Laserfiche WebLink
1 <br />1 <br />1 <br />1 <br />1 <br />1 <br />1 <br />II' <br />II' <br />1 <br />t <br />1 <br />1 <br />1 <br />1 <br />1 <br />City of Lino Lakes, Minnesota <br />Management Report, Page 42 <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 1990 estimated flow for <br />the City of Lino Lakes by 18%. <br />2. Increased cost to process sewage. The MWCCs cost to process (per million gallons) <br />increased to an estimated $1,034 in 1990 from an estimated $947 in 1989. This <br />represents an increase of 9.1%. <br />The combination of the above factors has increased the City's estimated cost in 1990 by nearly <br />29%. The MWCC has approved a change in the district structure and will be converting rates and <br />other operating procedures over the next several years. We recommend that the City monitor the <br />effects of these changes and consider such changes on the City's sewer rates. <br />During 1988, the City adjusted sewer and water rates. The change became effective on July 1, <br />1988. Part of the adjustment was to include a charge for core system improvements. The add on <br />charge was to be calculated based on a fixed amount per quarter. This charge is collected as <br />revenue of the Enterprise Fund along with normal user charges. Such amounts should then be <br />transferred to an appropriate fund which financed (or will finance) such improvement. No such <br />transfer was made in 1988 or 1989. <br />Resolution #31 -88 approved the above increase in sewer and water rates. The resolution states <br />effective rates as of July 1, 1988 and then a subsequent adjustment as of January 1, 1989. The <br />resolution has a flat fixed rate for sewer and both a variable and a fixed user fee for water. The <br />resolution does not however specify the amount which represents the charge related to core system <br />improvements. We recommend that the City adopt a subsequent clarifying resolution which <br />specifies the amount of Enterprise Fund revenue which is to be collected for core system <br />improvements and specify the timing of the transfer of such revenues to the appropriate fund which <br />financed such improvements. <br />