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<br />.. <br /> 5. Combining all of these factors an:l. ass\1IlIi.n3' no significant chan;fes in <br /> operations, a 3.1% price in=ease (2.6% + .5%) f= 1994 water rates <br /> would appear warranted. <br />. 6. Translating this recammended price increase into a rate schedule would <br /> yield the following 1994 pricing: <br /> 1993 Rec:ommerxied Increase <br /> Rate Description Rate 1994 Rate i.. 3... <br /> Residential qtrly minimum charge $19.95 $20.55 $.60 3.0% <br /> ''Winter'' rate per 1000 gallons 1.89 1.95 .06 3.1% <br /> "Summer" rate per 1000 gallons 1.99 2.05 .06 3.0% <br /> Sanitarv Sewer <br /> AcknowlErlging the al:sence of a full-scale utility rate study, enough is also <br /> known about the major cost drivers of this utility to offer rec:ammen:1ations <br /> for 1994 pricing. <br /> 1. Based upon infornation received from the Metrop:)litan Waste Control <br /> Colmnission (MWCC), a 2.0% fla.r in=ease is projected along with a 1.5% <br /> rate in=ease. These combine for a 3.5% cost in=ease. Sewer treatment <br /> costs represent approximately 61% of the total operating costs of this <br /> utility. <br /> 2. Personnel services are e>qlected to in=eased by approximately 2.0% in <br /> 1994. SUch ~ represent about 15% of the total operating ~ <br /> of this utility. <br /> 3. Remaining operating costs of the sanitary sewer utility approximate 24% <br />. of total operating costs. It may be reasonable to assume tllat these <br /> costs will increase alorx:r 3.0% inflationary lines. <br /> 4. A weighted percentage cost in=ease for these expense factors could be <br /> calculated as follows: <br /> a. .035 * .61 (MWOC) = 2.1% <br /> b. .02 * .15 (Personnel) = .3% <br /> c. .03 * .24 (other exp) = ..7% <br /> Total recommended price increase 3.1% <br /> 5. Translating this recammended price in=ease into a rate schedule would <br /> yield the following 1994 pricing: <br /> 1993 Rec:ommerxied Increase <br /> Rate Descriotion Rate 1994 Rate i.. 3... <br /> Residential qtrly flat charge $49.95 $51. 45 $1. 50 3.0% <br /> Commercial Sewer per 1000 gallons 2.59 2.67 .08 3.1% <br /> Seni= qtrly flat charge 24.95 25.70 .75 3.0% <br /> ~Ctl <br /> I would encourage this item to be added to the December 13, 1993 Council <br /> meeting agenda as a new business item for possible action by Council. If <br /> Council elects to approve the recorrnnended price in=eases at this meeting, <br /> utility customers would be notified of the rate changes by means of an insert <br /> in their fourth quarter 1993 utility billing statemerrt.s that will be mailed in <br /> mid-January 1994. <br />. TRP:rk <br />