HomeMy WebLinkAbout2013-011 Council Ordinances1' Reading: November 25, 2013
Publication: December
17,
2013
2" Reading: December 9, 2013
Effective: January 1
6,
2014
City of Lino Lakes
Ordinance No. 11-13
AN ORDINANCE SETTING WATER AND SEWER UTILITY RATES
The City of Lino Lakes City Council does ordain the following:
Section 1. Findings. Pursuant to Minnesota Law, the Lino Lakes City Charter, and the Lino Lakes City Code,
and upon a review of a study conducted by City Staff, the water and sewer utility rate schedule is hereby adopted
as follows:
Effective January 1, 2014:
Water Utility Rates
Residential
$10.00 Per Quarter / REU*,
$1.84 Per Thousand Gallons
$2.04 Per Thousand Gallons
$2.55 Per Thousand Gallons
$3.06 Per Thousand Gallons
$3.57 Per Thousand Gallons
Non -Residential Domestic
$10.00 Per Quarter / REU*,
$1.84 Per Thousand Gallons
$2.04 Per Thousand Gallons
$2.30 Per Thousand Gallons
Non -Residential Irrigation
$2.55 Per Thousand Gallons
$3.06 Per Thousand Gallons
$3.57 Per Thousand Gallons
Sewer Utility Rates
Metered Sewer Rate
Flat Sewer Only
plus
(0 — 20,000 Gal.)
(20,001 — 40,000 Gal.)
(40,001 — 80,000 Gal.)
(80,001 — 120,000 Gal.)
(over 120,000 Gal.)
plus
(0 — 20,000 Gal.)
(20,001 — 40,000 Gal.)
(over 40,000 Gal.)
(0 — 40,000 Gal.)
(40,001 — 80,000 Gal.)
(over 80,000 Gal.)
1
$54.08/Quarter/REU*, plus
$1.04 Per 1,000 Gallons Over 10,000 Gallons (based
on winter average)
$64.08/Quarter/REU*
Effective January 1, 2015:
Water Utility Rates
Residential
$10.00 Per Quarter / REU*, plus
$1.87 Per Thousand Gallons (0 — 20,000 Gal.)
$2.08 Per Thousand Gallons (20,001 — 40,000 Gal.)
$2.60 Per Thousand Gallons (40,001 — 80,000 Gal.)
$3.12 Per Thousand Gallons (80,001 —120,000 Gal.)
$3.64 Per Thousand Gallons (over 120,000 Gal.)
Non -Residential Domestic
$10.00 Per Quarter / REU*, plus
$1.87 Per Thousand Gallons (0 — 20,000 Gal.)
$2.08 Per Thousand Gallons (20,001 — 40,000 Gal.)
$2.35 Per Thousand Gallons (over 40,000 Gal.)
Non -Residential Irrigation
$2.60 Per Thousand Gallons (0 — 40,000 Gal.)
$3.12 Per Thousand Gallons (40,001 — 80,000 Gal.)
$3.64 Per Thousand Gallons (over 80,000 Gal.)
Sewer Utility Rates
Metered Sewer Rate $55.70/Quarter/REU*, plus
$1.07 Per 1,000 Gallons Over 10,000 Gallons (based
on winter average)
Flat Sewer Only $65.70/Quarter/REU*
* REU = a residential equivalent connection:
1. Residential — a single housing unit
2. Non -Residential REU = per Met Council Service Availability Charge Procedures Manual
Non -Residential users with irrigation systems that do not have a separate irrigation meter will be charged at
residential rates until such time that a separate irrigation meter is installed and inspected.
Section 2. Effective Date of Ordinance. This Ordinance shall be effective as of January 1
Passed by the Lino Lakes City Council this 9th day of Dece
2
Jeff Rei - eft, Mayor
The motion for the adoption of the foregoing ordinance was introduced by Council
Member Roeser and was duly seconded by Council Member Rafferty and upon vote
being taken thereon, the following voted in favor thereof:
Roeser, Rafferty, O'Donnell, Stoesz, Reinert
The following voted against same:
none
CITY COUNCIL
AGENDA ITEM 5A
STAFF ORIGINATOR: Rick DeGardner, Public Services Director
MEETING DATE: December 9, 2013
TOPIC: Second Reading of Ordinance No. 11-13 Setting the Water and
Sewer Utility Rate Schedule.
VOTE REQUIRED: 3/5
INTRODUCTION
The First Reading and Public Hearing were conducted on November 25, 2013 on the proposed
adjustment in water and sewer utility rates. The last water rate increase was in 2009 and the last
sewer rate increase was 2001.
BACKGROUND
In June, 2012, the City Council authorized Springsted, Inc., to perform a utility rate study for the
City. This study was prepared and coordinated with the Water Management and Conservation
Plan. The Water and Sewer Rate Study (dated January 28, 2013) was originally presented to the
City Council at the February, 2013 work session. Since then, the City Council has analyzed and
discussed various reports/information during the March, April, June, July, and November work
sessions.
The rate structure and other revenue in each fund must provide sufficient revenue to cover
anticipated operating and maintenance expenses, debt service including principal and interest,
capital improvements, replacements, and to provide adequate cash reserves. At the same time, the
rate structure should promote water conservation. Total revenue collected should reflect not only
recent cost experience, but should recognize anticipated future costs during the period for which
rates are being established.
The attached proposed rate adjustments are expected to provide sufficient revenues that will cover
capital and operational costs. A 2% water rate increase for 2014 and a 2% increase in 2015 is
recommended. The proposed sewer rates reflect a 4% rate increase for 2014 and 3% increase for
2015. The primary reason sewer rates need to be increased is to more fully fund depreciation (last
increased in 2001). It should be noted that the current Water Availability Charges (WAC) and
Sewer Availability Charges (SAC) are adequate to fund projected capital costs.
RECOMMENDATION
Staff is recommending that the City Council approve the second reading of Ordinance 11-13. The
adopted rates will be implemented in January, 2014.
ATTACHMENTS
Ordinance 11-13.