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88-1520 WHIjE - CI>7V CI.ERK P�N¢- - - FtNpNCE GITY OF SAINT �AUL Council " � �D CANARV - DEPARTMt°NT BLUE - MAVOR File NO. �� Council Resolution Presented By Referred To Committee: Date Out of Committee By Date WHEREAS, the City of Saint Paul sold 1988 Sewer Revenue Baids to finance the Combined Sewer and Street Prog�am and to reduce sanitary sewer rates, and WHEREAS, the City of Saint Paul can reduce the sanit�-y sewer rates for residential properties for the last quarter of 1988 and maintain those rates for 1989, and WHEREAS, the Depm�tment of Pu�ic Works recommends-�a volume a�usted rate structure of�vee steps instead of the traditional five steps, and WHEREA►S, the City of Saint Paul will incur certain costs in reg�d to sewe.r se�rice for 1989, and WHEREAS, the Finance, Management and Persa�nel Committee has reviewed the 1989 proposed �dget for the Sewer Service Fund and has recommended a spen�ng plan which is $851,102 less than �e Mayor's Proposed Budget that results in antiapated expendtures, ae�its and financing as f�laws: Expenc�tures: Metropolitan Waste Contr� Commission Gross Ch2�ges $i5,518,� Services 610,667 Debt Payment 46,ggg Sewer Operatian& Maintenance 3,030,577 Major Sewer Repa�& Storm Panding 85p,p� Sewer Administration 1,117,2g3 Rainleader Disconnect Progam 25g,756 Inflow/lnfiltration Carection Prog�am 452,045 Youth Jobs Progam 50,ppp Combined Sewer& Street Progam(CSSP) 8,038,092 1989 Payment for Debt Service 9.557.250 T�TAL EXPENDITURES $39,529,668 COUNCIL MEMBERS Yeas Nays Requested by Department of: Dimond �� [n Favor ��c� Retcman ��;�� _ Against BY Sonnen Wilson Form Approved by City Attorney Adopted by Council: Date Certified Yassed by Council Secretary BY By , tlpproved by Mavor: Date _ Approved by Mayor for Submission to Council By BY � �� , - . . � (,,��-i,s�o Metropditan Waste Contrd Commissian Cre�ts: 1987 Overpayment Crec�it ($ 1,500,OOOj 1969 C�rent Vaiue Credit (1,033,404� 1989 Debt Payment Credit (46,988} NET CREDITS ($ 2,580,392) T�TAL NET 1989 EXPENDITURES $36,949,276 Finanang: Sanitary Sewrer Service Ch�ge 21,481,176 Storm Sewer System Ch�ge 5,200,000 U�of Bond Sale Pr��eec� 5,381,245 Interests on Investments 4,094,618 Water Utility Surchazge 687,583 Miscellaneous Financing 1�4 654 TOTAL FINANCING&REVENUES �36,949,276 NOW,THEREFORE,BE IT RESOLVED, that p�rsuant to Sec�tion 77.02 of the Saint Paul Legislafive Cade pertaining to Sewer Service Chazges and upon the recommendation of �e City Adminis�ation, the Council of the City of Saint Paul does hereby establish the amount and basis for Sewer Service Charges to be levied and colfected effective October 1, 1988 ttx�ough December 31, 1988. $1.52 per 1� cubic feet for the f�st 100,000 cubic feet $1.48 per 100 cubic feet for the next 4�,000 cubic feet $1.41 per 100 aibic feet for all over 500,000 cubic feet BE IT FURTHER RESOLVED that the rates effective January 1, 1989 ttvou� December 31, 1989 �all � as follows: $1.52 per 1� cubic feet for the f�st 1�,� cubic feet $1.50 per 1� cubic feet for the next 4�,000 cubic feet $1.45 per 100 cubic feet for all over �,000 cubic feet A . _ (,,���-��'aa . . • The minimum ch�-ges for properties shall be based upon water meter sizes and in the following amounts: Water Meter Size 3/4" and smaller 3.60 per r�onth /� 1" 6.3a per month (9�. 1 1/4" 2.80 per month (� 1 1/2" 4.44 per month 2" 10.� per month 3" 21.00 per month 4" 52.tX3 � month 5" 75.� per month 6" 1�.� per month 8" 172.00 �r month 10" 246.00 per month 12" 340.00 �r month All over 12" 500.