04-0426R

RESOLUTION ESTABLISHING THE CUSTOMER CHARGE AND USER CHARGES FOR THE CITY'S WASTEWATER FACILITIES EFFECTIVE WITH METER READINGS AFTER AUGUST 1, 2004; RESCINDING ALL PRIOR INCONSISTENT OR CONFLICTING RESOLUTIONS WITH RESPECT TO SUCH RATES AND DESIGNATING THAT THE RATES INCREASE INCREMENT BE USED ONLY FOR THE REPLACEMENT AND REHABILITATION OF SANITARY SEWER INFRASTRUCTURE.

BY COUNCILOR STOVER:

RESOLVED, pursuant to Sections 43-5 and 43-11 of the Duluth City Code, 1959, as amended, for the purpose of increasing the revenue of the sewer utility, there is established and shall be collected beginning with the meter readings made on August 1, 2004, and thereafter, a customer charge and user charges, based upon the volume of waste water discharged to the city's wastewater facilities system and determined as in Section 43-7 of the Duluth City Code, as follows:

effective August 1, 2004 effective August 1, 2003
Customer charge $ 5.89 per month $ 5.89 per month
User charge - Class I $ 3.45/ccf $ 3.35/ccf
User charge - Class II $ 4.81/ccf $ 4.67/ccf
User charge - Class III $ 5.93/ccf $ 5.82/ccf
Tate and Lyle $10.76/ccf $10.62/ccf
Ikonics/Chromaline $ 6.42/ccf $ 6.40/ccf

RESOLVED FURTHER, that the revenues derived from the rate increase increment be expended exclusively for the replacement and rehabilitation of sanitary sewer infrastructure.

BE IT FURTHER RESOLVED, that any prior rate regulations inconsistent or conflicting with this resolution are hereby rescinded.


STATEMENT OF PURPOSE:  This resolution adjusts the user charge by increasing the rates three percent and thereby generating approximately $300,000 in additional revenue. The rate increase is the second of three annual rate increases recommended by the water and sewer infrastructure task force. Revenues derived from this increase will be placed in a special account in the sewer utility and restricted to the rehabilitation and replacement of defective sanitary sewer infrastructure. The fixed monthly customer charge will not change.