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Home My WebLink About5C - Water & Storm Sewer Fees CONSENT AGENDA #: 5 (c) PREPARED BY: RALPH TESCHNER, FINANCE DIRECTOR SUBJECT: CONSIDER APPROVAL OF ORDINANCE 96-01 AMENDING PRIOR LAKE CITY CODE TITLE 9 CHAPTERS 4 & 5 DATE: JANUARY 2,1996 INTRODUCTION: There are a number of enterprise fund fees that are established within the Prior Lake City Code which require an ordinance amendment to change. Therefore the enclosed ordinance has been drafted to either determine 1996 amounts or incorporate increases for the following charges: City WAC (connection fee) City SAC (connection fee) Water Tower Charge MWCC SAC (reserve capacity charge) Water Billing Rate Sewer Billing Rate DISCUSSION: The increases/fee determinations, as indicated within the proposed ordinance amendment, are outlined below: FEE DESCRIPTION CURRENT $500.00 $500.00 $700.00 $850.00 $1.05 $2.70 Water Connection Fee Sewer Connection Fee Water Tower Fee MWCC SAC (mandatory) Water Billing Rate Sewer Billing Rate PROPOSED $600.00 $600.00 $700.00 $900.00 eff. 3/1/96 $1.15 $2.85 The proposed combined City connection fees of $1200 are in line with the average ($1410) of those charged by cities as listed in the most recent AMM License & Permit Survey (1995 edition). No increase in the water tower fee is suggested but the amount must be established for the year 1996. The water tower bonds are revenue bonds which are repaid by a charge on the building permit for new construction. Debt service for 1996 is approximately $164,000 which would require 235 connections @ $700 to support. Our projections are for 250 new connections to the municipal system. The Metropolitan Waste Control Commission is responsible for establishing the metro areawide SAC charge which basically has been increased by $50.00 incremental steps each year for the past six years. This charge is therefore adopted by reference within our City Code. 16200 Eagle Creek Ave. S.E.. Prior Lake. Minnesota 55372-1714 / Ph. (612) 447-4230 / Fax (612) 447-4245 AN EQUAL OPPORTUNITY EMPLOYER ALTERNATIVES: RECOMMENDATION: ACTION REQUIRED: REVIEWED BY: WATERl.WRT Water rates are proposed to increase from $1.05 to $1.15 per thousand gallons which represents the first increase since 1982, a period of 14 years. The increase is necessary to support the operating costs associated with the new maintenance facility building. In addition, the MWCC payment the City makes on a monthly basis for treatment has increased by nearly $108,000. In order for us to recover this additional cost a sewer rate billing increase of 15 cents per thousand gallons ($2.70 to $2.85) is necessary. Based upon a projected 360 million gallons billed in 1996, sewer revenue at this new rate would generate income of $1,026,000. The approved sewer department budget for next year is $1,025,425. The combined 25 cents sewer and water rate increase represents a composite rate increase of 6.6%. Based upon the typical residential consumption of 9000 gallons per month, the average household water/sewer bill would rise by $2.25 per month for an annual increase of $27.00. Remaining revenue attributed to water and sewer within the enterprise fund budget ie., connection fees and interest earnings are appropriated to fund its share of the general fund contribution transfer of $175,000. The attached Ordinance 96-01 Amending Prior Lake City Code Title 9 Chapters 4 & 5 incorporates the above recommended fee changes. The following alternatives are available to the City Council: 1. Adopt the ordinance as drafted as part of the consent agenda after determining that no one wishes to discuss the issue. 2. Approve the ordinance subject to any specific Council amendments after removing the item from the consent agenda for discussion. 