03-14-2001 Council Agenda - Laserfiche WebLink

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515 Little Canada Road, Little Canada, MN 55117-1600 (651) 766 -4029 / FAX: (651) 766 -4048 Email: cityhall @ci.little- canada.mn.us MEMORANDUM TO: Mayor Fahey & Members of the City Council FROM: Joel Hanson, City Administrator DATE: March 9, 2001 RE: 2001 Water & Sewer Rates .MAYOR lichael 1. Fahey COUNCIL Beverly Scalar. Jim LaValle Mau Anderson Rick Montour ADMINISTRATOR Joel R. Hanson Attached are the revised 2001 budgets for each respective utility referenced above. You will note that in the Sewer Fund, we budgeted for a loss of $13,721 in 2000 and did significantly better than that with a profit of $48,310. For 2001, initial estimates project a small profit of $3,426. Given Metropolitan Council Waste Water Services (MCWS) recent trend of rate reductions coupled with the likely impact of reduced waste volume due to our sump pump program, there appears to be no reason to increase sewer rates at this time. This will be the second year of no increase in sewer rates. The rates are as follows: $2.31/1000 gallons with a S37.50 /quarter minimum charge In the Water Fund, we are projecting a loss of $40,335 without allowing for a rate increase. St. Paul Board of Water Commissioners has increased their rates to us by 1.0 %. To ensure that this find does not generate significant losses, I am recommending an approximate 4.0% rate increase for 2001. (Last year's rate increase was 5.2 %.) It increases each of the rate schedules by eight cents. The changes are as follows: 2000 2001 Winter Rate 1.98/1,000 gals. 2.06/1,000 gals. Summer Rate 2.05/1,000 gals. 2.13/1,000 gals. This should generate an additional $38,800 in revenue and reduce the projected loss to a very reasonable $1,535. If we should have a dry summer, this loss could easily turn into a gain due to additional water sales. Page 18