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Department Approval <br />�. � � <br />Item Description: <br />BACKGROUND <br />t�i � <br />� <br />REQUEST FOR COUNCIL ACTION <br />Consider the 2013 Utility Rate Adjustments <br />Date: 12/03/12 <br />Item No.: 12.d <br />City Manager Approval <br />Over the past several months, City Staff has been reviewing the City's utilities operations to determine <br />whether customer rate adjustments are necessary for 2013. The analysis included a review of the City's <br />water, sanitary sewer, storm drainage, and solid waste recycling operations. It also incorporates the <br />recommendations provided by the Council-appointed Capital Improvement Plan (CIP) Task Force, and the <br />Public Works, Environment, and Transportation Commission (PWET). <br />Staff's analysis included a review of the following: <br />❖ Fixed costs including personnel, supplies and maintenance, and depreciation. <br />•3 Variable costs including the purchase of water from the City of St. Paul, water treatment costs <br />paid to the Metropolitan Council, and recycling contractor costs. <br />❖ Capital replacement costs. <br />❖ Customer counts and consumption patterns, rate structure, and rates. <br />A summary of each operating division is included below. <br />Water Operations <br />� The City's water operation provides City customers with safe potable water, as well as on-demand water <br />pressure sufficient to meet the City's fire protection needs. The following table provides a summary of the <br />, 2012 and 2013 (Proposed) Budget: <br />$ Incr. % Incr. <br />2012 2013 (Decrease (Decrease) <br />Personnel $ 581,600 $ 595,845 <br />Supplies & Materials 74,100 76,325 <br />Other Services & Charges 582,050 584,270 <br />Water Purchases 4,600,000 5,000,000 <br />De reciation / Ca ital 1,165,000 1,585,000 <br />Total $ 7,002,750 $ 7,841,440 $ 838,690 12.0 % <br />Page 1 of 12 <br />