12-16-2020 Council Packet - Laserfiche WebLink

Home Browse Search

STAFF REPORT TO: Mayor Keis and Members of the City Council FROM: Chris Heineman, City Administrator Brenda Malinowski, Finance Director DATE: December 16, 2020 RE: Utility Rates for 2021 ACTION TO BE CONSIDERED: Approve Ordinance 849 amending the Fee Schedule for the City of Little Canada relative to the utility rates for 2021 and authorize summary publication of the Ordinance. INTRODUCTION: Bolton and Menk worked on a utility rate study during the 1st Quarter 2020. In an effort to more fully analyze and understand the sewer rates, staff has been refining the study for the past several months. A workshop was held with City Council on December 2nd reviewing the rate study findings. DISCUSSION: Water and Sewer Utility Rate History The City has been proactive in increasing rates on an annual basis. There was a pause in the annual process in 2019 so that the rate study could be completed. The study indicates that the rates increases in the past have been at appropriate levels. In addition, future rate increases will need to continue between 3 and 4 percent per year. The last rate increase was in 2018. Description 2014 2015 2016 2017 2018 2019 2020 Water Rates Winter Rate per 1,000 gallons $3.10 $3.20 $3.30 $3.40 $3.45 $3.45 $3.45 Percent Increase 3.23% 3.12% 3.03% 1.47% 0.00% 0.00% Summer Rate per 1,000 gallons $3.21 $3.31 $3.41 $3.51 $3.60 $3.60 $3.60 Percent Increase 3.23% 3.12% 3.03% 2.56% 0.00% 0.00% Water Service Fee $12.60 $12.60 $12.60 $13.50 $13.50 $13.50 $13.50 0.00% 0.00% 7.14% 0.00% 0.00% 0.00% Sewer Rates Sewer Use Rate per 1,000 gallons (based upon water usage) $3.58 $3.58 $3.58 $3.80 $3.90 $3.90 $3.90 Percent Increase 0.00% 0.00% 6.15% 2.63% 0.00% 0.00% Sewer Base Fee* N/A N/A $15.00 $15.00 $15.00 $15.00 $15.00 Sewer Minimum $50.00 $50.00 $43.64 $43.64 $43.64 $43.64 $43.64 Sewer Only (private wells) $50.00 $50.00 $50.00 $50.00 $50.00 Sewer Only (on city system but no meter reading) $55.00 $55.00 $55.00 $55.00 $55.00 *Included in sewer minimum Sewer rate is based on first quarter usage. If water usage drops below first quarter water usage in subsequent quarters, the sewer rate will be adjusted to the lower rate, but never lower than the minimum. The first quarter sewer rate is the ceiling for the year. Charged on a per dwelling unit basis.