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TKDA <br />AN SON <br />AND ASSOCIATES, IN ORATE <br />ANO ASSOCIATES, INCORPORATED <br />ENGINEERS ARCHITECTS PLANNERS <br />2500 AMERICAN NATIONAL BANK BUILDING <br />SAINT PAUL, MINNESOTA 55101.1893 <br />6121202.4100 <br />January 30, 1991 <br />FAX 012/202�0083 <br />Honorable Mayor and City Council <br />Lake Elmo, Minnesota <br />Re: 1991 Rate Structure fo 201 Systems <br />Lake Elmo, Minnesota <br />Commission No. 9150-001 <br />Dear Mayor and Council: <br />One of the requirements of the 201 Grant was that the City set up and maintain a user charge <br />system for the operation, maintenance, and replacement of the off -site and collector sewer <br />systems. Sections 707.050 and 707.060 of the City Code require that the Council annually <br />review the fund balance and adjust the rate structure accordingly. <br />In 1988 and 1989, the sewer charge was $120 per year for each residential equivalent unit. In <br />1988, the expenses were $3,607 and the income was $4,870, leaving a year-end balance of <br />+$1,263. In 1989, the expenses were $6,291 mid the income was $4,870, leaving a year-end <br />balance of - $1,421, for a cumulative fund balance of - $.158. The fund should have had a 2-year <br />ending balance of + $720 to cover future replacement of pumps and controls. <br />We recommended raising the rates for 1990 from $120 per year to $180 per year for each <br />equivalent residential unit (ERU) except the two individual off -site systems which require <br />minitmual maintenance. The new rate structure below was adopted for the last three quarters of <br />1990. <br />Annual <br />Quarterly <br />Establishment #ERU Charge <br />Charge <br />Residence - individual off -site 1 $ 120.00 <br />$ 30.00 <br />Residence - collector off -site 1 180.00 <br />45.00 <br />Duplex 2 360.00 <br />90.00 <br />Beauty Shop 1 180.00 <br />45.00 <br />Main Street Shop 1 180.00 <br />45.00 <br />Lake Elmo Imt 8 1,440.00 <br />360.00 <br />The attached tabulation shows the income, expenses, and fund balances for the last three years. <br />Because of the rate increase in 1990. the fund balance is approximately $2,500, which is where it <br />should be. We recommend no change in the rates for 199 t over what was adopted in 1990. <br />Sincerely, <br />Larry D. Bolmer, P.E. <br />LDB/nnha <br />Enclosure <br />