CCP 11102025 - Laserfiche WebLink

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44 45 46 47 48 Policy Objectives 49 An annual review of the City’s utility rate structure is consistent with governmental best practices to 50 ensure that each utility operation is financially sound. 51 52 Equity Impact Summary 53 Utility rates can have significant equity implications by disproportionately impacting lower-income 54 households, who tend to spend a higher percentage of their income on essential services. To promote 55 equity, the city offers a Utility Discount Program for eligible low-income, single-family homeowners to 56 mitigate financial burdens and prevent delinquencies. Additionally, the Minnesota Water Assistance 57 Program provides further relief by covering outstanding and current water and wastewater charges for 58 eligible households. The city’s utility rate structure also aligns with equity principles by charging higher 59 rates to high water users and larger properties, such as commercial businesses, to reflect their greater 60 impact on infrastructure and the environment. This tiered approach ensures that essential services 61 remain affordable for lower-use residential customers. The city does not disconnect water services for 62 non-payment, with delinquent amounts being posted to property taxes quarterly, further minimizing 63 disruptions for residents facing financial difficulties. 64 65 Budget Implications 66 See above. 67 68 Staff Recommendations 69 Staff recommends the rate adjustments as shown in the report. These recommendations have been 70 reviewed by both the Finance and Public Works, Environment & Transportation (PWET) Commissions, 71 and they concur with the proposed rates. Attachment 2 and 3 are excerpts from these commission 72 meetings. 73 74 Requested Council Action 75 Provide direction to staff on the proposed 2026 Utility Rates. Final approval of the utility rates will occur Page 3 of 4 Qbhf!7:!pg!74: