The URL can be used to link to this page

Home My WebLink About4.i. Utility Rate Change , < CITY OF ROSEMOUNT EXECUTIVE SUMMARY FOR ACTION CITY COUNCIL MEETING DATE: May 17, 1994 AGENDA ITEM: Utility Rate Change AGENDA SECTION: Consent PREPARED BY: Bud Osmundson AGENDA ��/� City EngineerlAssistant Public Works Director ��rl'�1 � � � � ATTACHMENTS: Resolution APPROVED BY: In an effort to simplify the billing system, initiate a system that would promote cons vation of our water, and to provide adequate funding for the water and sewer funds, the Utility Commission initiated a sewer and water rate study last November. The study and its recommendations were presented to the City Council at a Special Joint City Council/Utility Commission meeting on May 9, 1994, at which time the Council unanimously approved the recommend rates. A five (5) year cost estimate for Capital lmprovernents, Capital Repair and Operation and Maintenance Expenditures were investigated to provide a basis for the recommended action. The Commission, Council and Staff have received a number of quesxions from residents regarding the current rate structure over the past couple of years. Many of these questions and concerns were regarding the minimum water and sewer billing, the minimum usage, sprinkling credits, copper/lead testing fees and meter maintenance fees. The recommended action will eliminate the minimum billing and actually lowers the consumptiorv rate. All customers will begin paying for their water and sewer usage with no minimum gallons used. The sprinkling credit, the copper/lead testing fees and the meter maintenance fees for residential customers will be eliminated. These recommendations place more of the expense burden on the higher user customers of the water and sewer systems. The surcharge currently on the billing system (which is used to pay Debt Service for new wells and storage towers) will be raised from 54.50 per quarter to 56.00 per quarter. Even with this increase in surcharge rates the total income from the surcharge will only pay approximately 47% of our current capital debt. The remaining Debt Service payments will continue to be paid #rom the Capital Improvement Account. A major expense in the sanitary sewer billing to our customers is the charge we receive from the Metropolitan Waste Control Commission (MWCC) for sewage treatment. In 1994 the MWCC charges were 64% of the Sewer Operating Budget. The MWCC actual rate charged to the City has increased an average of 6.25% in each of the last 6 years. The NfWCC is forecasting an average increase of 4% for the next five years. The last tirne the City of Rosemount raised the sewer and water rates was in 1991 . The recommended new rates will keep us comparable in average billings with the area cities and the entire Twin Cities/Metropolitan area. Staff recommends adoption of a resolution approving the proposed bilfing system and new rates. The new Water and Sewer Rates and Fees will take effect after the June 1994 meter readings. The WAC and SAC changes wi�l take effect July 1, 1994. RECOMMENDED ACTION: MOTION TO ADOPT A RESOLUTION REVISING THE SCHEDULE OF WATER AND SEWER RATES AND FEES. COUNCIL ACTION: . CITY OF ROSEMOUNT DAKOTA COUNTY, MINNESOTA RESOLUTION 1994 - A RESOLUTION REVISING THE SCHEDULE OF WATER AND SEWER RATES AND FEES WHEREAS, the City Council of the City of Rosemount initiated a Study to determine if the current water and sewer rate structure was providing adequate funding, prornoting conservation of water and providing an easily understood billing system; and WHEREAS, the City determined that modifications in the current rate structure were necessary to meet these goals. NOW, THEREFORE BE IT RESOLVED, the following modifications shall be made in the Fee Schedule: ' The Water and Sewer Rates and Fees wil( take effect after the June, 1994 meter readings. The Availability Charges will take effect July,1 , 1994. WATER UTILITY (Quarterly Charges) Fixed Charge � 57.90 Minimum Gallons 0 Gallons Consumption Charge $0.95/1000 Gallons Meter Maintenance Fee 5/8" Meter SO 1 " Meter 55.00 1 '/2" Meter _ 59.00 2" Me#er S 14.50 3" Meter 521.00 4" Meter 536.00 6" Meter 580.00 Water Surcharge Single Family Residential 56.00 Multi-Family Residential 54.67 1" Meter 59.00 2" Meter 521 .00 3" Meter $31 .33 4" Meter 546.67 6" Meter $102.67 Water Availability Charge (with Building Permit Application) Single Family Residential 51,071.00 Multi-Family Residential 5801 .00 ' 1 " Service S 1,791 .00 1 'h" Service 53,591 .00 2" Service 55,376.00 y RESOLUTION 1994 - Billing Cycles in Quarter 1, 2, 3, 4 Senior Credit Eliminated SEWER UTILITY (Quarterly Charges) Fixed Charge S 19.10 Minimum Gallons 0 Gallons Disposal Charge 50.95/1000 Gallons Sewer Only Users $37.00/quarter .per SAC Unit Sewer Availability Charges (with Building Permit Application) Single Family Residential 51,071 .00 Multi-Family Residential (Central Laundry) 5861 .00 Industrial, Commercial, Institutional S 1,071.00 per SAC Unit Metro Sewer Availability Charge $800.00 ' � Sprinkler Credit Eliminated Billing Cycles in Quarters 1, 2, 3, 4 , Senior Credit Eliminated ADOPTED this 17th day of May, 1994. E. B. McMenomy, Mayor ATTEST: Susan M. Walsh, City Clerk Motion by: Seconded by: Voted in favor.: Voted against: 2 .