ITEM 3.6 Utility RatesOtSeTY
go
F
MINNESOTA
DEPARTMENT INFORMATION
Request for
City Council Action
ORIGINATING DEPARTMENT REQUESTOR:
MEETING DATE:
Administration City Administrator/Finance Director Flaherty
February 11, 2019
PRESENTER(s) REVIEWED BY:
ITEM #:
Consent
3.6
STRATEGIC VISION
MEETS:
I THE CITY OF OTSEGO:
X
Is a strong organization that is committed to leading the community through innovative
communication.
IS A PUBLIC HEARING REQUIRED?
Has proactively expanded infrastructure to responsibly provide core services.
No
Is committed to delivery of quality emergency service responsive to community needs and
expectations in a cost-effective manner.
The City has a public utility system with Water and Sanitary Sewer operations. The current system is
Is a social community with diverse housing, service options, and employment opportunities.
receive monthly utility bills for usage of the water and sanitary sewer utility system. The monthly charges
Is a distinctive, connected community known for its beauty and natural surroundings.
AGENDA ITEM DETAILS
RECOMMENDATION:
City staff is recommending that the City Council approve a resolution establishing water & sanitary sewer
utility rates for 2019.
ARE YOU SEEKING APPROVAL OF A CONTRACT?
IS A PUBLIC HEARING REQUIRED?
No
No
BACKGROUND/JUSTIFICATION:
The City has a public utility system with Water and Sanitary Sewer operations. The current system is
comprised of 3,639 customers who include both residential and commercial accounts. Those customers
receive monthly utility bills for usage of the water and sanitary sewer utility system. The monthly charges
include both a base fee, and a consumption fee which is calculated on their actual usage of the system.
The utility rates for the water and sanitary sewer systems are analyzed by the Finance Director on an
annual basis. This analysis includes: reviews of budget -to -actuals, preparation of the operating budget,
preparation of the capital improvement plan, and future projections.
The Water Utility fund (Operating #601 & WAC #360) cash balance is forecasted to be approximately $7.5
million for year-end 2018. The cash flow includes 2019 budgeted operating expenses with 2% annual
inflation for 2020-2028. The revenue projections in the cash flow chart assume inflation, rate adjustments
and customer growth, with 3% rate increases throughout. The cash flow also includes capital expenses
through 2028, totaling more than $19 million. As can be noted by looking at the cash flow analysis, the cash
balance is projected to be a deficit beginning in 2022 through the remainder of the projection period. This
deficit cash balance is the result of the significant capital expenses, but no corresponding debt issuance.
The City is currently engaged in the development of a Water Master Plan, which will aid in refining the
required projects and their respective timing and costs. Having this information will allow the cash flow to
include debt issuance for specific capital projects which will alleviate the deficit cash balance, but will result
in future debt service payments, which are not included in the cash flow at this time.
The Sanitary Sewer Utility fund (Operating #602 & SAC #361) cash balance is forecasted to be
approximately $8.9 million for year-end 2018. The cash flow includes 2019 budgeted operating expenses
with 2% annual inflation for 2020-2028. The cash flow also includes capital expenses through 2028, totaling
more than $50 million. The cash flow also includes debt issuance in 2020 (East WWTF Biosolids) and 2024
(West WWTF Expansion), as well as the respective annual debt service payments. The revenue projections
in the cash flow chart assume inflation, rate adjustments and customer growth, with 8% rate increases
throughout. The projected rate increases are significant, with the estimated bill for an average residential
customer doubling during the projection period. The rate increases are based upon the significant capital
costs and corresponding debt service payments. The most crucial time period to manage financially will be
between 2020 and 2027, when debt service payments from existing infrastructure and new infrastructure
will overlap. In 2028, the debt service from the existing infrastructure will be paid off, and will provide
relief to the cash flow. There are opportunities to refinance or prepay existing debt service to achieve
interest savings, which will be carefully analyzed in 2019 and will be brought to the Council for further
review and discussion.
Of course, things are subject to change, and that is why it is important we look at these projections on an
annual basis and determine if rate changes are necessary. Based on the information provided, the Finance
Director would propose the following:
- Increase of 3% to Water Utility rates for 2019.
- Increase of 8% to Sanitary Sewer Utility rates for 2019.
These rate recommendations are the same as were discussed during the 2019 budget process.
Lastly, City staff will be recommending a third -party utility rate study be included within the 2020 budget.
