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<br />In reviewing the attached survey of other St. Paul Regional Water customers, our proposed rates <br />are still very competitive. (Please note that are not including non-SPRWS cities from the survey <br />because they do not provide as high a level of treatment (softening and granulated charcoal <br />filtration). Therefore, their costs are typically quite a bit less. <br /> <br />With the recommend rate increases, we project a profit of just over $55,000 in the Water Fund <br />for 2018. <br /> <br />Sewer: The 2017 Sewer Utility Fund had a budgeted loss of $21,928. The projected 2017 <br />results indicate a profit of $33,000. The main factors are our projected revenues exceeded <br />projections by $25,500. This is the likely result of new customers (Cardigan Ridge) and the <br />modifications to our rates made in 2017 performed better than expected. We also realized a <br />savings of just over $30,000 in expenses with the biggest factor being lower repair and <br />maintenance expenses. <br /> <br />As you may recall, last year we reduced our sewer minimum charge for accounts billed for 8,000 <br />gallons or less of sewage flow from $50 per quarter to $43.64. This was because staff believed our <br />minimum sewer charge was too high for lower volume users. (Note: This followed our 2014 <br />reduction from $55 per quarter to $50.) While we held our rate volume rate the same, people <br />using between 8,000 and 15,000 were subjected to increases because the volume rate kicked in at <br />early flow amounts. <br /> <br />Staff is recommending an increase to the consumption rate from 3.80/1000 gallons to 3.90/1000 <br />gallons (a 2.63% increase). For users of 7,000 gallons per quarter or less, they will experience no <br />change in costs. The impact of this increase is projected to yield a net loss of $6,250 which <br />enables us to properly fund depreciation. With this proposed increase, we will still be very <br />competitive with neighboring communities based upon the Sewer Rate Survey information <br />included with this memo. <br /> <br />Refuse: 2018 Refuse rates are impacted by two factors. The first one is tipping fees have <br />increased by $7 a ton. (Tipping fees are set by Ramsey County.) This is the first increase in <br />tipping fees since 2015. ($58 to $65 or 12%). Depending on the volume of the customer’s refuse <br />container, this accounts for a 2% to 4% increase in the overall rates. Pursuant to our contract, this <br />increase is required to be reflected in the rates. The second factor is the increases we agreed to <br />pursuant to our five year contract with the haulers. They amount to just over 2%. Here are the <br />specific rates: <br /> <br />2018 <br />Tipping <br />Fee of <br />Container Size ------------ 30 gallon 60 gallon 90 gallon Up to 360 <br />Gal <br />$65/ton Disposal 3.03 4.75 7.13 9.50 <br /> Collection 5.95 6.35 6.52 6.52 <br /> Recycling 5.76 5.76 5.76 5.76 <br /> Total 14.74 16.86 19.41 21.78 <br /> % Change 4.02% 4.66% 5.55% 6.19% <br /> % Change w/o Disposal 2.09% 2.02% 2.08% 2.08% <br />Yard Waste is also increasing from $54 per year to $56 per year (3.7%).