CC WS PACKET 10252022 - Laserfiche WebLink

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The overall annual impact of the recommended rates for a residential customer at each of the five tier levels is below: A survey of local municipalities 2022 utility rates is attached as Exhibit E. The Saint Anthony Village 2022 utility rates are lower than many of the surrounding cities surveyed. The Water/Sewer Utility fund summary budget is attached as Exhibit F. Lastly, a long-range Utility revenue plan is attached as Exhibit G. The plan addressed a strategic plan goal to develop long term revenue planning. The rates are being managed to begin supporting capital needs of the water and sewer operations. The current plan projects that support will begin in 2025 with a transfer to the Utilities Infrastructure fund. The plan includes assumptions regarding future City costs and MCES treatment costs. It also factors in the retirement of water /sewer bonds occurring in 2024. A minimum cash balance was established to recognize that the quarterly billing and collection process is recovering 90-120 days of prior cash outlays. No growth in accounts or usage was factored in the projection. Real growth will be noted annually through the process of updating the base year results. Using these factors annual adjustments to the flat fees and usage rates adjustments were determined. Staff believes the model will help guide year to year rate increases while being flexible enough to keep the annual increases reasonable for utility customers. Council Action requested: Approval of proposed rates or direction as to preferred modifications. Tier Level 1st -7,500 2nd -15,000 3rd -22,000 4th -30,000 5th- 37,500 Distribution (1st Qrt. 2022) 35% 46% 14% 3% 2% 2023 Proposed 120.35 181.70 245.68 313.78 390.13 2022 Actual 114.03 174.10 236.65 303.25 377.95 Quarterly Increase 6.32 7.60 9.03 10.53 12.18 Annual Increase 25.30 30.40 36.10 42.10 48.70