12-02-2020 Workshop Packet - Laserfiche WebLink

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Based on these fixed rate charges for the properties on wells and the manufactured home parks on wells but on sewer, the % billed increases to 70% to 82%. Assumption: 7,000 gallons per unit for manufactured home parks in Little Canada. 9,000 gallons for properties with wells, and 10,000 gallons per unit for manufactured home park in Vadnais Heights. City staff is working to capture more sewer consumption. Utility Rates Based on the study, water and sewer rates are estimated to increase 3%-4% per year based on a 3 percent increase in expenses per year. The water contract with SPRWS expires at the end of 2021. No contract changes have been included in the water rates except for a 3 percent increase in costs per year, since they are unknown at this time. Direction is needed from the Council on the following: 1. Whether the entire debt service payment for the Public Works building continue to be funded with the utility funds. There are two components of the debt for the PW building: CIP portion and utility portion. Both components have been funded with the Utility Funds in the past. This same assumption was used in the utility rate study. 2. Should future water and sewer street improvement project costs be paid by the Infrastructure Utility Fund (450) or paid by the Water/Sewer Utilities. In 2016, $67,000 water street improvement costs were paid by the utility funds. Water and sewer street project costs were not included in the utility rate study. At the workshop, staff will provide more detail regarding the utility rates.