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80-481 (Official Publication) CITY OF HOPKINS Hennepin County, Minnesota ORDINANCE NO. 80-481 110 AN ORDINANCE ESTABLISHING WATER AND .SANITARY SEWER RATES AND CHARGES AID REPEALING ORDINANCE NO. 78-439 AND ORDINANCE NO. 79-470 . BE IT ORDAINED by the Council of the City of Hopkins as follows: That Section 520: 05 and 520 :20 of the 1977 Code of Ordinances of the City of Hopkins be and the same are hereby amended as follows : SECTION 520 : 05, WATER RATES. The gross rates per water meter shall be $. 060 per each 100 gallons of water plus 5% thereof. The number of gallons of city water furnished from time to time shall be determined by water meter readings , and if any such water is used on premises without a proper water meter or whenever such meter is out of order, the amount of water used at such interval shall be deter- mined either by averaging previous water bills at such location with the same or similar use, or by the average amount of water consumed at other premises during a similar interval with a similar use or business. Any 111 and all meters may be read by officials of the Hopkins Water Department either every month or every quarter, but where such readings are monthly, the gross rates as above set forth shall be calculated and applied as though such meters were read quarterly. SECTION 520 : 20, SANITARY SEWER SERVICE CHARGES AND RATES. Sub- division 1, Sanitary Sewer Service Rates and Charges for Residential Customers. The gross sanitary sewer service charge for residential cus- tomers shall be $. 095 per each 100 gallons of water plus 5% thereof, pro- vided that in arriving at such monthly water consumption for any single family residential customers, such sewer use and charge shall be determined by using the amount of such water consumed in such single family dwelling in the annual quarters ending in January, February or March of each year divided by three; provided further that in cases of new construction or addition to any residential unit, the average water consumption is to be determined by the first thirty day period following its completion or occupancy until the next ensuring quarter ending in January, February or March. Whenever such average water used in any such single family dwell- ings during the quarters ending in January, February or March may be un- fairly disproportionate because of the customer' s methods or lack of operation or any other reason, then and in the event the City of Hopkins shall establish an average water charge and corresponding sanitary sewer charge by the use of suitable methods which will be as fair as possible, such determination by the City of Hopkins to be final. Subdivision 2. Sanitary Service Rates for Commercial Customers. Sanitary sewer service charges for all commercial customers shall be equal to $. 095 per each 100 gallons of water plus 5% thereof. That in all other respects said Section 520 shall remain in full force and effect. That this Ordinance shall take effect and be in force from and after January 1, 1981. First read at a regular meeting of the Council of the City of Hopkins held the 18th day of November 1980, and finally r- .d, a. .roved and adopted and ordered published at a regular meeting of s. id C.1 cil • -.the 9th day of December 1980. 7 / / i!! . . H. E. RICHARDSON, A. L City Clerk Mayor JOSEPH C. VESELY, City Attorney Published in the HOPKINS SUN, December 17 , 1980. November 14, 1980 To: Mayor & Council From: City Manager Craig Subject: 1981 Water and Sewer Rates Once again, it is time to consider the annual need for adjust- ment in water and sewer rates. Inflation has continued to influence our utility operations, particularly since a constant expenditure of energy is necessary to pump water from wells, and pump wastewater away for treatment. The water fund, for many years, has had a cash deficit. Council policy has been to so adjust rates that the deficit is slowly overcome. The cash position at the end of October for the water fund was a de- ficit of $38, 013, with an additional $39 , 000 owed for loop watermain improvements. The sewer fund has historically had a large cash balance, and Council policy has been to draw down that balance at a controlled rate. The last time the water rate was raised was in early 1978; the most recent sewer rate increase was effective January 1, 1980. 