CC PACKET 11122002 - Laserfiche WebLink

Home Browse Search

Honorable Mayor, City Council and Staff 41 City of St.Anthony Village November 7,2002 Page 2 of 3 II. Proposed Budget Increase to Fund Sanitary Sewer and Water System Improvements To fund the sanitary sewer and water system improvements requiring immediate maintenance and to establish a non-recurring maintenance fund for the purpose of constructing the other necessary improvements has the following impact on the City's water and sewer rates: Quarterly Rates Quarterly Rates Quarterly Rates Water and Sewer Users 2002 Average 2003 Adjusted 2003 Adjusted to Fund Improvements Average Consumer $89.04 $101.64 $117.60 Senior Citizens/Minimum Bill $31.80 $36.30 $42.00 Based on our review of the recommendations on the impacts to the water and sewer rates, we feel there are three options available for consideration. These options are: I. Approve Budget Increase This alternative considers approving only the rate increase to cover the Metropolitan Council Charges for Sanitary Sewer flows in 2002 and not constructing the sanitary sewer and water system improvements. H. Approve Budget Increase and Construct Sanitary Sewer and Water System Improvements That Require Immediate Maintenance. This alternative considers implementing the first four projects on the recommendation list and establishing a nonrecurring maintenance fund (of$0.05 in each of the four years). This alternative would allow the first four options of the recommendation list to be constructed immediately. III. Approve Budget Increase with Project Phasing This alternative considers constructing the first four improvements on the recommendation's list over the next three years and phasing in rate increases over the three-year period. This alternative also considers establishing the nonrecurring maintenance fund($0.05 in each of the next four years). It is our recommendation that Alternative No. 2 be considered by the Council to approve the budget increase and construct the first four improvement projects for the sanitary sewer and water system in 2003. By constructing all of these projects simultaneously, there will be savings recognized by the City of St. Anthony in bond issuance fees, inflationary costs associated with building materials and labor and the potential for interest rates to increase between now and any future issuance of bonds. F.•IWPWfl'A]065-69V 107022-hmcc.doc