03-13-2002 Council Agenda - Laserfiche WebLink

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V + O 29tr l fi V a/naa 515 Little Canada Road, Little Canada, MN 55117-1600 (651) 766 -4029 / FAX: (651) 766 -4048 www.ci.little- canada.mn.us MEMORANDUM TO: Mayor Fahey & Members of the City Council FROM: Joel Hanson, City Administrator DATE: March 8, 2002 RE: 2002 Water & Sewer Rates MAYOR Mlchaef E. Fahey COUNCIL Beverly Scalze Jim LaVatle Man Anderson Rick Montour ADMINISTRATOR Joel R. [Manson Attached are the revised 2002 budgets for each respective utility referenced above. You will note that in the Sewer Fund, we budgeted for income of $3,426 in 2001, but did not achieve it with a current estimated loss of $22,421. For 2002, initial estimates with no rate changes indicated a loss of $11,262. Please note that Metropolitan Council Waste Water Services (MCWS) increased its rate for 2002 by 4.2 %. In 1995, we adjusted our sewer billing to be based upon the winter quarter's water usage. We also set the maximum sewer charge at twice the minimum sewer charge. It was anticipated at that time that the ceiling would eventually be removed. Given increasing rates from Met Council and the general rise in the City's operating costs, the removal of the cap for 2002 is considered appropriate. This will generate approximately $13,650 in additional revenues for the sewer fund and an overall profit of $2,388 in 2002. With this adjustment there would be no further increase in sewer rates necessary for 2002. While 2002 will be the third consecutive year without an increase in the sewer rate, the City's ability to continue this through 2003 will be unlikely if rates and costs continue to trend up. The sewer rates are as follows: $2.31/1,000 gallons with a $37.50 /quarter minimum charge No maximum charge hi the Water Fund, we are projecting a loss of $85,995 without allowing for rate increases. St. Paul Board of Water Commissioners have increased their rates to us by 2.9% on top of last years 1.0% increase. To ensure that this fund does not generate significant losses, I am recommending an approximate 4.5% rate increase for 2002. (Last year's rate increase was 4.0 %.) The changes are as follows: Winter Rates Summer Rates 2001 2.06/1,000 gallons 2.13/1,000 gallons 2002 2.15/1,000 gallons 2.23/1,000 gallons