CC PACKET 01111994 - Laserfiche WebLink

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Sewer: Current sanitary sewer disposal costs the residents $1.57 per 100 cubic feet. Based on Metro Waste's estimate of flowage, disposal for '94 is approximately 40,000,000 cubic feet. Using the current sewer rate when calculating the estimated '94 sewer revenue (40,000,000 X $1.57 divided by 100) shows a projected income of $628,000. This produces a deficit and indicates a rate increase is necessary to offset charges for disposal costs of sanitary waste. In 1988, the City Council passed Ordinance 1988-004 relating to sewer rates and charges. It states that all sewer charges shall be at the rate of$1.20 per hundred cubic feet of water used plus a Metro Waste surcharge as determined by the following formula: Metro Waste Rate Surcharge Formula X = .88Y -$.88 $315,000 X = Surcharge per 100 cubic feet Y = Metro Waste charges for calendar year ($476,628 in 1994). Using this formula,,the charge for sanitary waste disposal in 1994 is $1.65 per 100 cubic feet. This would produce projected sewer revenue of $660,000 and combined with, the proposed excess water revenue of $7,150 would balance the 1994 Utility Fund Operating Budgets. Recommendation: The sewer rate be increased to $1.65 per hundred-cubic feet commencing the first quarter in 1994 (April billing). This increase is deemed necessary based upon Metro Waste's charges for disposal of sanitary waste and a 3% increase in personel costs.