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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 due to the age and obsolesce of the <br />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 sewer <br />revenue of $305,336 and expenses of $202,043, for a net operating income of $103,293, according to the <br />2020 audit. Annual rate increases are planned into the future, as this has worked well to fund regular <br />operations, maintenance, and repair. <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 Lakes had <br />sewer revenue of $305,336 and expenses of $202,043. This produced 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 well to <br />fund regular operations, maintenance, and repair. <br />The City of Pequot Lakes contracts with the Pine River Sanitary Sewer District for staffing. Through this <br />contract, the wastewater treatment facility and lift stations are checked every Monday, Wednesday, and <br />Friday. Lift station maintenance of checking amps, cleaning floats and inspecting the wet well are completed <br />regularly by Pine River Area Sanitary Sewer District. With this arrangement, Pequot Lakes has more stability <br />and control over staffing costs. <br />Estimated Project Cost <br />In addition to completing the estimate project costs below, please complete the additional budget for public <br />facilities in the master budget. <br />Annual system debt service <br />Annual operating and maintenance cost (do not <br />include depreciation) <br />Total <br />Number of residential households (billed <br />individually) <br />II - <br />Connections <br />4 <br />Current <br />$0 <br />$135,196 <br />$135,196 <br />Current <br />257 <br />Estimated future <br />$184,536 <br />$135,196 <br />$135,196 <br />Estimated future <br />257 <br />Small Cities Development Program (SCDP) 2023 Full Proposal Public Facilities Infrastructure 14 <br />