PROJ00283

• Contract/PO #: FS0009X
• Contractor Name: Swink, Town of
• Contract Type: Loan
• Water District: 0
• County: Otero
• Loan Projects - Doc Type: Feasibility Study

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7 - WATER RATE SCHEDULE

7.1 EXISTING WATER RATE SCHEDULE

The Town of Swink's water systems are presently unmetered. A few meters are
installed for customers outside the Town limits and approximately three or
four meters are in operation on an apartment house, an industry, etc. The
flat rate water schedule includes both hard and soft water and is based on
front footage of lot size. Apartment houses, motels, duplexes, etc. are charged
on the basis of the number of units served. The existing water rate schedule
is shmm below.

Lots 60 ft. frontage or less = $8.25/mo. . (Minimum Bill)
Each additional front foot = 0.06/ft. /mo.
Apartment House$ with meters: 1st 1000 gal = $S.9l/mo.
2nd 1000 gal = 1.60/mo.
3rd 1000 gal.-- 1.46/mo.
over 3000 gal= 0.90/mo.

Non-Potable Water-Flat Rate $5.00/mo.

Potable Water

Apartment Houses without meters
Motels without meters
Out of Town Residences

= $S.42/unit/mo.
= S.08/unit/mo.
1st 1000 gal = $8.85/mo.
2nd 1000 gal = 2.35/mo.
3rd 1000 gal = 1.90/mo.
over 3000 gal= lo60/mo.

Non-Potable Water-Flat Rate $2.50/mo.

Potable Water

Taken from the annual audits, the total revenue from water sales for the years
1973 and 1974 were $16,326 and $16,996 repsectively. It is apparent from the
audit reports that the revenue derived from the existing rate schedule was
barely adequate to meet the operating, maintenance and replacement or improvement
expenditures during these years. Water rates were increased to the present
level in 1975. The annual audit report for 1975 was not yet available as of the
date of this report. Therefore, comparisons between revenues and expenditures
on the basis of the current water rates was not possible. The existing rate
schedule is not deemed adequate for meeting the debt service and reserve fund
requirements for a capital improvements project as currently needed by the Town.

7.2 PROPOSED WATER RATE SCHEDULE

The proposed water rate schedule should provide a revenue source adequate to
offset three major expenditures: (1) provide funds for operating, maintenance
and replacement costs, (2) provide annemergency opera~:f.ng~futld, "'.and .€3) provide
revenue for debt service on construction funds. The projection of annual
operating, maintenance and replacement costs were tabulated in Table 5. The
emergency operating fund is a reserve fund and can serve a dual purpose: (1)
to provide funds for emergency repairs, replacements, etc., and (2) it can be
included as a loan reserve to provide additional coverage on loan funds.

Water use requirements were established in Chapter 2 of this report as 80 gall
capita/day of potable water and 130 gal/capita/day of non~potable water.

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