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<br />Council Meeting Minutes
<br />April 14, 1998
<br />
<br />Page 4
<br />
<br />Council Business. continued
<br />
<br />Motion by Gunderman, seconded by Larson, to WAIVE THE READING AND
<br />ADOPT THE RESOLUTION ACCEPTING THE 1997 ANNUAL REPORT FOR
<br />THE FIRE RELIEF ASSOCIATION.
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<br />4 Ayes - 0 Nayes, Motion Carried,
<br />
<br />Egan presented the 1998 Utility Rate Study, This annual review is part of an ongoing
<br />attempt to manage our water, sewer, and stormwater utilities, The total utility budget
<br />amount is $4,154,000, and is divided as follows: stormwater-$863,000; water-
<br />$1,352,000; and sewer-$1,939,000. Since utilities are considered enterprises services, it
<br />is expected that customer charges will be adequate to pay for these operations.
<br />
<br />Both the water and sewer utilities had favorable outcomes with increases in their
<br />reserves of $190,000 and $194,000, respectively. Any increase in the reserves is
<br />pledged for financing future services. The stormwater utility incurred a loss of $33,000
<br />which resulted from higher than expected capital improvement costs,
<br />
<br />In the early 1980's, contamination to the aquifer extensively damaged New Brighton's
<br />water system, As a result of the U.S. Army settlement, funds have been committed on a
<br />long term basis to help finance the water utility, In 1998, 24% of costs ($340,000) will
<br />be paid by this settlement.
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<br />The City plans to upgrade meters for 500 commercial amounts. Since these meters are
<br />costly to replace, a private contractor will test and overhaul as many meters as possible,
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<br />As part of the effort to properly allocate costs to utilities, the water and sewer services
<br />share a little over $1,000,000 in expenses with the General Fund. Also, the Stormwater
<br />Utility is scheduled to pay $9,000 in administrative fees to the General Fund in 1998.
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<br />Additionally, a change is being considered in the engineering fee policy. One change
<br />would assess each utility an annual $50,000 fee for services provided by the Engineering
<br />Department. This policy change is under consideration so the annual fee has not been
<br />included in this analysis,
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<br />The 1998 rates per 1,000 gallons are proposed as follows: Water Capital- $0.33; Water
<br />Consumption - $0.72; Sewer Capital - $0,27; Sewer Consumption - $2,08; and
<br />Stormwater - $3.70/ quarter.
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<br />The 1998 Revenues for the water utility are as follows: Customer Charges -
<br />60%/$863,000; Environmental Fund - 9%/$130,000; Balance Forward - 16%/$233,000;
<br />and Army settlement - 15 %/$210,000. The 1998 expenses are: Operating Costs -
<br />72%/$977,000; and Capital/Other - 28%/$375,000.
<br />
<br />The 1998 Revenues for the Sewer Utility are as follows: Customer Charges -
<br />92%/$1,797,000; and Balance Forward - 8%/$154,000, The 1998 expenses are:
<br />Operating Costs - 90%/$1,739,000; and Capital/Other - 10%/$200,000.
<br />
<br />Council Business
<br />
<br />Firefighters Relief
<br />Asen. Annual Report
<br />Report 98-080
<br />Resolution 98-039
<br />
<br />1998 Utility Rate
<br />Study
<br />Report 98-081
<br />Resolution 98-041
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