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Memo 1985 Utility RatesTO William P. Craig FROM John E. Schedler SUBJECT 1985 Utility Rates INTER - OFFICE MEMO CITY OF HOPKINS 1010 FIRST STREET SOUTH PHONE: 958.8474 HOPKINS, MINNESOTA 55343 DATE November 15, 19 84 I have reviewed the 10 month figures of the 3 enterprise funds for 1984. The Sewer Fund will record a substantial operating profit for 1984 mainly due to the large credit for actual flows in 1983. The 1984 budget and rate was based on the anticipation that the 1983 MWCC adjustment would result in an additional charge of $ 16,500, however the City receive a credit of $ 50,645. While the actual gallonage flow exceeded budget in both 1982 and 1983, the City received a credit for 1983, but a normal expectt€harge for 1982. It has become increasing difficult to project the largest single cost item in the Sewer Fund operation, the MWCC charge, with the year delay in knowing the actual charges. At this juncture I see no need to increase the 1985 Sewer rate of $ 1.50 per 1000 gallons of water used. The refuse operation will show a profit of approximately $ 27,000 for 1984. This fund continues to accumulate towards the necessary working capital needed to carry the receivables. At the end of the current fiscal year, both the cash and fund equity accounts will be in a positive status. The current $ 7.00 per month residential rate is recommend to remain unchanged for'1985. The Water Fund will record a fairly good profit for 1984 barring any unforseen large maintenance items during the last two months of the year. The profit should cover the bond principal and capital outlay and also provide an improvement in the cash position. Since the water flow is influenced by so many factors, some of which vary dramatically from year to year, and bonds repayments will continue for another four years, I recommend a water rate increase of 5C to 90c per 1000 gallons for 1985 (this rate increase expressed in percentages would be 5.88 %). CITY OF HOPKINS Hennepin County, Minnesota ORDINANCE NO. 84- AN ORDINANCE ESTABLISHING WATER, SANITARY SEWER, AND GARBAGE RATES FOR 1985 AMENDING, SECTIONS 520:05 and 520:20 of the 1977 CODE OF ORDINANCES BE IT ORDAINED by the Council of the City of Hopkins as follows: I. 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 $.09 per each 100 gallons of water plus 6% 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 determined 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 and all meters may be read by officals 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 meters were read quarterly. SECTION 520:20, SANITARY SEWER SERVICE CHARGES AND RATES. Subdivision 1, Sanitary Sewer Service Rates and Charges for Residential Customers. The gross sanitary sewer service charge for residential customers shall be $.150 per each 100 gallons of water plus 6% thereof, provided 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 ensuing quarter ending in January, February or March. Whenever such average water used in any such single family dwelling during the quarters ending in January, February or March may be unfairly 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 us 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 $.150 per each 100 gallons of water plus 6% thereof. SUBDIVISION 3. Non - payment of City utility bills on a timely basis shall be cause to order the termination of service. If after due notice of an im- pending shut off, payment is still not received, a City crew is to be dispatched to effect the shut -off. A shut off fee of $35.00 is to be assessed when the crew is dispatched and must be collected along with all delinquent charges before service can be restored. Property owners are required to keep their service pipe and stop box in working order at all times and are responsible for all such repair costs. That in all other respects said Section 520 shall remain in full force and effect. II. EFFECTIVE DATE The provisions of this Ordinance shall take effect and be in force in connection with all billing hereunder rendered from the after January 1, 1985. First read at a regular meeting of the Council of the City of Hopkins held of November 20, 1984, and finally read, approved, adopted and ordered published at a regular meeting of said Council of said City on December 4, 1984. J. SCOTT RENNE City Clerk ROBERT F. MILLER Mayor JERRE MILLER City Attorney • ate: November 2, 1984 To: John Schedler From: Jim Genellie Subject: Water Rates CITY Bloomington Brooklyn Park Brooklyn Center Crystal Eden Prairie ry11114-6:1-Edina Golden Valley Hopkins Minnetonka New Hope Plymouth Richfield Robbinsdale 1.0 1.27 WATER RATE . 92/1,000g 1.19 . 91 . 90 . 40- . 98 .85 .70 .80 . 42 — MINIMUM BILL ADDITIONAL CHARGES $7.15 6.50 6.30 9.80 t1 O rn Q, 10.50 3.00 9.50 St. Louis Park .59 4.43 .65/1,000g after 1st 6,000g . 35 OIee S,$ML Co,/s ?ieuC 7 car 7s wtc..cp ci ss a sse. 11.45 /quarter debte4/15.e 3.00 /1st 1,000g plus billing & debt 4.b-t service charges $2.95 Service Charge .80/100c.f. after first 1,000 c.f. •ITY WATER RATE Brooklyn Center .35/1,000g Edina .40 Plymouth .42 St. Louis Park .59 Minnetonka .70 New Hope .80 Hopkins .85 Eden Prairie . 90 Crystal .91 •oominton .92 Golden Valley .98 Richfield 1.07 Brooklyn Park 1 Robbinsdale 1.27 • Average .81 /1,000g