03-08-2006 Council Agenda - Laserfiche WebLink

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MEMORANDUM TO: Mayor Blesener and Members of the City Council FROM: Joel Hanson, City Administrator Shelly Rueckert, Finance Director DATE: March 3, 2006 RE: 2006 Sewer and Water Rates SEWER Attached is the revised 2006 Sewer Utility Fund Budget (Exhibit A). In 2005 the budgeted loss was $12,036 in the Sewer Fund including the 2005 rate increases. The actual 2005 operations resulted in an estimated income of $44,693 (a $56, 729 improvement over budget). This improvement was comprised of both increased revenues and reduced costs. The combination of 2005 rate increases, growth and late fees generated a $33,826 increase in revenues over budgeted revenues. Operating expenses for 2005 were $22,903 less than budgeted. These savings are substantially attributable to savings in personnel costs and savings in depreciation expense. The 2006 budgeted operations are expected to produce an income of $26,163. The 2006 revenues do not include a rate increase and reflect minimal growth. The 2006 expenses include the Met Council 2006 charge for wastewater treatment less the adjustment for the portion due from the City of Vadnais Heights. The City Attorney is still reviewing the issue with Vadnais Heights. The Met Council's rate increase for 2006 was 2.4 %. The 2006 Survey of Sewer Fees is attached as Exhibit B. The City's 2006 rates are comparable to the surrounding cities. Lastly, staff is continuing to pursue Inflow and Infiltration issues. If we are successful in detecting and correcting these sources of I & I, it will reduce future treatment costs and help keep rates as low as possible. WATER Attached is the revised 2006 Budget for the Water Utility Fund (Exhibit C). In 2005 we budgeted a net loss of $4,056 in the Water Fund. The actual 2005 operations resulted in an estimated income of $23,827 (a $27,893 improvement over budget). 1