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Regular City Council Meeting Monday,August 27,2012 Page 12 While impacts will vary based on home values and changes in that value since 2012, for a median single-family home in Roseville, Mr. Miller advised that values were declining on average by 8.7%, with those homes paying $739 for City taxes in 2013; an increase of$4 per year, or $4.57 per month; with the pro- posed HRA Levy resulting in an additional $1.28 per month. In comparing local tax rates with peer communities from 1995 —2011 (e.g. met- ropolitan area cities with a population greater than 10,000), Mr. Miller noted that Roseville continued to be below average. However, Mr. Miller further not- ed that this was in part to Roseville not investing in its capital needs for a num- ber of years while other communities were doing so. At the request of Councilmember Pust, Mr. Miller advised that, while many as- sumptions were in play, factoring in the City's debt service on bonds, the City will move closer to the average, reflected in the renewed investment in capital needs; however, it still shouldn't approach the highest average among peer cit- ies. In conclusion, Mr. Miller addressed utility rate impacts to address the 20-yaer water and sewer infrastructure needs estimated at $66 million, with only $22 million in available funding, leaving a funding gap of$44 million. Mr. Miller referenced the Capital Improvement Plan (CIP) Task Force created by the City Council with representatives of the City Council and staff to address and make recommendations on that funding gap. Mr. Miller noted that, in 2011, the City Council had chosen to apply the proposed utility fee increase over a two (2) year period as opposed to all in one (1) year; with half applied in 2012, and 2013 as the final year for phasing the rate increases in on base water and sewer rates for single-family homes city-wide. Mr. Miller noted that an increase of $6.23 per month was already in place as implemented in 2012, with an addition- al $6.22 per month slated for 2013. Mr. Miller noted that following that final phase-in in 2013, thereafter only inflationary increases would occur to those rates, as recommended by the CIP Task Force. Mr. Miller reviewed other utility rate impacts, not within the control of the City of Roseville, including an estimated increase of 4-6% for purchasing water from the City of St. Paul Costs for purchasing water from City of SP; an estimated increase of 4-5% for wastewater treatment costs from the Metropolitan Council; and other inflationary impacts. Mr. Miller advised that, for a typical single- family home in Roseville, this would result in an additional increase of$0.59 per month for water/sewer operations; for a combined total impact of fees and inflationary increase of$6.81 per month. Using the peer group comparison again for first ring suburbs with a with stand- alone systems and having a population of between 18,000 and 50,000, Mr. Mil-