HomeMy WebLinkAbout2001-019 Council Resolution•
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Council Member haAJ introduced the following resolution and moved
its adoption:
CITY OF LINO LAKES
RESOLUTION NO. 01-19
RESOLUTION DETERMINING THE WATER
USER CHARGES FOR 2001 - 2003
WHEREAS: The Lino Lakes city code, Section 400, Subdivision 401.26 previously
established water user rates and,
WHEREAS: the Lino Lakes city code Section 400, Subdivision 401.26 now requires the
City Council to determine by resolution the water user rates.
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF LINO
LAKES, MINNESOTA:
1. Effective March 26, 2001, through December 31, 2003, the following water rates will
be effective:
Water Rates: $1.77 per 1,000 gallons 0 to 30,000 gallons
$2.07 per 1,000 gallons all water use above 30,000 gallons
Water User Fee: $10.00 per quarter per REU*
* REU = a residential equivalent connection:
1. Residential — a single housing unit
2. Commercial - Industrial Institutional REU = per Met Council Service Availability
Charge Procedures Manual
Adopted by the Lino Lakes City. Council this 26th day of March, 2001.
Ry -C I Gaustad, CMC City Clerk
John Berg on, IKayor
The motio for ado tion of the foregoing resolution was duly seconded by Council
Member and upon vote being taken thereon, the following voted in favor
thereof:
The following voted against same: A.Uh.
Whereupon said resolution was duly passed and adopted
CERTIFICATION
hereby certify that the above is a correct copy of a resfoly2tion duly passed, adopted and
approved by the City Council on March 26, 2001.
Ry -Cllel Gaustad, CMC City Clerk
AGENDA ITEM 3A
• STAFF ORIGINATOR: John Powell, City Engineer
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COUNCIL MEETING DATE: March 26, 2001
TOPIC: Consideration of Resolution No. 01 -05 and 01 -19 Setting the
Proposed Utility rates for 2001 -2003
VOTE REQUIRED: 3/5 Vote Required
BACKGROUND:
The City Charter states "The Council shall endeavor to make each municipal
utility financially self- sustaining ". The City staff has prepared cost and revenue
projections for the next three years and is prepared to recommend utility rates for
2001 through 2003.
Sanitary Sewer
The City's sewer rates are based on a quarterly charge per REU. An REU is a
residential equivalent unit that represents the daily volume required by a typical
residential connection. One house equals one REU. Commercial, industrial,
and institutional use is converted to REU's based on the volume of flow they
generate.
The major expenses related to sewer charges include the cost of operating the
system, Metropolitan Council charges, and depreciation. Depreciation relates to
the cost of replacing the system after it has reached the end of its useful life.
The rate computation has assumed a 220 unit increase in the number of
connections on an annual basis. This includes connection by existing houses as
well as new construction. However, if this increase does not occur our costs
should also be proportionally lower.
Our current sewer rate is $51.00 per quarter per REU with no usage charge.
The proposed sewer rate increase is as follows:
Effective March 26, 2001: $50.00 per quarter per REU + $1.00 per 1,000 gallons
over 10,000 gallons (based on winter usage)
Effective January 1, 2002, $51.00 per quarter per REU + $1.00 per 1,000 gallons
over 10,000 gallons (based on winter usage)
Effective January 1, 2003, $52.00 per quarter per REU + $1.00 per 1,000 gallons
over 10,000 gallons (based on winter usage)
Water
The City's water rates are based on a quarterly charge per REU and a charge on
water usage. The usage charge is based on 1,000 gallon units.
The major expenses related to water charges include the cost of operating the
system, bond expenses, and depreciation. The bond expenses would be offset
by a transfer from the Area and Unit fund.
The water rate computation also assumes a 220 unit increase in the number of
connections on an annual basis. In order to satisfy the Department of Natural
Resources concerns regarding water appropriation (pumping) the proposed rate
structure increases the rate per gallon for heavier water use. This also keeps the
base rate for the lower water users very close to the existing level.
Our current water rate is $10.00 per quarter per REU and $1.63 per 1,000
gallons. The proposed water rate increase is as follows:
Effective March 26, 2001, through December 31, 2003:
Water Usage Rates:
$1.77 per 1,000 gallons
$2.07 per 1,000 gallons
0 to 30,000 gallons
all water use above 30,000 gallons
Water User Fee: $10.00 per quarter per REU
The average household uses approximately 30,000 gallons of water per quarter.
Based on this information, the average increase per household for sanitary
sewer and water per quarter will be from $109.90 in 2000 to $123.10 in 2001.
OPTIONS:
1. Adopt Resolution No. 01 -05 setting the sanitary sewer rates for 2001 -2003
and adopt Resolution No. 01 -19 setting the water rates for 2001 -2003.
(Separate motion and vote for each resolution)
2. Adopt one resolution but not the other.
3. Refer to staff for further review.
RECOMMENDATION:
Option No. 1 - Staff recommends adopting both resolutions.
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