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BackgroUr~d: <br /> r <br /> <br /> City Water and Sewer Rates <br />By: Sandra Ashley Helling, Finance Officer <br /> <br />Case # <br /> <br />The City ~tt°t[ney has stated that, in his opinion, the Charter requirements as to <br />setting water ~nd sewer rates by ordinance could be met by the Council adopting an <br />ordinance' l~hat, states such rates will be set by resolution. This would then mean a <br />Charter change is not required, and rates for the City Water and Sewer Enterprise <br />Funds coul~ bt adjusted in a timely fashion. <br /> <br />While we Ihav~e not yet received a memo from the City Attorney confirming this <br />opinion, her haS'' verbally advised me that the City should proceed accordingly. <br /> <br />A rate stud~, d~es need to be completed for the utility funds; however, such a study is <br />very comprr~he~sive and will not be completed in the near term. I have met with our <br />City Engin,C. cr to discuss our current rates, and we are in agreement that the number <br />one goal isI to iadjust the rate structure for the City sewer fund. Currently we have one <br />rate for Sewer at $32.00 per quarter; this rate applies to all users: residences, <br />commerciall i~..d_ustrial and apartment houses. While our billing rate is not volume <br />sensitive, tl~e ~.harge we receive from Metropolitan Waste Control is volume based. In <br />rough num~er~, at the current connection level, we will be issuing payment to <br />Metropolita~ Waste Control of $45,000 during 1992, and the City's total sewer <br />revenue will be $38,000. We will realize a loss of $7,000 before applying operational <br />costs. <br /> <br />Staff Rec~m ,mendatlon: <br />It is recom~ed, ded the Finance Officer and City Engineer propose a new billing rate <br />structure fo~ th~ sewer fund that is volume sensitive and this proposal be received by <br />the BudgetfCo~mittee at their meeting of April 14, 1992, if not before. <br /> <br />It is furthei' recommended that ,Staff draft an ordinance that will provide for water <br />and sewer i'ateS to be set by City resolution and this draft be presented at the time of <br />the proposed ch..' ange in the sewer billing rate structure. <br />Budget c~mrhittee Action' <br /> <br />Motion to re t/not direct the Finance Olficer and City Engineer to propose a new <br />billing rate ~tru~eture for the City sewer fund on or before April 14, '1992. <br /> - andjr . <br />Motion to d, ireCt/not direct Staff to draft an ordinance that will provide for water and <br />sewer rates! to ibe set by City resolution. <br />Review C rhecklist: <br /> <br />City Admirlistrlator <br />City Engineer <br />Finance Officer <br />BC: 02/25/92 <br /> <br /> <br />