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CITY OF ST. ANTHONY REQUEST FOR CITY COUNCIL ACTION ------------=----------------------------------------------------------- Date Submitted Type of Action Requested 'agenda Item Number Resolution New Business-4 April 5, 1982 X Ordinance Date Action Requested Formal Action/Motion Title Consideration of Other April 13, 1982 Water Rate Increase ---------------------------------------------...-------------------------- TO: Mayor and Councilmen FROM: David Childs, City Manager SUMMARY DISCUSSION OF SUBJECT: The attached charts and reports show that water usage in St. Anthony seems to be declining over the past several years. Costs of treatment and pumping as well as maintenance costs of water towers , reservoirs and pumps have increased tremendously. Continuation of this trend without a rate increase will seriously deplete the water fund balance which has traditionally been used for system maintenance. FISCAL IMPACT: A rate increase wi l l slow or stop P the depletion of the water fund balance and will allow regular repairs , maintenance and minor expansion with- out borrowing (bonding) . The impact of the proposed increase on the average residential water user will be about $2.30 per quarter. ALTERNATIVES : 1 . No rate increase, resulting in a decline in water fund reserves over a period of time. 2. A U per 100 cubic foot increase - which would cover the problem for 1982 but require an additional increase in 1983 or 1984. 3. A 7G per 100 cubic foot increase - which would cover the problem for a longer period of time, thus delaying future increases and allow for adequate mainten- ance of our facilities. RECOMMENDATION: Staff recommends a 7C per 100 cubic foot increase (a proposed ordinance is attached) . As shown on one of the attached charts , we would remain well below v;rtually all neighboring communities in average rates charged. .. C TY MANAGER'S REVIEW: COMMENTS : {