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MINU`i'ES <br />CITY COUNCIL <br />MARCH 8, 1995 <br />1995 WATER The City Administrator presented analysis of the <br />& SEWER City's water and sewer rates. As a result of this <br />RATES analysis, no increase is proposed in water rates for <br />1995. However, due to a projected deficit in sewer <br />accounts caused by a large increase in charqes from Met <br />Council Waste Water Services, an increase is <br />recommended in those rates. The City Administrator <br />reviewed a sewer rate study which he submitted to the <br />Council, which compares sewer rates based on water <br />usage. This study shows that sewer rates for low <br />volume users appear high, but the more residential <br />water usage there is, the lower the sewer rate. <br />Commercial rates appear to track with residential <br />rates, but then flatten out at 2.05 per 1,000 gallons. <br />The Administrator pointed out that the sewer rate for <br />multiple-family dwelling units is all over the board, <br />noting that multiples presently pay 70% of the <br />residential rate. <br />The City Administrator reported that if the deficit <br />were addressed using a flat sewer rate, it would be <br />necessary to increase the commercial rate from $2.05 <br />per 1,000 gallons to $2.27, and the residential rate <br />would increase from $37.50 to $41.44 per quarter. The <br />Administrator reported that the City's sewer rates are <br />currently in the mid to high range. Imposing this type <br />of increase would put rates in the high range. <br />The Administrator reported that another option is to <br />attempt to equalize rates that all users pay. <br />Maintaining current rates for accounts with under <br />15,000 gallons of water usage, and applying the rate of <br />$2.05 per 1,000 gallons over 15,000 gallons of usage <br />will raise the almost $78,000 in revenue the City needs <br />to balance the Sewer Budget. This will have no impact <br />on rates paid by commercial users and low volume <br />residential users. Rates will be increased for higher <br />volume residential users as well as multiple family. <br />The Administrator pointed out that the rates are based <br />on water usage in the winter quarter to take things <br />like yard watering out of the equation. <br />Scalze asked about properties that are connected to <br />sewer, but not water main. <br />The City Administrator replied that he had no specific <br />recommendation for that situation, suggesting that <br />9 <br />