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515 Little Canada Road, Little Canada, MN 55117 -1600 <br />(612) 484 -2177 / FAX: (612) 484 -4538 <br />March 4, 1994 <br />TO: Mayor Hanson and Members of the City Council <br />FROM: Joel R. Hanson, City Administrator <br />RE: Revised Water and Sewer Rates <br />MAYOR <br />Raymond G. Hanson <br />COUNCIL <br />Beverly Scalze <br />Jim LaValle <br />Steve Morelan <br />Bob Pedersen <br />ADMINISTRATOR <br />Joel R. Hanson <br />Please find attached revised budget projections for our water and <br />sewer funds. You will note the 1993 numbers have been updated to <br />reflect actual amounts based on unaudited figures. 1994 figures <br />have been revised to more accurately reflect current conditions <br />prior to any rate increase. <br />You will note in the water fund that a net loss is presented <br />totalling $18,676. It should also be noted that 1993 was an <br />extremely wet year thereby minimizing water usage during the <br />summer months. If 1994 has more normal precipitation this <br />deficit could be eliminated by higher water usage. To eliminate <br />the loss would require approximately a 2 1/2 percent increase in <br />revenues. <br />The sewer budget projects a loss of just under $60,000 for 1994. <br />This is attributable to the major increase in costs associated <br />with MWCC charges. The amount listed for MWCC charges in 1994 is <br />the amount we will actually be paying. This increase is due to <br />higher flows over the past couple of years as well as adjustments <br />from the 1992 billing. To totally eliminate that loss would <br />require an increase in revenues of approximately 9 %. Some <br />adjustment is necessary in this area in order to prevent this <br />fund from becoming less than self- sufficient. <br />The current rate schedules for water and sewer are as follows: <br />Water: 1st & 4th Quarters - $1.71 per 1,000 gallons <br />2nd & 3rd Quarters - $1.77 per 1,000 gallons <br />Sewer: Residential & Commercial w/o Water - $34 per SAC <br />Commercial w/ Water - $1.85 per 1,000 gallons w/ a <br />$34 minimum <br />Water Service Charge: $13.32 per SAC <br />Staff will be completing its review and will have a <br />recommendation for Wednesday's meeting regarding a proposed <br />increase. We will also be evaluating some equity questions <br />relative to sewer -only accounts and the basis for their charges <br />due to a complaint received on this matter. <br />Should you have any comments or questions in the meantime, please <br />let me know. <br />Page 46 <br />