The last formal rate study was conducted in 2012 by Ehlers. This timing will correspond with the
completion of both the Water and Wastewater Master Plans, as well as the issuance of debt in 2020 for the
East WWTF Biosolids Facility project.
SUPPORTING DOCUMENTS ATTACHED:
• Cash Flow Summaries
• Current & Historical Rates
• Monthly Bill Estimations
• Resolution 2019-07
POSSIBLE MOTION
PLEASE WORD MOTION AS YOU WOULD LIKE IT TO APPEAR IN THE MINUTES:
Motion to approve Resolution 2019-07, Establishing Water and Sanitary Sewer Utility Rates for 2019.
BUDGET INFORMATION
FUNDING: BUDGETED:
N/A N/A
City of Otsego
Water Utility Fund
Cash Flow Summary
r
Revised: January 30, 2019
Estimated Bill (15k Gallons)
$
35.11
$ 36.16
$ 37.25
$ 38.37
$ 39.52
$ 40.70
$ 41.92
$ 43.18
$ 44.48
$ 45.81
$ 47.18
Rate Increase (Inflation)
3,681,784
2.00%
2.00%
2.00%
2.00%
2.00%
2.00%
2.00%
2.00%
2.00%
2.00%
2.00%
Rate Increase (Adjustment)
270,645
0.00%
1.00%
1.00%
1.00%
1.00%
1.00%
1.00%
1.00%
1.00%
1.00%
1.00%
Total Rate Increase
636,282
2.00%
3.00%
3.00%
3.00%
3.00%
3.00%
3.00%
3.00%
3.00%
3.00%
3.00%
Availability Charge
$
1,731
$ 1,781
$ 1,799
$ 1,817
$ 1,835
$ 1,854
$ 1,872
$ 1,891
$ 1,910
$ 1,929
$ 1,948
Connection Charge
$
1,731
$ 1,781
$ 1,799
$ 1,817
$ 1,835
$ 1,854
$ 1,872
$ 1,891
$ 1,910
$ 1,929
$ 1,948
Connection Fee Inflation
1,545,000
4.10%
2.90%
1.00%
1.00%
1.00%
1.00%
1.00%
1.00%
1.00%
1.00%
1.00%
New Customers
229,375
300
300
297
200
267
150
150
150
150
150
150
50,000
50,000
Estimated
Budget I
50,000
50,000
1,104,051
1,087,024
Projected
1,098,238
1,105,258
1,113,259
959,008
917,415
916,386
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
Water Fund
Operating
Non -Operating
Transfers In
Bond Proceeds
WAC Fund
Connection Fees
Transfers In
Investment Interest
Total
Expenses
Personal Servcies
Supplies
Services & Other Charges
Depreciation
Capital Outlay
Capital Outlay (General)
Capital Outlay (Fleet)
Capital Outlay (Current CIP)
Capital Outlay (Collection)
Capital Outlay (R & R Plan)
Debt Service (Existing)
Debt Service (Projected)
Transfers Out - General Fund
Transfers Out -Jet Vac
Total
Cash Balance - Beginning
Balance Sheet Effects
Revenues
Expenditures
Noncash - Depreciation
Cash Balance - Ending
$ 1,494,972 $ 1,497,436 $ 1,676,453 $ 1,863,481 $
238,781 164,968 166,468 167,968
2,014,226 $ 2,205,062 $ 2,346,676 $ 2,494,801 $ 2,649,703 $ 2,811,653 $ 2,980,935
169,468 170,968 172,468 173,968 175,468 176,968 178,468
Comments
Assumes Inflation, Rate Adjustments & Customer Growth
Assumes Inflation
959,894 445,250 449,750 454,250 458,750 463,250 468,000
472,750
477,500
482,250 487,000 Assumes Rate Adjustments
- - - - - - 46,854
361,645
379,113
381,750 - Assumes Subsidy from Sewer for Defict WAC
134,950
137,649
140,402
3,852,621 3,646,403
2,693,647 2,107,654 2,292,671 2,485,699 2,642,444 2,839,280 3,033,998
3,503,164
3,681,784
108,648
117,482
119,832
122,228
124,673
127,166
129,710
132,304
134,950
137,649
