CR 88-212 Increase Sewer Rates
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November 9. 1988
Report:
88-212
INCREASE SEWER RATES
fl:o'Posed Action.
Staff recommends adoption of the following motion: Move the Fir$t Readin~ of
Or9inance 8~ -626. an Orginance ~stab1ishing Sanl tary Sewer Rates f9r 1989 arid
~endin~ Section 715.07 of the 1986 Hopkins Code of Ordinances~
Overview.
Metropolitan Waste Control Commission disposal fees have risen 37% over the past
five years. Disposal fees are about 65% of total sanitary sewer operating costs,
'Other co~ts have risen 26% over the last five year period. The last rate incrcas~
was in 1984 to the present rate of $1.50 per 1,000 gallons of water used. Each year
,the sewer profits have declined and, in 1988, it is estimated a loss will occur.
Even with the proposed rate increase for 1989, a small 1055 is estimated in ~989.
The proposed 'cate increase is to the level of $1.75, an increase of $.25 (16.7') per
1,000 gallons of water used.
Hopkins 1988 rates are $.07 to $.68 lower than other typical suburbs, such as:
Anoka, Robbinsdale, Edina, St. Louis Park, Eden Prairie and Crystal.
The variants in weather and MYCC costs plus the two year lag in
. adjustments from estimated flow to actual costs make projections highly
Increased MWCC disposal fees have ranged from 5.5% to a 14.6% over the
years.
receiving
unstable. '
past five
Primary Issues to Conslcler.
o Retain the present rate of $1.50 thus allowing retained earnings to decrease.
o Select a smaller rate increase with the uncertain hope that the increase trend
will stop, slow down or ~everse.
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(lohn E. Schedler, Finance Director
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November 9, 1988
Report: 88-212
INCREASE SEWER RATES
frODQud ActiQn.
Staff recommend::! adoption of the following motion: t1Qve the First Readine of
Qrdinance Jl8-626. an Ordinance Establishing Sanitary Sewer Rates tor 1989. and
~ing Section 71~.07 of the l~HoDkins Code of Ordinances.
Overview...
Metropolitan Waste Control Commission disposal fees have risen 37% over the past
five years. Disposal fees are about 65% of ~vta1 sanitary sewer operating costs. .
Other costs have risen 26% over the last five year period. The last rate increase
was in 1984 to the present rate of $1.50 per 1,000 gallons of water used. Each year
the sewer profits have declined and, in 1988, it is estimated a loss will occur.
Even with the proposed rate increase for 1989, a small loss is estimated in 1989.
The proposed rate increase is to the level of $1.75, an increase of $.25 (16.7\> per
1,000 gallons of water used.
Hopkins 1988 rates are $.07 to $.68 lower than other typical suburbs, such as:
Anoka. Robbinsdale, Edina, St. Louis Park, Eden Prairie and Crystal.
The variants in weather and MWCC costs plus the two year lag in receiving
adjustments from estimated flow to actual costs make projections highly unstable.
Increased MWCC disposal fees have ranged from 5.5% to a 14.6% over the past five
years.
Primary Issues to Consider.
o Retain the present rate of $1.50 thus allowing retained earnings to decrease.
o Select a smaller rate increase with the uncertain hope that the increase trend
will stop, slow down or reverse.
9z.rt {/J d~
~E. Schedler, Finance Director
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HENNEPIN COUNTY, MINNESOTA
ORDINANCE NO. 88-626
AN ORDINANCE ESTABLISHING SANITARY SEWER
RATES FOR 1989 AND AMENDING SECTION
715.07 OF THE 1986 HOPKINS CODE OF ORDINANCES
WHEREAS, Disposal fees paid to Metropolitan Waste
Control Commissi~n have increased over the past five years
without a rate increase,
WHEREAS, It is estimated the present sewer rate will
result in operating losses for this year and the next,
BE IT OkDAINED by the Council of the City of Hopkins as
follows:
I.
That Section 715.07, Subdivision 1 and 2 of the 1986
Hopkins Code of Ordinances is hereby amended as
follows:
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(1) Resi~ential. The gross sanitary sewer service
charge for residential customers is $1.75 per 1,000
gallons of water used plus 5% of the sewer charge.
(2) Commercial. Sanitary sewer service charges for
commercial customers is $1.75 per 1,000 gallons of
water used plus 5% of the sewer charge.
II. That the existing charges fer the above services are
hereby repealed.
III. EFFECTIVE DATE: The provls1ons of this Ordinance shall
take effect and be in force in connection with all
billing rendered hereunder from and after January 1,
1989.
First read at a regular meeting of the Council of the City
of Hopkins held on November 15, 1988, and finally read,
approved, adopted and ordered published at a regular meeting
of said Council of said City on December 13, 1988.
JAMES A. GENELLIE
City Clerk
DONALD J. MILBERT
Mayor
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JERRE A. MILLER
City Attorney
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