2021.11.23 CC Packet - Laserfiche WebLink

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Foschi stated the financial model has been updated with the recommended 2022 budgets for the Water, Sewer, Stormwater, and Streetlight Funds, as well as the projected results for 2021. The more significant assumptions were reviewed with the Council in detail. It was noted 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. Staff commented further on the proposed rate increases and requested comments or questions from the Council. Councilmember Axberg asked if the City had any lead pipes in place. Schlichting reported he was not aware of any lead pipes that were still in place. He reported private systems may have lead pipes. Further discussion ensued regarding how water can be tested within homes for lead. Schlichting commented on the infrastructure improvements that were planned for the system the next 20 years. He discussed how the City was setting money aside for these projects to complete the watermain and utility projects. The expense for replacing infrastructure under County roads was reviewed. Councilmember Axberg questioned what was driving higher water consumption rates in the City. Schlichting stated this was a combination of new development and dry weather conditions. He then discussed how work life has shifted for some residents in the community. Mayor Niedfeldt-Thomas inquired if the new water projections are reviewed by the Met Council. Massopust explained the Met Council only reviews sewer usage and goals on housing. He reported the water projection numbers were for local use only. Councilmember Abdulle discussed how the amount of fresh water was limited and encouraged the City to continue to find ways to reuse or recirculate water when possible. Schlichting stated irrigation reuse was something the City could consider for Hansen Park. He discussed how the City restricted the amount of water that flowed into Fridley this past summer due to the draught conditions. Mayor Niedfeldt-Thomas requested information regarding the new I&I requirements Mounds View has put in place. Schlichting discussed the program Mounds View had in place that required homeowners to have their sewer pipe inspected upon sale of the home. Further discussion ensued regarding a complete streets plan and how future decisions for roads and infrastructure may change over time. Schlichting discussed the work the City had done to upgrade's its street lights while transitioning to LED fixtures. Councilmember Axberg asked if the City used solar for its street lights. Schlichting reported solar was only used for speed signs and was not used for street lights.