140,402
252,414
229,189
233,773
238,448
243,217
248,082
253,043
258,104
263,266
268,531
273,902
270,713
475,537
255,035
260,135
265,338
270,645
276,058
281,579
287,210
292,955
298,814
535,000
565,000
576,300
587,826
599,583
611,574
623,806
636,282
649,007
661,988
675,227
46,407
-
-
-
Debt Service (100% of Next Year)
-
-
-
-
-
-
-
116,600
-
-
-
-
2,614,169
-
-
-
3,606,127
-
-
11,750
11,750
-
8,750
-
100,000
12,000
12,810
-
505,371
1,100,000
1,545,000
4,450,000
3,080,000
2,000,000
1,770,000
1,100,000
3,000,000
97,000
1,820,000
-
-
224,875
227,125
229,375
231,625
234,000
236,375
238,750
241,125
243,500
-
50,000
50,000
50,000
50,000
50,000
50,000
50,000
50,000
50,000
50,000
1,104,051
1,087,024
1,096,456
1,098,238
1,105,258
1,113,259
959,008
917,415
916,386
899,640
-
39,960
42,975
44,264
45,592
46,960
48,369
49,820
51,314
52,854
54,439
56,073
9,600
8,200
-
-
-
-
-
-
-
-
-
2,872,164
3,792,007
4,157,284
7,091,343
5,744,404
4,709,470
4,345,444
3,763,373
5,604,424
2,716,137
3,557,918
7,211,538 7,568,021 6,448,668 5,160,354 1,142,537 (1,359,841) (2,618,456) (3,306,097) (2,930,024) (4,203,656) (2,405,185)
2019 Budget -Then 2% Inflation
2019 Budget - Then 2% Inflation
2019 Budget (Engineering Reduced) - Then 2% Inflation
2019 Budget - Then 2% Inflation
2019-2028 CIP (ALLOCATED 25%)
2019-2028 CIP
Assumed at 50% of WAC Revenue (Pending Master Plan)
Pending Result of Master Plan
Based on Existing Bond Issues
Pending Result of Master Plan
General Fund - Administrative Functions (Inflates 3%)
Transfer to Debt Fund 399 -Jet Vac (80%)
2,693,647
2,107,654
2,292,671
2,485,699
2,642,444
2,839,280
3,033,998
3,503,164
3,681,784
3,852,621
3,646,403
(2,872,164)
(3,792,007)
(4,157,284)
(7,091,343)
(5,744,404)
(4,709,470)
(4,345,444)
(3,763,373)
(5,604,424)
(2,716,137)
(3,557,918)
535,000
565,000
576,300
587,826
599,583
611,574
623,806
636,282
649,007
661,988
675,227
$ 7,568,021 $
6,448,668 $
5,160,354 $
1,142,537 $
(1,359,841) $
(2,618,456) $
(3,306,097) $
(2,930,024) $
(4,203,656) $
(2,405,185) $
(1,641,472) Pending Master Plan - Need to Plan for Debt Issuance
X:\Budget\2020\Cash Flows\Utility Funds Combined Water
Cash Balance Reserve
Operating (3.5 Months of Next Year)
252,345
190,430
194,368
198,388
202,493
206,684
210,963
215,332
219,793
224,347
228,998
Capital (100% of Next Year Less Bond Projects)
1,266,600
1,831,625
4,738,875
3,359,375
2,290,375
2,054,000
1,486,375
3,300,750
400,935
2,113,500
295,875
Debt Service (100% of Next Year)
1,095,224
1,096,456
1,098,238
1,105,258
1,113,259
959,008
917,415
916,386
899,640
-
-
Total Cash Reserve Recommendation
2,614,169
3,118,511
6,031,481
4,663,021
3,606,127
3,219,692
2,614,753
4,432,468
1,520,368
2,337,847
524,873
Percentage of Cash Reserve on Hand
289.50%
206.79%
85.56%
24.50%
-37.71%
-81.33%
-126.44%
-66.10%
-276.49%
-102.88%
-312.74%
X:\Budget\2020\Cash Flows\Utility Funds Combined Water
City of Otsego
Sewer Utility Fund
Cash Flow Summary
y
Revised: January 30, 2019
