HomeMy WebLinkAbout20180709 - VI-12 - 1st Reading and Order Public Hearing - Changes to Utility Fees
City Council Memorandum
To: Mayor Hicks & City Councilmembers
From: Melanie Lammers, Finance Manager
Date: July 9, 2018
Item: First Reading/Ordinance Amendment-Adjustment of Utility Rate Fees
Council Action Requested:
Council is requested to conduct a first reading and order a public hearing for July 23, 2018
to consider an ordinance amendment adjusting the Utility fees.
Background Information:
In 2016 the City worked with Ehlers on a utility rate study and took an in-depth look at
the structure of our utility funds and sustainability. The study recommended a rate
restructure with was passed and implemented in July of 2017. This rate request is a year
after the initial one and part of the recommendations of the study.
The 2017 financial statements have the first half of the rate increases in them. The funds
are not able to sustain themselves with the current rates. The increase in rates were
discussed at the May 14th Finance Committee preliminary budget meeting, and again at
the June 18th full council workshop on the budget. The most recent meeting where the
proposed rate increase was discussed was the June 25th Audit presentation to the Finance
Committee.
Financial Impact:
The proposed rate increase is included in our 2018 budget. It is anticipated this increase
will create a neutral or positive revenue stream from each of the utility funds. This is the
last “catch-up” increase for the Utility funds. Rate increase requests in future years will
be evaluated based on the fund health, and are expected to be in line with inflationary
measures.
If approved, the updated fee structure will be effective with the July 2018 billing.
Advisory Commission Discussion:
N/A
Council Committee Discussion:
May 14th and June 25th included discussion on the utility funds and rate increase requests.
Attachments:
Draft ordinance amendment.
CITY OF HASTINGS, MINNESOTA
ORDINANCE NO. 2018- THIRD SERIES
AN ORDINANCE OF THE CITY OF HASTINGS, MINNESOTA AMENDING
CHAPTER 34 OF THE HASTINGS CITY CODE PERTAINING TO FEES FOR
MUNICIPAL SERVICES
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF HASTINGS AS
FOLLOWS:
Chapter 34 of the Hastings City Code is hereby amended as follows:
Section 34.03 Fee Schedule
Current Proposed
Water Base Charges
5/8” Meter $15.09 $16.45
1.0” Meter $37.71 $41.10
1.25” & 1.5” Meter $75.43 $82.22
2.0” Meter $120.68 $131.54
3.0” Meter $226.28 $246.65
4.0” Meter $490.26 $534.38
6.0” Meter $1,055.95 $1,150.99
Irrigation Base Charges
5/8” Meter $30.18 $32.90
1.0” Meter $75.42 $82.20
1.25” & 1.5” Meter $150.86 $164.44
2.0” Meter $241.36 $263.08
3.0” Meter $452.56 $493.33
4.0” Meter $980.52 $1068.76
6.0” Meter $2111.90 $2301.98
Water Consumption Current Proposed
Residential Users (applies
all year)
0 – 15,999 gallons $.91/1,000 gallons $.99/1,000 gallons
16,000 – 30,999 gallons $1.18/1,000 gallons $1.29/1,000 gallons
31,000 – 60,999 gallons $1.89/1,000 gallons $2.06/1,000 gallons
61,000 gallons and above $3.59/1,000 gallons $3.91/1,000 gallons
Other Users
0 – 15,999 gallons $.91/1,000 gallons $.99/1,000 gallons
16,000 – 75,999 gallons $1.18/1,000 gallons $1.29/1,000 gallons
76,000 – 200,999 gallons $1.89/1,000 gallons $2.06/1,000 gallons
201,000 gallons and above $3.59/1,000 gallons $3.91/1,000 gallons
Sewer Fixed Charges $14.66 $17.59
Sewer Consumption
Charge (based on metered
use during winter billing
quarter)
$3.32/1,000 gallons $3.98/1,000 gallons
Storm Water Utility Rates
Low Density Residential $14.44/lot $18.05/lot
Medium Density
Residential
$7.94/lot $9.92/lot
High Density Residential $56.31/acre $70.39/acre
Manufactured Housing $43.31/acre $54.14/acre
Commercial/Office $69.30/acre $86.63/acre
Industrial $60.64/acre $75.80/acre
Public/Institutional Exempt/acre Exempt/acre
Golf Course $13.00/acre $16.25/acre
Open Space/Vacant $14.44/lot $18.05/lot
Agricultural $14.44/lot $18.05/lot
Section 34.03 Effective Date
This ordinance shall be effective with the July 2018 billing.
Moved by Councilmember , seconded by Councilmember
to adopt the ordinance as presented.
Adopted by the Hastings City Council on this 23rd day of July, 2018, by the following
vote:
Ayes:
Nays:
Absent:
CITY OF HASTINGS
____________________
Paul J. Hicks, Mayor
ATTEST:
_____________________
Julie Flaten, City Clerk
I hereby certify that the above is a true and correct copy of the Ordinance presented to
and adopted by the City of Hastings, County of Dakota, Minnesota, on the 23rd day of
July, 2018, as disclosed by the records of the City of Hastings on file and of record in the
office.
_____________________
Julie Flaten, City Clerk