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�6 47 48 49 50 51 52 S3 54 SS 56 57 58 59 60 bl G2 63 54 65 6& 67 68 69 70 '� 1 72 73 7� 75 76 7'i 78 79 &� 8� 82 83 84 85 86 87 88 Sarzitarv Sewe� (?peratxons: '�'he �ity �aintai�s a sa.nztary sewer co�leciian s�rstem ta ensur'e 1he general p�blic's heal�h and general welfare. The szngle larg�si operatin� cast to the sanitary sewer operatiaz� is the treatmeni costs paid to t�e Metrapolitan Council E�virot��ental Services Divisian (MCES}. Tl�e MCES �as notified �s that our txeaimezzF costs are expected to i�erease by approximately 4% in 2Q08. In addition, the Ci�y's internal operating cnsts are expec�ect to increase by approximaiely 6% reflecting higher motor fue1, insurance, depreeiation, and other np�ratin� costs. The Sa�:itary Sewer �'und is in a relatively goad �nancxal position which has allawed %r lower- tha�-inflatian rate increases over the las� 5 years. However, planned capital r�placements €�ver the ne�t few years will necessitate rate increases in 200$. Storm Vt�a�er Draii�a e O rations: The City �rovides for �he manage7neni of siorm water drainage to prevent �laodizag and �ol��tion control, as wel� as street swaep�ng and the leaf pzckup prograrri. The storm sewer costs are expectied to higher than in pxevio�s years, dt�e to an increase in the p�a�zn�d cap�tal replac�zrze�l of Starmwate�' syst�r.�s, as �ell as higlaer costs fbr motar f�e1, depxeciatior�, and other operating cns�s. L�k� ihe Sanitary S�wer Fund, i:he Stor�aa Wazer Drainage �'izr�d is iz� a relativel� good #'inancial position whic� has allowed for lower-ihan-inflatian rate increases over the Iast 5 years. However, plaz�ned capitai rep�ace�nents over the z�exi feur years will necessiiate ra�:e increases i� 2008. Rec�clirzg O�ations: T�ie r�cycling operatzon provides �or t�Ze con�racted c�bside recycling pickup throughout the City. Tl�e pximary aperatiz�g cast xs the azno�nts paid to a contractor to �icic�.p reeycling materiais. Significant spending increases are projeeted %r 2008 due to tl�e rising nurnber o�' m�tl�i-farxai�y unit� being added ta the program. However, their will largely be a coz�'esponding �ffset in reven�es fox thcse same unrts. For 2008, a small rat� increas� vvill be needed. �t.ecn�nmenda�io�a After reviewing the needs of the �various e�te�prise-ty�e aperations a�� the c�rent rate structure, S�Caf£ feeis a rate adjusttnent is warra�ted. This is based on the followi�g: 1) The City will realize a 3�4% increase from varzous se�vice praviders it�cl�ding the Ci1y o£ St. Paul, a�d MCES 2) Tl�e City is projec�ing an overail S% increase in City-contzolled ope�'a�ing cos�s 3) Substantiai capitai replacernen� eosts will be incurred i:n the next several years th.a� will requzarce bath tk�e use o� existing resez�v�s, a� well as plan��ed z-ate increases 4) Tl�e City has fixed costs tlaat it must recaup inde�endent a�the ar�ou�at of cityr�vide usage Bas�d an these reaso�s, Sta�'f is reco�mending the �ollowing rate adjustments as shown in th� tables below: