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Mr. Rolls stated that the tower is there only - no well - so there is no problem.
<br />
<br />Mr. Jankowski stated that the contamination area is documented quite well.
<br />
<br />Councilmember Hardin inquired about the well water quality.
<br />
<br />Mr. Roffs stated that it is fair - not great.
<br />
<br />Motion by Councilmember Peterson and seconded by Mayor Gilbertson to accept and
<br />adopt the water supply and distribution plan and submit it to Metropolitan Council for
<br />approval.
<br />
<br />Further discussion: Mr. Rolfs stated that the Met Council takes care of distributing the plan
<br />where it should go. Councilmember Hardin inquired if Staff is planning to include this in
<br />the Comprehensive Plan. Mr. Schroeder stated that Staff is recommending comment from
<br />the Met Council prior to the public hearing. Mr. Rolls inquired the timetable for the public
<br />hearing to which Mr. Sehroeder replied maybe January or February. Mr. Rolls stated that
<br />the Met Council may not get back to Staff that quickly.
<br />
<br />Motion carried. Voting Yes: Mayor Gilbertson, Councilmembers Peterson, Beyer, Hardin
<br />and Zimmerman. Voting No: None.
<br />
<br />Case #4: Adopt 1995 Enterprise Fund Budgets
<br />
<br />Finance Officer Hart stated that enclosed with the agenda, for Council's review, are the
<br />proposed 1995 Enterprise Fund Budgets which cover the Water Utility Fund, Sewer Utility
<br />Fund, Street Light utility Fund and the Recycling Utility Fund. In order to establish fair
<br />rates for all of the utilities that the City operates, it is necessary to determine the actual cost
<br />of providing those utilities to the residents. Water Utility Fund: Ms. Hart stated that
<br />utilizing 180 new additions to the system for 1995, it is estimated that total revenues for
<br />1995 will be approximately $173,550, which includes interest earnings of $30,000. These
<br />revenue projections also incorporate the rate increases that were adopted November 22,
<br />1994, and become effective January 1, 1995. Expenditures are estimated to be at
<br />$166,226, which includes depreciation (non-cash) of $88,964. This results in a budgeted
<br />operating income for 1995 of $7,324, which is break-even, and decreases the deficit in
<br />retained earnings to a projected $48,426, from $55,750. Ms. Hart also noted that during
<br />1992, the City incorporated the Water Access Charge (WAC) for future demand on the
<br />system for expansion and modification. The status of that restricted capital account on
<br />December 31, 1994, is projected to be $552,400, and is estimated to increase to $786,400
<br />during 1995. This increase is based on the 180 additions as well and incorporating the rate
<br />increase that goes into effect on January 1, 1995. Sewer Utility Fund: Ms. Hart stated that
<br />it is estimated that total revenues for 1995 will be $223,530, which includes interest
<br />earnings of $9,500. These revenue projections incorporate the rate increases that were
<br />adopted November 22, 1994, and become effective January 1, 1995, and utilize the 180
<br />projected additions to the system. Expenditures are estimated to be at $220,877, which
<br />includes depreciation (non-cash) of $82,846. This results in a budgeted operating profit of
<br />$2,653, which is break-even, and decreases the deficit in retained earnings to a projected
<br />$168,648, from $171,301. Ms. Hart stated that as with the WAC in the Water Utility
<br />Fund, there was an "administrative fee" attached to the mandatory MWCC SAC charge
<br />during 1993. These monies are restricted for future expansion and modifications to the
<br />system. The projected status of that restricted capital at December 31, 1994, is $43,050,
<br />and is estimated to increase to $74,550 during 1995. This increase is based on the 180
<br />additions as well and incorporating the rate increase that goes into effect on January 1,
<br />
<br />City Council/December 13, 1994
<br /> Page 7 of 19
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