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Home My WebLink AboutIX-01(a,b) City Code Chapter 34 - Fee Schedule City Council Memorandum To: Mayor Fasbender & City Councilmembers From: Chris Eitemiller, Finance Manager Date: December 19, 2022 Item: Conduct Public Hearing & Approve Adjustment of City of Fees Council Action Requested: Council is requested to conduct a public hearing and adopt the attached ordinance amendment adjusting various City fees. Background Information: Utility fees In 2020, the City worked with Ehlers on a Utility Rate review which looked at the sustainability of our utility funds to cover projected capital needs over the next several years. The review recommends annual rate increases for water, sewer, and storm water. In accordance with this review, staff recommends a 3.5% increase in water rates. This will help fund infrastructure improvements, water meters, and a SCADA (Supervisory Control and Data Acquisition) system upgrade in both Water and Sewer. A 2% increase is recommended for our sewer rates. This adjustment keeps the fund in line with inflationary increases to expenditures, Sewer’s share of the SCADA system upgrade and assist with funding the infrastructure improvements and capital asset purchases in the coming years. A 4% increase is also recommended for our Storm Water Fund. The Storm Water Fund’s future capital projects continue to drive this proposed increase. The rate increase for the Water and Storm Water utilities equals the increase implemented for 2022. The Sewer Utility’s rate increase was 1% in 2022, compared to 2% planned for 2023. IX-01(a,b) Financial Impact: Utility Fees The proposed rate increase is included in the 2023 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 2023 billing. Residential Impact Chart – quarterly bill Advisory Commission Discussion: N/A Council Committee Discussion: The September 6th Finance Committee meeting included discussion on the utility funds and rate increase requests. Attachment: Ordinance amendment 2022 2023 Variance Water-Consumption 17.54$ 18.15$ 0.61$ Water-Fixed 19.42$ 20.10$ 0.68$ Water-Total 36.96$ 38.25$ 1.29$ Sewer-Consumption 64.65$ 65.94$ 1.29$ Sewer-Fixed 19.04$ 19.42$ 0.38$ Sewer-Total 83.69$ 85.36$ 1.67$ Storm Water-Fixed 20.72$ 21.55$ 0.83$ MN Test Fee 2.43$ 2.43$ -$ Total Bill 143.80$ 147.59$ 3.79$ Average Single Family Home City Average Based on 15,000 Gallons IX-01(a,b) Updated 12/1/21 CITY OF HASTINGS, MINNESOTA ORDINANCE NO. 2022- 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 (2022) Proposed (2023) Water Base Charges 5/8” Meter $19.42 $20.10 1.0” Meter $48.55 $50.25 1.25” & 1.5” Meter $97.10 $100.50 2.0” Meter $155.35 $160.79 3.0” Meter $291.30 $301.50 4.0” Meter $631.12 $653.21 6.0” Meter $1,359.34 $1,406.92 Irrigation Base Charges 5/8” Meter $38.84 $40.20 1.0” Meter $97.09 $100.50 1.25” & 1.5” Meter $194.22 $201.00 2.0” Meter $310.70 $321.58 3.0” Meter $582.60 $603.00 4.0” Meter $1262.24 $1306.42 6.0” Meter $2718.69 $2813.84 IX-01(a,b) Updated 12/1/21 Section 34.03 Effective Date Water Consumption Current (2022) Proposed (2023) Residential Users (applies all year) 0 – 15,999 gallons $1.17/1,000 gallons $1.21/1,000 gallons 16,000 – 30,999 gallons $1.52/1,000 gallons $1.57/1,000 gallons 31,000 – 60,999 gallons $2.43/1,000 gallons $2.52/1,000 gallons 61,000 gallons and above $4.62/1,000 gallons $4.78/1,000 gallons Current (2022) Proposed (2023) Other Users 0 – 15,999 gallons $1.17/1,000 gallons $1.21/1,000 gallons 16,000 – 75,999 gallons $1.52/1,000 gallons $1.57/1,000 gallons 76,000 – 200,999 gallons $2.43/1,000 gallons $2.52/1,000 gallons 201,000 gallons and above $4.62/1,000 gallons $4.78/1,000 gallons Sewer Fixed Charges $19.04 $19.42 Sewer Consumption Charge (based on metered use during winter billing quarter) $4.31/1,000 gallons $4.40/1,000 gallons Storm Water Utility Rates Low Density Residential $20.72/lot $21.55/lot Medium Density Residential $11.39/lot $11.85/lot High Density Residential $80.77/acre $84.00/acre Manufactured Housing $62.13/acre $64.62/acre Commercial/Office $99.40/acre $103.38/acre Industrial $86.97/acre $90.45/acre Public/Institutional Exempt/acre Exempt/acre Golf Course $18.65/acre $19.40/acre Open Space/Vacant $20.72/lot $21.55/lot Agricultural $20.72/lot $21.55/lot This ordinance shall be effective with the January 2023 billing. IX-01(a,b) Updated 12/1/21 Moved by Councilmember , seconded by Councilmember to adopt the ordinance as presented. Adopted by the Hastings City Council on this 19th day of December, 2022, by the following vote: Ayes: Nays: Absent: CITY OF HASTINGS ATTEST: Mary Fasbender, Mayor Kelly Murtaugh, 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 19th day of December, 2022, as disclosed by the records of the City of Hastings on file and of record in the office. Kelly Murtaugh, City Clerk IX-01(a,b)