Estimated Bill (5k Gallons)
$ 38.88 $
41.99 $
45.35 $
48.98 $
52.90 $
57.13 $
61.70 $
66.63 $
71.96 $
77.72 $
83.94
Rate Increase (Inflation)
2.00%
2.00%
2.00%
2.00%
2.00%
2.00%
2.00%
2.00%
2.00%
2.00%
2.00%
Rate Increase (Adjustment)
2.00%
6.00%
6.00%
6.00%
6.00%
6.00%
6.00%
6.00%
6.00%
6.00%
6.00%
Total Rate Increase
4.00%
8.00%
8.00%
8.00%
8.00%
8.00%
8.00%
8.00%
8.00%
8.00%
8.00
Connection Fee Inflation
4.10%
2.90%
1.00%
1.00%
1.00%
1.00%
1.00%
1.00%
1.00%
1.00%
1.00%
New Customers
300
300
297
200
267
150
150
150
150
150
150
Capital Outlay (Fleet)
Estimated
Budget
35,250
35,250
-
26,250
Projected
300,000
36,000
38,430
-
Capital Outlay (Current CIP)
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
Sanitary Sewer Fund
-
1,515,840
1,001,920
1,001,920
1,337,563
751,440
758,954
766,544
774,209
781,951
789,771
Operating
$ 1,910,372 $
2,214,367 $
2,554,775 $
2,933,713 $
3,295,360 $
3,742,026 $
4,152,444 $
4,604,579 $
5,102,481 $
5,650,578 $
6,253,715
Non -Operating
11,483
-
-
-
-
-
-
-
-
-
-
Transfers In
-
-
-
906,378
906,530
905,828
-
-
2,910,225
2,909,273
-
Bond Proceeds
-
-
13,340,000
-
-
-
27,260,000
-
-
-
-
SAC Fund
-
-
-
-
-
-
46,854
361,645
379,113
381,750
-
Connection Fees
2,952,648
3,031,681
2,003,840
2,003,840
2,675,126
1,502,880
1,517,909
1,533,088
1,548,419
1,563,903
1,579,542
Investment Interest
-
-
-
-
-
-
32,542,274
-
-
-
-
Total
4,874,503
5,246,048
17,898,615
4,937,553
5,970,487
5,244,906
32,930,352
6,137,667
6,650,900
7,214,481
7,833,256
Expenses
Personal Servcies
325,944
352,448
359,497
559,360
570,547
581,958
593,597
605,469
723,942
846,911
863,849
Supplies
154,135
169,254
174,492
477,816
497,256
512,866
528,900
545,371
562,289
677,186
698,341
Services & Other Charges
583,941
1,664,547
524,008
617,684
639,716
658,056
676,873
696,181
715,990
821,642
848,003
Depreciation
995,000
1,015,000
1,035,300
1,056,006
1,077,126
1,098, 669
1,120, 642
1,143,055
1,165,916
1,189, 234
1,213,019
Capital Outlay
172,643
-
-
1,056,006
-
-
-
-
-
-
-
Capital Outlay (General)
-
53,000
-
-
6,492,555 $
-
6,391,105 $
-
-
-
1,472,335
Capital Outlay (Fleet)
-
-
35,250
35,250
-
26,250
-
300,000
36,000
38,430
-
Capital Outlay (Current CIP)
.443,912
234,933
12,228,000
45,000
1,000,000
1,000,000
25,260,000
100,000
800,000
-
-
Capital Outlay (Collection)
-
1,515,840
1,001,920
1,001,920
1,337,563
751,440
758,954
766,544
774,209
781,951
789,771
Capital Outlay (R & R Plan)
1,965,286
280,000
250,000
250,000
300,000
300,000
325,000
350,000
375,000
400,000
425,000
Debt Service (Existing)
1,925,504
1,932,486
1,949,254
1,952,422
1,964,902
1,979,126
1,704,902
1,630,958
1,629,129
1,599,360
-
Debt Service (Projected)
-
-
195,529
906,378
906,530
905,828
1,384,207
2,907,761
2,910,225
2,909,273
2,905,365
Transfers Out - General Fund
119,880
128,925
131,504
134,134
136,816
139,553
142,344
145,190
148,094
151,056
154,077
Transfers Out - WAC
-
-
-
-
-
-
46,854
361,645
379,113
381,750
-
TransfersOut-JetVac
38,400
32,800
-
-
-
-
-
