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