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<br />42 the City Council will review the bids for recycling operations and for the purchase of city-owned recycling <br />43 carts. For 2025, the rates are again based on the contracts – half year with the existing contract and half <br />44 year at new contract rates. A customer rate increase from $14.50 per quarter to $14.94, or 3% is <br />45 proposed to cover the operating costs and fund the cart purchase. <br />46 <br />47 Recommended Rates for 2025 <br />48 Attachment 1 has the full chart of proposed rates for the Water, Sewer, Stormwater and Recycling Utility <br />49 Funds, which depicts how the operating cost burden is distributed to various customer types. <br />50 <br />51 Based on staff analysis and the updated Ehlers Utility Rate study, the estimated impact on a Single <br />52 Family Home for all four utility funds is as follows: <br />53 <br />54 <br />55 <br />56 <br />57 <br />58 Policy Objectives <br />59 An annual review of the City’s utility rate structure is consistent with governmental best practices to <br />60 ensure that each utility operation is financially sound. <br />61 <br />62 Equity Impact Summary <br />63 Utility rates can have significant equity implications by disproportionately impacting lower-income <br />64 households, who tend to spend a higher percentage of their income on essential services. To promote <br />65 equity, the city offers a Utility Discount Program for eligible low-income, single-family homeowners to <br />66 mitigate financial burdens and prevent delinquencies. Additionally, the Minnesota Water Assistance <br />67 Program provides further relief by covering outstanding and current water and wastewater charges for <br />68 eligible households. The city’s utility rate structure also aligns with equity principles by charging higher <br />69 rates to high water users and larger properties, such as commercial businesses, to reflect their greater <br />70 impact on infrastructure and the environment. This tiered approach ensures that essential services <br />71 remain affordable for lower-use residential customers. The city does not disconnect water services for <br />72 non-payment, with delinquent amounts being posted to property taxes quarterly, further minimizing <br />73 disruptions for residents facing financial difficulties. <br />Page 2 of 3 <br />Qbhf!56!pg!297 <br /> <br />