-
-
-
-
Total
4,759,359
7,379,233
17,884,754
7,035,969
8,430,457
7,953,744
32,542,274
9,552,174
10,219,907
9,796,793
7,897,425
Cash Balance - Beginning
7,876,688
8,986,832
7,868,647
8,917,808
7,875,399
6,492,555
4,882,385
6,391,105
4,119,653
1,716,562
323,484
Balance Sheet Effects
Revenues
4,874,503
5,246,048
17,898,615
4,937,553
5,970,487
5,244,906
32,930,352
6,137,667
6,650,900
7,214,481
7,833,256
Expenditures
(4,759,359)
(7,379,233)
(17,884,754)
(7,035,969)
(8,430,457)
(7,953,744)
(32,542,274)
(9,552,174)
(10,219,907)
(9,796,793)
(7,897,425)
Noncash - Depreciation
995,000
1,015,000
1,035,300
1,056,006
1,077,126
1,098,669
1,120,642
1,143,055
1,165,916
1,189,234
1,213,019
Cash Balance - Ending
$ 8,986,832 $
7,868,647 $
8,917,808 $
7,875,399 $
6,492,555 $
4,882,385 $
6,391,105 $
4,119,653 $
1,716,562 $
323,484 $
1,472,335
Cash Balance Reserve
Operating (3.5 Months of Next Year)
675,259
346,938
521,790
537,931
551,959
566,333
581,062
627,175
728,232
747,912
768,088
Capital (100% of Next Year Less Bond Projects)
2,083,773
1,287,170
1,332,170
2,637,563
2,077,690
1,083,954
1,516,544
1,985,209
1,220,381
1,214,771
1,222,669
Debt Service (100% of Next Year)
1,965,286
2,144,783
2,858,800
2,871,432
2,884,954
3,089,109
4,538,719
4,539,354
4,508,633
2,905,365
2,903,484
Total Cash Reserve Recommendation
4,724,319
3,778,891
4,712,760
6,046,926
5,514,603
4,739,397
6,636,325
7,151,739
6,457,246
4,868,048
4,894,241
Percentage of Cash Reserve on Hand
190.22%
208.23%
189.23%
130.24%
117.73%
103.02%
96.30%
57.60%
26.58%
6.65%
30.08%
Comments
Assumes Inflation, Rate Adjustments & Customer Growth
Assumes Rate Adjustments
2019 Budget -Then 2% Inflation
2019 Budget -Then 2% Inflation
2019 Budget (Engineering Reduced) - Then 2% Inflation
2019 Budget - Then 2% Inflation
See Fleet CIP (Allocated 75%)
See DRAFT 2019-2028 CIP
Assumed at 50% of SAC Revenue
Based on Master Plan
Based on Existing Bond Issues
Based on Projected Bond Issues
General Fund - Administrative Functions (Inflates 3%)
Assumes Subsidy from Sewer for Defict WAC
Transfer to Debt Fund 399 - Jet Vac (80%)
X:\Budget\2020\Cash Flows\Utility Funds Combined Sewer
City of Otsego
Public Utility Charges
Water Rate Comparison
2019
Actuallncreases
n/a
2.50%
2.50%
2.50%
0.00%
3.00%
2.00%
Proposed
2012
2013
2014
2015
2016
2017
2018
2019
Change
Base Rate
5/8" Meter $
8.00
$
8.20
$ 8.41
$ 8.62
$ 8.62
$ 8.88
$ 9.06
$ 9.33
2.98%
3/4" Meter $
8.00
$
8.20
$ 8.41
$ 8.62
$ 8.62
$ 8.88
$ 9.06
$ 9.33
2.98%
1.00" Meter $
8.00
$
25.00
$ 25.63
$ 26.27
$ 26.27
$ 27.06
$ 27.60
$ 28.43
3.01%
1.50" Meter $
8.00
$
50.00
$ 51.25
$ 52.53
$ 52.53
$ 54.10
$ 55.18
$ 56.84
3.01%
2.00" Meter $
8.00
$
75.00
$ 76.88
$ 78.80
$ 78.80
$ 81.16
$ 82.78
$ 85.26
3.00%
3.00" Meter $
8.00
$
150.00
$ 153.75
$ 157.59
$ 157.59
$ 162.31
$ 165.56
$ 170.53
3.00%
4.00" Meter $
8.00
$
375.00
$ 384.38
$ 393.98
$ 393.98
$ 405.80
$ 413.92
$ 426.34
3.00%
Residential & City Owned Consumption (per 1k)
0 - 10,000 Gallons $
