PROJ00251

• Contract/PO #: C153375
• Contractor Name: Canon City, City of
• Contract Type: Loan
• Water District: 12
• County: Fremont
• Bill Number: SB 81-439
• Loan Projects - Doc Type: Feasibility Study

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REVENUE SOURCE

Presently the C~ty of Canon City has 5952 water accounts

on the record. This indicates that there are 5952 meters in

service, however one meter could service several living units

since this figure includes all commercial water accounts. The

State Penitentiary and the local hospital are two examples of

the number of users that can be attributed to one water account.

Based on a population of 20,000 people for the water service

area, the number of people per water account averages out to

be 3.36 persons per account. (Note that this is persons per

account rather than persons per dwelling unit.)

In the first three quarters of 1980 the City billed an

average of $9.88 per month per water account for a total revenue

of $529,237. The amounts needed to pay the indebtedness for

the projected improvements are as follows:

(a) To generate sufficient revenue to defray the $134,866

per year, an average increase of $1.89 per month per

water account will be required.

(b) To generate sufficient revenue to defray the $43,331

per year, an average increase of $.61 per month per

water account will be required.

The City Council is presently analyzing the need for a

rate increase for the water users. The anticipated increase will

be in the neighborhood of 30% which would generate sufficient addi-

tional revenue to accommodate either alternative (a) or (b). The

current tap fee will supplement revenues generated by the user

charge system.