Agenda Packets - 2004/02/23 - Laserfiche WebLink

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A further analysis of the data shows that for the winter of 2003, one user had zero consumption, 13 users consumed 1 unit, 42 uses consumed 2 units, 48 users consumed 3 units, and 75 users consumed 4 units. We don’t have that many snowbirds and so the 5 unit minimum rule may be capturing more users than we intended. The City Council could consider a lower minimum, such as 3 units. C. Implementation When the idea of the variable sewer rate first came up, we contacted the vendor for the utility billing software and they said the variable rate was no problem. We contacted them again this week to double check things and they said “Yes, but…” It apparently is going to be a less automated and more manual process than we originally believed. There is about a two-week window between getting the meter readings for January through March and the time the May bills are prepared. This is not sufficient time to get the work done. I am proposing that the $47.00 flat sewer rate stay in effect for the May bills and that the variable rate be implemented on the August bills. The sewer amounts set in August would remain in effect for twelve months. New sewer amounts for each customer will be set on the August 2005 bills based upon January through March 2005 water readings. The ordinance is changed to show an effective date of service after April 1, 2004 instead of January 1, 2004. Discussion Below is the original information as previously presented to the Council: The City Council has expressed interest in a variable sanitary sewer rate where the sewer charge could be higher or lower based upon a resident’s winter water consumption rather than the current flat $47.00 per quarter. No increase in the $47.00 per quarter rate is proposed for 2004, so any change to a variable rate would be intended to be revenue neutral. Individuals would see their sewer bills go up or down, but the City’s total revenue would be as close to the same as we can make it. In designing the variable rate program, the Public Works Director and I felt that the rates should still have a fixed component along with the new variable component. The 2004 sewer budget of $1,410,540 contains $763,000 for payments to the Metro Council Environmental Services for sewage processing fees. This fee is $134.00 per hundred thousand gallons of wastewater, times the total flow for the city. So this fee varies with the total water all Mounds View sewer customers place into the sewer system.