1.50
$
1.54
$ 1.58
$ 1.62
$ 1.62
$ 1.67
$ 1.70
$ 1.75
2.94%
10,000 + Gallons $
1.60
$
1.64
$ 1.68
$ 1.72
$ 1.72
$ 1.77
$ 1.81
$ 1.86
2.76%
Commercial, Industrial & Institutional Consumption (per
1k)
0 - 50,000 Gallons $
1.50
$
1.54
$ 1.58
$ 1.62
$ 1.62
$ 1.67
$ 1.70
$ 1.75
2.94%
50,000 + Gallons $
1.60
$
1.64
$ 1.68
$ 1.72
$ 1.72
$ 1.77
$ 1.81
$ 1.86
2.76%
Irrigation & Bulk WaterConsumption (per 1k)
All Usage $
1.60
$
1.64
$ 1.68
$ 1.72
$ 1.72
$ 1.77
$ 1.81
$ 1.86
2.76%
City of Otsego
Public Utility Charges
Sanitary Sewer Rate Comparison
2019
;a
Actuallncreases n/a
2012
Base Rate
5/8" Meter
3/4" Meter
1.00" Meter
1.50" Meter
2.00" Meter
3.00" Meter
4.00" Meter
Consumption
Per 1,000 Gallons of Water Usage
5.00% 5.00% 5.00% 2.00% 3.00% 4.00%
2013 2014 2015 2016 2017 2018 2019
$ 5.00
$
7.88
$
8.27
$
8.68
$
8.85
$
9.12
$
9.48
$
10.24
$ 5.00
$
7.88
$
8.27
$
8.68
$
8.85
$
9.12
$
9.48
$
10.24
$ 5.00
$
15.75
$
16.54
$
17.36
$
17.71
$
18.24
$
18.97
$
20.49
$ 5.00
$
39.38
$
41.34
$
43.41
$
44.28
$
45.61
$
47.43
$
51.22
$ 5.00
$
78.75
$
82.69
$
86.82
$
88.56
$
91.22
$
94.87
$
102.46
$ 5.00
$
157.50
$
165.38
$
173.64
$
177.11
$
182.42
$
189.72
$
204.90
$ 5.00
$
393.75
$
413.44
$
434.11
$
442.79
$
456.07
$
474.31
$
512.25
$ 5.00 $ 4.88 $ 5.13 $ 5.38 $ 5.49 $ 5.65 $ 5.88 $ 6.35
Proposed
Change
8.02%
8.02%
8.01%
7.99%
8.00%
8.00%
8.00%
7.99%
City of Otsego
Public Utility Charges
Monthly Bill Estimations
2019
Residential (Summer = 17,500 Gallons + 4,000 Irrigation Gallons)
Base Fee
$
8.00
$
8.20
$
8.41
$
8.62
$
8.62
$
8.88
$
9.06
$
9.33
Proposed
$
15.00
2012
15.40
2013
15.80
2014
16.20
2015
16.20
2016
16.70
2017
17.00
2018
17.50
2019
Change
Residential (Winter = 5,000 Gallons)
$
12.30
$
12.60
$
12.90
$
12.90
$
13.28
$
13.58
$
13.95
Consumption: Irrigation
$
6.40
Base Fee
$
8.00
$
8.20
$
8.41
$
8.62
$
8.62
$
8.88
$
9.06
$
9.33
$
Consumption: 0-10K Gallons
$
7.50
$
7.70
$
7.90
$
8.10
$
8.10
$
8.35
$
8.50
$
8.75
7.88
Subtotal - Water Charges
$
15.50
$
15.90
$
16.31
$
16.72
$
16.72
$
17.23
$
17.56
$
18.08
2.96%
Base Fee
$
5.00
$
7.88
$
8.27
$
8.68
$
8.85
$
9.12
$
9.48
$
10.24
33.92
Consumption (5K Gallons)
$
25.00
$
24.40
$
25.65
$
26.90
$
27.45
$
28.25
$
29.40
$
31.75
$
Subtotal - Sanitary Sewer Charges
$
30.00
$
32.28
$
33.92
$
35.58
$
36.30
$
37.37
$
38.88
$
41.99
8.00%
Total Monthly Estimated Bill
$
45.50
$
48.18
$
50.23
$
52.30
$
53.02
$
54.60
$
56.44
$
60.07
6.43%
Residential (Summer = 17,500 Gallons + 4,000 Irrigation Gallons)
Base Fee
$
8.00
$
8.20
$
8.41
$
8.62
$
8.62
$
8.88
$
9.06
$
9.33
Consumption: 0-10K Gallons
$
15.00
$
15.40
$
15.80
$
16.20
$
16.20
$
16.70
$
17.00
$
17.50
Consumption: 10K+ Gallons
$
12.00
$
12.30
$
12.60
$
12.90
$
12.90
$
13.28
$
13.58
$
13.95
Consumption: Irrigation
$
6.40
$
6.56
$
6.72
$
6.88
$
6.88
$
7.08
$
7.24
$
7.44
Subtotal - Water Charges
$
41.40
$
42.46
$
43.53
$
44.60
$
44.60
$
45.94
$
46.88
$
48.22 2.87%
Base Fee
$
5.00
$
7.88
$
8.27
$
8.68
$
8.85
$
9.12
$
9.48
$
