Laserfiche WebLink
<br /> <br /> <br /> <br /> <br />Sewer Rates: <br />Again as part of the 2017 rate review the sewer expenditures were categorized by two <br />primary functions. These functions are the treatment of sanitary sewer flow and the <br />collection system for sanitary sewer flow. Treatment costs are considered to be <br />substantially driven by flow volumes while collection costs are relatively fixed in <br />nature. Therefore a flat fee was initiated in 2017 to begin funding the costs fixed in <br />nature. This allows for the usage rate to be re-set to cover the usage driven expenses. <br />The transition from a singular rate to a dual rate model was planned to be phased in <br />over time. <br /> <br />The table below summarizes the amounts of sewer operating expense and depreciation <br />expense assigned as treatment costs or collection costs. <br /> <br /> <br /> <br />OPERATING DEPRECIATION OVERALL <br />FIXED 390,042 35% 67,453 70% 457,496 38% <br />USAGE 728,812 65% 28,909 30% 757,720 62% <br /> <br /> 1,118,854 100% 96,362 100% 1,215,216 100% <br /> <br /> <br />The 2017 overall ratio of fixed costs to usage costs was 40% to 60%. <br /> <br />As part of the transition process the usage rate growth was expected to decelerate as flat <br />fee was phased-in. The 2017 rate review projected this phasing in of flat fees and its <br />impact to usage fees for 2018 and 2019. The projections assumed similar flow levels and <br />a 5.5% increase in Metropolitan Council Environmental Services (MCES) treatment fees. <br />For 2018 the MCES cost includes a 3.7% rate increase coupled with an increased flow <br />level of 13%. MCES treatment costs are the main component of the usage costs. The 2017 <br />fixed costs were projected at a 4% increase are expected to finish close to that amount. <br />Based on estimated actual results for 2017 and updated 2018 budgeted costs the <br />proposed increase in the flat rate is consistent with the rate modeled previously. The <br />proposed usage rate will increase 1.5% (vs the 0.9% decrease modeled previously). The <br />Min/Flat - Tiers M/F 7,500 15,000 22,500 30,000 37,500 <br />2018 projected at 4% annual increase 19.99$ 40.58$ 61.84$ 85.90$ 110.94$ 138.37$ <br />SAV 2018 proposed 6.70$ 29.72$ 54.00$ 80.65$ 111.24$ 149.63$ <br />Usage only (1 City)-$ 23.12$ 46.24$ 71.30$ 97.67$ 124.03$ <br />Flat fee + usage (61 Cities)19.75$ 44.85$ 68.21$ 93.62$ 120.12$ 149.46$ <br />Min + usage (12 Cities)24.41$ 32.85$ 49.83$ 74.42$ 99.61$ 125.96$