2021.11.08 WS Packet - Laserfiche WebLink

Home Browse Search

Some of the more significant changes to assumptions from the last analysis include: ➢ Projected billed water consumption has increased by 10 million gallons to reflect the average billed consumption in recent years. ➢ Projected billed sewer consumption has decreased by 10 million gallons to reflect the average billed consumption in recent years. ➢ Economic assumptions increased from 2%to 3%for annual projected operating cost increases. ➢ The Water, Sewer and Stormwater funds each include a new$350,000 capital item in 2023 for Public Works/Parks Maintenance Building Improvements. ➢ Water Fund capital improvement changes include a $787,000 street reconstruction project and $1.2 million storage reservoir repainting project in 2041. ➢ A 1.2% decrease to Metropolitan Council Environmental Services (MCES)to clean our sewer discharge. ➢ Stormwater capital changes include inflationary cost increases of$324,000 for curb replacements and pond dredging. Water and sewer charges are based upon water usage, while stormwater and streetlights are flat charges. Water consumption is metered and is read quarterly. Sewer charges for residential properties without metered irrigation are based upon the customer's water consumption during their"winter quarter". The quarterly sewer charges are then "fixed" for the summer months and adjusted again the next year based on the next "winter quarter". Water and sewer have a "fixed rate" component built into the charges. The fixed rate is established to pay for the fixed costs of delivering both water and sewer services to the property regardless of the how much of those services are used by the property. The water distribution system and the sanitary sewer collection system need to be maintained regardless of customer's specific usage during any particular quarter. The fixed rate charges are calculated based on a fixed number of gallons. Currently,the fixed rate is calculated on 8,000 gallons. The variable "per 1,000 gallons" water charge starts with consumption levels above this fixed rate. The proposed fixed rates for single, two-family, and townhome residences in 2021 are Water= $30.64 and Sewer= $42.88. The following table shows the current utility rates for single-family, duplex and townhome residences compared to the proposed rates for 2022. The water and sewer rates are per 1,000 gallons. The stormwater and streetlight rates are flat quarterly charges. (Per Household) Water Sewer Stormwater Street Light Recycle Current $3.65 $5.23 $18.62 $11.21 $9.25 Proposed for 2022 $3.83 $5.36 $19.92 $11.71 $9.50 Ae_ex -/-064, Gina Foschi Director of Finance Attachment: Utility Rate Analysis Book Worksession Presentation