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UC Water CIP Workshop Follow Up
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INFORMATION CONTACT:
Hyong Yi, UC Water, Administrator, 704-296-4212
ACTION REQUESTED:
Receive direction from the Board of County Commissioners on which capital projects should be included in rate planning for the upcoming budget.
PRIOR BOARD ACTIONS:
December 14, 2023, Work Session, Agenda Item # 23-862 - Board received an update on how the utility operates, the status of Union County Water’s Master Plan, and a review of potential capital projects resulting from the Master Plan.
BACKGROUND:
Union County Water is an enterprise fund supported by the rates and fees of its customers. It is necessary for the utility to determine what rates are necessary to generate sufficient revenue to meet the needs of the utility. These needs include operating and maintenance costs, debt service and capital investment. The Capital Improvement Program (CIP) is a major driver in rate planning for the utility. It is an iterative process to determine what we can do and what we can afford to do. Assumptions are built into the rate model about growth in customers, demand for services, operating costs, and when capital projects will occur.
FINANCIAL IMPACT:
To be determined.