CCP 03-09-1992 - Laserfiche WebLink

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, , ---- . p~tions In=ea.sing water & sewer Rates Page Three Based on projections of a $.84/1000 gallons increase in sewer rates inplemented 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 increase in 1987) have gone up 62 percent - fram $309,869 to $502,744. The MWCC charges represent 60 percent of the sewer fund's expenses. See Attachment C. Due to the dramatic increases in the MWCC charges, the Subcommittee is recommending Council pursue issues with MWCC in an effort to hold down expenses in the future. The SUbcamrnittee recommends leaving the senior/disabled disconnt 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 e:{Uivalents balance at the end of 1991 should fall to about $400,000. . Again, please refer to Attachment A for the current sewer rates charged by neighl:xJring connmmi ties . Please note that the City of Little Canada's sewer charges would be higher than the proposed increases here. The proposed increases for water and sewer are meant to cover the remainder of 1992 and all of 1993. The SUbcamtnittee recommends that rates be looked at again in late 1993. utilities SUbcamrnittee: Joseph Corpstein Charlotte McNiesch Carl Rundquist Rarnanik Shah Thomas steele TJ SWanson TJS/ts Attachments M92-77 .