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-z- �d'ust�rent to tne Sanitar S��r�r Rates �he ]ast alter�native identi-Fied as Alternative "C" a�tempts �o avoid �epleting the reserve fund during tiie year and woulcl result in a loss-of only approximately $1,OQ0 overall, thereby keeping the reserve fund at �532,00�. in or.cier to a�- cornpiish ti�is, �ne • rate ��ou7cf have t� be raisQd approximatel.y 3Qro averall. 7h�se raies ar� shown �n the table labeled Alternate Rate "C". P�a a]ternatives were pursued wnich woUld increase the operating reserve beca�se this would necessitate a very 7arge rat� increase. It is ho�ed that durin� i978, the picture will zmprove some►�ihat in comparison fia th�s year, because of the dry year experienced in 1976. In -�summary, the t�letra l�aste ContraI Com��ssion is substantially increasing th�ir charges and have ind�cated tha� this trend will contin�e. Credits experienced by the city in the past are diminishing eacF� y�ar and revenue to offs�t this yrill so�ehow have to be ob-�a�ned. Ti��s coridit�on can be r�odified significantly by re-- ducing the 7n-Fiow/infiltration, I�ut to do so a capital oui7ay of approxim�tely $900,OOQ is current]y estimated as �eing requ�red. The anly curren�iy available methac� of obta�n�ng funds for these expenses is throug�� tf�e sealer user fees and, therefvre, tF�ese �ees v�ri ] 1 have to �e rai sed subs�ant� ai ly, '�he 1977 P�l�JCC cos�s go i nto eff�ct Jan . 1, 1977, and i�i i s very d�s i rabl e tt�a� �r�e ci ty i ncrease i r� . fees be approved priar �o tiiat date. T}ierefore, if it is not possib.ie to reach � concl us i on on thi s maiter a� thi s meetf ng, i� i s 1-�CO[�1lenfjeCf �tha� t}la ma�ter be decided at the eariiest possible �ime in order that adequa�e time could be avail- able to compufe the various fees of the new rates and mail out the January bi7]- ings on time. Tt�e council may be interested to kr�aw tn�t, fortunately, the water system is ex- periencing b�tter conditions. T�e dry su�nmers of tt�� past tVro y�ars have brought in above average revenues and the new contract with tt�e Gity of St. Paul, tivi�ich +��as renegotiated in T974, have h�id t�e �ost increases for water purchased from tha�i ag�ncy io th� same ]eve�s as were experi�nced in the fall of 197�, 7f�e City of St. Paul recently made a r�inor adjust�;ent af appraximately 5a zn ti��se fees for tne upcoming year, but th�s� wil7 b� ab7e to be offset tE��ouyh �cor�pmies in the syste;� and no rate increas� in tfie water fees is recomm�nded at this time. REC�t��tE��7�� ACTION: �1 of a moti on auiharj zi ng the c� ty at�orney �o raft an ardinance amending Se.ction 71.Q20 and 71.030 o� ti�� ci ty code �elati ny to sani �ary se��er rates usi ng ' Alternat� �tate . �, � , � y �� ,, � � s � J �� , �� `� � \ { � V/ .� r�� 'L'