� per month BE IT FURTHER RESOLVED, that s�wer service chazges for one and iwo family dwellings or premises shall be quarterly, regardless of the size of the water met�, and shall be based on the water consumption on the f�st qu�terly billing of �e year by the city; and be it FURTHER RESOLVED, that sewe.r service ch�ges for all other properties, re�rc�ess of the size of the water meter, shall be based on actual water consumption for each billing period; and be it FURTHER RESOLVED, that properties served by meters one inch and smaller shall be billed quarterly. Properties served by meters lazger than one inc� shall be billed monthly, vvith the exception of one and two family homes which shall be chazged c�azterly for sewer service; and be it FURTHER RESOLVED, that it is the intent of this City Counal to adopt a 1989 Budget for the Sewer Service Fund ba�d on the September 19, 1988 recommendtions of the Finance, Management and Per�nnel Committee, whic� recommenc�ation includes that there be no increas�e in the Storm Sewer System ch�ge for residential properties for 1989, and WHITE - C�TV GLERK PIN,r�,. -, Fl`NANCE GITY OF SAINT PAUL Council C4NARV �- DEG�R-T��N1 File �O• �//��� BIUE - MAVOR Council Resolution Presented By Referred To Committee: Date Out of Committee By Date BE IT FINALLY RESOLVED that a sep�ate resolution be prepared setting the 1989 Storm Sewer System charge rates to generate goss billings of $5,359,0� as foi(ows: �.--- �--- �� Cemeteries, Gotf Co�ses, �52.� per aae �; P�ks, Unimproved Vacant Land , _ - and 1 & 2 Family Residential Land in excess of 1/3 aae Raikoads $200.00 per acre 1 & 2 Family Residential $32.00 per p�cel Properties less than 1/3 acre Condominiums and Townhouses $20.� per unit Public & Private Schools �"290.00 per aae and Community Centers Multiple Dwellings, Ch�ches, $388.00 per aa-e Synagogues and Government Buildings Commercial and In�slrial $525.00 per acre COUNCILMEN Requested by Departmen of: Yeas p�eW Nays � Q Nicosia ln Favor Public Works �U REB,7bjh 9-20-88 Rettman � Scheibel � � Sonnen __ Ageillst BY Taaes�o Donald E. Nygaard Wilson SEP ? � � Form Approved by City Attorney Adopted by Council: Date Certified Pass uncil Secre BY By� Approve M r: Da _ ` 2 Approved by Mayor for Submission to Council _ By PtJ�.�s�ED e�r - l 1988 .� . . . � . . . � . .� DATE�MNTIASED .. .DA7E COIRLE}�O ��� , . ��E�� SH�ET No. 0 19'8 2 Public Works 8-31-88 oer�►ox�cinA !� wnron con�asr�Nrr �N �nc�a�uwmeMOar o�croa; 6«rk c�' � NUMBER FOR S ivisian 292-6138 � �°��' Q�---- 5 ��ir. Fi.�a�.Mg�t ewer D ;: . , ��;� 7 Cit CQt�nC�.l . :Appro�e reso3.ution (Reference A) establis�iing sanitary �ewer ra�es for the las . - quarter of 1988 and for al.], of 1989. �ncMS:t�w«wi.«�n� couNCC�cN_r�aer. . . . . . . PLANMp OOA�MYBBqN � .-..CNIL 3ERVICE COMMiN8810N . DATE.N �. .DA7E OUT � ANALYBT � . PfiOME NG. � -. -. �)IMiO COt�ION . . . ISD 826 BCNOOL BOARD. . . . . . � . . � � . - . � -,�_.STAFF . � CIUIRSER OOMAAIBSION � . . -COMPLEIE A3 IS � -AODL INFO.ADOED� � _PDN AAb�.l�IPO�� _�FEEDB�K��* � .. W6iNICT�COUNdI. .. . . . � . . . �,�,�,��„��, •°�"�": RECEIVED �o de�elop a strategy :for - , safer and"�'better neighborhovd sEp 0� t��8 To place p�iority on the need of` childr�n-`and youth. MItYOR'S�O�F10E ..m►�a r�on.�,�u�.c�.oiere�rnr twno:w�a.w�:'wn�wnr�: . The sale of :Sewer Revenue Bonds in May provide an oppcs�tunity to reduce : . :sanitarg sewer rates. . , : .wsar�c�no�r t�m.so.�w.►a.ee..�.�,a�1: Sewer rates are traditionally set �or the calan�der year; �however, 3�cause of the financing affo�tied by the sale of sewer revenue bonds, homeowners can reaiiz� a reduction ot about 18'� in their sanitary sewer charges over the p�esent �ate. _ tx�w�ouo�ces�.w►»n..�a ra wr,anu: , There are no negative affects. L;;t;rGi► ReS�a1'Ch C@I1t@f. . � �t P 0 61�85 . ,►�,�►;�: .