03-07-11 Council Minutes - Laserfiche WebLink

Home Browse Search

MINUTES CITY COUNCIL MARCH 7, 2011 *APPROVAL OF PARTIAL PAY REQUEST FOR T. A. SCHIFSKY FOR 2009 MILL AND OVERLAY IMPROVEMENTS AS RECOMMENDED BY THE CITY ENGINEER; The foregoing resolution was duly seconded by Boss. Ayes (4). Nays (0). Resolution declared adopted. 2011 SEWER The Finance Director reviewed her report dated March 6, 2011 AND WATER recommending increases to the City's sewer and water rates. She RATES began with a detailed review of the 2011 Sewer Utility Fund Budget noting that the 2011 budgeted deficit was $15,696. Estimated actual 2010 operations resulted in a loss of $30,547. The Director noted that water usage was 12.4% less than budgeted and pointed out that this impacts sewer billings as they are tied to water usage. Keis asked if there were higher sewer infiltration rates given 2010 was a wet year. The Finance Director replied that infiltration rates were higher and pointed ow that 2011 is projected to be a wet year as well. She noted that Metropolitan Council's increased their treatment rate by 3.2% for 2011. She explained the 6- month lag time in billings by the Met Council, and noted that metered flows for 2009/10 measurement period increased by 6.85% resulting in increased treatment costs of $66,677 (9.27% increase). The Director noted that 2011 budgeted sewer operations are expected to result in a loss of $44,398. The budget includes a rate increase of 5.0% and an increase in the quarterly sewer minimum of $3.50 (7.5 %). The rate increases proposed would result in an increase of $4.25 per quarter for a home using 20,000 gallons of water (the average). The Director noted that the sewer fund accumulated operations from 2007 through 2010 generated a combined income of $126,129. Therefore, the fund has the ability to absorb the $44,398 projected Loss without a greater increase at this time. The Director then reviewed a survey 2011 sewer fees being charged by other metro cities, and noted that the average cost of sewer is $68.82 per quarter for 20,000 gallons in water usage, and the average percentage increase is 7.01 %. Little Canada's average 2011 rates would be $66.25 with a projected combined increase of 6.85 %. The City Administrator noted that based on the survey results Little Canada's 2011 sewer rate is a little below the average for an average residential home. He also noted that residential sewer is based on winter water usage and not on summer usage when people are watering their lawns. The Administrator also noted that the City has done a good job in reducing inflow into its sanitary sewer 2