3. Delay action on the ordinance if additional information is required by the Council. Staff would recommend that the City Council approve either Alternative #1 or #2. These charges would then become effective for all building permits issued beginning January 8, 1996 while the new water and sewer rates would be implemented upon the 2/1/96 water bills which represents the frrst billing cycle the year. appr vi Ordinance 96-01 Amending Prior Lake City Code ers 8i 5 as part of the consent agenda would be in order. I CITY of PRIOR LAKE ORDINANCE NO. 96-01 AN ORDINANCE AMENDING PRIOR LAKE CITY CODE TITLE 9, CHAPTERS 4 & 5. The City Council of the City of Prior Lake does hereby ordain: I. Section 9-4-4 (A) and the first sentence of 9-4-4 (C) of the Prior Lake City Code is hereby amended to read as follows: 9.4.4: Connection Permits: (C) A connection fee of six hundred dollars ($600.00) shall be charged per unit connected subject to an adjustment as determined by the City Council. II. Section 9-4-10 (A) & (B) of the Prior Lake City Code is hereby amended to read as follows: 9-4.10: Water Rates; Water Tower Charge; Delinquency: (A) Water Rates: The rates shall be as follows: 1. Effective on February I, 1996, a billing charge of one dollar fifteen cents ($1.15) per one thousand (1,000) gallons of water. (B) Water Tower Charge: 1. The water tower charge shall be determined on an annual basis in accordance with a fee schedule effective January 1 of each year as determined by the City Council. The following fee schedule is effective through calendar year 1996: $150.00 for 1973 $150.00 for 1974 $150.00 for 1975 $150.00 for 1976 $150.00 for 1977 $150.00 for 1978 $150.00 for 1/1/79-7/31/79 $200.00 for 8/1/79-12/31/79 $200.00 for 1980 $200.00 for 1981 $200.00 for 1982 $250.00 for 1983 $250.00 for 1984 $250.00 for 1985 $250.00 for 1986 $250.00 for 1987 $350.00 for 1988 $350.00 for 1989 $400.00 for 1990 $400.00 for 1991 $500.00 for 1992 $500.00 for 1993 $600.00 for 1994 $700.00 for 1995 $700.00 for 1996 Said fees shall be placed in a fund maintained by the City to accumulate funds for the construction of water storage facilities and wells. ITI. The first sentence of Section 9-5-5 (B) of the Prior Lake City Code is hereby amended to read as follows: 9.5.5: Connection Permits: (B) A connection fee of six hundred dollars ($600.00) shall be charged per unit connected subject to an adjustment as determined by the City Council. IV. The first sentence of Section 9-5-9 (A) and the last sentence of Section 9-5-9 (C) of the Prior Lake City Code are hereby amended to read as follows: 9-5-9: Sewer Use Rates; Delinquency: (A) Rates: Effective February 1, 1996, a billing charge of two dollars eighty five cents ($2.85) per one thousand (1,000) gallons of water consumption. (C) Separate Metering ... The charges for said usage shall be two dollars and eighty five cents ($2.85) per one thousand (1,000) gallons of sewage flow during the period set forth above. V. The fee schedule under Section 9-5-10 (B) of the Prior Lake City Code is hereby amended to read as follows: 9-5-10: Sewer Service Availability and SAC Charges: (B) ... The charge for each building or structure shall be equal to the number of units of sewage volume which it will discharge, multiplied by the following: $275.00 for 1973 $300.00 for 1974 $325.00 for 1975 $350.00 for 1976 $375.00 for 1977 $400.00 for 1978 $425.00 for 1979 $425.00 for 1980 $425.00 for 1981 $425.00 for 1982 $425.00 for 1983 $425.00 for 1984 $475.00 for 1985 $475.00 for 1986 $525.00 for 1987 $525.00 for 1988 $575.00 for 1989 $600.00 for 1990 $650.00 for 1991 $700.00 for 1992 $750.00 for 1993 $800.00 for 1994 $850.00 for 1995 $850.00 for 1/1/95-2/29/96 $900.00 for 3/1/96-12/31/96 This ordinance shall become effective from and after its passage and publication. Passed by the City Council of the City of Prior Lake this _ day of , 1996. ATTEST: City Manager Mayor Published in the Prior Lake American on the _day of ,1996 WATERl.WRT