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MEMORANDUM <br /> DATE: October 26, 1993 <br /> TO: Thomas D. Burt, City Manager <br /> FROM: Roger Larson, Finance Director <br /> ITEM: 1994 WATER/SEWER RATES <br /> The Public Works Director has submitted a proposed 1994 water budget of $338,850 and a <br /> sewer budget of $667,150. <br /> Based on the preliminary approval of these budgets, I have completed an analysis to determine <br /> if a rate increase is necessary to balance these operating budgets. The results are as follows: <br /> Water: In 1982 the water rates were increased from $.33 per 100 cubic feet (ccf) to $.40 per <br /> ccf. In 1984 the rates rose to $.45 per ccf and in 1986 rates were raised to $.60 per ccf. In <br /> the 2nd quarter of 1988, the cost per 100 cubic feet was increased to $.80. <br /> In 1992, the Council levied a one time increase of $.03 per 100 cubic feet to establish funding <br /> for maintenance/building repairs for the water filtration plant. This established our current rate <br /> of$.83 per 100 cubic feet of water consumed. <br /> It is anticipated that St. Anthony will sell 42,000,000 cubic feet of water in 1994. Calculating <br /> the estimated 1994 water revenue (42,000,000 X $.83 divided by 100) shows a total income of <br /> $348,600. <br /> Expenditures of$338,850 plus the water filtration levy transfer of$15,200 requires revenues to <br /> total $354,050. Based on estimated water sales of$348,600, a deficit of ($5,450) exists and a <br /> moderate increase is,necessary to balance the-budget. <br /> Recommendation: <br /> The present rate of $.83 per 100 cubic feet is not sufficient to balance the 1994 water <br /> operating budget. Projected expenditures exceed revenues by ($5,450), therefore, a rate <br /> increase of $.03 cents per 100cf is necessary to balance the 1994 water operating budget. <br /> (42,000,000 X $.86 divided by 100 = $361,200 in projected revenues) <br /> (354.050) expenditures <br /> 4 $, 7,150-revenues exceed expenditures . <br /> �0 <br />