HomeMy WebLinkAbout2017.12.18 RESO 2017-51 New Sewer & Water RatesRESOLUTION 2017 - 51
RESOLUTION ADOPTING A PRO FORMA FINANCIAL GUIDE FOR WATER
AND SANITARY SEWER OPERATIONS FOR THE 2018 FISCAL YEAR AND
ESTABLISHING SERVICE RATES
WHEREAS, the Finance Department has developed a pro forma financial guide for
water and sanitary sewer operations for the 2018 fiscal year; and
WHEREAS, it is necessary to provide adequate revenue for water and sanitary sewer
operations as contained in the pro forma financial guide; and
WHEREAS, the water and sanitary sewer service rates recommended herein reflect
the true and actual expenses incurred by the city for the services being provided.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of
Hugo, Minnesota, as follows:
1. The pro forma financial guide for water and sanitary sewer operations for the
2018 fiscal year, attached hereto and made a part of this resolution, is hereby
approved.
2. The water and sanitary sewer service rates for the 2018 fiscal year, attached
hereto and made a part of this resolution, are hereby approved and shall remain in
effect until altered by resolution of the City Council or until otherwise altered by
law.
3. The Finance Department is hereby directed to provide notice to all municipal
utility customers advising them of the water and sanitary sewer service rates
approved herein.
4. The Finance Department is hereby directed to develop a pro forma financial guide
and recommended service rates on an annual basis going forward.
Upon roll call, the following Members voting AYE: Klein, Miron, Petryk, Weidt
Upon roll call, the following Members v<
Whereupon said resolution was declared
2018.
ATTEST:
Michele Lindau, City Clerk
1 om W eidt, Mayor
City of Hugo
Water and Sewer Pro Forma
Estimated Gallons Sold
Single -Family Residential
Multi -Family Residential
Irrigation (metered separately)
- Less Waters Edge Reuse
Commercial
Industrial
Educational
Total Gallons Sold
Operating Revenues
Sale of Water/Sewer Charges
- Residential
- Multi -Family
- Irrigation (metered separately)
- Less Waters Edge Reuse
- Commercial
- Industrial
- Educational
Total Water & Sewer Charges
Hydrant Water Sales
Water Meters
Penalties
Total Operating Revenues
Operating Expenses
Wages:
Billing Clerk
City Administrator (50%)
Public Works Director (1/3)
Maintenance Workers (2)
Overtime
Standby Pay
Compensated Absences
Fringe Benefits:
Pera
Fica
Medicare
Health Insurance
Payments in Lieu of Health Insurance
Dental Insurance
Workers Compensation
Supplies:
Copier Lease/Overage Charges
Breakroom Supplies
Cleaning Supplies
Motor Fuels
Page 1
Water Sewer
Department Department
2018 2018
230,398,222
50,504,000
66,659,805
(8,721,000)
15,688,075
6,780,000
1,821,000
363,130,102
$
823,929
$
874,606
$
121,616
$
327,534
$
292,252
$
-
$
(42,558)
$
-
$
33,240
$
24,070
$
13,486
$
10,519
$
3,203
$
5,682
$
1,245,168
$
1,242,411
$
300
$
-
$
25,000
$
-
$
11,875
$
11,420
$
1,282,343
$
1,253,831
$
30,944
$
30,944
$
35,287
$
35,287
$
37,175
$
37,175
$
61,888
$
61,888
$
9,284
$
9,284
$
7,800
$
7,800
$
4,000
$
4,000
$
186,378
$
186,378
$
13,678
$
13,678
$
11,307
$
11,307
$
2,644
$
2,644
$
27,332
$
27,332
$
2,550
$
2,550
$
2,108
$
2,108
$
10,927
$
10,927
$
70,546
$
70,546
$
550
$
550
$
750
$
750
$
1,940
$
1,940
$
2,000
$
2,000
City of Hugo
Water and Sewer Pro Forma
Uniforms
Office Supplies
Small Tools & Equipment
Water Additives (chemicals)
- Hazardous Waste License
Drinking Water Brochures
Water Meters (for resale)
Water Meters (radio read installs)
Repairs & Maintenance:
Building Cleaning Services (contract)
Building Repairs & Maintenance
- Septic System Pumping
- HVAC Repairs
Repairs & Maintenance
- Watermain Breaks
- Pump Repairs (wells)
- Lift Station Submersible Pumps
- Lift Station Rebuilds
Software Support Agreements
Professional Services:
Accounting (GASB reporting)
Audit
Safety Training
Water Bacteria Testing
Engineering - Water Plan
Engineering - Wellhead Protection
Legal Fees
Sewage Treatment (MCES)
Communications:
Business Internet
Cellular Phone Charges
Computer Support - Metro Inet
Telephone Support - Metro Inet
Postage
SCADA System Troubleshooting
SCADA Telephone Lines
Insurance:
Liability Insurance
Property Insurance
Auto Insurance
Utilities:
