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HomeMy WebLinkAbout7.a. Draft 2022 Utility Rate Models G:\MEETINGS\UTILITY COMMISSION\UC Items and Packets\2021\20210927\7.a. Draft 2022 Utility Rate Models.docx E X E C U T I V E S U M M A R Y Utility Commission Meeting: September 27, 2021 AGENDA ITEM: Draft 2022 Utility Rate Models AGENDA SECTION: New Business PREPARED BY: Brian Erickson, P.E. City Engineer AGENDA NO. 7.a. ATTACHMENTS: None APPROVED BY: BLE RECOMMENDED ACTION: Review and discuss draft rate models for water, sewer, storm and street lighting for 2022 BACKGROUND The Utility Commission reviews the rate models annually for the City of Rosemount. These models project anticipated rates for the next ten years to ensure that necessary improvements are planned and funded while maintaining appropriate fund balances for the enterprise funds. Several staff changes occurred this summer due to retirements, organizational restructuring and departures which has led to a delay in finalizing the rate models. Staff will present draft rate models for the commission at the September meeting and bring the final models to the October meeting for action. The elimination of fixed rates for water and sewer was completed with the 2021 fee structure resulting in a rate model that is more usage based that previous models. The other recent change which affect primarily sewer rates is the elimination of the residential irrigation meter program. This led to a large sewer rate increase in 2021. For 2022, the Metropolitan Council Environmental Services (MCES) billing increased by 17.9%. This is due to a combination of an increase the percentage of regional flow due to growth and an increase in the overall regional MCES charges. SUMMARY Staff will provide the draft rate models at the September meeting for discussion and then bring the finalized version back to the October meeting and request the Utility Commission recommendation to the City Council approve the models.