1994 09-19 CCP - Laserfiche WebLink

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Metropolitan Waste Control Commission Mears Park Centre, 230 East Fifth Street, St. Paul, Minnesota 55101-1633 A Service of the Metropolitan Council August 12, 1994 612 222-8423 TO: ALL CITY FINANCE OFFICERS The purpose of this letter is to provide background information on the 1995 sewer service charges shown on the enclosed statement, and also to bring you up to date on our merger with the Metropolitan Council. As a result of the Metropolitan Reorganization Act passed by the 1994 Minnesota Legislature, the Metropolitan Waste Control Commission (MWCC) on July 1, 1994, became an operating function of the Metropolitan Council. We are now known as Metropolitan Council Wastewater Services (MOWS). The legislation eliminated the MWCC Board of Commissioners and we are now governed by the Metropolitan Council. The Metropolitan Transit Commission (MTC) also merged with the Metropolitan Council on July 1, and the merger with the Regional Transit Board (RTB) will occur this October 1. The reorganization will bring the planning and operation of regional services closer together, and provide greater opportunities to improve services and make them more cost-effective. Our goal is to carry out a smooth transition with no disruption in our service to the communities. Regarding the cost allocation system, you should know that it will be fundamentally the same in 1995 as in prior years, with one difference. The MWCC Board of Commissioners decided to fix the percentage of the debt service paid by SAC for the years 1994 and 1995 only. The MWCC Board's action was in direct response to community concerns raised in our pre -budget surveys, indicating a desire for fewer "spikes" in rates. As a result, the revenue will be fixed based on the engineering estimate completed as part of the budget process, and no adjustment for actual flow for SAC revenue will be made at the end of the year. However, there will still be year-end adjustments for other factors, as in past years. The annual charges are proportioned according to flow volume: your community's flow volume relative to the total flow volume in the Metropolitan Disposal System. The proportion is based on estimates. When 1995 is completed and the actual flows are known, the estimated sewer service charges are adjusted to reflect the actuals. Also, the 1995 sewer service charges are based on budgeted revenues and expenditures. At year end they are adjusted for variances from budget. The 1995 estimate of your community's flow is based on records of past flows, precipitation trends and anticipated community growth. The statement also shows any credits or debits from these sources: Current Value Credit, Debt Payment Credit and the 1993 final cost allocation. Along with the enclosed statement, I am forwarding a copy of the 1993 Comprehensive Annual Financial Report. If you have any questions, please let me know. If you would like additional copies of any of these documents or the MCWS 1995 Budget, please contact Lois Spear at 229-2017. Sincerely, Helen A. Boyer General Manager, Wastewater Services cc: Metropolitan Council Chair Metropolitan Council Members HAB:CGW:dlg Conniel.pm4 Equal Opportunity/Affirmative Action Employer co