Agenda - Council - 06/26/2012 - Laserfiche WebLink

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exceeds the estimated improvement costs by about $900,000 based on the current connection charge. D. CONNECTION CHARGE ANALYSIS The sanitary sewer utility expenses consist of operation and maintenance (0 & M) expenses and of system expansion and improvements. An additional expense is the balance of $111,848 of reimbursement to Oakwood/21st Century Bank. The revenue sources consist of usage fees and connection charges. The usage fees are intended to fully fund the 0 & M expenses. The connection charge is intended to fund system expansion and improvements. The previous section indicated that the current connection charge rate was more than adequate to fund the proposed improvements. This was based on high density residential units being equivalent to a single family unit. Four alternates were identified for the connection charge rate analysis. The variables in the alternates were the options for providing sewer service to the Special Area and the equivalent factor for high density residential units. Full reimbursement to Oakwood/21st Century Bank was included in all alternates. After review, the City has selected Alternate 2b which is summarized in Table 5.4. Table 5.4 Alternative 2b Summary ■ Lift Station and FM Extension to Special Area ■ CIP Expenses $7,333,750 ■ 0.7 ERU for High Density Residential ■ Connection Charge Revenues $8,612,768 ■ Oakwood Reimbursement $111,848 ■ Total Gain $1,167,170 ■ Connection Charge Necessary to Balance $1,099 ($172 Decrease) City of Ramsey Page 5-5 Comprehensive Sanitary Sewer Plan - 2012 Prepared by Bolton & Menk, Inc.