CC PACKET 10092001 - Laserfiche WebLink

Home Browse Search

• MEMORANDUM DATE: October 1,2002 TO: Mike Mornson,City Manager FROM: Roger Larson,Finance Director ITEM: 2002 WATER/SEWER RATES The Public Works Director has submitted a 2002 water-operating budget of$432,600 and a sewer- operating budget of$739,900. Based on the approval of those budgets, I have completed an analysis to determine if a rate increase is necessary to balance these operating budgets. The results are as follows: Water. (Increase is necessary) In 2002, it is anticipated that St. Anthony will sell 40,750,000 cubic feet of water. Calculating the estimated 2002 water sales (40,750,000 divided by 100 x $1.07) shows a total estimated income of $436,000. Expenditures of $432,600 plus the water filtration transfer of $15,200 requires revenues to total .$447;800, which indicates a moderate increase (3 cents per 100 cubic feet) is necessary to balance the 2002 water operating budget. Re ommendatioa. The present rate of $1.07 per 100 cubic feet is not sufficient to balance the 2002 water- operating budget. Staff recommends the ordinance (Section 610 — Water, Subdivision #610.02) be amended to reflect a 2002 rate of $1.10 per 100 cubic feet. Sewer. (Increase is necessary) Currently, sanitary sewer disposal costs the residents $2.02 per 100 cubic feet. Based on Metro Waste's estimate of flowage, sewer charges will be based on disposal of 35,575,000 cubic feet of sanitary waste. Calculating the estimated 2002 sewer revenue (35,575,000 divided by 100 X $2.02) shows a total income of $718,600. Projected expenditures of$739,900 produces a deficit of ($18,800) and an increase is necessary to balance the sewer-operating budget. A rate increase of $ .06 cents per 100cf is necessary to finance the 2002 budget. (35,575,000 divided by 100 X $2.08=$739,900). In 1988, the City Council passed an ordinance relating to sewer rates and charges. This ordinance • allows for changes in the sewer rates without amending the ordinance. The rate increase is handled admistratively and requires no Council action.