05-23-1977 Council Minutes - Laserfiche WebLink

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' Page 37 � � � T�iembers of the Orono City Council May 23, 1977 � would by $2057 and the loss to Orono would be $618 , or about 1/3 of � Long Lake ' s loss . Actually , neither would lose this much compared to 1975 because of increased water consumption at the school during 1976 . � If we utilize our metered 1976 water consumption figures for . our three schools and include both city water and well water, •we would have 13 , 313 , 000 -gaiions. When- our �aell - is- phased -out�- if-we �tay-at � the same 1. 17 rate , the school' s cost for water would skyrocket to $9 , 829 . If the Long Lake rate drops to 4�� and Orono decides to allow � th e 30g charge to remain (instead of increasing it to 60�) the school ' s cost would be $4914 annually (rate 45� + 13 . 5�)� with Long Lake re- � ceiving $3780 and Orono receiving $1134 . IN OTHER WORDS, FOR A PRESENT REDUCTION OF ABOUT $600 IN YOUR AD29INISTRATIVE AND MAINTENANCE CHARGES, THE CITY OF ORONO WOULD BE ASSURING THE SCHOOL AN EVENTUAL � � SAVINGS OF CLOSE TO $5 , 000 ANNUALLY. FURTHERMORE THE CITY OF ORONO WOULD EVENTUALLY SEE ITS CURRENT- R�VENUES REINSTATED DUE TO THE � ADDITION OF THE TWO SCHOOLS. . " � � SEtaER RATES � We also understand that your administration is recommending the � school district' s present $1..17 per M �gallon. sewer charge .be increased to $1 . 50 per M gallons . This constitutes approximately a 20o increase � for us which is beyond our ability to fund without a reduction in ' educational offerings . • The new rate is computed by using as a basis a household average of 15 , 000 gallons per quarter at a charge of $22 . 50 or $1. 50 per M � gallons. We do not feel- this to be a fair and equitable basis on which --�o- r3etermir�e the school-'s aharge--wher� our annual flowage -approxi- � mates S million gallons_ There should�e some consideration given for volume users. We feel that the council should hold the �resent rate to � the school at $1. 17 per M gallons and then see what can be done to • lower the rate to a level which compares favorably with average area costs. • The school board directed that a study be undertaken of area � municipalities to dete rmine average rates being charged for water and sewer. We have brought copies for each of you tonight. _ � • , For volume users, water ranges from 35� per M in Wayzata to 65� ' per M in Minnistrista, with tl�e average water charge 42 . 8$ per M . c�allons. THE REDUCTION TO 45� PER M GALI,�ONS PLUS A 13. 5$ OVERRIDE BY ORONO WOULD STILL PLACE US ABOUT 16� OVE� THE AREA AVERAGE. Sewer � rates vary from 50 . 5 � per M gallons at Maple Plain to 83� per M gal3.ons in Minnistrista, with the average being 69 . 4 per M gallons. At the � present rate of $1. 17 per M gallons charges by Orono for sewer, we • are 1. 68 times the area average . CONCLUSION AND SUMMARY � We understand and appreciate your City administrator' s concerns for gaining all possible revenues. This is their job_ Tae , on the � � . , - - �