� � NLA :-., _ . - _ : M�ro�r���rs. t��[s: N/A I � � �-,s,�a . �� '�, CITY OF SgINT PA..UL ' =''��"" � OFFICE OF TF3F CITY COIIi�TCIL ,:+�i m:nl Comnlittee Report �:i�ance, l�ana�eme�t, & Persannel Committee. September 19, 1988 1. �c�provai of minutes of September 12 meeting. Approved 2. Resolution 88-1339 - amending the 1988 budget by Approved as amended a�ding $400,000 to the Financing and Spending Plans for Property Management Fund-City Hall Annex. (Referred from Council August 16, laid over September 12) '. 3. Resolution 88-1286 - amending the l988 budgEt by Approved as amend�ed �adding $20,000 to the Financing and Spending�Plans for Tuition Reimbursement Program. (Referred fT-orn Council August 25, laid over September 12) 4. Resolution 88-1441 - �amending the 1988 budget by Withdrawn adding $6, 100 to the Financing and Spending Plans for Traffic Maintenance projects. (Referred from Council Septemb 1 laid over September 12) 5. Discussior� of Mayor's recomrt►endations and F`inance Resolution 88-152 Comlwittet's recommendations for sewer rates. approved as •amended 6. Appearance of Mary Jane Rachner regarding Fire �Jy?�� Department personnel/human rights. � � �� 7. Adjourn. CITY HALL SEVENTH FLOOR SAINZ'PAUL, MINNESOZ'A 55102 ��a �NFi1TE - C�TV GLERK - t/ PINK - FINANCE G I TY OF SA I NT PA U L Council �//��//� OLUERV - MpyORT .ENT File NO. „Y^��� Council Resolution �,� Presented By �'� � � � Referred To Committee: Date Out of Committee y Date WHEREAS, the C of Saint Pau! sold 1988 Sewer R�venue Bonde to financ;e the Combined Sewer an Street Program and to reduce sanitary sewer rates, and WHEREAS, the City of ' t Paui can reduce the sanitery sewer rates far the last quarter of 19�8 and m�intain tho� attes far 1989, and WHEREAS, the Department af bNc Waics recommends a vdume ac�u�ted rate structure of three steps in�tee�d of tra�tion�l five �teps, aind WHEREAS, the City ot Saint Paul will ' ar certain costs in regerd to sewer service for 1989, and WHEREAS, the Departm�t of Public W ea�imates these anticipnted expendit�res, crecits and firumang for th� 19�9 budget as fdiows: Excer�dhres: Metopo�n Wa�e Cor��rd Commissron Groas arges $15,519,000 Services 610,667 Debt Paymer�t qs,ggg Sawer Op�a�ort& Meinten�oe 3,098,577 - Major Sewer Rep,ur& Storm Pondng 850,pp0 Sewer A�ninissb�a�bon 1,127,293 Rainleader Disaonnect Progam 282,556 Infiowllnfiltr�ati�on Correction Prog�am 462,245 Yo�rth Jobs Progam 100,000 Combinad Sewer& Streat Progam(CSSP) 8,112,092 1989 Payment for Debt Servics 9•557.Z�Q TOTAL EXPENDITURES $39,765,668 COUNC[LMEN Requested by Departm'�nt of: Yeas preW Nays Nicosia [n Favor Rettman Scheibel Sonnen _ Ag8iI1St BY Tedesco Wilson Form Approved ity Attorney Adopted by Council: Date Certified Yassed by Council Secretary BY Bs, Approved by Mavor: Date _ Approved b ayor for Submission to Council BY - – — BY . �'�,(S'.t0 M�rc�noatan Wsste Contrd Gommiss�n Cred�s: 1987 OverpaymeM Crecit (� 1,500,000) 1989 Current Y�due A'edt (1,033,404) 1989 Debt Paytr�nt Credt (46,988) NET CREDITS (S 2,580,392) � T0 L NET 1989 EXPEI�ITURES s37,185,276 F�ancing: Sanitary S Service Charge 21,717,176 Storm Sewer em Charge 5,200,000 Use of Bond S Proceeds 5,381,245 Interes4s on In ts 4,094,618 Water Ua�ty Su' 687,583 A�Cellaneous Fin �Q4•654 TOTAL FINANCING&REVE ES 537,185,276 NOW,THEREFORE,BE IT RESOL D, thnt pu�su�nt to Se�tion 77.02 of the Sdnt Paul Legslative Code pertain�g to Se�wer wvk�e Charges and upon the recommendation o� the City Adminis�ation, the Council of the ' of San�t Pau1 does hereby ea�bhsh the amount and b�is for Sewer Service Chargea to be le 'ed and c�ollected effe�tive October 1, 1988. The rate sha� apply to aM �ewer bins randered by th aty from �d aiter October 1, 1�8. The rate shedl be: 1. $1.55 per 100 cubic feet for the frst 100, cubic feet s1.50 per 100 cubic feet for the naM 400, cubic fee� $1.45 per 100 a�ic feet fa all over 500,000 'c fee� 2. The m�imum charges far properties ahap be upon vr�ter meter eizes and in the amounts: Water AAeter Size 3!