03-12-08 Council Agenda - Laserfiche WebLink

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W y a - 7/C Wanama 515 Little Canada Road, Little Canada, MN 55117-1600 (651) 766 -4029 / FAX: (651) 766 -4048 www.ci.little- Canada. tnn.us TO: Mayor Blesener and Members of the City Council FROM: Joel Hanson, City Administrator Shelly Rueckert, Finance Director DATE: March 7, 2008 RE: 2008 Sewer and Water Rates SEWER MAYOR Bill 131escner COUNCIL Rick Montour Barbara Man John Kcis Michael McGraw ADMINISTRATOR Joel R. Hanson Attached is the revised 2008 Sewer Utility Fund Budget (Exhibit A). For 2007 the Sewer Fund budgeted income was $89,740, with 2007 Sewer rates remaining unchanged since 2005. The estimated actual 2007 operations resulted in income of $128,289. This positive budget variance was the result of higher revenues of $52,597 (due to higher water consumption) offset in part by $17,388 in legal fees associated with the Vadnais Heights litigation. Please note that the 2008 budget includes a $100,000 recovery from Vadnais Heights offset by a 2007/2008 cumulative legal costs of $100,000. While actual amount recovered and expended may vary significantly, these amounts were included in the budget for place marker purposes and are set to cumulative breakeven so as to not impact rates. The 2008 budgeted operations are expected to produce income of $13,527. The 2008 revenues do not include a rate increase and project a negative growth rate of 3% (lower water consumption). The 2008 treatment costs are greater than 2007 due to a 6.25% increase in the metered flows for the period of 7/05 -6/06. Also the City's proportionate share of overall treatment costs grew by 12 %. Lastly the overall treatment costs increased by 5.4 %. The sewer fund accumulated operations from 2004 through 2008 - budgeted results in a combined income of $195,034. However, the uncertainty of future metered flows and the certainty of future rate increases supports leaving rates for 2008 unchanged despite the recent profitability. 1