HomeMy WebLinkAboutVIII-C-01 - Ordinance Amendment - Fees
City Council Memorandum
To: Mayor Hicks & City Councilmembers
From: Melanie Lammers, Finance Manager
Date: December 17, 2018
Item: Conduct Public Hearing & Approve New Utility Rates
Council Action Requested:
Council is requested to conduct a public hearing and adopt the attached 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 based upon information from
the Utility Rate study, and our Capital needs for the Utility funds.
Staff is recommending a 5% increase in Water rates. This is due to the fact our Water Fund is
projected to have a negative cash flow due to infrastructure projects. The Engineering
department is planning on redoing an older section of street in 2019. The cost to the Water
fund is significant. Staff is looking at future road projects and estimating the impact to the
Water fund, mitigating as much cost and work as possible to keep the rate increases to the Fund
reasonable.
A 3% increase is being recommended for our Sewer Rates. This adjustment keeps the Fund in
line with inflationary increases to expenditures, and the Met Council increase of 3.24%. (Met
Council is the largest expense for the Sewer Fund)
A 3% increase is also being recommended for our Storm water fund. The Storm Water Funds
future capital projects are driving this proposed increase.
Financial Impact:
The proposed rate increase is included in our 2019 budget. It is anticipated this increase will
create a neutral or positive revenue stream from each of 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 and Capital projects.
If approved, the updated fee structure will be effective with the January 2019 billing.
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Financial Impact:
The proposed rate increase is included in our 2019 budget. It is anticipated this increase will
create a neutral or positive revenue stream from each of 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 and Capital projects.
If approved, the updated fee structure will be effective with the January 2019 billing.
Residential Impact Chart – quarterly bill
Average Single Family Home
City Average based on 15,000 gallons
2017 2018
2017/201
8 Increase
2019
w/5/3/3
2018/2019
Increase
WATER 15 15 15
0.91 0.99 1.04
13.65 14.85 15.60
SEWER 15 15 15
3.32 3.98 4.10
49.80 59.70 61.50
Water 13.65 14.85 1.20 15.60 0.75
WA Fixed 15.09 16.45 1.36 17.27 0.82
Sewer 49.80 59.70 9.90 61.50 1.80
SW Fixed 14.66 17.59 2.93 18.12 0.53
Stormwater 14.44 18.05 3.61 18.59 0.54
MN Test Fee 1.59 1.59 0.00 1.59 0
109.2
3
128.2
3 19.00 132.67 4.44
Advisory Commission Discussion:
N/A
Council Committee Discussion:
November 15th Finance Committee meeting included discussion on the utility funds and rate
increase requests.
Attachments:
Ordinance amendment.
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VII-C-01
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 $16.45 $17.27
1.0” Meter $41.10 $43.16
1.25” & 1.5” Meter $82.22 $86.33
2.0” Meter $131.54 $138.12
3.0” Meter $246.65 $258.98
4.0” Meter $534.38 $561.10
6.0” Meter $1,150.99 $1,208.53
Irrigation Base Charges
5/8” Meter $32.90 $34.54
1.0” Meter $82.20 $86.31
1.25” & 1.5” Meter $164.44 $172.66
2.0” Meter $263.08 $276.23
3.0” Meter $493.33 $518.00
4.0” Meter $1068.76 $1122.20
6.0” Meter $2301.98 $2417.08
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Water Consumption Current Proposed
Residential Users (applies
all year)
0 – 15,999 gallons $.99/1,000 gallons $1.04/1,000 gallons
16,000 – 30,999 gallons $1.29/1,000 gallons $1.35/1,000 gallons
31,000 – 60,999 gallons $2.06/1,000 gallons $2.16/1,000 gallons
61,000 gallons and above $3.91/1,000 gallons $4.11/1,000 gallons
Other Users
0 – 15,999 gallons $.99/1,000 gallons $1.04/1,000 gallons
16,000 – 75,999 gallons $1.29/1,000 gallons $1.35/1,000 gallons
76,000 – 200,999 gallons $2.06/1,000 gallons $2.16/1,000 gallons
201,000 gallons and above $3.91/1,000 gallons $4.11/1,000 gallons
Sewer Fixed Charges $17.59 $18.12
Sewer Consumption
Charge (based on metered
use during winter billing
quarter)
$3.98/1,000 gallons $4.10/1,000 gallons
Storm Water Utility Rates
Low Density Residential $18.05/lot $18.59/lot
Medium Density
Residential
$9.92/lot $10.22/lot
High Density Residential $70.39/acre $72.50/acre
Manufactured Housing $54.14/acre $55.76/acre
Commercial/Office $86.63/acre $89.22/acre
Industrial $75.80/acre $78.07/acre
Public/Institutional Exempt/acre Exempt/acre
Golf Course $16.25/acre $16.74/acre
Open Space/Vacant $18.05/lot $18.59/lot
Agricultural $18.05/lot $18.59/lot
Section 34.03 Effective Date
This ordinance shall be effective with the January 2019 billing.
Moved by Councilmember , seconded by Councilmember
to adopt the ordinance as presented.
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Adopted by the Hastings City Council on this 17th day of December, 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 17th day of
December, 2018, as disclosed by the records of the City of Hastings on file and of record
in the office.
_____________________
Julie Flaten, City Clerk
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