03-25-2015 Council Packet - Laserfiche WebLink

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survey attached. (Note: It is important to remember the SPRWS water has a much higher level of treatment (softening and granulated charcoal filtration) than is typically undertaken by other cities. With the recommend rate increase, we still project a loss of 528,683 in the Water Fund for 2015. Sewer The 2014 Sewer Utility Fund budgeted surplus was 4121,660. The projected 2014 results yielded a surplus of S73,540. This lower than anticipated surplus is attributable to repairs and maintenance to the Keller lift station because it couldn't keep up with the infiltration/inflow during the spring runoff. The lift station was replaced earlier this year. We decreased our minimum sewer charge in 2014 from $55 per quarter to $50 that corresponded to the dramatic reduction in treatment costs paid to Metropolitan Environmental Services. As was discussed last year, we did not drop rates too drastically given our concern that the rates could go up as fast as they came down. For 2015, treatment costs have increased by almost $100,000. In 2015, staff is intending to do an extensive analysis of our sewer rates and usage to evaluate changes in our rate structure. In the meantime, we are proposing to keep the sewer rates the same in 2015 as they were in 2014. Summary When comparing our rates to those in the attached survey at a 15,000 gallon level, we are still very competitive. Based on the above Staff is recommending that the 2015 utility rates be modified as follows: Sewer Minimum Sewer Use Rate per 1,000 (Based upon water usage) Water Winter Rate per 1,000 Water Summer Rate per 1,000 Water Service Fee 2014 2015 % Change $50.00 $50.00 0.0 $3.58 $3.58 0.0 $3.10 $3.20 3.25 $3.21 $3.31 3.25 $12.60 $12.60 0.0 C:\t)sers\katt,y.glanreMppDatMI.ocal\Microsoft\Windows\Temporary Internet Files \Content.Outlook\KCI 11020\Water Sewer Rale Memo • 2015.doex 2