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<br /> <br /> STAFF REPORT <br /> <br /> <br /> <br />TO: Mayor Fischer and Members of the City Council <br /> <br />FROM: Sam Magureanu, Finance Director <br /> <br /> <br />DATE: November 13, 2024 <br /> <br />RE: Water, Sewer, and Stormwater Utility Rate Study Update <br /> <br />INTRODUCTION: <br />Just like in prior years the current utility rates are evaluated to ensure sufficient revenues are generated to <br />meet both operating and capital expenditures associated with the utility funds. The 2025 rates are adopted <br />typically before year end and are included with the adoption of the City’s fee schedule. <br /> <br />WATER RATES PROJECTIONS: <br />As it can be noted in the graph below water rates for the St. Paul Regional Water Services (SPRWS) have <br />been increasing between 4.87% and 9.73% beginning with 2022. The anticipated increase for 2025 is <br />6.72%. These increases have been anticipated as they relate to the SPRWS new treatment plant, “The <br />McCarrons Treatment Plant”, that began in 2021. <br /> <br /> <br /> <br />In 2021 the SPRWS worked with BakerTilly, an independent firm, on a wholesale water rate study that <br />determined the wholesale water rates for the next five years for its wholesale customers. The study <br />captured the necessary rate increases that would allow for the financing of the new water treatment plant. <br /> <br />