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November 5, 2014 <br />Brian Wurzer <br />8126 165th St N <br />Hugo, MN 55038 <br />Dear Mr. Wurzer: <br />of <br />1O 14669 <br />,erald Avenue North <br />Hugo, MN 55038 (651) 762-6300 www.ci.hugo.mmus <br />Thank you for your letter in regards to the Metropolitan Council Environmental Services <br />(MCES) refund the City received in 2012. <br />The sewer system is comprised of lift stations and sewer mains that total over $9.1 million and <br />are depreciated over a useful life of 40 years. Periodically, the lift stations and mains need to be <br />replaced. The City has a sewer fund that supports those replacements through a sewer usage <br />charge on your utility bill. <br />Shortly after the refund was received, the City dropped its residential sewer rates back to 2010 <br />levels and commercial sewer rates to back to 2004 levels. They remain at these levels today. This <br />was at an annual cost (decreased revenue) of $128,500.00. The balance of the refund was set <br />aside in the sewer fund to provide for the future replacement of the sewer fimd assets. <br />As you may know, downtown redevelopment has been an ongoing priority of the Economic <br />Development Authority (EDA). At its meeting on Tuesday, December 9, 2014, the EDA will be <br />setting goals for 2015. The public is welcome to attend all EDA meetings and I invite you to <br />attend this meeting. This is a great opportunity provide the EDA with your suggestions for <br />downtown as they plan for the year ahead. <br />Please let me know if you have any questions and are welcome to contact me at (651) 762-6320 <br />or bbear(a-),ci.hugo.mn.us. Thank you. <br />Sincerely, <br />Bryan J. Bear <br />City Administrator <br />Cc: <br />Honorable Mayor and Council <br />Hugo EDA <br />The Citizen Newspaper <br />