PUBLIC SERVICE BOARD APPROVES FY ’08-09 BUDGET Water and Sewer Rates to Increase NEWS RELEASE Contact: Karol Parker, Public Affairs Officer 915-594-5692 (office), e-mail: kparker@epwu.org Date: January 9, 2008 (El Paso) — At this morning’s meeting, the Public Service Board approved a $237.83 million water and sewer operating and capital budget for fiscal year 2008-2009. The Board also approved a water and sewer rate adjustment that is effective with meter readings taken after Feb. 29. The budget is consistent with the Public Service Board’s strategic plan, according to President and CEO Ed Archuleta. It addresses planning for economic development; the expansion of Fort Bliss; infrastructure rehabilitation; and planning, design and funding for growth in all areas of the city. The budget does not include funding for the new stormwater utility that begins operating March 1. The Board approved the stormwater operating and capital budget at its Dec. 12 meeting. Budget Details The $79.78 million operating budget reflects a 3.8 percent increase over the current year’s budget due to increases in the cost of water rights, fuel and transportation, chemicals and electricity. Funds were also allocated for increased preventive maintenance. The Board reduced the budget for water conservation programs by $2.18 million. El Paso Water Utilities will no longer offer rebates for purchasing ultra low-flow toilets, installing central refrigerated-air systems or replacing grass with water-efficient landscaping materials. These programs were introduced as pilots and will be discontinued at the end of the fiscal year. The Utility will continue to offer rebates for water-efficient washing machines. The $97.76 million capital budget will fund various water and sewer system rehabilitation projects, including $22.05 million for the final phase of the Fred Hervey Water Reclamation Plant renovation. Funds were also allocated for capital equipment purchases and the expansion of infrastructure to accommodate growth. Reclaimed water lines will be extended into north central El Paso to serve Fort Bliss, as well as planned and existing parks and schools. Financial Planning and Rate Impact The budget includes $5 million from anticipated land sales and $4 million in federal grant funds. The Utility will continue to collect annexation fees and use land sale revenue to assist in funding the capital costs associated with serving newly developed areas. The average monthly residential water and sewer bill will increase by $3.59, from $36.80 to $40.39; however, El Paso Water Utilities’ rates continue to be competitive with those in other arid cities. The staff will continue to work with customers who have difficulty paying their water/wastewater bill.