HomeMy WebLinkAbout1A Utility Rate Study Work Session Report
Phone 952.447.9800 / Fax 952.447.4245 / www.cityofpriorlake.com
4646 Dakota Street SE
Prior Lake, MN 55372
CITY COUNCIL WORK SESSION REPORT
MEETING DATE: NOVEMBER 4, 2019
AGENDA #: 1A
PREPARED BY: CATHY ERICKSON, FINANCE DIRECTOR
PRESENTED BY: TAMMY OMDAL, NORTHLAND PUBLIC FINANCE
ANDY BROTZLER, PUBLIC WORKS DIRECTOR
CATHY ERICKSON, FINANCE DIRECTOR
AGENDA ITEM: WATER AND SEWER UTILITY STUDY
ACTION
REQUESTED:
Review utility study prepared by Northland Public Finance, discuss study
and next steps, and receive Council direction regarding proposed rate
structure and financial management plan.
INTRODUCTION:
ATTACHMENT:
The City contracted with Northland Public Finance to complete a utility
study to serve as a guide for the financial management of the water and
sanitary sewer systems. The study objectives are twofold:
• Revenue Sufficiency-Develop and populate a forecasting model
that will determine the level of annual revenue needed to satisfy
each system's projected annual operating, capital costs, and debt
service while maintaining adequate reserves for future capital
needs of the City and avoid future issuance of debt for capital
improvements.
• Rate Calculation: Review existing rate structures for the utilities
and develop modifications, as appropriate, to ensure that rates
reflect accepted practices, fair and equitable distribution of costs,
and competitiveness with other communities.
The City provided two years of historical customer billing and financial data
and provided input and feedback on assumptions and different scenarios
for the financial management plan.
Tammy Omdal, from Northland Public Finance, will present the results of
the utility study and the proposed financial management plan for Water
and Sanitary Sewer.
Prior Lake Utility Study