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CABARRUS COUNTY Post Office Box 707 CONCORD, NORTH CAROLINA 28025 December 15, 1987 To: Waiter Odell From: Blair Bennett Subject: Information on District Water Usage and Charges For the month of November the County billed for approximately t9,721,000 gallons of water in the District serving 2,?04 customers. In order to figure the average usage per customer, we eliminated 4,46t,595 gallons which represented the amount used by the two largest commercial customers. We then computed the average usage per customer at 5,647 gallons per month. Total billings for water district customers amounted to approximately $51,000 for the month of November which represents an a.verage bill of $18.87 per customer. The above amounts do not take into consideration the 337 customers that receive the minimum $10.10 bill for no water usage. Based on the average customer paying $18.87 per month for 5,647 gallons of water the price per 1000 gallons computes to approximately $3.34. in a review of the two past fiscal years oudited financial statements ending June 30, t986 and 1987, the District showed on operoting deficit of $48,673 and $20t,80g respectively. Analyzing the current fiscal year we ere projecting onother operating deficit of approximately $240,000, which will resu'lt in a three year total operating deficit for the District of nearly $500,000. Based on the fiscal year ending June 30, 1987 the cost of water including administrative and operational expenses was $7.25 per 1000 gallons. We are currently receiving on average of $3.00 per t000 gallons. This return leaves the District operating at a loss of $3.91 per 1000 gollons. We suggest that water rates be increased begineing January, 1988 and that the Commission strongly consider the levying of property taxes in the Bistrict beginning July 1, 1988. The County Water and Sewer District cannot afford to continue operting at o deficit.