Electricity - Wells & Towers
- Solar Garden Credit
Page 2
Water
Sewer
Department
Department
2018
2018
$
2,000
$
2,000
$
3,000
$
3,000
$
10,000
$
10,000
$
50,000
$
-
$
260
$
_
$
50
$
_
$
25,000
$
_
$
75,000
$
-
$
170,550
$
20,240
$
2,500
$
2,500
$
8,000
$
8,000
$
2,780
$
2,780
$
4,400
$
4,400
$
39,600
$
20,000
$
15,000
$
-
$
25,000
$
-
$
-
$
20,000
$
-
$
40,000
$
1,769
$
1,769
$
99,049
$
99,449
$
2,600
$
2,600
$
6,900
$
6,900
$
1,500
$
1,500
$
1,300
$
-
$
12,500
$
_
$
5,985
$
_
$
2,000
$
-
$
-
$
528,283
$
32,785
$
539,283
$
750
$
750
$
3,600
$
3,600
$
3,615
$
3,615
$
360
$
360
$
2,600
$
2,600
$
650
$
650
$
345
$
345
$
11,920
$
11,920
$
13,717
$
13,717
$
7,959
$
3,989
$
239
$
425
$
21,915
$
18,131-
$
120,000
$
-
$
(6,220)
$
_
City of Hugo
Water and Sewer Pro Forma
Water
Department
2018
Electricity - Lift Stations
$
_ $
Electricity - PW Facility
$
4,000 $
Gas - PW Facility
$
2,500 $
Refuse Collection
$
3,000 $
Other Expense:
$
123,280 $
Assessment Collection Fees
$
1,000 $
Gopher State One -Call
$
1,800 $
Professional Memberships
$
80 $
Travel & Training
$
1,500 $
Water Appropriation Fees (DNR)
$
5,758 $
Operating Expenses before Depreciation
Depreciation:
Depreciation
Contributed Depreciation
Total Operating Expenses
Operating Income
PW Facility Debt Service Payment
Surplus Operating Income
- 50% of Revenue from Irrigation Accounts
Page 3
Sewer
Department
2018
9,100
4,000
2,500
3,000
18,600
1,000
1,800
80
3,200
$
10,138
$
6,080
$
726,561
$
970,627
$
230,070
$
60,253
$
147,085
$
169,171
$
377,155
$
229,424
$
1,103,716
$
1,200,051
178, 627
$
$
53,780
$
53,780
$
53,780
$
124,847
$
_
CITY OF HUGO, MINNESOTA
WATER SERVICE RATES
1. Municipal water service rates for residential customers shall be as follows: The
quarterly charge shall consist of a $28.00 depreciation charge plus: Usage up to
11,000 gallons per quarter shall be billed at $1.00 per thousand gallons or part
thereof. Usage over 11,000 gallons up to 20,000 gallons per calendar quarter
shall be billed at $2.00 per thousand gallons or part thereof. Usage over 20,000
up to 29,000 gallons per calendar quarter shall be billed at $3.00 per thousand
gallons or part thereof. Usage over 29,000 gallons per calendar quarter shall be
billed at $4.88 per thousand gallons or part thereof.
2. Municipal water service rates for multi -family residential customers shall be as
follows: The quarterly charge shall consist of a $28.00 depreciation charge plus:
All usage for a calendar quarter shall be billed at $2.00 per thousand gallons or
part thereof.
Municipal water service rates for churches, educational, institutional, commercial
and industrial customers shall be as follows: The quarterly charge shall consist of
a $28.00 depreciation charge plus: Usage up to 5,000 gallons per quarter shall be
billed at $1.00 per thousand gallons or part thereof. Usage over 5,000 gallons per
calendar quarter shall be billed at $1.65 per thousand gallons or part thereof.
4. Municipal water service rates for irrigation meters shall be set at $4.88 per
thousand gallons or part thereof.
SANITARY SEWER SERVICE RATES
1. Sanitary sewer service rates for residential customers, including multi -family
buildings, who are connected to the city water system, and having the city water
usage metered, shall be charged the sum of $55.00 multiplied by the number of
Sewer Availability Charges (SAC) plus 100% of the water usage at $1.85 per
thousand gallons over 9,000 gallons or part thereof per calendar quarter. The
number of gallons charged for residential sewer service shall be the same for all
quarters and shall be determined by the amount of water used during the winter
quarter (January, February and March).
2. Sanitary sewer service rates for churches, educational, institutional, commercial
and industrial customers shall be charged the sum of $16.00 multiplied by the
number of Sewer Availability Charges (SAC) plus 100% of the water usage at
$1.85 per thousand gallons over 3,000 gallons or part thereof per calendar quarter.
3. Sanitary sewer users not connected to the city water system shall be charged the
sum of $55.00 multiplied by the number of Sewer Availability Charges (SAC),
the amount so established to be charged quarterly.
Rates effective January 1, 2018