01-22-1992 Council Agenda - Laserfiche WebLink

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515 Little Canada Road, Little Canada, MN 55117 -1600 (612) 484 -2177 / FAX: (612) 484 -4538 MEMORANDUM TO: Mayor and City Council FROM: Dave Harris, Public Works Superintendent OO`" DATE: January 17, 1992 RE: 1992 Water & Sewer Budgets Water Budget MAYOR Raymond G. Hanson COUNCIL Beverly Scalze Bill Blesener Rick Collova Jim LaValle ADMINISTRATOR Joel R. Hanson We have been told that the rate increase from St. Paul Water will be 4.5 %. This will be an increase of $29,600 in projected costs for 1992. The 4.5% would be 7 cents per 1,000 gallons on metered water bringing the total rate to $1.57 per 1,000. Water rates have not been increased since 1987 on a per thousand basis. The service charge would increase from $11.50 per sac unit to $12.00. Part of this increase would help fund mandatory copper and lead testing legislation that was passed which begins in June, 1992. The service charge was last increased in 1990. After the 4.5% increase, the depreciation is still not fully funded, but we are still able to build positive cash balances. Sewer Budget I am proposing a rate increase of 8.8% to cover the added cost to Metro Waste Control Commission. Also, it will be needed in order to maintain positive net revenues and fund depreciation. The 8.8% increase would bring each sac unit to $37 and on commercial units where they pay sewer according to water usage, it would be $1.85 per 1,000 gallons respectively up from $1.70 per 1,000. The sewer rates were last increased in 1991 from $32.50 per sac to the present charge of $34.00 per sac and from $1.60 per 1,000 to $1.70 per 1,000 on metered usage. Debt service for the 1991 Revenue Bond issues was completed in 1991. Therefore, there are no interest costs associated with either the water or the sewer budgets. Page 29