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• <br />• <br />• <br />• <br />• <br />s <br />• <br />a <br />• <br />• <br />■ <br />• <br />• <br />• <br />1 <br />1 <br />i <br />• <br />1 <br />• <br />■ <br />■ <br />1 <br />Conclusions and Recommendations 39 <br />Springsted <br />flow for operations, and to maintain adequate cash reserves for future <br />capital improvements. <br />5. The current Sewer Availability Charge of $2,585 is adequate to fund <br />projected capital costs. <br />6. Sewer user rates should be increased annually by 2.75% 2013 through <br />2017. These increases are also needed to pay for anticipated operating <br />and maintenance expenses, debt service including principal and interest, <br />capital improvements, to provide sufficient cash flow for operations, and <br />to maintain adequate cash reserves for future capital improvements. <br />7. The City should establish the user rates for each utility fund for a three - <br />year period and review them on an annual basis. The rates should be <br />reviewed on an annual basis concurrent with the development of the <br />following year's budget. <br />These recommendations are based on information provided to us by City of <br />Lino Lakes. The City will need to monitor the performance of the Water and <br />Sewer Funds and make any necessary adjustments based upon its actual <br />performance and on the actual construction costs of the anticipated capital <br />improvements. <br />City of Lino Lakes, Minnesota. Water and Sewer Study <br />