Senator EAGLETON. Your entire prepared statement will be made part of the record. (The prepared statement of Norman E. Jackson, in its entirety, follows:) NORMAN E. JACKSON, P.E., DIRECTOR OF SANITARY ENGINEERING, GOVERNMENT OF THE DISTRICT OF COLUMBIA Mr. Chairman: Maintenance and operating costs, costs of outstanding debt, and cost of new debt in both the water and sewage works programs must be met. These costs must be funded from water and sewer service revenues. Recent projections for operating expenses and debt retirement indicate that by 1972 the Water Fund will be in a deficit position and the Sanitary Sewage Works Fund will have only a small surplus to meet any unexpected demands that might arise (See Tables II and IV). Water and sewer construction programs must be expanded to meet the city's needs. Sewage treatment must be upgraded to meet water quality standards. Continuing improvements have got to be made. Capital improvements must be funded from borrowing from the U.S. Treasury. Current borrowing authority is exhausted. Hence, water and sewer rates must be increased and additional borrowing capability must be provided. NEED FOR INCREASED RATES, WATER FUND P.L. 87-408 87th Congress, 2nd Session, approved March 2, 1962, authorized the then Board of Commissioners, D.C., to increase water rates up to 25% of the rates in effect on January 1, 1961. This authorization is now exhausted. The first increase under this authority was on July 1, 1962, when the metered water charge for the semi-annual minimum (3,600 cubic feet) was raised from $7.00 previously in effect to $7.50. The second was on July 1, 1967, when the minimum rate was increased from $7.50 to $8.10. The third was on April 1, 1969, when the minimum rate was increased from $8.10 to $8.75. An increase in the charge for water used in excess of the minimum was made in the same instances from 12 to 13¢ per 100 cu. ft. in 1962 and 13 to 15¢ in 1967. The maximum rates authorized are $8.75 and $0.15 for the semi-annual minimum and excess usage, respectively. Estimates of Water Fund Revenues and Funds Required (as of June 1, 1970), based on revenue from current rates (See Table I) shows a water fund status for operations ranging from a slight surplus of $303,000 in fiscal year 1970 to an accumulated deficit of $8,092,500 in Fiscal Year 1976. Table I also shows three options for increasing rates to provide the required funds and the effect of these increases on the average water bill. NEED FOR INCREASED RATES SANITARY SEWAGE WORKS FUND P.L. 87-408 also authorized the Commissioners to increase sewer charges from 60% of the water charge in effect January 1, 1961, up to a maximum of 75%. This authorization is now exhausted. One increase was made July 1, 1962, to 70% of the water charge. The second increase was made on April 1, 1969, when rates were increased to the maximum Estimates of Sewage Works Fund Revenue and Funds Required (as of June 1, 1970) based on revenue from current rates (See Table III) shows a Sewage Works Fund status for operations ranging from a surplus of $1,220,900 in Fiscal Year 1970 to an accumulated deficit of $10,718,200 in Fiscal Year 1976. Table III also shows options for increasing rates to provide the required funds and the effect of these increases on the average sewer bill. NEED FOR MUNICIPAL BONDING AND/OR BORROWING AUTHORITY In order to fund new construction of water facilities beginning in the late 40's and early 50's, Congress authorized the then Board of Commissioners under P.L. 83-364 dated May 18, 1954, to borrow up to $35.0 million from the U.S. Treasury. 50-436 0-70- -6 This loan authority was used up in Fiscal Year 1970. The Capital improvement program now planned for the water system requires additional funding of $65,617,800. The program consists of: Water Supply-Washington Aqueduct. Service watermain extensions, fire and public hydrants_ Trunk watermains-special projects--. Total__ $20, 908, 000 19, 259, 800 2, 600, 000 18, 350, 000 1, 500, 000 3, 000, 000 65, 617, 800 SANITARY SEWAGE WORKS FUND In order to fund construction of new sewer facilities, P.L. 86-711 dated September 6, 1960, amended P.L. 83–640 dated May 18, 1954, to permit borrowing up to $32.0 million. This loan authority was used up in Fiscal Year 1970. The capital improvement program now planned for the sewer system requires additional funding of $95,497,500. The program consists of: Service sewer extensions. Water Pollution Control Plant___ Sanitary sewers in advance of paving.. Replacement and modernization of electrical and mechanical equip ment at pumping stations__ Departmental service center.. Total program_. D.C. Share of total__ I strongly urge favorable consideration of this proposed legislation. $12, 853, 000 179, 042, 000 7, 535, 000 16, 676, 000 5, 400, 000 221, 506, 000 95, 497, 500 TABLE 1.-SUMMARY OF PROJECTED WATER FUND OPERATING AND CAPITAL OUTLAY INCOME VERSUS EXPENDITURES AS OF JUNE 1, 1970 |