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   <br />  <br />  STAFF REPORT  <br /> <br /> <br /> <br />TO: Mayor Keis and Members of the City Council <br /> <br />FROM: Sam Magureanu, Finance Director <br /> <br /> <br />DATE: November 30, 2022 <br /> <br />RE: Water and Sewer Utility Rate Study Update <br /> <br /> <br />INTRODUCTION: <br />Bolton and Menk worked on a utility rate study for the City of Little Canada during the 1st Quarter of 2020. <br />Based on the study, water and sewer rates were estimated to increase 4% per year based on a 3% increase <br />in expenses per year. Also, at that time a 3% increase was estimated for the water contract with SPRWS <br />as the new contract rates were unknown at that time. Since than the SPRWS rates have changed as follows: <br />2018 2019 2020 2021 2022 2023 <br />Winter 1.66$   1.72$      1.75$       1.82$ 2.00$ 2.20$   <br />% Change 3.61% 1.74% 4.00% 9.89% 10.00% <br />Summer 1.72$   1.81$      1.81$       1.88$ 2.06$ 2.26$   <br />% Change 5.23% 0.00% 3.87% 9.57% 9.71% <br />Little Canada Actual ‐ Wholesale Water Rates <br /> <br />WATER RATES PROJECTIONS: <br />As it can be noted in the above graph increases were approximately 10% for 2022 and 2023, rather than <br />3% as budgeted in the Little Canada rate study performed by Bolton and Menk. The most recent increases <br />are a result of the SPRWS building a new treatment plant, “The McCarrons Treatment Plant”, that began <br />in 2021. <br /> <br /> <br />