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

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The detailed Alternate 2b analysis is included as Item K in the Appendix. This shows that based on the listed assumptions, the sewer connection charge can be reduced by $172 to $1,099 per unit. The current per acre connection charge for commercial/industrial property is equivalent to 3.01 residential units. On this basis, the adjusted rate would be $3,308 per acre. E. SUMMARY The sewer usage fees are intended to fully fund the 0 & M costs of sanitary sewer systems. The usage rates should be adjusted as required to maintain a positive fund balance. The sewer connection charge is intended to fully fund the costs of extending trunk sanitary sewer facilities. Based on the lift station/forcemain alternate to service the Special Area, the current charge rate can be reduced by $172 per unit. The rate should be adjusted annually for inflationary increases. Maintaining the desired balance in the Sewer Utility Fund is dependent on phasing in system extensions consistent with development demand and the related connection charge revenue. Continuing the historic policy of requiring developers to fund extensions with reimbursement from connection charges should be effective in maintaining a balance as the developer, not the sewer fund, is financing the extension. This should also discourage premature extensions. City of Ramsey Page 5-6 Comprehensive Sanitary Sewer Plan - 2012 Prepared by Bolton & Menk, Inc.