item of expense relates to the normal maintenance and repair of the existing collection system and is assumed to increase at the 6% annual rate of inflation. No incremental expenses are assumed to be incurred as a result of ERU growth during the projection period. . West Branch System - Annual operating costs related to the West Branch Interceptor are based on the MS Consultants Inc. Report. CONSTRUCTION COSTS ASSUMPTIONS 14. The West Branch Interceptor estimated cost is based on the MS Consul tants Inc. report and includes all engineering, design, acquisition and construction costs required to complete the project. In addition, the total project cost of $16,000,000 includes capitalized interest costs and all other financing costs expected to be incurred during the projection period. 15. Water System capital improvements included in the 1991 - 1996 City of Dublin Capital Improvements are assumed to be completed at an aggregate cost, including carrying and financing costs, of $4,500,000. These improvements include a water tower, booster station and required interconnections. 16. All other water distribution and sewer collection improvements necessary to expand the systems are assumed to be funded from developer contributions, special assessments or general fund contributions, as is current practice. The proj ection assumes annual capital expenditures ranging from $100,000 to $150,000 in each fund to provide for oversizing and interconnect expenditures in connection with such improvements. FINANCING ASSUMPTIONS 17. Existing debt service reflects outstanding Water and Sewer Fund debt as of January 1, 1992 that is being serviced from these funds. continued -14- j-#l'<\l"< -- .... . , . CITY OF DUBLIN Summary of Significant Assumptions Employed in preparation of the Statement of Projected Receipts, Expenditures and Changes in Water and Sewer Fund Cas? Balances, continued for the five years ending December 31, 1996 ,,- Existing debt excludes currently outstanding debt that is being " serviced from other funds but that was used to finance the Post Road Waterline and Water Tower, Old Dublin Waterline and Coffman Sawmill Waterline. 1992 debt service related to these issues is approximately $218,000. 18. The projection assumes 20-year permanent financing for the West Branch Interceptor of $16,000,000 will be provided through the EPA at 5.2% interest effective January 1, 1996. It is assumed that the City of Dublin will adopt a sewer rate structure that will comply with all EPA rules and requirements related to recovery of operating and maintenance through user charges. 19. The projection assumes 20-year permanent financing for the Water Distribution System improvements of $4,500,000 at an interest rate of 6.5% will be effective January 1, 1993. -'- -IS- _.