Enclosed is the FY 07-08 operating and capital project budgets for the Water Enterprise as recommended by the Mayor and approved by the Board of Supervisors.

The projected revenues to support the operating budget and capital projects total $248.3 million; $112.5 million from retail water sales; $108.6 million from suburban water sales; $8.0 million from rental income; $3.1 million from service installation; $9.9 million from interest on available income and interest form 1995 Bonds; and $6.2 million from miscellaneous sources.

The operating budget totals $217.9 million, a $20.2 million increase over last year's budget of $197.7 million.  The major increase of $8.2 million is for debt service payments on the 2002 bond series.  The remaining $12.2 million is to cover cost increases in salaries, including six (6) new positions, premium pay, materials and supplies, chemicals, equipment and electricity to operate the system.

The Water Enterprise's capital program of $37.8 million is funded through revenues ($31.3 million) and bond interest proceeds ($6.5 million).