2012_1210_Packet - Laserfiche WebLink

Home

Page 5 of 13 Taking this example further, let’s assume that the 4-person household is even more conservative and uses 147 only 4,500 gallons per quarter, per person. This am ounts to 18,000 gallons per quarter which once again 148 triggers the higher tier rate. In this example, th e 4-person household pays a higher rate despite having 149 superior conservation behaviors compared to the smaller household. 150 151 Sanitary Sewer Operations 152 The City maintains a sanitary sewer collection system to ensure the general public’s health and general 153 welfare. The following table provides a summary of the 2012 and 2013 (Proposed) Budget: 154 155 2012 2013 $ Incr. (Decrease) % Incr. (Decrease) Personnel $ 358,448 $ 367,235 Supplies & Materials 45,050 46,395 Other Services & Charges 419,200 420,545 Wastewater Treatment 2,850,000 3,000,000 Depreciation / Capital 1,165,000 1,280,000 Total $ 4,837,698 $ 5,114,175 $ 276,477 5.7 % 156 The single largest operating cost to the sanitary sewer operation is the wastewater treatment costs paid to 157 the Metropolitan Council Environmental Services Di vision (MCES). Based on projected flows and 158 increased costs from the MCES, the budget for this cat egory has been increased by 5%. The City also 159 expects to have moderate increases in personnel and supply-related costs bringing the total increase to 160 5.7%. The impact on the sewer rates will also be affected by these and other factors. 161 162 The 20-Year CIP calls for an average capital replacemen t need of $1 million annually. In contrast, current 163 sewer rates only provide $670,000 annually. Based on a r ecommendation of the CIP Task Force, the City 164 Council agreed in 2011 to adopt a base rate increase of approximately 60% to alleviate the funding gap. 165 The increase was to be phased in over two years be ginning in 2012. For 2013, the increase is expected to 166 generate an additional $330,000 annually. The base ra te would still need to be indexed for future 167 inflationary impacts. 168 169 It is further recommended that the usage rate be incr eased by approximately 3.5% to offset the increase in 170 wastewater treatment and other operating costs. 171 172 Storm Drainage Operations 173 The City provides for the management of storm water drainage to prevent flooding and pollution control, as 174 well as street sweeping and the leaf pickup program. The following table provides a summary of the 2012 175 and 2013 (Proposed) Budget: 176 177 2012 2013 $ Incr. (Decrease) % Incr. (Decrease) Personnel $ 316,837 $ 324,615 Supplies & Materials 55,301 57,300 Other Services & Charges 277,800 281,000 Depreciation / Capital 1,260,000 1,369,000 Total $ 1,909,938 $ 2,301,915 $ 121,977 6.4 % 178 179