1998-04-14 - Laserfiche WebLink

Home Browse Search

I I I Council Meeting Minutes April 14, 1998 Page 5 Council Business. continued The biggest factor in the Sewer Utility is the treatment costs performed by Metropolitan Council Environmental Services (MCES), In 1998, that cost would be in excess of $1,000,000. Customer charges would be $2.35 and of that $1.44 would be payment turn backed to MCES, This cost increase is very significant because there is greater discharge which translates to higher costs. The 1998 Revenues for the Stormwater Utility are as follows: TIF/Assessments- 47%/$310,000; Customer Charges - 31 %/$200,000; and County/MSA - 22%/ $141,000. The 1998 Expenses are: Capital/Other - 99%/$854,000; and Operating Costs - 1 %/$9,000. Changing capital needs makes rate analysis difficult, and lack of reserves makes significant rate change necessary in 1998. Costly 1998 and 1999 projects require immediate collection of outside revenues (TIF/Assessments/County/MSA). A sample quarterly bill for 20,000 gallons translates to $71. 70 or an increase of 3,17 % . That increase can be attributed to increased MCES and Stormwater fees. Large customers would see a quarterly bill of $28,615.00 or 2.48% increase, Samuelson asked for further clarification of the MCES customer charges. Egan explained that in 1997 City costs were higher than the MCES estimated bill. Because of this, the City owed MCES which required payment in 1998. Also, the 1998 consumption amount would be higher than what was budgeted. These two factors caused the fee to go above $1,000,000, Benke noted that from a budgeting perspective, the City showed positive results in revenues. Samuelson agreed that a sample quarterly bill would increase only a few dollars. Egan noted that a survey of other neighboring communities showed New Brighton's rates very favorably in comparison, Motion by Gunderman, seconded by Samuelson, to WAIVE THE READING AND ADOPT THE RESOLUTION ESTABLISHING THE 1998 CUSTOMER CHARGES FOR THE UTILITIES. 4 Ayes - 0 Nayes, Motion Carried. Teague presented a Simple Plat to resubdivide Lot 1, Block 1 of BCPIII. The lot is to be sold to Donatelle Plastics who will construct an office/manufacturing facility at the intersection of 5th Ave. and Co. Rd. B-2 Extension, Because of an incorrect legal description, the County will not accept the BCPIll plat. The legal description is to be corrected, however, will not be correct by the time Donatelle would like to begin construction, To allow Donatelle to begin construction prior to the official filing of BCPIII, staff proposes creation of a lot using a metes and bounds description, Motion by Larson, seconded by Samuelson, to APPROVE SIMPLE PLAT PL-24S. 4 Ayes - 0 Nayes, Motion Carried, Council Business 1998 Utility Rate Study Report 98-081 Resolution 98-041 Simple Plat - PL-245 Donatelle Report 98-083 Resolution 98-040