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MAYOR <br />Michael I. Fahey <br />COUNCIL <br />Beverly Scalze <br />Jim LaValle <br />Steve Morelan <br />Bob Pedersen <br />515 Little Canada Road, Little Canada, MN 55117-1600 ADMINISTRATOR <br />(651) 484 -2177 / FAX: (651) 484 -4538 Joel R. Hanson <br />Email: cityhall @ci.little - canada.mn.us <br />MEMORANDUM <br />TO: Mayor Fahey & Members of the City Council <br />FROM: Joel Hanson, City Administrator <br />DATE: March 3, 2000 <br />RE: 2000 Water & Sewer Rates <br />Attached are the 2000 budgets for each respective utility referenced above. You will note that in <br />the sewer budget, we budgeted for a loss of $2,282 in 1999 and were approximately $825 worse <br />than that (an acceptable amount). For 2000, initial estimates project a loss of $13,721. There are <br />some mitigating factors we can consider. They are as follows: <br />• Impact of sump pump program. <br />• Impact of corrections to infiltration in system. <br />• 4' /z% rate reduction by Metropolitan Council Wastewater Services. <br />Given these factors, I am comfortable in maintaining our same rates for 2000 as existed in 1999. <br />They are: <br />$2.31/1000 gallons with a $37.50 /quarter minimum charge <br />My only concern in this regard is the uncertainty regarding metered flow volume given the <br />amount of rainfall that occurs in any one season. By not having experienced a wet year since we <br />have made changes to the sump pump program and infiltration problems, it is hard to estimate <br />that impact. I am also concerned that with the new rate structure utilized by Met Council, we are <br />not as confident in estimating future expenses in this area even though Julie did an excellent job <br />in this regard in 1999. <br />In the water budget, we are projecting a loss of $57,876 with no changes in rates. With the new <br />rates imposed by St. Paul Board of Water Commissioners, the net effect appears to be a 2.14% <br />increase for water purchases. <br />Page 23 <br />