87-1762 WHITE - C TV CLERK � � �
PINK - F NAN��E � G I TY O F S I NT PA U L Council ���� ��,�
CANARV - DEPARTMENT
BLUE - MAYOR File NO• ��� �
,
ouncil esolution �..�__
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Presente .By ��
eferred To - Committee: Date
ut of Committee By Date y
WHEREAS, the City Council recen ly passed Ordinance 17513
( ouncil File #87/16050) to impleme t a 5 cent Surcharge on the Water
U ility rates to provide a financin source for the City' s local
s are of the state mandated sewer s paration program; and
WHEREAS, this surcharge revenue source was not included in the
a opted 1988 budget for neither the Water Utility nor the Public
W rks Sewer Division; and
WHEREAS, this Council desires o look at other options to finance
t e City's local share of the stat mandated sewer separation
p ogram, such as using revenue bon ing, and, or increasing the storm
a ea charge;
NOW, THEREFORE, BE IT RESOLVED that the General Manager of the
W ter Utility, prepare an ordinanc to rescind ordinance 17513, and
p epare the 1988 Water Rates witho t a 5 cent Surcharge, and;
BE IT FURTHER RESOLVED, that t e Mayor 's Office and Budget Office
p esent to the City Council option to utilize revenue bond financing
f r sewer construction and options to increase the storm area charge
a d reduce the sanitary billing ch rge.
UNCILMEN Requested by Department of:
Yeas Nays �
i.co3ia [n Favor
ettman �
cheibeY Against BY
onnen
eida
. �C � � '�a7 Form Approved by City Attorney
Adopte by Council: Date
Certifie P s e b un il S re ar BY
Bp
A►pp v d b � avor: Date 1 � Approv by Ma r ission to Council
B B
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LV� olosss
i Council DEPARTMENT -
R. Sonnen CONTACT NAML
2 PHONE �
12 87 DA�E
AS FOR_ROUTING ORDER: (See rever e side.)
� epartment Director 4 Maqor (or Assistant)
inance and Management Services Director 5 City Clerk
2 dget Director _ �
� ity Attorney _
G 1 (Clip a21 locations for signature.) '
B G 0 ? (Purpose/Rationale)
Council ecently passed or inance 17513(C.F. 87/16050) to implement a 5 cent surcharge on the
water u lity rates to provfde a financing sourc for .the City's local share of the state
mandate sewer separatioa program. This resolut on� seeks to rescind that ordinance and prepare the
�988 wa r rates without a 5 cent surch�rge. Th Council wants to look at other options to
finance he City's share of the sewer separat�on program. The resolution also directs the Mayor/
Budget fice to present option to the Council n utilizing revenue bond financing for sewr
constru ion and options to increase the storm a ea charge and reduce the sanitary billing charge.
dST B N U T Y AND SO L C S T
The 5 ce t surcharge was not a part of the 1988 udget. If the surcharge is for the sewer pro�ect
it right y belongs on the sewer side of the bill, not the water side. 1988 �budget decisions to
reduce operty tax levy for general obligation ebt service for Water Pollution Abatement Bonds
by incre sing se�ter rates 24Z. This action abt ns revenue support from tax-exempt properties
and pro des refief to higher value homes and b iness propertiea. Since then there has been a 10�
increase in market values of commercial and ind trial property ahiftin� more tax burden to them.
The com ned increases creates extraordinary bu en on those properties. This reaolution seeks to
FIN G DGET C IV Y B HARG D OR C DIT :generate options to relieve the
(May 's signature not required if under $10 000.) burden.
To 1 Amount of Transgction: 0 Activity Number: None
F ing Source: Eliminates 5 cent surch ge on water bill to finance sew+�r separation
pro�ect. .
' (List and number all attachmen s.)
1. Reso tion
2. Memo: Somne to Council Members dated 12/2/87
A M S RATIVE PROCE�URES
es N� Rules, Regulations, Proced res, or Budget Amendment required? �A�
es i/No If yes, are they or timeta le attached?
