City Council Meeting Date: September 20, 2022
To: Mayor and City Council
City Administrator
From: Brenda Angelstad, Finance Director
Justin Wagner, Utilities Manager
David Bennett, Public Works Director and City Engineer
Title
Consider Adoption of Utility Rates for 2023.
Body
Action Requested:
The Northfield City Council approves the attached Resolution Adopting the Utility Fee Schedule for 2023.
Summary Report:
Attached is a resolution for proposed utility rates for 2023. In 2018, the City conducted a Utility Rate Study with Springsted, Inc., a public sector financial advisor. The study included updated assumptions regarding budget revenue and expense projections and 10-year Capital Equipment and Capital Improvement Plans. The report was presented by Springsted, Inc., at the October 9, 2018 City Council Work Session. Additionally, the City conducted an updated Utility Rate Study with Baker Tilley US, LLP, on both water rates and stormwater rates. The updated water rates are preparing the City for the construction of a Water Treatment Plant and costs associated with the Water Treatment Plant. The updated stormwater rates are related to Neighborhood Flood Assessment Project and repairs. The proposed rate adjustments are following the report recommendations and the adjustments for the 2023 Utility Rates are:
Water
A 15.0% increase recommended for 2023. The increase is needed to pay for anticipated operating expenses, debt service and capital outlay including the targeted amount to maintain adequate cash reserves.
Wastewater (Sewer)
A 1.75% increase recommended for 2023. The increase is needed to maintain positive operating income as well as to pay for anticipated operating expenses, capital outlay and debt service.
Storm Water
A 15% increase recommended for 2023. The increase is needed to pay for anticipated operating expenses, debt service and capital outlay including the targeted amount to maintain adequate cash reserves.
Garbage Rates...
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