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City Council Regular Meeting Minutes November 14, 2017 Page 2 Mayor Faust opened the public hearing at 7:05 p.m. 1 2 Finance Director Shelly Rueckert reviewed the utility rates recommended for 2018. These rates 3 build on the multi-year approach towards rate adjustments that began in 2012. Ms. Rueckert 4 reviewed the Water Fund expenditures are comprised of two primary operating functions 5 Production $609,693 and Distribution $604,585. The current recommendation includes 6 continuing the phase-in of the quarterly fee to support distribution system costs and quarterly 7 water distribution will increase by $3.35. The recommendation also includes continuing to 8 manage the growth in usage rates to recognize revenues provided by the phase in of the Water 9 distribution fee and the water usage tier rates will decrease by 1%. The water rate structure 10 provides for aligning revenue sources with corresponding costs, provides greater transparency as 11 to the basis of rates and rate adjustments, increases ability to maintain a structural balanced 12 operation as revenue generated would not be entirely subjected to volatility in water usage (dry 13 vs. wet summers) and promotes conservation via tiered usage rates. Ms. Rueckert provided the 14 recommended 2018 water rates. 15 16 Ms. Rueckert explained how residents can use the City website to monitor their water usage. 17 18 Ms. Rueckert reviewed the Sewer Fund expenditures are comprised of two primary operating 19 functions Treatment $757,720 and Collection $457,496. The current recommendation includes 20 continuing the phase-in of the quarterly fee to support collection system costs and quarterly 21 sewer collection fee increase by $3.20. The current recommendation includes continuing to 22 manage the growth in usage rates to recognize the revenues provided by the phase in of the 23 Sewer collection fee and the sewer usage rate increase by 1.5%. The rate structure modifications 24 provide for aligning revenue sources with corresponding costs, providing greater transparency as 25 to the basis of rates and rate adjustments, increasing the ability to maintain a structural balanced 26 operation as revenue generated would not be entirely subjected to volatility in the Metropolitan 27 Council Environmental Services rates for wastewater treatment and variances in annual flows 28 (dry vs. wet summers). Ms. Rueckert provided the recommended 2018 sewer rates. The impact 29 of the recommended rates on a residential customer at each tier were provided. 30 31 The multi-year approach for Storm water rates planned for the quarterly single family residential 32 charge in increase by thirty-five cents in 2018 represents a 2.32% increase in rate and the 2.32% 33 rate increase will be applied to all levels of storm water charges. 34 35 Councilmember Stille rephrased the two-tier rate structure citing the more you use the more that 36 is paid. 37 38 Councilmember Jenson asked if the template is active currently on line for water usage. Ms. 39 Rueckert stated it is and if residents need assistance they can contact City Hall. 40 41 Mayor Faust summarized that residents are paying for what they are using. 42 43 Mayor Faust closed the public hearing at 7:15 p.m. 44 45 10