CCP 05-30-1995 - Laserfiche WebLink

Home Browse Search

I ~ ~~n~~o?t~~~~~~n~~~::~~!re I . I May 15, 1995 I I TO ALL CITY FINANCE OFFICERS: I Metropolitan Council/Wastewater Services (MCWSl recently closed out 1994 revenues and expenditures and completed the 1 994 Final Cost Allocation. The enclosed statement shows both the estimated sewer service billing your city paid for 1994 and the final billing to your city for the same year. I The bottom line shown on the accompanying statement is the amount your city underpaid or overpaid in i 994. This amount will appear as a credit or a debit on the city's 1996 statement of sewer service. I For 1994, MCWS had a favorable variance of $7.5 million, composed of $1 million in unanticipated revenue and $6.5 million in spending below budget. The variance occurred by design. As budget and merger activity became more define, spending was constrained to allow MCWS more leeway to balance competing needs. I The Council decided that the variance should be used to reduce costs in the mid-and long-term, working toward - stability in billings to communities. The variance is being used to finance capital budget projects (in lieu of debt), I prepay a loan, set up an allowance for obsolete inventory, assist in re-engineering an essential activity and buy out some of the older workers' compensation policies. This use of the variance also means there will not be an across-the-board rebate on our 1996 sewer service bill, I which is another step toward long-term stability. At this time, I would also like to provide an update of the Cost Allocation/Rate Study Task Force appointed by I the Metropolitan Council Chair and chaired by Russ Susag, Council member of Richfield and former Metropolitan Waste Control Commissioner. The Task Force and its Technical Advisory Committee are conducting a full study of virtually every aspect not only of the cost allocation system but of SAC, inflow and infiltration and other rates I such as industrial strength. Their target date for reporting is early fall, 1995. They welcome questions or comments, and we would be happy to put you in touch with them. As always, your ql!eRtions or comments are welcome. For specific questions about this statement or other I matters, please contact Steve Sielaff at 229-2021 or myself at 229-2017. Sincer~ly , I 2t' IF v <J" JiC<-A--/ . ois I. Spear I Controller LIS:CGIJ:kme I A;\FNLCA94.LIS _ cc: City Hanager Mayor I Ene l osure I 230 East Fifth Street St. Paul, Minnesota 55101-1634 (612) 291-6359 Fax 291-6550 TDD/TTY 291-0904 Metro Info Line 229-3780 An Equal Opportunity Employer