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Recannendations Increasing Water & Sewer Rates <br /> 01P Page Three <br /> Based on projections of a $.84/1000 gallons increase in sewer rates <br /> implemented April 1, 1992, net losses for 1992 and 1993 would be reduced <br /> to $12,050 and $2,405 respectively. <br /> MWCC payments since 1988 (after the City's last sewer rate increase in <br /> 1987) have gone up 62 percent - from $309,869 to $502,744. The MWCC <br /> charges represent 60 percent of the sewer fund's expenses. See <br /> Attachment C. Due to the dramatic increases in the MWCC charges, the <br /> Subcommittee is recommending Council pursue issues with MWCC in an <br /> effort to hold down expenses in the future. <br /> The Subcommittee recommends leaving the senior/disabled discount in <br /> place. The lost revenue for the senior/disabled discount currently <br /> amounts to approximately $19,306 per year which is only 3 percent of <br /> total revenues. <br /> Despite net losses after transfers in 1989 and 1990, the cash <br /> equivalents balance as of December 31, 1990, was at $411,578. For 1991, <br /> the sewer fund will finish out the year with a rash deficit of <br /> approximately $12,000. The cash equivalents balance at the end of 1991 <br /> should fall to about $400,000. <br /> Again, please refer to Attachment A for the current sewer rates charged <br /> by neighboring communities. Please note that the City of Little <br /> Canada's sewer charges would be higher than the proposed increases here. <br /> The proposed increases for water and sewer are meant to cover the <br /> remainder of 1992 and all of 1993. The Subcommittee recommends that <br /> rates be looked at again in late 1993. <br /> Utilities Subcommittee: <br /> Joseph Corpstein <br /> Charlotte MCNiesch <br /> Carl Rundquist <br /> Ramanik Shah <br /> Thomas Steele <br /> TJ Swanson <br /> TJS/ts <br /> Attachments <br /> M92-77 <br />