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9.b) 201 Sewer System Rates , � \ / � c�'C��;� ��ri`�� SCANDIA Staff Renort Date of Meeting: December 18, 2012 To: City Council From: Kristina Handt,City Administrator Re: 201 Sewer System Rates for 2013 Agenda Item#: 9.b) Background: A meeting of the Wastewater Advisory Committee was scheduled for September 20, 2012. Unfortunately,only four of the ten members were showed up so there was not a quorum present to take formal action. The group did continue to meet and discuss the items on the agenda. They reviewed the draft of the 2013 budget for the 201 system. Three members present supported increasing the rates by 5%, one member did not. The rates have been stable at$658.72 per year since 2009. The rate is paid in quarterly installments of$164.68. Issue: Should the rates be increased 5% for the 201 Sewer System effective January 1, 2013? Proposal Details: Although there wasn't a quorum present at the Wastewater Advisory Committee meeting, staff has updated the budget numbers to reflect a 5%increase in rates. The new rate would be $691.68 per year or$172.92 per quarter, an increase of$8.24 per quarter. 2013 proposed revenues from sewer charges are approximately$65,100. Rates are set by ordinance. Ordinance No. 136, included in your packet,would increase the rates to $691.68 annually in 2013. Fiscal Impact: The projected fund balance for the 201 sewer system as of 12/31/12 is $193,628.05. This is a decrease of$11,231 from 1/1/12. If rates remain the same the projected fund balance on 12/31/13 is $208,456.05. If rates are increased 5%,the projected fund balance on 12/31/13 is $212,690.05. Options: 1) Approve Ordinance No. 136 2) Amend and then Approve Ordinance No. 136 if some other rate increase is preferred 3) Take no action. Existing rate will remain in effect. Recommendation: Option 1. CITY OF SCANDIA ORDINANCE NO.: 136 AN ORDINANCE ESTABLISHING USER CHARGES AND CONNECTION FEES FOR THE "201" COMMUNITY SEWAGE TREATMENT SYSTEM The City Council of the City of Scandia, Washington County, Minnesota hereby ordains: Section 1. ESTABLISHMENT OF USER CHARGES. User charges and fees for the "201" Community Sewage Treatment System shall be as follows: Fee (A) Base use charge: $691.68 annually/ $172.92 quarterly (B) Energy charge adjustment: $8.00 annually/ $2.00 quarterly (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 certified 12% for collection with property t�es: (F) Connection fee,per dwelling unit: $4,250.00 Section 2. REPEALER. Ordinance No. 112 adopted December 16, 2008 is hereby repealed. Section 3. EFFECTIVE DATE. This ordinance shall be in full force and effect on January 1, 2013, after publication according to law. Passed and adopted by the City Council of the City of Scandia this 18th day of December, 2012. Randall Simonson,Mayor ATTEST: Kristina Handt, Clerk/Administrator