�' and smaNer 3.60 month 1" 6.30 mornh 1 i/4' 2.80 month 1 1/2" 4.A0 per th 2" 10.00 per oMh 3" 21.00 per trrortth M 52.00 per mlprtth 5" 75.00 per mdnth Vr �W.W � � 8� 1/L.W �1' IYIW'1�1 . } WH�TE - CITV CIERK PINK - FINANCE G I TY OF �SA I NT PA U L Council y/�� � CANARV - DEPARTMENT File NO• �r �� BLUE - MAVOR � Council Resolution � � Presented By Referred To Committee: Date Out of Committee By Date 1 2�6.00 per month 12" 340.00 per month AN o 12" 500.00 per month BE IT FURTHE ESOIYED, that �ewer aervice chargee for one �d iwo fam�y dNrellings ar premiaes sh�ll be e�ly, regard�ss of the size of the water m�ter, and sh� be based on the water consumption the fir�t quarterly billing of the y�r by the city; and be it FURTHER RESOLVED, at �ewer se�ce ch�rges fvr au other prc�pe�ties, reg�rdese of the �ize ofi the water meter, shall �sed on a�tu�l water catsumpti�on far e�tch bi�ng pertod; and be it FURTHER RESOLVED, that Merties served by m�ters one inch and smaller sh�dl be biU�d � quarteriy. Prcp�ies �enred by eters I�rger then one inc� sheN be billed monthly, with the exc8pfion c� one and two family mes wi�ch sh� be charg�d quarterly far se�ror sKrrice; and be�it FINALLY RESOLVED, that the receip derived irom the above rates be used for sewer service c�ts �d for the payment on the S Revenue Bon�. 1 � , ,� �.��.Q1�J.�i COUNCILMEN Requested by Department of: �lic Works 8-31-88 Yeas Drew NaYs DIN�7h ,Q�Q Nicosia ��� V Rettman [n Favo[ � � �_ Scheibel � Sonnen __ Ageltlst BY � Tedesco Donald E. Nygaard, Direct Wilson Form Approved City Attorney Adopted by Council: Date Certified Passed by Cuunc.il Secretary BY By� Approved by Ylavor: Date _ Approved b r for bmission to Council BY - — — ,,�ITY o. GITY OF SAINT PAUL ��i/�av �+ ; o m OFFICE OF THE MAYOR � ii�ii I1�u + s ao �a 347 CITY HALL iss• SAINT PAUL, MINNESOTA 55102 GEORGE LATTMER (612) 298-4323 MAYOR September 1, 1988 The Honorable James Scheibel and Members of the City Council 7th Floor City Hall Attention: Bob Long, Chairman, Finance, Management and Personnel Committee Dear President Scheibel and Council Members: I am transmitting a proposed Sewer Rate Structure for the last quarter of 1988 and all of 1989. The Proposal is based on the recommendation of the Department of Public Works dated August 31, 1988. Since proposing the 1989 Budget for the Sewer Seroice Fund, more current data regarding Metropolitan Waste Control Commission charges and credits have become available. Based on the new data, I am recommending that the 1989 spending plan be adjusted to provide$100,000 for the Youth Jobs Program in the Sewer Division, and that the Sewer Maintenance Program be increased. And at the same time, I am recommending a downward adjustment in charges for sewage treatment, allowing for a net reduction in spending of$568,114. I am recommending that current sanitary sewer rates be reduced by approximately 18%. Based on a proposed three step rate structure, the average Saint Paul home's annual sewer bill would be reduced $35 from $190 to$155. These proposed sewer service charges will be discussed at the public hearing before the City Council on September 20, 1988. The Finance, Management and Personnel Committee of the City Council will hold an informational meeting on the proposed rates on September 6 at 7:00 p.m. in the City Council chambers. The Public Works Director, the Sewer Engineer and the Budget Director are ready to assist you in your rate structure deliberations. Our recommendations for 1989 rates take into account the Council's desire for long term