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MEMORANDUM <br /> DATE: February 4, 1998 <br /> TO: Mike Mornson, City Manager <br /> FROM: Roger Larson, Finance Director <br /> ITEM: 1998 WATER/SEWER RATES <br /> The Public Works Director has submitted a 1998 water budget of $389,800 and a sewer budget <br /> of$690,400. <br /> Based on the approval of those budgets, I have completed an analysis to determine if a rate <br /> increase is necessary to balance these operating budgets. The results are as follows: <br /> Water: <br /> • In 1998, it is anticipated that St. Anthony will sell 41,000,000 cubic feet of water. Calculating <br /> the estimated 1998 water sales (41,000,000 divided by 100 x $ .94) shows a total income of <br /> $385,400. <br /> Expenditures of $389,800 plus the water filtration levy transfer of $15,200 requires revenues to <br /> total $405,000. Based on estimated water sales of $385,400 a deficit of ($19,600) exists and a <br /> rate increase is necessary to balance the water-operating budget. <br /> Recommendation: <br /> The present rate of $.94 per 100 cubic feet is not sufficient to balance the 1998 water <br /> operating budget. Projected expenditures exceed revenues by ($19,600), therefore, staff <br /> recommends ammending ordinance 610.02 to reflect a rate increase of$ .06 cents per 100cf. <br /> (41,000,000 divided by 100 X $ 1.00 $ 410,000) <br /> Sewer: <br /> Currently, sanitary sewer disposal costs the residents $1.72 per 100 cubic feet. Based on Metro <br /> Waste's estimate of flowage, disposal costs for '98 will be significantly higher than last year. <br /> In 1998, Metro Sewers charges will be based on 360,000,000 gallons of sanitary waste for a total <br /> disposal cost of$486,000 compared to last year's payment of$383,200 (Up $102,800). <br />