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City of Mounds View Staff Report October 21, 1999 Page 2 Actual Payment for waste treatment Year Dollar Percent Cumulative 1992 539,164 1993 556,607 3.24% 3.24% 1994 594,241 6.76% 10.22% 1995 742,100 24.88% 37.64% 1996 714,990 -3.65% 32.61% 1997 731,389 2.29% 35.65% 1998 730,983 -0.06% 35.58% 1999 Est. 668,074 -8.61% 23.91% There are two issues that need to be discussed. The first is rates. As can bee seen from the first table, in 1996, the Met Council had increased its rates in excess of 25% since 1992,while the City had only increased its rates by 9% for the same period. In other words, the City had not passed these rate increases on to its customers/citizens. In 1999, the Met Council's increase from 1992 was 14.5%while the City's increase was less than 14%. Rates, however, only tell a portion of the picture. Actual billings are a more accurate reflection of the City's costs. The City has a flat rate for its residential customers. In other words, regardless of the water and sewer used, a residential customer's wastewater charge from the City is billed at a standard fixed amount. The Met Council meanwhile bills based upon actual gallons of waste water generated by the City. As can be seen in the second table, in 1995 through 1998, the City was paying approximately 35%more than it was in 1992. Even in 1999 with the rate reductions discussed in the Met Council newsletter, the City was still paying in excess of 23.9% over 1992 billings verses a less than 14% increase in City rates. For 2000, the Met Council's rates appear to be decreasing approximately 5.5%. Even with this decrease, actual billings would still be higher than the City's rate increases since 1992. Actual cumulative billings thru 1999 were 18.34% (23.91% less 5.57% [14.54%-8.97%]) verses increase in City rates of 13.94%.