1976_1213_CC_packet - Laserfiche WebLink

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��GcN�A SECTION; :�i'J'i S 11��D REC�II;1E�'(�►�TI��JS fEt1 N0� � ITEPh DESCF21PT10�' i �� o� co��L �� T�: .I2/13/76 ORkGil�iATING D�PT./pIV." PU�LIG ilQ�i;S ADJt1S7t�iEi�l7 TO T�iE SA�IITARY SEl•lEfZ RA7ES DEPT_ H�Ap APPRQVAt.. . - F�.- Ufj� ' T MGR. ftcvlE;vEO/RECOMMENDS: Each year, tne city receives a bilYing statement from the P•letro t�aste Gontro7 Commission indicating what tf�eir billing v�ill be for th� next ca�endar year, tJe recently received t�tis bill ar�d it indicates tha� their ne't billing wii� �e up from �278,QOD in 197C to � �415,a�0 in 1977. This is an almast 50� increase which follo�led a 71`� increase dur�ng th�s year. 7hese increases are the resuTt of an environmental emphasis af recent years causing p7ant expansion, declining.credits received by the ci�y �From past takeover by the h1WCC and a �52,OQ0 billing to make up for under�estimates af 1975 f7o�r. Past contacts with the iV3ldCC ir�dica�tes that this candition wi1i continue to warsen eac� year and consid�rable in- creases in their cha��ges to Roseville will likely accur. You ma� reEall ��at last year, an analysis was made wh�ch indicated that th�s increase will prob�E�ly require an annua7 increase af approximately 18,z� to keep the budget ba7anced. �a con�plicate the picture, the c�ty has recently done Phase l of the infiiltration/inflaw anaiysis to identify undesired f7o4vs in the sewage �reatmen� system and it was found ti�at almost t�alf of �l�e fiows in�1975 were the result of int�ow%infilira�ion. Pre3im�nary projectians indicate that it wili cost approxima�ely �900,000 in t�e near future ta deal wi th �hi s prob7 em. These expenses v�iere no� icnown at the time of � ast years arraiysi s and would cause a further ctep�etion of the city's reserve fund currently estimated at appr4xi-. mately $533,000. Tn addition to the inflow/infiltration cos�s, th�se reserv� funds are far use in repalririg ar replacing sections of the sewer system in the fu�ur.e; including if� stations, ieaking manholes or pipes and collapsed $e�ers. I� woulcE aetua7ly be de- �irable to have a]arger reserve and to build this reserve up so that th�se exp�nses can b� handTed without the need of bonding or waiting for poss�ble ouis�de grant, but �his would appear to be very diffi.cult. For 7977, the system was given its annual investig�tio� in regard ta t�� vol�rmes of s�wage generated by tne various user classes. Tf�is �nformation was then utilized to generaie fut�re cost projections. �hese are shown on the attached sh�et identifiec! as Sanitary Sewer Rate Rev�ew. i� incficates that in 7976, approximately $�29,�00 will be obtained from user rates. O�her sources will generate th� r�mainder o€ the �962,OQ0 ineome. The i�r.vCC net �ee �vas �278,000. This plu$ $167,000 of operating costs and bond payments make a tatal expense of �865,Q0�. A net ba7ance of �96,(}00 results, but several caRital autiays and fund transfers actual]y red�ced th�s �o a$7Q,040 ne� contribu�ior� �o reserves. This figur� is shown on the bottom ii�e bringing the reserves to f�►e �533,000 level at the end of the year. Thre� a7terna-�ive approaches to adjusting the rates for 7977 tf�en fo7law. The first is Alternate Rate "A", which is to increa�e the rates by 18.2% as part o-� ti�e iat�g range �ro- jection. 7his resul�s in an overall loss for the year oT �63,00�, wi�ich reduces tiie opera�ing re5erve to ��#69,Q�0. !� secorod tabl� jabeled Alterna�e Rate A shac+15.�1fl4V ti�e new seti�rer rates for the various ciasses will increase und�r this alterna�iv�. �ne next alternative is 7abeled A7ternate "B" and at�empis to have the �und breaSc er�en for ihe year if the �89,000 inflow/infii�ration costs were disregarded. Usin� t�is alterr�ate t`rtie reserve fund wauld sink even lov�rer to 5444,40Q. Even 'th�s a7ternative, ho4rever, wauld ��quire a rate increase of alnost 14%. A table labeled Alterna�e Rate "B" gives the ra�es .�at would result from �asing �nis ap�roach. {continued}