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12 <br /> MEMORANDITM <br /> DATE: October 15,2002 <br /> TO: Mike Morrison, City Manager <br /> FROM: Roger Larson,Finance Director <br /> ITEM: 2003 WATER/SEWER RATES <br /> The Public Works Director has submitted a 2003 water-operating budget of$454,900 and a sewer- <br /> operating budget of$878,700. <br /> Based on the expenditures of those budgets, I have completed an analysis to determine if a rate <br /> increase is necessary to balance these operating budgets. The results are as follows: <br /> Water: (Moderate increase is necessary) <br /> In 2003, it is anticipated that St. Anthony will sell 40,750,000 cubic feet,of water. Calculating the <br /> estimated 2003 water sales and multiplying it by the current rate of$1.10 per 100 cubic feet shows a <br /> total estimated income of$448,200 (40,750,000 divided by 100 x$1.10). <br /> Expenditures of $454,900 plus the water filtration transfer of $15,200 requires revenues to total <br /> $470,100, which indicates an increase of 6 cents per 100 cubic feet is necessary to balance the 2003 <br /> water operating budget. The increase in the water rate to $1.16 per 100 cubic feet would cost the <br /> average St. Anthony household a $1.68 per quarter. <br /> Recommendation. <br /> The present rate of $1.10 per 100 cubic feet is not sufficient to balance the 2003 water- <br /> operating budget. Staff recommends the ordinance (Section 610 — Water, Subdivision <br /> #610.02)be amended to reflect a 2003 rate of $1.16 per 100 cubic feet. <br /> Sever., (Significant increase is necessary) <br /> Each year Metro Waste estimates sewer charges based on flowage and disposal statistics. In 2002, <br /> St. Anthony's sanitary waste flowage was estimated at 376,830,000 gallons. A sewer rate of$2.08 <br /> per 100 cubic feet was sufficient to balance operating costs and sanitary waste disposal charges of <br /> $463,500(376,830,000 divided by 1,000,000 X$1,230.00 per million disposal fee). <br /> Recently, Metro Waste established the estimated flowage for 2003 at 469,100,000 gallons. This <br /> represents a 24.4% increase in flowage. The cost for sanitary disposal is estimated at $576,800, <br /> which represents a$113,300 increase over 2002. <br />