10.24
Consumption (5K Gallons)
$
25.00
$
24.40
$
25.65
$
26.90
$
27.45
$
28.25
$
29.40
$
31.75
Subtotal - Sanitary Sewer Charges
$
30.00
$
32.28
$
33.92
$
35.58
$
36.30
$
37.37
$
38.88
$
41.99 8.00%
Total Monthly Estimated Bill
$
71.40
$
74.74
$
77.45
$
80.18
$
80.90
$
83.31
$
85.76
$
90.21 5.20%
CITY OF OTSEGO
COUNTY OF WRIGHT
STATE OF NIINNESOTA
RESOLUTION NO: 2019-07
ESTABLISHING WATER & SANITARY SEWER
UTILITY RATES FOR 2019
WHEREAS, Otsego City Code Chapter 7; Section 2 outlines that in order to pay for the costs associated
with Water and Sanitary Sewer utility systems, that a just and equitable charge will be imposed upon users of
those systems; and
WHEREAS, the Otsego City Council has identified and reviewed the operating, capital and debt service
requirements of the Water and Sanitary Sewer utility systems.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF OTSEGO,
MMNESOTA:
That the following rates, fees and charged be imposed on users of the Water utility system:
a. Base Charge (All Users)
-_ ----
Meter Size
2019 Base
Charge j
5/8"
$
9.33
3/4"
$
9.33
1.00"
$
28.43
1.50"
$
56.84
2.00"
$
85.26
3.00"
$
170.53
4.00"
$
426.34
b. Usage Rates (Per 1,000 Gallons of Consumption)
Customer
Consumption
2019
Rate
Residential & City Owned
0 - 10,000 Gallons
$
1.75
Residential & Cit Owned
10,000+ Gallons
$
1.86
Conunercial, Industrial & Institutional
0 - 50,000 Gallons
$
1.75
Commercial, Industrial & Institutional
50,000+ Gallons
$
1.86
Irrigation & Bulk Water
All
$
1.86
c. Bulk Water
In order to access bulk water from the system, a meter rental from the City is required.
There is a $200.00 deposit required for that meter. The rental fee for that meter is a
minimum of $50.00, which includes the first month, with each additional month being
charged at $50.00.
The consumption tracked by the meter will be billed at the rates identified in paragraph
1(b) of this resolution. The local sales tax rate of 7.375% will also apply to the entire
bulk water rental and consumption charge incurred.
2. That the following rates, fees and charged be imposed on users of the Sanitary Sewer utility system:
a. Base Charge (All Users)
T�
Meter Size
2019 Base
Charge
5/8"
$
10.24
3/4"
$
10.24
1.00"
$
20.49
1.50"
$
51.22
2.00"
$
102.46
3.00"
$
204.90
4.00"
$
512.25
b. Usage Rates (Per 1,000 Gallons of Average December -February Water Usage)
2019
Customer Type Consumption Rate
All Users All $ 6.35
c. Minimum Charges
These charges come into effect for new accounts where there is less than three months
of usage history to base the average off of. This minimum monthly charge is $41.99.
That the rates, fees and charges outlined in this resolution shall be effective for all billings issued on
or after March 1, 2019.
ADOPTED by the Otsego City Council this 11th day of February, 2019.
N,
ATTEST:
CITY OF OTSEGO
Jessica Stockamp, Mayor
Tami Loff, City Clerk
MOTION made by Council Member and SECONDED by Council Member
IN FAVOR:
OPPOSED: