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I I the wastewater system. They are billed The following table shows actual wholesale directly by MCES at a wholesale rate. In rates charged to communities from 1992 to ` turn, communities bill property owners— 1999 and forecast rates for 2000 to 2002. 1 residential, industrial and commercial These rates are based on'100,000 gallons of users—for sewerage collection and metered wastewater flow. Communities base treatment. Rates and fees are important to their wastewater charges on metered water both policymakers and consumers. consumption. 100,000 gallons of metered wastewater flow is equivalent to 72,300 This biennial report fulfills a requirement of gallons of water consumption. M.S. 473.519 to provide a review of the retail sewerage rates charged by Sewer service rates/100,000 gallons of communities to their users. The focus of this wastewater flow study is rates. It does not explore the variety Actual Forecast of issues about financing wastewater Rate Rate services. 1992 $109.74 1993 $115.23 Revenue Sources 1994 $125.28 1995 $129.64 Sewer Service Charges 1996 $137.45 83% 1997 $129.82 eASSZVACZVM-414,,, 1998 $135.00 1999 $125.70 .. 2000 $119.58 s. r ,' " 2001 $114.51 •:.gyp':':':'.:':':.':':'.;. ......�.,. 4,....vi SAC 2002 $114.02 � ��`� � �� `x.!.'00.'00:4 4, ,_z r �00.0� Transfer � a` y 10% During its budget process and as part of its t3 il /'••• ir'::*:':‹Aft%44;E-Aglilong-range planning, MCES looks closely at Industrial the change in its wholesale fees to commu- Charges 6% Other 1,/o nities, at industrial strength fees and at other fees affected by the operating budget. Based on 1997 Budget of$169.3 million The level of fees and the rate of change in As the above graph shows, 83 percent of fees are seen as benchmarks for evaluation MCES revenue is from wholesale fees to its of the operating budget as a whole. customer communities, called sewer service Since 1986, this study has focused on the charges. Sewer service charge rates are the sewerage charges to a single-family same as cost per gallon. In late 1995, the detached house—rates charged by Metropolitan Council developed a rate policy communities for household use of waste- 1 to limit sewer service rates. Theolic limits P Y water services. In 1990, the study was the increase in rates to the forecast rate of expanded to include onetime rates—those change in the implicit price deflator for state fees charged by communities when a struc- and local services. However, responding to ture is connected to sewer and water for the increased competition from the private first time, typically when it is first built. sector, a $20 million reduction to the budget by 2001 will result in rate reductions during the period from 1999 through 2002. 2 Study of 1998 Sewerage Rates