12-15-2021 Council Packet - Laserfiche WebLink

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ENTERPRISE FUNDS-WATER & SEWER Overview Enterprise funds are used to finance and account for the acquisition, operation, and maintenance of services. These services are entirely or predominantly self-supported by user charges. The City of Little Canada operates two enterprise funds, the Water Fund and the Sewer Fund. The accrual basis of accounting is used for these funds. However, capital outlay items are recorded as expenses during the year and reclassified to assets during the audit preparation. Water Fund: The Water Utility Fund is a self-sustaining fund. The City maintains its own water distribution system. Water is purchased from the St Paul Regional Water Services (SPRWS) on a wholesale basis. Metering devices are maintained to account for the usage. Billed Rates A rate study completed in 2020, indicated that 3% to 4% annual rate increases will be necessary to fund current operations and to fund identified capital improvements until 2034. A 4.2% rate increase is necessary for 2022 due to the large rate increase (9.6% to 9.9%) for the wholesale water in 2022. The rate history since 2018 is below: Description 2018-2020 Rates 2021 Rates 2022 Rates % Change 2021 to 2022 Water Service Charge $13.50/Quarter $13.90/Quarter* $14.30/Quarter 2.9% Water Rate (Winter) $3.45/1,000 gallons (Winter rate) $3.55/1,000 gallons (Winter rate) $3.70/1,000 gallons (Winter rate) 4.2% Water Rate (Summer) $3.60/1,000 gallons $3.70/1,000 gallons $3.85/1,000 gallons 4.1% Lawn Sprinkler Water Rate $3.60/1,000 gallons $3.70/1,000 gallons (Summer rate) $3.85/1,000 gallons 4.1% SPRWS Wholesale Water Rates Description 2018 2019 2020 2021 2022 Proposed* % Change 2021 to 2022 Winter Rate per cubic foot $1.66 $1.72 $1.75 $1.82 $2.00 9.9% Summer Rate per cubic foot $1.72 $1.81 $1.81 $1.88 $2.06 9.6% In addition, a monthly service base fee is charged per the contract of $10,150 per month. 102