Admin Order 58-95-02-F (2) - Laserfiche WebLink

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.requirements for the quantity, quality; st~e,ct-~~~atecl and administrative components. ,The I ~"h. ~ ~, total revenue requirements for any- fiscal year (Revenuers) are the sum of each of the component's revenue requirements. Revenuers = Revenueq,~„aty + Revenueq„~;ry + Revenues,,.~t + Revenuea~,,,;t, .. Revenue requirements represent the total amount the City must collect from its service ~ charges to pay for the stormwater programs funded by service charges. As such, the revenue requirements are made up of two types of costs, 1) direct stormwater program, costs and 2) adjustments for the following: ~ - • revenue lag • reductions ~~~ • operating interest income. I 'i billing wiite-offs. - Whenever there is a rate increase, the revenue lag affects collected revenues at the beginning and end of the fiscal. year. -For example, the City will receive revenue that was generated at ,the end of FY1993-94 in the beginning,of FY1994-95. Similarly, the revenue generated at the end of FY1994-95 will be received by the City in FY1995-96. ~, I . j Thus, in any one fiscal year; the City will receive revenue that was generated with the. rates of the previous year and will not- collect all of the revenue that was generated with ~~ the rates of the current fiscal year. All else being equal, an increase in rates from one- . year to the next would mean that the cash received during the first year the rates are - increased would be less than the revenue requirements :for the. year. The rate model adjusts for the revenue lag by increasing the revenue requirements so that the City will collect all of the revenues that it needs to cover program costs. ~; Accounting for reductions -e~~~ptiens (see section 6.0) is another adjustment that ~, the rate model makes to assure the revenue requirements are met. Reductions er e~~erts mean that fewer ..customers are paying ~ ,~ ~_.cl,u~ntitV' a ~c ~~~i ~~r~>n~ponen~~ ~f`stormwaterservices char ey When a reduction~or exemption is given to those customers who have contained all or a portion of their #~e~urunoi3~ on site,~the budgeted service charge revenue requirements for the stormwater program do not change. Most of the City's storm system capacity to serve existing development is already in place. To maintain the existing system, there are on-going costs that will not be affected by individual properties' efforts to reduce or remove their runoff from the public system. The rate model adjusts the revenue requirements to make up for the lost Stormwater Service Charge: Methodology Paper -Page 10 ...Draft Revisions -April 10, 1995