Annual_Report_1994_001 - Laserfiche WebLink

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Approximately 77% of the sewer operating expenses, including depreciation on the distribution system, aze for sewage service provided by the MWCC. Consequently, the sewer rates are in a lazge part determined by the MWCC. Sewer rates aze calculated to generate revenues to offset depreciation on the distribution system. The distribution system asseu were originally financed by speciai assessments and future replacement of these assets is planned to be financed by revenues. The City was able to move the sewer operations into a positive operating position in 1994. Below is a summary of the sanitary sewer operations: Operating Revenues User Charges Other Total Operating Revenues Operating Expenses Disposal Chazge-NIWCC Depreciation Other Total Operating Expenses Operating Income (Loss) Nonoperating Revenues Transfers Out Net Income (L.oss) 1993 $ 2,504,308 164331 $ 2.668.639 2,164,48'7 105,359 531.878 $2.801.724 $ (133,085) 58,817 (21.500) 95 768 1994 $2,711,645 67.807 $2.779.452 2,053,943 109,662 497.223 $2.660.828 $ 118,624 76,096 194 720 The Water Fund accounts for the operation of the water system, with 9,421 customers currently ' being billed. The City purchases all of the water it uses from the City of St. Paul. The City ' reviews its financial position and the rate structure annually. Excess fund balances aze used to finance current operations. It was determined in 1992 that some under-registration had taken place in the wholesale metering from the City of St. Paul. That under-registration was negotiated to the amount of $400,000. An agreement was entered to pay that amount with 7% interest over 4 years. Approximately 78 % of the water operating expense, including depreciation of the distribution system, is for water provided by the City of St. Paul. Consequently, the water rates aze in a lazge part determined by the City of St. Paul chazges. 11