HomeMy WebLinkAbout07(A) - PPT Approval of the 2021 Fee ScheduleNovember 2, 2020
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Agenda
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Overview of the proposed
Fee Schedule Changes
Hold a public hearing for the
proposed 2021 Fee Schedule
Adoption of the 2021 Fee Schedule
2021 Fee
Schedule
Staff reviews the fee schedule on an
annual basis.
Most of the changes are either minor
name change revisions, or inflationary
increases to cover our costs.
All changes are detailed in attachment
two of the agenda report.
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2021 Fee Schedule
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During the 2021 budget process, staff presented the significant changes to the fee schedule as
part of the work
sessions.
The major item that was discussed is the proposed change in the utility billing rate structure.
Utility Rate Changes
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Background
information:
Utility rates are charged on a bi-monthly billing cycle
•To fund operating costs
•To finance capital improvements
Capital improvements include utility infrastructure projects such as:
•Replacement of old watermain and sewer main as part of street reconstruction projects
•Water Tower and Water Well Rehab
•Sewer Lining
•Inflow & Infiltration Prevention
Utility Rate Changes
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Background
information:
Council has indicated their support for pay-as-you-go funding in the utility funds vs debt issuance to fund utility infrastructure projects.
City conducted a Utility Rate Study in Fall 2019 to ensure:
•Revenue sufficiency (balance of fixed vs. consumption-based revenues)
•Rate calculation is equitable and promotes water conservation
•Provides for the financial management of the water and sanitary sewer systems
Utility Rate Study Outcomes:
Base Rate increase to cover a greater portion of the system’s fixed
costs-$10 to $37
Water -
Sewer –
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Multifamily Residential Only:
Usage Rates
Water: $5.00 per 1,000 gallons
Sewer: $3.50 per 1,000 gallons
Base Rates
Varies; Dependent on the number of multi-
family units on property
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Other Fee Schedule Changes
Utility Development: Trunk, Connection and Permit
Charges
Adjustment to rates based on recently updated
comprehensive water and sewer plans, and estimated
remaining trunk system costs
Decrease from $7,640 to $3,840 per acre –Trunk Water
Decrease from $1,200 to $800 per unit –Water Connection
Increase from $4,530 to $4,700 per acre –Trunk Sewer
Increase from $900 to $1,100 per unit –Sewer Connection
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Other Fee Schedule Changes
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Park Dedication Fees –Commercial/Industrial
Increase from $6,400 to $9,000 per acre based on estimated land
values of $90,000/acre
Street Seal Coat Fee –
(New) proposed for new developments to provide funding source for
future sealcoating -$1.90/sy
Eliminated Fees:
$9,000 Trunk Line Availability Charge –Sewer
$9,000 Trunk Line Availability Charge –Water
$1,540 Water Tower Charge
$10 Bi-monthly Capital Facility (Utility Bill) Charge
Hold Public Hearing
Adopt Fee Schedule Resolution
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Lowest
Users =
Lowest 20%
of Users
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Will see a slight increase due to
increased base rate, appx $6.91 per
period, or $41.47 per year
Increase in base rate proposed to
ensure City recoups cost to maintain
and service each connection
Previous consumption-based rate
structure did not capture the true cost
the City incurs per account
Base fee offset by a 33% reduction in
consumption rate (from $5.05/1K Gals
to $3.40/1K Gals
Highest Users = Highest 20%
of Users
Tier 4 Rates –Priced accordingly to the cost of City
having the infrastructure to meet these peak demand
levels
Summer Usage 3 times higher than average (irrigation)
(See volume chart)
Conservation Rates mandated by State Statute (DNR)
Increasing block rates
Highest Users pay the most
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