111 Water Fund Exhibit A displays the Finance Director' s estimate of 1981 water fund revenue and expenditure at current rates. Plainly, no substantial monies will be available at current rates to either reduce the deficit or pay for needed loop watermain improvements associated with County Road 18 (about $30, 000 annually for the next several years) . It is recommended that the water rate be raised from 55 to 60 per thousand gallons, to yield an additional $35, 627 of revenue annually. Sewer Fund Exhibit B displays the Finance Director' s calculations of 1981 sewer fund revenue at several different levels, and comparing those levels with the budgeted expenditures. As you can see, none of the levels meets the full need. However, since the October balance was $190, 356, and a modest reduction is feasible in 1981, the 952 per thous- and gallon figure is recommended. It must be noted that the Metro Waste Treatment charge makes up the majority of sewer expenses, and this will use 25% in 1981. 11/ Exhibit C notes the amounts charged by other area cities for 15, 000 gallons of water and sewer service per quarter. The average expense for sewer service is 93 per thousand gallons; the average cost for water service is 65 per thousand gallons. I believe that you will find that the recommended 1981 rates are compar- able with area citys' 1980 rates. As a general rule, it is advisable to raise rates annually in response to inflation, rather than wait until crisis occurs and a 50% or greater increase is needed. es tfull s -mitted, WPC:dmj iam aig 4 '♦ /City Manager /6/30 ( O A - - .0.-„,„ ,e...i.........: -e, "0, /7)• a ) _- _.__7__.4„,c. ic ,„......_____ _____N.c1 . ,4_,.___ 1 2 3 4 5 6 7 I I I I I -- I I 1 / Eli; 1 ��: ; I , it ,�• Lir ras ; i►%r�� 1 21 ' Well 7 111r , r /! 70 80111 I — 3 Ell ' 111117, I .01 1 ! 1 s a . ; �� ►/ la • 7B 189oi 4 5 - // i ' SI !11. . 4 70 11 I ' - - 11 8 li 4 's _•.731; imaripi , ' 4" :a'- -,, 1 II , , . . , # 42? / 7 8 17 10 12 i 12 13 I 11. . , iJui / I I 15 i I 16 } I i I 16 17 i _ 17 l8 I , i 18 19 � I ! 19 i 20 i 20 21 ! I I 21 _ 22 , ? I ! ! 22 t3 I 23 I ?4 24_ ?5 ! 25 I 26 26 27 I '$ j j 28 ?9 i I ( ` ,29 10 ( I � 30 31 I �, I 31 32 ! 32 33 i ! 33 34 1 I ! ' } .34 I II /, '/ SalF6 ‘ / Pi7s,o. 4:- r. --1--/ • 1 2 3 4 5 C 7 sr-‘0- ,amEn 4- 71 .4.0 ..t„, fl / cr-ok . 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'- ' I 32 , ..viiigrairm ...i . - ' co, ....-.-, .- i, - 1. - 1 14 il.c..2 7 4. , 32 33 g y :77-' ,.-7,:e ' 1 , I1 _t *K1 74_ 0(__ "---)r-''t21"44-' R - -1 .- -t- - , ! , -1-76 0 0 o Oo ' 34 I 7 III . , , , 1 1 5 642./24138 35 36 - _ 37 H I 1 37 r .,/ - ; --4c---- e ',:,:eff a 111111111111111 ik891-'706. H 38 , , 1 - 7 MIN 011111111M1 i 1 39 1 41 I 1 1 , 40 1 1 , I -1--- -77--- , 1 43 43! ; ,__ ' 44 • d i 1 r 1 ' , 1 -4------1--- , -T- 44 111 i , 1 45 ' ' __ __I _L! : i ' 1 1 i HI 45 . I 1 - - - 17- -, - ----, t - - ---T, ' -7--- 1 • 47 IP. - - ---, -- --...,,t-- _.,1 ---=, ---==:--=74 - - WATER & SEWER RATE COMPARISONS Bloomington - Water: . 70/1, 000 gal. 10. 50/15, 000 gal. Sewer: 3. 85/mo. 11. 55/quarter II Brooklyn Park - Water: 1st 6, 000 7 . 15, 1, 000 @. 65 ea. 13. 00/15, 000 gal. Sewer: 17. 50/quarter, 18 . 75/quarter Brooklyn Center - Water: . 35/1, 000 gal. 5. 25/15, 000 gal. Sewer: 19. 00/quarter 20 . 00/quarter Crystal - Water: . 45/100 cu. ft. . 73/1, 000 gal. 10. 95/15, 000 gal. Sewer: 15. 50/quarter Eden Prairie - Min . of 24. 00/quarter - 10. 50 sewer, $13. 50 water Addn. . 50/1, 000 gal.-water . 68/1, 000 gal. sewer Edina - . 70/100 cu. ft. ; 1. 10/1, 000 gal. - 16. 50/15, 000 gal.- sewer . 30/100 cu. ft. ; . 48/1, 000 gal. - 7 . 20/15, 000 gal.-water Golden Valley - Sewer: $12 . 00/quarter Water: . 70/1, 000 gal. - 10 . 50/15, 000 gal. III Minnetonka - Sewer: . 75/1, 000 gal. 11. 25/15, 000 gal. Water: . 60/1, 000 gal. 9, 00/15, 000 gal. New Hope - Sewer: 2. 00/1st. 1, 000 gal. . 74/1, 000 gal.-12. 36/15, 000 gal. Water: 2. 00/1st. 1, 000 gal. . 55/1, 000 gal.- 9 . 70/15,000 gal. Plymouth - Water: . 42/1, 000 gal. 6. 30/15, 000 gal. Sewer: . 93/1, 000 gal. 13. 95/15, 000 gal. Richfield - Sewer: . 58/1, 000 gal. 8 . 70/15, 000 gal. Water: . 74/1, 000 gal. 11. 10/15, 000 gal. (Min.chg. of $7. 40) Robbinsdale - Water: 10 units @ . 80, . 54/unit after 13. 40/14 , 960 gal. (unit = 743 gal) Sewer: 19. 00/quarter St. Louis Park - Water: . 285/100 cu. ft. - 40/1, 000 gal. 6. 00/15, 000 gal. Sewer: . 55/100 cu. ft. - 80/1, 000 gal. 12. 00/15, 000 gal. III (Min, chg. of 9. 00/quarter) Hopkins - Sewer: . 82/1, 000 gal. 12. 30/15, 000 gal. Water: . 55/1, 000 gal. 8. 25/15, 000 gal. AN: 11/80