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~ ~ MAYOR <br /> ti <br /> 13i11131cscner <br /> r <br /> ~:~,'~S Rick Monlow~ <br /> ~3~u , ~"s~a, COUNCIL <br /> n~ John Keis <br /> <br /> ~~j/ ~ ~ ~~G-000GG ~jy y~a~a Michael McGrew <br /> ll//GG/G GGGG Shelly Hass <br /> 515 Little Canada Road, Little Canada, MN 55117-1600 ADMINISTRATOR <br /> (651) 766-4029 /FAX: (651) 766-4048 Joel R. I-Janson <br /> www. ci.litile-canada. mn. us <br /> TO: Mayor Blesener and Members of the City Council <br /> FROM: Shelly Rueckert, Finance Directa• <br /> DATE: March 8, 2010 <br /> RE: 2010 Sewer and Water Rates <br /> SEWER <br /> Attached is the revised 2010 Sewer Utility Fund Budget (Exhibit A). For 2009 the Sewer <br /> Fund budgeted deficit was $35,904, with 2009 Sewer rates remaining unchanged since <br /> 2005. The estimated actua12009 operations resulted in a loss of $88,133. This is a <br /> negative Budget variance $52,229 of which $49,179 represents reduced revenues. Given <br /> the economic conditions there were conversation efforts occurring which reduced billing <br /> volumes. <br /> The 2010 budgeted operations are expected to result in a loss of $15,969. The 2010 <br /> revenues include a rate increase of 3.33% and a zero growth rate is projected. For 2010 <br /> there is a 3.8% increase in the treatment cost rate. The metered flows for 2008/2009 <br /> measurement periods decreased by 16.67%. The City's proportionate share of overall <br /> metered flows decreased 9%. Resulting in decreased treatment costs of $45,550 (5.9% <br /> decrease). <br /> The sewer fund accumulated operations from 2006 through 2009 generated a combined <br /> income of $172,049. Given the overall profitability, the fund currently has the ability to <br /> absorb the 2009 projected loss without a greatel• rate increase. <br /> The 2010 Survey of Sewer Fees is attached as Exhibit B. The City's 2010 rates are <br /> comparable to the surrounding cities. The average increase for sewer rates in 2010 was <br /> 6.99% <br /> <br />