DE A �M JT REV W CITY ATTORNEY REVIEW
_ s —�10 Council resolution required? Resolution required? Yes _No
_ s !/IJ,o Insurance required? , Insurance sufficient? �Yes _No
s ��No Insurance attached?
� � -i�6 �
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G1TY OF SA NT PAUL
���i' iii��
OFFICE OF THE ITY COUNCIL
KIKI S NNEN
Counci ember
MOL.LY 'ROURKE
Legiala ve Aide
- T : City Council Members
.
F OM: Kiki Sonnen �
D TE: December 2, 1987
R : 1 ) Recommendation to Repea Ordinance 17513 (adds
5 cents surcharge on wa er bill to finance Sewer
Separation Project)
2) Recommendation to Adjus Rate Structure for High
Volume Sewer Users.
I am requesting that we take actio to repeal Ordinance 17513
(Council File 87-1605) which adds a five cent surcharge to the
ater bill for the years 1988 thru 1995. The surcharge would
ave generated about $700 , 000 a y ar to finance the cost of
oving water mains when required s part of the state mandated
ewer separation program.
would like the ordinance repeal d for the following reasons:
1 . The increased revenue was ot a part of the 1988 budget
for the Water Utility or t e Public Works department;
2. If the water surcharge mon y is for the sewer project, it
rightly belongs on the sew r side of the bill, not the
water side ;
3 If we need to raise more m ney for our local share of the
state mandated sewer separ tion program, we should look
at both:
a) Using revenue bond fin ncing, instead of just pay as
you go financing: so t at costs are more equitably
spread against benefit ing users , with lower sewer
rates for current user ;
b) Using the storm area c arge instead of the sanitary
bill charge: so that sers of storm sewers who do not
purchase water help p y for the separated sewers.
I have prepared the attached res lution which directs the Water
Utility to ignore the 5 cent sur harge for the 1988 Water bill ,
because City Council intends to epeal t�he ordinance. Please
support this resolution.
CI HALL SEVENTH FLOOR SA1NT PAUL, MINNFSOTA 55102 612/298-5378
..�a.�s
� � - i7� .�-
ity Council Members \
ag e Two ��
ecember 2 , 1987
hen we took action to adopt the ity' s 198f3 budget, we reduced
y $3. 3 million the property tax evy for general obligation
ebt service for Water Pollution batement Bonds issued for
ewer construction. Correspondin ly, we increased the sewer
rates by 24 percent to pay for th existing debt service. We
took this action in order to obtain some revenue support from
tax-exempt properties and to provide some property tax relief to
higher value homes and business properties.
Since adoption of the budget, the State Board of Equalization
has ordered the Ramsey County Assessor to increase the estimated
market values of all commercial nd industrial property in
Ramsey County by 10 percent. Th ' s action has shifted more tax
burden to business properties, t the extent that all homes in
Saint Paul valued under $150, 000 will get property tax decreases
in 1988, while, commercial and i dustrial properties will
experience a 16� tax increase.
A sixteen percent tax increase f r all business properties along
with a 24$ increase in the sewer bill will create an
extraordinary burden for large v lume sewer users. Because of
the property tax reductions prov ded homeowners , I have asked
Roy Bredahl, the Sewer Engineer o provide the Council with some
sewer rate structure options whi h can provide less of an
increase for our high volume sew r users, and more of an
increase to the low volume users I have also asked Greg Blees,
City Budget Director, to estimat the combined impact on the
taxpayer for the various options identified.
I will share the options with yo , and I ask that you join me in
an effort to adjust 1988 sewer r tes for high volume users.
cc: Mayor George Latimer
James Bellus
Greg Blees
Roy Bredahl
Dan Dunford
Susan Kimberly
Thomas Mogren
Donald Nygaard