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City of Lino Lakes, Minnesota <br />Management Report, Page 34 <br />There are two basic factors which contribute to increased billings from the MWCC: <br />1. Changes in use of the system. The MWCC has increased the 1994 estimated flow for <br />the City of Lino Lakes by 35%. <br />2. Increased cost to process sewage. The MWCCs cost to process (per million gallons) <br />increased to an estimated $1,243 in 1994 from an estimated $1,201 in 1993. This <br />represents an increase of 3.5%. <br />The combination of the above factors has increased the City's estimated cost in 1993 by 40%. <br />During 1988 the City adopted a policy of charging a water user fee for core system <br />improvements. The add-on charge is calculated based on a fixed amount per quarter. This charge <br />is collected as revenue of the water enterprise fund along with normal charges. Such amounts are <br />then transferred to the Area and Unit Charge Fund which financed (or will finance) such <br />improvements. During 1993 the City transferred $132,175 to the Area and Unit Charge Fund. <br />The area and unit charge fund transferred $89,347 to the water enterprise fund for debt service <br />payments on the revenue bond issue to construct the water tower. <br />