CCP 12-21-1995 - Laserfiche WebLink

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I I. CITY OF ARDEN HILLS MEMORANDUM I - DATE: December 18, 1995 I TO: Brian Fritsinger, City Administrator I FROM: Terrance Post, City Accountant @ I SUBJECT: 1996 Utilitv Rate Issues I I intend to put forth a resolution for Council consideration at the December 26, 1995 regular Council meeting that deals with 1996 rate recommendations for the water, sanitary sewer, and surface water management utilities. I thought it might be of some value to discuss some issues I that surround this topic informally at the December 21, 1995 Council worksession. 1. Water Utility , I The primary cost driver in this fund is purchased water from the City of Roseville. It is estimated that this cost element will increase 2.5% in 1996. As this cost category .. represents approximately 57% of the operating expenses of this utility, a percentage weighted price increase could be calculated in the following manner: I Cost Category % Increase % of Budget Wtd% Purchased Water 2.5% 57% 1.4% Personal Services 3.2% 14% .4% . All other (.4%) 29% (.1 %) Calculated 1996 Price Increase 1.7% I 2. Other Considerations a. Drop minimum charge for non-senior residential water customers. b. Drop distinction between winter and summer rates. - I 3. The impact on rate per thousand gallons would then be $2.09 * 1.017 = $2.13 I 1. SanitarY Sewer I The primary cost driver in this fund is flow charges from the Metropolitan Council Environmental Services (MCES). It is estimated that this cost element will increase 3.2% in 1996 for current costs. As this cost category represents approximately 63% of the I operating expenses of this utility, a percentage weighted price increase could be calculated in the following manner: .- .