Management Report and Recommendations 12/31/1983

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City of Lino Lakes Management Report, Page 34 The Metropolitan Waste Control Commission (MWCC) bills the City annually on an esti- mated basis. These estimated billings are adjusted at a later date and the City is then billed the additional amount or given a refund. These estimated billings vary from year to year and may cause material variances in annual profits or losses of the utility fund. The MWCC billings for the period 1977 to 1984 were as follows: Year 1977 1 978 1979 1980 1 981 1 982 1 983 1 984 Billings from MWCC Estimated Percent Amount Change 3,046 3,560 16.8% 8,312 133.5 6,858 (17.5) 11,357 65.6 15,504 36.5 19,027 22.7 26,107 37.2 Final Percent Amount Change $ 1,573 3,662 132.8% 6,171 68.5 7,123 15.4 10,213 43.4 14,592 42.9 Not available Not available There are two basic factors which contribute to increased billings from the MWCC. The first is increased use of the system. The estimated increased usage for 1984 over 1983 for the City of Lino Lakes is 28 %. The second factor which increases the billings from MWCC is their increased cost to process gallonage. Their cost to process (per million gallons) increased from an estimated $761 to an estimated $815. This respre- sents an increase of 7 %. The combination of these factors increased the City's esti- mated cost in 1984 by nearly 37 %. As the system gains users, the increased usage part of the overall increase should be offset by the billings to new users. The per unit portion of the increase, however, must be borne in full by existing users or be sub- sidized by overall City operations. The current charge for sewer users in the City of Lino Lakes is $30 per quarter. Based on average Lino Lakes usage (22,650 gallons per quarter as computed by the City) this charge averages to just over 757 per thousand gallons used. The MWCC currently charges the City of Lino Lakes (estimated for 1984) just over 767 per one thousand