City Council Meeting Date: October 9, 2018
To: Mayor and City Council
City Administrator
From: David E. Bennett, Public Works Director/City Engineer
Justin Wagner, Utilities Manager
Brenda Angelstad, Finance Director
Title
Discuss Utility Rate Study.
Body
Action Requested:
The Northfield City Council discusses a Utility Rate Study.
Summary Report:
As part of the City’s long term planning for financial stability, the City worked with a financial advisory firm Springsted Inc. to conduct a rate study for the City’s Enterprise Funds (Water, Wastewater-Sanitary Sewer, Storm Water, and Garbage). This study provides for a 5-10 year outlook on rate recommendations. It is anticipated that these rate studies will be performed every four-five years to continually monitor and update these funds.
As a background, the rate study takes into account historical and projected operations costs, 10-year capital improvement plan, 10-year capital equipment plan, debt, reserves, and risks. The study is proposing the following modifications to the City’s Utility Rates:
Water Fund - 1% Increase through 2023 and 4% through 2028
Sanitary Sewer - 1% Increase through 2028
Storm Water - 4% Increase through 2028
Garbage - 0% through 2022 and 1% through 2028
Other recommendations in the report include adopting a Utility Fund Reserve Policy, and a policy for Administrative Transfers on all utility funds for support services provided by the General Fund.
Patty Kettles with Springsted Inc. will present the study findings and recommendations.
Alternative Options:
N/A
Financial Impacts:
N/A
Tentative Timelines:
Accept study on October 16, 2018
Adopt Utility Rates October 16, 2018