03-08-2006 Council Agenda - Laserfiche WebLink

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Again, this improvement was comprised of both increased revenues and reduced costs. The 2005 meter sales exceeded budget by $13,447 and offset the water sales that were $13,402 under budget. Operating expenses for 2005 were $24,450 less than budgeted. These savings are substantially attributable to savings in personnel costs and savings in water costs. The 2006 budgeted operations are expected to produce a toss of $9,166. The 2006 revenues include a seven -cent rate increase and reflect minimal growth. The 2006 expenses include the St. Paul Regional Water Services 2006 rate increase of 6.7 cents per 1,000 gallons. Therefore, the City's rate increase is tracking with its increased cost of water. Additionally, the Minnesota Department of Health is increasing its annual connection fee surcharge from $5.21 to $6.36 effective July 1, 2006. The City currently passes this fee along at $1.31 per quarter. This pass - through fee would be increased to $1.59 beginning with the billing for the third quarter of 2006. The 2006 Survey of Water Fees is attached as Exhibit D. The City's 2006 rates are comparable to the surrounding cities. SUMMARY Based on the above, staff is recommending no change in sewer rates and that the 2006 water rates be modified as follows: Winter Rate Summer Rate Water Service Fee Qrtly Water Connection Fee 2005 2006 $2.00 $2.07 $2.07 $2.14 $10.26 $10.26 $1.31 $1.59* * Effective with third quarter 2006 billing Staff is recommending that the council approve the rate adjustments as described above. 2