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CCP 09-26-1994
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CCP 09-26-1994
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<br />..- , .. <br />I CITY OF ARDEN m:u.s <br /> MEM:lRANIJuM <br /> DATE: September 29, 1994 <br /> 10: Dorothy Person, City Administrator <br /> ~@ Teny Post, City Accountant <br /> SUl3.JEcT : RecClllllended 1995 Water and SanitaIy Sewer Utility Rate <br /> Increases <br /> Backcrounrl <br /> The City of Arden Hills inplerrented significant rate increases in 1992 <br /> and 1993 for water and sanitazy sewer services. Prior to this pricing <br /> action, rates for these utility services had rerrained the sarre since <br /> July 1, 1987. When these price increases were adopted, Council <br /> directed staff to evaluate the need for future pricing action on an <br /> annual basis and avoid the need for rrore radical periodic increases. <br />-\ Council direction of staff performing an annual rate review was <br /> accarplished in 1994 and will be the focus of the renainder of this <br /> merrorandum as recamtendations for 1995 pricing are presented. <br /> Water utility <br /> Although input frem the Finance O:mnittee utility rate review study is <br /> not =ently available, enough is known al:out the major cost elerre..'lts <br /> of this utility to offer reccmrendations for 1995 pricing. <br /> 1. Based upon infonnation received by the City of St. Paul Board of <br /> Water Ccmnissioners, the City of Roseville utility Department <br /> and seasonal collSUIlption history, the price of purchased water <br /> can be e:xpected to increase 3. 7%- . Purchased water represents <br /> approximately 54%- of the total 1995 planned operating expenses <br /> of this utility. <br /> 2. I.aWr costs are expected to increase by approximately 5.S%- over <br /> the 1994 budget. Such expenses represent a.l:xJut IS%- of the tot:al <br /> expe.'1Ses of this utility. <br /> 3. Rercaining operating costs of the water utility approximate 24%- <br /> of total operating expenses. It may be reasonable to assurre <br />- that these costs will increase along 3. S%- inflationary lines. <br />-. <br />
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