�- ' CITY OF ROSEMOUNT DAKOTA COUNTY, MINNESOTA RESOLUTION 1994 - A RESOLUTION REVISING THE SCHEDULE OF WATER AND SEWER RATES AND FEES WHEREAS, the City Council of the City of Rosemount initiated a Study to determine if the current water and sewer rate structure was providing adequate funding, promoting conservation of water and providing an easily understood billing system; and WHEREAS, the City determined that modifications in the current rate structure were necessary to meet these goals. NOW, THEREFORE BE IT RESOLVED, the following modifications shall be made in the Fee Schedule: The Water and Sewer Rates and Fees will take effect after the June, 1994 meter readings. The Availability Charges witl take effect Julyg1, 1994. WATER UTILITY (Quarterly Charges) Fixed Charge . $7.9� Minimum Gallons 0 Gallons Consumption Charge 50.95/1000 Gallons Meter Maintenance Fee 5/8" Meter 50 1" Meter 55.00 1 'h" Meter 5�.00 2" Meter 514.50 3" Meter $21 .00 4" Meter 536.00 6" Meter 580.00 Water Surcharge Single Family Residential 56.00 Multi-Family Residentiaf 54.67 1 " Meter 59.00 2" Meter 521 .00 3" Meter $31 .33 4'. Meter 546.67 6" Meter $102.67 Water Availability Charge (with Building Permit Application} Single Family Residential 51,071.00 Multi-Family Residential �8�-�8A::`;�:$��'1�::�� 1" Service S 1,791.00 :.: . ..... ... . 1 'h" Service S3,591 .00 2° Service 55,376.00 , � RESOLUTION 1994 - Biliing Cycles in Quarter 1, 2, 3, 4 Senior Credit Eliminated SEWER UTILITY (Quarterly Charges? Fixed Charge _ S 19.10 Minimum Gallons 0 Gatlons Disposal Charge ��>'I:::r:�:5/1000 Gallons Sewer Only Users 537.00/quarter .per SAC Unit Sewer Availability Charges (with Building Permit Application) Single Family Residential S 1,071 .00 ' Multi-Family Residential (Central Laundry) 5861 .00 Industrial, Commercial, Institutional $1,071 .00 per SAC Unit Metro Sewer Availability Charge 5800.00 � Sprinkler Credit Eliminated Billing Cycles in Quarters 1, 2, 3, 4 �Senior Credit Eliminated � ADOPTED this 17th day of May, 1994. E. B. McMenomy, Mayor ATTEST: Susan M. Walsh, City Cterk Motion by: Seconded by: � Voted in favor: Voted against: . 2 CITY OF ROSEMOUNT DAKOTA COUNTY, MINNESOTA RESOLUTION 1994 - A RESOLUTION REVISING THE SCHEDULE OF WATER AND SEWER RATES AND FEES WHEREAS, the City Council of the City of Rosemount initiated a Study to determine if the current water and sewer rate structure was providing adequate funding, promoting conservation of water and providing an easily understood billing'system; and WHEREAS, the City determined that modifications in the current rate structure were necessary to meet these gcals. NOW, THEREFORE BE IT RESOLVED, the following modifications shall be made in the Fee Schedule: The Water and Sewer Rates and Fees will take effect after the June, 1994 meter readings. The Availability Charges will take effect JulyY1, 1994. WATER UTILITY tQuarterly Charges) Fixed Charge 57.90 Minimum Gallons 0 Gallons Consumption Charge 50.95/1000 GaHons Meter Maintenance Fee 5/8" Meter ' SO 1 " Meter S 5.00 1 'h" Meter 59.00 2" Meter S 14.50 3" Meter 521 .00 4" Meter 536.00 6" Meter $80.00 Water Surcharge Single Family Residential 56.00 Multi-Family Residential 54.67 1 " Meter 59.00 2" Meter $21.00 3" Meter 531 .33 4" Meter $46.67 6" Meter S 102.67 Water Availability Charge (with Buitding Permit Application) Single Family Residential $1,071 .00 Multi-Family Residential �H9-'�-88::::�:$�:'�:��1!� 1" Service $1,791 .00....:.. .. ..... 1 '/2" Service 53,591 .00 2" Service 55,376.00 RESOLUTiON 1994 - � Billing Cycles in Quarter 1, 2, 3, 4 Senior Credit Eliminated SEWER UTILITY (Quarterly Charges) Fixed Charge S 19.10 Minimum Gallons 0 Gaflons Disposal Charge �k}9��::1:;;::�;�/1000 Gallons Sewer Only Users 537.00/quarter .per SAC Unit Sewer Availability Charges (with Building Permit Application) Single Family Residential $1,071 .00 Multi-Family Residential (Central Laundry) $861.00 Industrial, Commercial,Jnstitutional $1,071.00 per SAC Unit Metro Sewer Availability Charge 5800.00 � Sprinkler Credit Eliminated Billing Cycles in Quarters 1, 2, 3, 4 Senior Credit ' Eiiminated ADOPTED this 17th day of May, 1994. E. B. McMenomy, Mayor ATTEST: Susan M. Walsh, City Clerk Motion by: Seconded by: Voted in favor: Voted against: 2