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JAN 1 1 1990 TOLTZ,KING, , ANDERSON iLi AND ASSOCIATES. INCORPORATED ' ENGINEERS ARCHITECTS PLANNERS 2500 AMERICAN NATIONAL BANK BUILDING SAINT PAUL, MINNESOTA 55101 51=02d 00 January 10, 1990 FAX 512 2-WU Honorable Mayor and City Council Lake Elmo, Minnesota Re: 1990 Rate Structure for 201 Systems Lake Elmo, Minnesota Commission No. 9150-600 Dear Mayor and Council: One of the requirements of the 201 Grant was that the City set up and maintain a user charge system for the operation, maintenance, and replacement of the off -site and collector sewer systems. Sections 707,050 and 707.060 of the City Code require that the Council annually review the fund balance and adjust the rate structure accordingly. In 1988 and 1989, the sewer charge was $120 per year for each residential equivalent unit. In 1988, the expenses were $3,607 and the income was $4,870, leaving a year end balance of +$1,263. In 1989, the expenses were $6,417 and the income was $4,870, leaving a year end balance of-$1,547, for a cumulative fund balance of-$284.00. The fund should have a 2 year ending balance of +$720 to cover future replacement of pumps and controls. We recommend raising the rates for 1990 from $120 per year to $180 per year for each equivalent residential unit (ERU) except the two individual off -site systems whichrequire minimal maintenance. The new rate structure would be as follows: Annual Quarterly Establishment #ERU Charge Charge Residence - individual off -site Residence - collector off -site Duplex Beauty Shop Main Street Shop Lake Elmo Inn $ 120.00 $ 30.00 180.00 45.00 360.00 90.00 180.00 45.00 180.00 45.00 1,440.00 360.00 The Code requires that the Sewer Service Charge System be revised and adopted by resolution. The Code also requires that each user be notified at the beginning of each year of the rates for that year. Although not required to do so, the Council may wish to hold a public hearing on the matter.