City Council Meeting Date: October 11, 2016
To: Mayor and City Council
City Administrator
From: Melanie Lammers, Finance Director
Title
Review proposed 2017 utility rates.
Body
Action Requested:
The Northfield City Council will discuss the proposed utility rates for 2017.
Summary Report:
The City conducted a Utility rate study in 2014, and staff continually integrates the Capital Improvement plan with the proposed utility rate increases. Here are the recommendations for the utility rate increases.
Water Rates
Rates remain the same, no increase recommended at this time. We have used some of the Water Fund for a well project, but the fund balance is at an appropriate level. It is recommended we keep the rates stable to continue to grow the fund balance in anticipation of future large project expenditures.
CIP/CEP Scheduled funding requirements
2017 - $158,365
This includes a street reclamation project, new well house roofs, hatches and doors. Also included in 2017 is the replacement of a 2001 Chevy S-10.
2018 - $583,798
The Division and Seventh Street reconstruction is about half of this cost. Also being replaced in 2018 is a Case 580 Super L Backhoe and a 1998 Chevy 2500 Pickup Truck. Smaller improvements include a generator for Well #5 and a Wachs valve wrench.
2019 - $873,137
This year has a street reclamation project and some maintenance on well #5. The large portions of expenditures are painting the storage tanks at St Olaf, and Hall Avenue.
2020 - $637,439
The majority of 2020 expense is an anticipated reconstruction of the College and Winona St area. Some smaller expense anticipated is maintenance costs on Well No. 2, and replacement of a 2010 pickup truck.
2021 - $364,131
Projecting out this far we have the Water Street Reconstruction project anticipated at this time.
Table 1. Long Term Financial Projection-Water Fund.
In looking at the graph for the Water Fund, you can see the revenue staying relatively the same due to no water...
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