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7.c)2) Staff Report-Ordinance No. 149: 2014 Uptown Wastewater System Rates �I ����) � , �'��. .�::`' SCANDIA Staff Report Date of Meeting: December 17, 2013 To: City Council From: Kristina Handt, City Administrator Re: Ordinance No. 149: 2014 Uptown Wastewater System Rates Background: As previously discussed,the Wastewater Advisory Committee is reco�nmending going to quarterly billing on the Uptown Wastewater System. Additional At their November 20, 2013 meeting they also discussed the fact that proposed expenses exceed revenues. Since the variability in expenses (mainly pumping) is related to usage, staff suggested an increase in the usage charge of 2%to $15.28/1,000 gallons. While the projected fund balance ($3,606) at the end of 2013 could cover the losses for a couple years, the committee discussed whether it was preferred to slowly increase rates to cover costs or wait a couple years and possibly have a larger increase. They opted to recommend a smaller increase now. Issue: Should the ordinance be changed to increase the volume charge and adopt a quarterly base rate? Proposal: The change in the base charge is j ust simply a multiplying of the monthly charge by three to arrive at a quarterly charge. There is no net increase. The volume charge is proposed to increase by 2% from $14.98/1,000 gallons to$15.28/1,000 gallons. Fiscal Impact: The proposed increase is expected to generate an additional $29l in revenue. This is equal to about a third of the difference between projected revenues and expenditures. Options: 1) Approve Ordinance No. 149 2) Amend and then Approve Ordinance No. 149 3) Do not approve Ordinance No. l49 Recommendation: Option l. CITY OF SCANDIA ORDINANCE NO.: 149 AN ORDINANCE ESTABLISHING USER CHARGES AND CONNECTION FEES FOR THE UPTOWN WASTEWATER TREATMENT SYSTEM The City Council of the City of Scandia, Washington County, Minnesota hereby ordains: Section 1. ESTABLISHMENT OF USER CHARGF,S. User charges and fees for the Uptown Wastewater Treatment System shall be as follows: Fee � (A) Base charge: $� � , ,��.,,,..,,�,3�?.��/quartcr � (B) Volume charge: $-I�-�1F�15?8/1,000 �allons (C) Late payment fee: $10.00 (D) Annual interest rate on account balances 30 days 12% past due: (E) Annual interest rate on delinquent accounts 12% certified for collection with property taxes: (F) Connection fee. per dwelling unit: $4,250.00 � Section 2. REYEALF.R. Urdinance N��. I�7 aclu��tcd Uecembrr 18. ?01? is hereb�� repealed. I Seetion-�3. EFFECTIVE DATE. This ordinance shall be in full force and effect on January l, 2014, after publication according to law. Passed and adopted by the City Council of the City of Scandia this 17th day of December. 2013. Randall Simonson, Mayor ATTEST: Kristina Handt, Clerk/Administrator