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! 7 <br /> • <br /> MEMORANDUM <br /> DATE: January 30, 1999 <br /> TO: Mike Mornson, City Manager <br /> FROM: Roger Larson, Finance Director <br /> ITEM: 1999 WATER/SEWER RATES <br /> The Public Works Director has submitted a 1999 water budget of$413,900 and a sewer budget <br /> of$714,700. <br /> Based on the approval 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: <br /> • In 1 it i anticipated that St. Anthonyill sell 40,120,000 cubic feet of water. Calculating <br /> 999, s p yg <br /> the estimated 1999 water sales (40,120,000 divided by 100 x $1.00) shows a total income of <br /> $401,200. <br /> Expenditures of$413,900 plus the water filtration levy transfer of$15,200 requires revenues to <br /> total $429,100. Based on estimated water sales of $401,200 a deficit of ($27,900) exists and a <br /> rate increase is necessary to balance the water-operating budget. <br /> Recommendation: <br /> The present rate of $1.00 per 100 cubic feet is not sufficient to balance the 1999 water- <br /> operating budget. Projected expenditures exceed revenues by ($27,900), therefore, staff <br /> requests Council to amend ordinance 610.02 to reflect a rate increase of $ .07 cents per <br /> 100cf. <br /> (40,120,000 divided by 100 X $ 1.07 = $ 429,300) <br /> Sewer: <br /> Currently, sanitary sewer disposal costs the residents $1.84 per 100 cubic feet. Based on Metro <br /> Waste's estimate of flowage, disposal costs for '99 will be higher than last year. <br /> • In 1999, Metro Sewers charges will be based on 360,000,000 gallons of sanitary waste for a total <br /> disposal cost of$498,300 compared to last year's payment of$486,300 (Up $12,000). <br />