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cj+ pL 9W% ceazigada <br />515 Little Canada Road, Little Canada, MN 55117 -1600 <br />(612) 484 -2177 / FAX: (612) 484 -4538 <br />March 4, 1995 <br />TO: Mayor Fahey and Members of the City Council <br />FROM: Joel R. Hanson, City Administrator <br />RE: Revised Water and Sewer Rates <br />MAYOR <br />Michael 1. Fahey <br />COUNCIL <br />Beverly Scaize <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 1994 numbers have been updated to <br />reflect actual amounts based on unaudited figures. 1995 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 $8,933. Given our conservative budgeting and probable <br />growth in usage due to new development, I feel this is an <br />acceptable target. Therefore, no increase in rates is <br />recommended. <br />The sewer budget projects a loss of over $76,000 for 1995. This <br />is attributable to the major increase in costs associated with <br />MCWWSD charges (up $87,300). The amount listed for MCWWSD <br />charges in 1995 is the amount we will actually be paying. This <br />increase is due to higher flows over the past couple of years as <br />well as adjustments from the 1993 billing. To totally eliminate <br />this loss would require an increase in revenues of approximately <br />10.5 %. Some adjustment is necessary in this area in order to <br />prevent this fund from becoming less than self- sufficient. <br />Attached is a survey of other water and sewer rates that Kris <br />VanSchoonhoven prepared. Also attached is a spreadsheet showing <br />billing comparisons between Little Canada and other communities. <br />This report indicates that our rates are already on the high side <br />for small use residential customers. For higher volume <br />residential and commercial sewer accounts, our rates lag behind <br />the averages. <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 - $37.50 per SAC <br />Commercial w/ Water - $2.05 per 1,000 gallons w/ a <br />$37.50 minimum <br />Water Service Charge: $13.32 per SAC <br />Page 61 <br />