rate stability. Very truly yours, Geor Latimer May GUbjh Attachments: Nygaards August 31, 1988 Report cc: Don Nygaard, Roy Bredahl, Greg Blees 46 . �=�-/s,�d "'°�°""`w CITY OF SAINT PAUL ;,`����t7Y p�4�J �`.c4'� � �►�`'�, .o � �, DEPARTMENT OF PUBLIC WORKS " ""�����" " DONALD E. NYGAARD, DIRECTOR ,,� „�� ,,. _ ,.e• ' 600 City Hall Annex, Saint Paul, Minnesota 55102 '"'��R,��„....nC°'� 612-298-4241 GEORGE LATIMER MAYOR August 31, 1988 Mayor George Latimer 347 City Hall Re: Sanitary Sewer Service Rates Dear Mayor Latimer: I submit for your approval and transmittal to the City Council the recommended Sewer Service Rate Schedule for the period from October 1, 1988 through December 31, 1989. The rates recommended finance 1989 anticipated expenses, allow for an 18% reduction in current rates for low volume users, and provide for long term rate stability. This matter is scheduled for public hearing before the City Council on September 20, 1988. The Finance, Management and Personnel Committee of the City Council will hold an informational meeting on the proposed rates on September 6 at 7:00 p.m. in the City Council Chambers. The following are the itemized anticipated expenditures, credits and financing for the 1989 budget year for the Sewer Service Fund: ExBenditures: Metropolitan Waste Control Commission Gross Charges $15,518,000 Services 610,667 Debt Payment 46,988 Sewer Operation & Maintenance 3,098,577 Major Sewer Repair& Storm Ponding 850,000 Sewer Administration 1 ,127,293 Rainleader Disconnect Program 282,556 Inflow/Infiftration Correction Program 462,245 Youth Jobs Program: Sewer Division 100,000 Combined Sewer & Street Program (CSSP) 8,112,092 1989 Payment for Debt Service 9.557.250 TOTAL EXPENDITURES $39,765,668 �.��6�0 � Mayor George Latimer 2 MetroRolitan Waste Control Commission Credits: 1987 Overpayment Credit ($ 1,500,000) 1989 Current Value Credit (1,033,404) 1989 Debt Payment Credit (46,988) NET CREDITS ($ 2,580,392) TOTAL NET 1989 EXPENDITURES $37,185,276 Financing: Sanitary Sewer Service Charge - Net Revenue 21 ,717,176 (1) Storm Sewer System Charge 5,200,000 Use of Proceeds: 1988 Revenue Bonds 5,381,245 Interests on Investments 4,094,618 Water Utility Five Cent Surcharge 687,583 Miscellaneous Financing $104.654 TOTAL FINANCING $37,185,276 (1) Sanitary Sewer Service Charge Revenue to balance the budget The Sewer Service Fund expenditures include funding for the Rainleader Disconnect Program and the Inflow/Infiltration (I & I) program. These are related programs and are mandated by the city's National Pollution Discharge Elimination System (NPDES) permit. Inflow is stormwater discharging directly into the sanitary sewer system through rainleaders, catch basins, etc. Infiltration is groundwater entering the sewer through cracked pipes, poor joints, manhole walls and other similar sanitary sewer system leaks. The I & I program is a key component in the final step of the sewer separation program, the elimination of over 240 sanitary sewer regulators which serve as "safety-valves" to the combined sewer system. When these sewers surcharge during rainstorms, the regulators divert the excess combined sewage to the river. Once an area has its sewers separated and rainleaders disconnected, the major source of inflow to the sanitary sewer will have been eliminated. Before a regulator can be sealed, it must be assured that the sanitary sewer does not have an excessive amount of I & I that would cause system failure or sewer backups. A separate budget has been prepared for the I & I program beginning in 1989. However, beginning early this summer, rainleader staff made some preliminary investigations and began to develop this program. , ��-��an � Mayor George Latimer 3 The expansion in the