2013-10-22_PWETC_AgendaPacket - Laserfiche WebLink

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Attachment A ft Jam., Memo To: Public Works, Environment, and Transportation Commission Duane Schwartz, Public Works Director From: Chris Miller, Finance Director Date: October 17, 2013 Re: Discussion on 2014 Utility Rates Background Over the past several months, City Staff has been reviewing the City's utilities operations to determine whether customer rate adjustments are necessary for 2014. The analysis included a review of the City's water, sanitary sewer, storm drainage, and curbside recycling operations. It also incorporates the recommendations provided by the Council - appointed Capital Improvement Plan (CIP) Task Force. Staffs analysis included a review of the following: 3 Fixed costs including personnel, supplies and maintenance, and depreciation. 3 Variable costs including the purchase of water from the City of St. Paul, water treatment costs paid to the Metropolitan Council, and recycling contractor costs. 3 Capital replacement costs. 3 Customer counts and consumption patterns, rate structure, and rates. A financial overview of each operating division is included beginning on the next page. The estimated overall impact on a typical single - family home is shown in the following table. Single Family Homes Service 2013 2014 Increase % Increase Water - base fee 1 1 49.50 54.45 1 1 4.95 i Water - usage fee 38.70 39.60 0.90 JSamtary Sewer - basefee 37.35 37.35 - JSamtary Sewer - usage fee 21.75 24.00 2.25 Storm Sewer 1 1 11.15 1 11.70 1 1 0.55 Recycling 6.00 5.00 1.00 Total ner Quarter I I S 164.45 1 S 172.10 1 1 S 7.65 Water consum lion 1,000 als. 18 Sewer consumption (1,000 eals.l 15 As shown in the chart, for 2014 a typical single - family home will pay $172.10 per quarter, or $57.37 per month. This is an increase of $2.55 per month from 2013. Comparisons to peer communities are shown in a separate section below.