10-22-2025 Workshop Minutes - Laserfiche WebLink

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WORKSHOP MINUTES CITY COUNCIL OCTOBER 22, 2025 The Finance Director reviewed the Storm Water Fund 603 which is a newer fee added to utility bills to pay for needed stormwater and rain garden maintenance projects. He noted that this fund is projected to be healthy for the next 10 years. The Finance Director reviewed the Water/Sewer Replacement Fund 604 and noted that the debt service payment for the Public Works Shop will be done in a few years. The Public Works Director reviewed the water and sewer system expenses planned for the next 10 years. The Finance Director noted that this fund balance gets low and in 2034 there are high expenses expected, such as painting the water tower. REVIEW PROPOSED 2026 WATER, SEWER & STORMWATER UTILITY RATES The Finance Director stated that every year the utility rates are evaluated to ensure sufficient revenues are generated to meet both operating and capital expenditures associated with the utility funds. He explained that there are three enterprise funds: Water Fund 601, Sewer Fund 602 and Stormwater Fund 603. He explained that these are called enterprise funds because they are run like a business where the revenue needs to cover the expenses. He stated Little Canada buys their water from St. Paul Regional Water Services, who sets the rates, and the city owns the water infrastructure. He stated that St. Paul Water has raised water prices higher over the last few years in order to pay for the large reconstruction project at their facility. He noted they are raising their water rate by 13.11 % for 2026. He stated that the water rate increase for 2026 is recommended to be 10.0%. The Finance Director reviewed the quarterly water base fee and explained that these fiends are used to maintain the city's water system. He noted that this base fee is collected no matter how much water is sold. He said that Little Canada's rate is lower than many other nearby cities, but the Council may want to consider increasing this base fee in the future. He noted that the base fee is not covering the expenses. He showed that Little Canada's water rates and base fee are lower than other cities that also get their water from St. Paul Regional Water. He stated that the recommended rate increases for 2026 are 8.0% for sewer and 5.0% for stormwater. Dave Miller, Acting Mayor Attest: Heidi Heller, City Clerk 2