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©lam OF REQUEST FOR COUNCIL CONSIDERATION Agenda Section a O ______ STAFF REPORT Report Number: C io- {q LSC 101M Report Date: 12/5/96 • CITY COUNCIL MEETING DATE _''6r 9 December 5. 1996 Special Order of Bus. S ��fi'Partnetsk�4 Consent Agenda Public Hearings Council Business Item Description: Consider setting the date for the first reading and public hearing on an Ordinance • increasing the water rates $0.05 effective with the January 1997 billings. Administrator's Review/Recommendation: -No Comments to supplement this report -Comments attached. Explanation/Summaty(attach supplement sheets as necessary) Summary: The City Charter requires that utility rates be established by Ordinance. The utility rate study that was completed in early 1997 recommended an increase in water rates of$0.05. The preliminary 1997 water budget appears to support this increase and as such, staff recommends that the rates be increased$0.05 to $1.35 per 1,000 gallons effective with the January 1997 billings. The City Attorney's office has been contacted regarding the Ordinance and it will be available at the December 9th meeting. Due to the rrequirement to publish a notice of public hearing and to conduct two readings of an Ordinance, City Attorney ng has recommended that the first reading be conducted at the December 9th meeting and the public aring and second reading at the first regularly scheduled meeting in January which is tentatively set for January 13th. The utility rate study also reviewed wastewater operations and rates and recommended rates be increased to $47.59 per quarter. The study was based upon estimated wastewater charges from the Metropolitan Council. Preliminary 1997 wastewater charges from the Metropolitan Council are approximately$80,000 lower than the estimates used in the study and as such, it does not appear that any increase in wastewater rates will be necessary for 1997. Bruce A. Kessel Finance Director COMMENDATION: