Laserfiche WebLink
+1- 25474ce da <br />515 Little Canada Road, Little Canada, MN 55117 -1600 <br />(612) 484 -2177 / FAX: (612) 484 -4538 <br />MEMORANDUM <br />TO: Mayor Fahey & Members of the City Council <br />FROM: Joel Hanson, City Administrator <br />DATE: March 17, 1995 <br />RE: 1995 Sewer Rate Increases <br />MAYOR <br />Michael I. Fahey <br />COUNCIL <br />Beverly Scalze <br />Jim LaValle <br />Steve Morelan <br />Bob Pedersen <br />ADMINISTRATOR <br />Joel R. Hanson <br />At the last Council meeting, I presented some data which based a <br />proposed sewer rate increase on equalized rates applied against <br />water usage volume. A revised rate schedule was adopted as a <br />result of this discussion. <br />In doing further analysis of that data, I was concerned about the <br />large percentage increases that some high volume users would <br />experience. In looking into this matter further, I discovered <br />that one of the assumptions used for a multiple account's winter <br />quarter water usage generated a higher than normal figure due to <br />a water main break experienced during the period from which this <br />data was gathered. In adjusting that figure to represent a more <br />normal situation, a dramatic impact was realized in the revenues <br />generated by this proposal. Therefore, I have made some <br />additional revisions to the rate structure to ensure adequate <br />revenue generation. <br />Specifically, I would recommend that our residential rates be <br />increased to $2.15 per 1,000 gallons of water used during the <br />winter quarter with a minimum charge of $37.50. Commercial <br />accounts will have their rate increased from $2.05 per 1,000 <br />gallons to $2.15 per 1,000 of water usage for each quarter while <br />maintaining a minimum charge of $37.50. Multiple units have <br />their charge be based on $2.15 per 1,000 gallons of water used <br />during the winter quarter with a minimum charge of the number of <br />units x 70% x $37.50 (the current rate in effect). The attached <br />sewer rate comparison spreadsheet will show you that this will <br />generate an additional $75,261 of revenues to the sewer fund. <br />This amount should be adequate to meet the additional needs of <br />the fund resulting from the dramatic increase in costs received <br />from Metropolitan Council Waste Water Services (MCWWS). <br />In reviewing this spreadsheet in more detail, you will note that <br />commercial accounts are seeing in increase of 4.9% in their <br />charges per quarter. Multiple accounts will experience rate <br />Page 67 <br />