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Discuss the past history of actions taken to finance operation,maintenance,and repair including rate <br /> increases. <br /> The City of Pequot Lakes finances operations, maintenance,and repair costs with utility rates.They <br /> have been proactive in setting sewer and water rates. Each year from 2018 through 2022,the council <br /> has increased the rates to keep up with the operations and maintenance costs.The residential base <br /> rate was$23.26 in 2018 and it was increased to$24.20 in 2022.The volumetric rates are charged with <br /> four ranges of use.The lowest range of 0 to 12,000 gallons and this amount increased from$11.72 in <br /> 2018 to$12.19 in 2022. By continuing to increase basic rates and volumetric rates each year by about <br /> 1%each,Pequot Lakes should avoid large and surprising increases. <br /> Operations and maintenance costs have increased at a rapid pace due to the unplanned for repairs. <br /> Increased costs of$49,066,or 32%,occurred when comparing 2018 to 2020.Specifically,repairs and <br /> maintenance increased by$17,803 during that time.This increase is dur to the age and obsolesce of <br /> the current wastewater system,as obtaining parts is more expensive and repairs are more frequent. <br /> Sewer rates have kept pace with the expenses of operations. For instance, in 2020, Pequot Lakes had <br /> sewer revenue of$305,336 and expenses of$202,043,for a net operating income of$103,293, <br /> according to the 2020 audit.Annual rate increases are planned into the future,as this has worked <br /> well to fund regular operations,maintenance,and repair. <br /> Explain how the system's operation,maintenance,and repair will be financed over the life of the system. <br /> Operations and maintenance costs will be financed through regular rate increases over the life of the <br /> system. In the past,sewer rates have kept pace with the expenses of operations.In 2020,Pequot <br /> Lakes had sewer revenue of$305,336 and expenses of$202,043.This produced a net operating <br /> income of$103,293,according to the 2020 audit.Annual rate increases are planned into the future, <br /> as this has worked well to fund regular operations, maintenance,and repair. <br /> The City of Pequot Lakes contracts with the Pine River Sanitary Sewer District for staffing. Through <br /> this contract,the wastewater treatment facility and lift stations are checked every Monday, <br /> Wednesday,and Friday. Lift station maintenance of checking amps,cleaning floats and inspecting the <br /> wet well are completed regularly by Pine River Area Sanitary Sewer District.With this arrangement, <br /> Pequot Lakes has more stability and control over staffing costs. <br /> 7 <br /> Page 16 of 72 <br />