2023.03.20 Packet - Laserfiche WebLink

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2023 Water and Sewer Rates Memo Page 3 of 4 SANITARY SEWER RATES The largest expense item in the sewer department is for sewage treatment. These charges are imposed by and paid to Metropolitan Council Environment Services (MCES). For 2023, MCES charges will amount to $848,098, an increase of $130,177 or 18%. In 2022, the City sustained a 20% increase from MCES and staff anticipates continuing yearly fee increases from MCES for sewage treatment. When combined with depreciation and funds for lift‐station rebuilds, staff is recommending an increase in both the base portion of the rate schedule and also the amount charged for metered water use (flow). Residential sewer charges will continue to be based on water used in the winter quarter (January, February and March). For residential customers, the base amount per SAC unit will increase 13% to $69.00 per quarter, up from $61.00 per quarter. Commercial, Industrial and Institutional customers will also see a base amount increase per SAC unit of 13%, for a base charge of $21.50 per quarter, up from $19.00 per quarter. This group of customers is charged for actual water use (flow) each quarter. Usage fees will also see an increase of 13%. Residential flow over 9,000 will increase to $2.09 per thousand gallons, up from $1.85 per thousand gallons. Commercial, Industrial and Institutional flow over 3,000 will increase to $2.09 per thousand gallons, up from $1.85 per thousand gallons. For an average single‐family residential sewer user that means the proposed sewer rates would results in a yearly sewer bill of $290.00, versus $256.00 at the pervious rates. SUMMARY All water users will see a base rate increase of $8.00 annually, or $2.00 per quarter. Single‐family residential customers using over 29,000 gallons will also experience increased usage rates for water used over 29,000 gallons. Irrigation that is metered separately will see their usage rate increased to $5.61 per thousand gallons (for all gallons used) up from $4.88 per thousand gallons. Residential sewer customers will see a base rate increase of $32.00 per SAC unit annually, or $8.00 per SAC unit each quarter. These customers will also see an increased usage rate for gallons used over 9,000 gallons. The usage rate increase will have a minimal effect on residential sewer bills because their sewer charges are based on water used in the winter quarter. Commercial, Industrial and Institutional sewer customers will see a base rate increase of $10.00 per SAC unit annually, or $2.50 per SAC unit each quarter. These customers will also see an increased usage rate for gallons used over 3,000. These customers are billed each quarter based on actual usage. Overall, an average single‐family residential utility customer would be charged $538.00 a year for both water and sewer services, that equates to $134.50 a quarter or $45.00 a month. Staff has compared the proposed average residential water and sewer bill to rate data provided by Metropolitan Council and staff has found the proposed rates to be lower than the reported averages.