Agenda - Council - 12/15/2020 - Special

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The projected Residential development rate was lowered by 100 Units/Year (-3 8.5 %) and the projected Commercial/Industrial development rate was lowered by 15 Acres/Year (-60%) while the projected number of high density units increased from 40 Units/Year to 80 Units/Year (+200%). Based on these considerations, the Residential Equivalent Units (connections) is conservatively estimated at 160 per year. The 2016 sewer connection charge is $1,126 per residential unit and $3,391 per commercial/industrial acre. E. ANALYSIS Many factors impact the actual fee required to sustain and expand the trunk sanitary sewer facilities. We have included a more comprehensive spreadsheet analysis of the sanitary sewer expenses and revenues. Assumption made in the spreadsheet are: • Anticipated revenue from utility billings of $1,424,849 were used for 2016 and then inflated at 1% per year. • Trunk Connection charges and SAC fees were set at $1,126 and $2,485 for 2016 and then inflated at 2.5% per year. • Operating expenses were set at $1,044,170 for 2016 and then inflated at 3% per year. • Capital expenditures for 2016 to 2020 were taken from the City' s current Capital Improvement Plan. • Capital expenditures for 2021 to 2040 was determined as described in Section 3 of this report. The information provided in this report should be considered when setting sanitary sewer connection charges within the City. City of Ramsey, Minnesota — R16.110056 Page 3 2016 Comprehensive Sewer Plan Update Prepared by Bolton & Menk, Inc.