CCP 03-09-1992 - Laserfiche WebLink

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. R~ndations Increasing Water & Sewer Rates Page Three Based on projections of a $.84/1000 gallons in=ease in sewer rates implemented April 1, 1992, net losses for 1992 and 1993 would be reduced to $12,050 and $2,405 respectively. MWCC payments since 1988 (after the City's last sewer rate in=ease in 1987) have gone up 62 percent - from $309,869 to $502,744. The MWCC charges represent 60 percent of the sewer fund I S expenses. See Attachment C. Due to the dramatic in=eases in the MWCC charges, the SUbcommittee is recanunending Council pursue issues with MWCC in an effort to hold down expenses in the future. The SUbcommittee recanunends leaving the senior/disabled discount in place. The lost revenue for the senior/disabled discount currently amounts to approximately $19,306 per year which is only 3 percent of total revenues. Despite net losses after transfers in 1989 and 1990, the cash equivalents balance as of December 31, 1990, was at $411,578. For 1991, the sewer fund will finish out the year with a cash deficit of approximately $12,000. The cash equivalents balance at the end of 1991 should fall to about $400,000. . Again, please refer to Attachrnent A for the current sewer rates charged by neighboring cammunities. Please note that the City of Little Canada I S sewer charges would be higher than the proposed in=eases here. The proposed in=eases for water and sewer are meant to cover the remainder of 1992 and all of 1993. The Subcorrnnittee recorrnnends that rates be looked at again in late 1993. utilities Subcorrnnittee: Joseph Corpstein Charlotte McNiesch Carl Rundquist Ramanik Shah Thomas Steele TJ Swanson TJS/ts Attachments M92-77 .