5.1. SR 01-11-2010
Item 5.1.
MEMORANDUM
TO: Mayor and City Council
FROM: Lori Johnson, City Administrator
DATE: January 11, 2010
SUBJECT: Sewer Service Availability Charge – Follow-up on Calculation
Method
At a previous meeting, the Council requested that staff report back with more detailed
information on how surrounding cities charge for connection to the sanitary sewer system.
Economic Development Director Catherine Mehelich and Building Official Bob Ruprecht
and I met to discuss the information that they gathered from surrounding cities. We found
that the method varies from city to city and because of the way some cities determine the fee
it is impossible to make an exact comparison. For that reason, instead of providing the
information in this memo staff will be prepared to discuss it in detail at Monday’s meeting.
Another factor that comes into play in reviewing the fee charged is whether the city is using
the fee as we use it, and as we believe it should be used which is to fully fund treatment plant
expansions required due to increased flow and additional customers. Some cities may
subsidize those plant expansions through increased user charges or other methods;
therefore, the SAC should not be reviewed in isolation, but must be reviewed in a broader
financial picture. It appears that in the City of Elk River’s case the fee charged is appropriate
as it generated the funds necessary to complete the recent expansion that was required due
to those new customers. And, it is being accumulated to fund a future expansion driven by
an increase in volume.
Finally, as I stated earlier, we will be prepared to discuss this issue in detail and address any
questions the Council may have about this issue at the work session.