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City Council Regular Meeting Minutes November 13, 2018 Page 2 1 IV. PUBLIC HEARINGS. 2 3 A. Ordinance 2018-02 an Ordinance Setting Sewer, Water, Storm Water charges and 4 Establishment of Fee Amounts for 2019. 5 6 Mayor Faust opened the public hearing at 7:03 p.m. 7 8 Finance Director Shelly Rueckert reviewed the utility rates recommended for 2019 which 9 illustrates the multi-year approach towards rate adjustments that began in 2012. The parameters 10 used for adjusting rates are: Align revenue sources with corresponding costs; Provide 11 transparency as to the basis of rates and rate adjustments; Maintain a structural balanced 12 operation; Ensure that rates appropriately support the ability to provide safe drinking water, 13 properly discharge sanitary sewer flows and appropriately control and treat storm water runoff. 14 15 The Water Fund expenditures are comprised of two primary operating functions Production 16 $666,871 and Distribution $628,128. The current recommendation includes continuing the 17 phase-in of a quarterly fee to support distribution system costs and the quarterly water 18 distribution fee will increase by $3.35. Staff also recommends to continue to manage the growth 19 in usage rates to recognize the revenues provided by the phase in of the water distribution fee 20 and keeping the water usage tier rates the same as 2018. 21 22 The Sewer Fund expenditures are comprised of two primary operating functions Treatment 23 $784,407 and Collection $477,265. The current recommendation includes continuing the phase-24 in of the quarterly fee to support collection system costs and the quarterly sewer collection fee 25 will increase by $3.20. Staff also recommends to continue to manage the growth in usage rates to 26 recognize the revenues provided by the phase in of the Sewer collection fee and the sewer usage 27 rate will remain the same as 2018. 28 29 The multi-year approach to Storm water rates planned for the quarterly single-family residential 30 charge to increase by thirty-five cents ($.35) in 2019 represents a 2.22% increase in rate and the 31 2.22% rate increase will be applied to all levels of storm water charges. 32 33 Councilmember Stille commented the key points in the presentation are transparent and 34 structurally balanced. The money collected for sewer and water need to be used for those 35 purposes. This makes a lot of sense. St. Anthony is in the ballpark for rates compared to other 36 cities. He noted this is a challenging thing to budget for and the City encourages residents to 37 conserve water. 38 39 Councilmember Jenson stated the quarterly flat fee is to spread the cost equally among all users. 40 That also helps reduce the volatility of the water usage from weather changes. 41 42 Mayor Faust stated price per unit is always going to go up as less is used which is a good thing. 43 He hopes in the future people realize that sprinkling their yard isn’t in the best ecological interest 44 of society or sustainable. A lot of water is used to produce electricity. 45 46 10