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~:tlr,i~~ ~;?S <br />City f,ot~ncil <br />~'iarrh 1'l., 19E~> <br />Seti•aer a 7h2 ,f,~ ty Fii~di tor qresentetl ~;he Counci 1 wi th a Uti 1~i ty Ratr-. St!ady <br />4Jater da~tec? Octok~er, 1985. <br />na~:es <br /> ThE~ Auditor reportnc! that in ternis ~f uti'lity ratFS the C.ity is <br />{lgenda r,apti ve. The reasons for thi s i s t'riat 9;he Ci tyy buys i ts e~~ater <br />'.~i <br />Item P!o ~Pro+n ~the ^i~ty of St. Paul an~ ~the rat:es t'ne City passes on to its <br />. , <br />resi dents are deoendent on ~dhat tfie !;'i ty has to na~/ St. Paul for <br /> tii i s s,ater. 1'he sa,~ie 'i s t rue vri th se~;!cr rates ~nd thes~ re Pl ect <br /> the ch~rges tht~ City ini.ist, pay to the ~~~e~:ropolitan !~l~aste Control <br /> Conmission. <br />Tf~e Autlitor revi~~~t~d tsiis study ~,~ith the Counci1 in rietail. <br />The '1uc~itor statec! ~t'na~t ~.he City has ~tPiree altcrnat~~ss>s r~garding the <br />hiqh c.ost of :aater froi*i the City of Si;. Paul: <br />l. ~,leqoti~te a. ~nore reasonabl~ rate s~!hic,ti reflects t:hc <br />s~rvic£rs r~rovi~ed bV ~`~e City in the deliver,y nf <br />~~Eat:er sz~rvice. <br />'L. Prepare an enc~ineerinq stucb~ to defiermine the Cost of an <br />indFpenden~ SysY.em. <br />3. Accept th~ situation and cor~tinue ~~ charn,e premit~rn <br />customer ra~tes for aiater usag~. <br />Council and ~Pit; Nt.idi~tor ciisc!.tssec' t1~e financing o~f an inclependent <br />arater sysCer,i, The reoort co~!~r2d in d~tail 'no,~! t~.his cot.i1d be <br />ar,comp'lishad. <br />7he Audi~or rer~orf:ed ~hat Hihen lai<F~ overflo~~ r'riarpes are elimin~~ed <br />in ~~ic!-19~8, t~iis ~vi11 iwprove the City's position siibstantia1ly. <br />The ltuc~itor reported t:hat the City has t~n~o options ~;~ith reqarc! to <br />utilitv rai,f+s. T'nese ar~: <br />Option_~9r1 <br />~~9aintain ex~isting se~ver rates subjec~t to P~?l~!CC charqes (both <br />reqular hi~llin~s and lak~ overflar? b~il1inn.,s) at or belo~a the <br />projectcd 1evels contained ~in Fxhibii;s 11-4 to !~-6 of th~ <br />Utility Rat~ Study. <br />Sncrease v~ai;er rates at ari annual rai;e of i?% to fun~l operations <br />anci ~liminate the exist'inr, cash deficifi over a tato y~ar p~riod <br />a.nd ra-evalu~te rat:e needs at ~t~at 'cime. 7hr 1~?~7 rate increase <br />rnay ~'~~ re<luced suhjAc~: to a favorable nerotiate<~ contracteci <br />~~at..=~r rate fror,i the Sitv of St. Paul. <br />Pt~e _~~_ <br />