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CITY COUNCIL <br />WORK SESSION STAFF REPORT <br />ITEM NO. 6 <br />STAFF ORIGINATOR: Hannah Lynch, Finance Director <br />WORK SESSION DATE: November 6, 2023 <br />TOPIC: 2024 Fee Schedule <br />______________________________________________________________________________ <br />BACKGROUND <br />The City Council approved the first reading of Ordinance 14-23, Adopting the 2024 Fee <br />Schedule on October 23, 2023. After the first reading questions from Council have been raised <br />in regards to the proposed Water Utility Base Fee increase from $15/Quarter/REU to <br />$20/Quarter/REU. <br />The proposed water and sewer utility fee increases follow the recommendation of the Utility <br />Rate Study accepted by Council on May 10, 2021. The increase in the water base fee is related <br />to the construction of a Water Treatment Plant. The base fee is receipted to the Water <br />Operating Fund and transferred to the Area and Unit Trunk Fund annually at year-end. The Area <br />and Unit Trunk Fund will make the annual debt service payments on the Water Treatment <br />Plant. The rate study recommends increasing the base fee annually until 2025. The 2024-2028 <br />Financial Plan estimates the first debt service payments on the Water Treatment Plan in 2025 <br />to amount to $1,470,000 at which time the annual water base fees are projected to be <br />$768,700. <br />Annual increases in the Water Utility Base Fee are needed to help cash flow the debt service <br />payments on the Water Treatment Plant. The current Water Treatment Plant construction <br />schedule is shown below. <br />Description Date <br />Design Kickoff Meeting July 2023 <br />30% Design & Renderings Aug.-Sep. 2023 <br />90% Design November 2023 <br />100% Design January 2024 <br />City Council Approves Bidding Documents <br />and Authorizes Ad for Bid February 2024 <br />292