Laserfiche WebLink
REQUEST F�R COTTNCIL ACTION <br />2 <br />3 <br />4 <br />Da�e: 11/26/2007 <br />Itezara No: ll.d <br />r� <br />7 <br />Department Approval: <br />;.i�, ��� <br />�;1_ <br />9 Item Descr�ptioz�: At�opting the 200$ Utiility Rate Adjustrr�.e��is <br />11 <br />12 <br />13 <br />14� <br />1S <br />16 <br />17 <br />i8 <br />19 <br />za <br />�1 <br />22 <br />23 <br />24 <br />25 <br />26 <br />27 <br />28 <br />29 <br />30 <br />31 <br />32 <br />33 <br />34 <br />35 <br />36 <br />37 <br />38 <br />39 <br />40 <br />41 <br />Agenda Sectian: <br />Sta��' R�ports <br />In�araduction <br />Over th� past several rnonths, Sta£f has bee� analyzing �he City's utzlity aperations to deterrr�i�ze <br />whether rate adjustz�ents are n�cessary for 24Q8. T�e analysis entailed a re�view oithe �al�owing <br />serv�ces: <br />a) Water <br />b) Sanitary Se�nrer <br />c) Stoz�n Water Drainage <br />�) Recycling <br />For each operation, t�Ze #'ollavving service inpuis were re�iewed: <br />0�'ixed Ciiy eosis i�eluding personnel, supplies and �aintenar�ee, and depreciatin� <br />�I Varial�le costs including ih� p�rchase af water frorr� the City of St. Paul, �ater treal:rnent <br />cost� paid �.o the Metrap�litaza Council, and rec�ciing contrac�or casts. <br />o Capital replace�ent cas�s <br />❑ Cur�'eni; customer base, rates, az�d rai:e structure <br />On Sep�eml�er 10, 20Q7, t�ae City Cauncil adopted the 200& Prelizninary Budget far each of the <br />operatinns listed above. The remainder of tk�is �report s�marizes fhe rate adjusinlent �ecessary <br />tp accam�odate the budget, and scheduled capital replacemen�s aver the next %w years. <br />]Discussio�a �tems <br />Wa�er Opexations: The City's v�ate�• opera.tion prt��vides �ity customers wi�h safe potable water, <br />as well as on-dernand water pressure suffici�nt to me�t the City's �'ire protection needs. The Crty <br />purchases its water supply �rom the Ci�y of St. �'a�zl, r�vhich xemains the single laxgest operating <br />cost tt� the water operation. It is esiimated that are wholesale wa�er purchasc eosts wzll increase <br />approxxz�ately 3%. In addition, the City's internai aperating costs are expected to increas� by <br />approximately 4.5% dt�e to l�ig��r n�otnr fue], insurance, and other operating costs, <br />42 <br />43 T�e Council is r�mind�d �hat the Water F��d is in a relatively weak �nancial pasition cazxapared <br />44 to other utility fwnds and e'ven the Gzty's General �'und. S�stained increases in water rates wi11 <br />�S be needed for the fareseeab�e futu�re �o impr€�ve this con�ition. <br />