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Council Meeting Minutes April 12, 1994 Page 10 Council Business. continued The current review shows that both the water and sewer services are in need of increases in the customer consumption charge. These increases are sooner and larger than projected in earlier reviews and are needed because consumption and supplemental revenue is down and expenses are over budget. The flat charges are consistent with previous analyses. The water flat fee will decrease $.05 per 1,000 gallons, and the sewer fee will see a corresponding increase. The 1993 budget expected supplemental revenues of $229,900 from the Army fee, interest income and late fees. Actual supplemental revenues for 1993 were $178,300. The 1993 operating expenses were below the appropriation by $86,400. All expense categories were under budget, most notably energy by $50,000 which was a direct consequence of lower consumption. The Sewer Utility is a cooperative effort between the City and the Metropolitan Waste Control Commission (MWCC). The City is responsible for maintenance of the mains and lift stations while the MWCC treats the sewage. The MWCC accounts for 65% of the operating costs for the City's Sewer utility. Egan conftrmed that the sewer utility fund revenues were impacted by one customer's decreased usage by 40 million gallons. Bob Schultz, 2119 Violet, said a large portion of his total bill is for sewer fees and these charges have increased tremendously since 1977, while the water rates have stayed consistent. He speculates that the MWCC has built up a large fund to pay for the future development of sewer treatment facilities. He requested the Council to review the MWCC financial statement. Fulton said it is a normal practice to charge a MWCC access fee. However, a secondary problem is that the MWCC charges a higher and different amount for usage that what City calculations show. That difference may occur from cracks in water pipes or drainage from manholes. Benke agrees that the MWCC financial report should be reviewed. Egan noted that these projections would help with the City's five year analysis. Benke noted the water fees have remained consistent due to the Army settlement. Egan confirmed that the Army settlement represents a 25% savings to water customers. Council complimented Egan on her presentation. Motion by Gunderman, seconded by Williams, to WAIVE THE READING AND ADOPT TIlE RESOLUTION FSTABLISlDNG THE 1994 WATER AND SEWER CUSTOMER FEFS. 5 Ayes - 0 Nayes, Motion Carried. Locke presented the a contract for private redevelopment with Cheetah Precision. Cheetah Precision is a tool and die manufacturer located on Mound Street. They are proposed. to expand their facilities by purchasing land directly north of the current site, clearing that site and building a new 6,000-12,000 sq. ft. building. They have asked for tax increment assistance from the City. Council Business I Water and Sewer Ra Study Report 94-093 I Cheetah Precision Dev. Agreement Report 94-094 I