HomeMy WebLinkAbout5.b. Water/Sewer Utility Budget and Rate Increase � .W `� �. . . . �• � � ,� ... . �• ..�. ��� � .�� � � � ..
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DATE: DECEAIBER 1, 1989
T0; riAYOR & GOUNCILMEPiBERS
CIO CITY ADMINTSTRATOR JILK
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FROPI: CITY ENGINEER/PUBLIC WORKS DIRECTOR HEF� �
RE: ITEM FOR THE DECEMBER 5, 19$9 COUNCIL MEETING
OLD BUSINESS
Water/Sewer Utility Budget and Rate Increase
This item consist of having CaunciX approve of the 1990 Utilities Qperating
Budget for water and sanitary aewer services. The proposed budget was presented
to you at the November 21, 1989 Gouncil meeting so that you could have some time `
to reuiew the proposed budget in more detail for further diseussion and
consideration at the December 5, 1989 Council meeting.
As I indicated at the November 21st meeting, the increases in the Utility
Operating Budget for 1990 can be primarily attributed to increase in depreciation
expense, adding another Maintenance person, additional water testing, One-Ca11
location costs, Newsletters, MWCC Sewer Rate increase and the repainting and
repair of the inside of the Chippendale Water Tower along with the purchase of a
. new Sewer Jetting machine. The revenues for the W�ter Tower inside repainting
and repair and the Sewer Jetting machine purchase will be coming from tRe Utility
C.I.P. account. That is why in the 1990 Estimated Income Table they are added
back in as transfers under their respective operating revenue columns. We need
to generate revenue through user rates to cover the overhead cost.
The income we need to generate necessitates the increase in the water and sewer
rates to $1.10 and $1.85 per thousand gallons respectively. The last page of the
hand out you were given at the November 2i, 1989 meeting indicated that even with
our new water rates an individual using 20,OOQ gallons per quarter would still be `
paying less than the average cost of our neighboring cities. Unfortunately, this
does not hold true for the sanitary sewer rate. Our sewer rate will be higher
than the average, but still not the highest. One of the reasons for the increase
in the sewer fee is due to the increase in the Metra Waste fee. I am attaching
to this memo a graph illustrating how the Ptetro Waste fee has risen dura.ng the
last four years.
Reconnnended action for Coancil to consider is to adopt the 1990 Utilities
Operating Water and Sewer Budget. The water and sewer rates should be considex'ed
as a part of the resolution estabiishing water and sewer rates that followa under
"New Business".
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