Rainleader Program was accomplished last year by the hiring of temporary city employees and the utilization of over twenty Transition workers whose wages were paid by a grant from the McKnight Foundation. The Transitions program was designed to enable chronically unemployed citizens of Saint Paul to develop positive attitudes and gain the work experience and/or skills necessary to make a successful transition into the competitive job market. The Rainleader and Inflow/Infiltration programs will have an authorized permanent staff of 10 persons. Approximately 10 additional seasonal workers will be employed between 1989-1995. These programs will use persons trained through the Transitions and Job Corps Programs. The Youth Jobs Program is a new Sewer Service Fund activity for 1989. A budget of $100,000 is being requested. This funding is intended to allow the Department to expand its recruitment of youth workers in 1989. So far, the program has been limited to students who meet strict income limitations of the agencies who can provide funding for the youth worker wages. These agencies have also been limited as to the number of students that they can provide to us. The Metropolitan Waste Control Commission report on the final cost allocation for the year 1987 (not including Lake Overflow) is anticipated to indicate a city sewage flow volume of 14,900 million gallons. This is significantly below the estimate made in October, 1986, of 18,700 million gallons. The cash payments to the MWCC in 1987 were, therefore, significantly more than needed. This resulted in an overpayment in excess of $1,500,000 and has been applied as a credit toward the 1989 charges. Sewer system financing this year refleets the use of 1988 Revenue Bond proceeds and interest on investments that will be utilized to partially finance the Combined Sewer and Street Program. Also, the budget reflects the five cent surcharge on the water revenue to the residents of the City of Saint Paul to pay the Water Utility's annual facility relocation costs that are a part of the CSSP program. You will note that the extra revenues provided from the bond sale and the significant Metropolitan Waste Control Commission credits in excess of $2.5 Million have been used to substantially reduce the existing sanitary sewer rates. There remains a fund balance to stabiliie rates in subsequent years. Since establishing a sewer service charge based on volume in 1971 , the city has maintained a rate structure containing fiv . This year, a three ste� rate structure is being recommended. This charge should simplify the rate structure and not significantly affect the sewer service charges to the large water use industries. The Department of Public Works recommends a rate structure which will generate $21,717,176 after a 3% allowance for delinquencies. . ��-���� Mayor George Latimer 4 The recommended rates to become effective October 1, 1988, are as foilows per 100 cubic feet: Present Rate Structure* 1987 Rate Present Rate 1988/1989 First 100,000 Cubic Feet $1.46 $1.90 Next 200,000 Cubic Feet 1.44 1.51 Next 200,000 Cubic Feet 1.41 1.48 Next 500,000 Cubic Feet 1.38 1.45 Over 1,000,000 Cubic Feet 1.34 1.41 Pronosed Rate Structure First 100,000 cubic feet $1.55 Next 400,000 cubic feet 1.50 Over 500,000 cubic feet 1.45 ' Rates are per 100 cubic feet of water consumption As you will note, the first step rate is being decreased 18% from current charges. Based on 2,500 cubic feet during the winter quarter, the average yearly household cost for sanitary sewer service will be $155.00 for the last quarter of 1988 and for all of 1989. This is a reduction of $35.00 annually from the current rate. Very truly yours, �' Donald E. Nygaard Director of Public Works DEN/bjh