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CCP 09-26-1994
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CCP 09-26-1994
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5/8/2007 1:10:00 PM
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<br />I 4. A weighted percentage cost increase for these expense factors <br /> could be calculated as follows: <br /> a. (Purch Water) .037 x .54 = 2.00~ <br /> b. (I..a.b::Jr) .055 x .15 = .82% <br /> c. (Other) .035 x .31 = ~ <br /> Total calculated cost increase ~ <br /> 5. Translating this calculated cost increase into rates and being <br /> consistent with prior year pricing practices yields the <br /> following reccmrended 1995 Water utility Pricing: <br /> 1994 Recarrrended Increase <br /> Service Descrintion ~ 1995 Rate Amt fg; <br /> Residential Qtrly Minirrun $20.95 $21. 95 $1.00 4.8%' <br /> "Winter" rate per 1000 gal. $ 1.99 $ 2.09 $ .10 5.0~ <br /> "Sumner" rate per 1000 gal. $ 2.09 $ 2.14 $ .05 2.4% <br /> (NOte: Since approxinately 58~ of water is consumed during the sumner <br /> rronths and 42% is =surred during the winter rronths, the weighted <br />, average percentage increase for 1995 is ab:lut 3.5% (.58 x 2.4 + .42 x <br /> 5.0 = 3.49). <br /> Sani tary Se_r UtH i ty <br /> Although input frem the Finance Ccmnittee utility rate revieW study is <br /> not currently available, enough is known aJ:out the major cost elements <br /> of this utility to offer reccmrendations for 1995 pricing. <br /> l. Based up:JIJ. infonration received frem the Metropolitan Council <br /> WasteWater Services (MCWS) , total 1995 net payrrents due this <br /> age.'1Cj1 will increase 3.4% over 1994 net paym=nts. Sewer <br /> treatment costs represe.'1t ab:lut 60% of the total operating <br /> expenses of this utility. <br /> 2. Lab:>r costs are expected to increase by appraximatel y 3.5% in <br /> 1995. Such expenses represent aJ:out 16% of the total operating <br /> costs of this utility. <br /> 3. Rerrai.ning operating costs of the sanitary sewer utility <br /> approximate 24% of total operating costs. It may be reasonable <br /> to assurre that these costs will increase along 3.5% inflationary <br /> lines. <br />- <br />-. <br />
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