Agenda - Council Work Session - 05/23/2023

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CC Work Session Meeting Date: 05/23/2023 Information Title: Amend 2023 Schedule of Rates, Fees and Charges 2.2. Purpose/Background: Ordinance #22-28 adopting the 2023 Schedule of Rates, Fees and Charges was officially adopted on November 22, 2022, after a public hearing was held. Any revised rates went into effect January 2, 2023. At the time of adoption, the water treatment plant (WTP) project had not been awarded and sewer and water utility rates were held constant with 2022 rates until more finalized construction numbers were received. The WTP was officially awarded on March 28, 2023 and the respective trunk watermain improvements are proposed to be bid in late summer/fall of this year. The total of the projects is estimated at $42.5M with the funding to come from current water and sewer utility funds and the issuance of a revenue bond whose debt service will be paid by the utility users via utility bill collections. Sewer charges have also greatly increased in the city for 2023. Met Council increased its monthly fee it charges the city by 15% (from $82,458 to $94,908/month) and it is proposed to increase another 11 % in 2024. With the respective funding needs for Water and Sewer, staff is proposing a 10% increase for each utility. This would bring the minimum usage water fee from $43.20 per quarter to $47.52 per quarter and the fixed residential sewer charge from $75.89 per quarter to $83.48 per quarter. The second quarter utility bill is sent out on July 25, 2023. A 2022 Survey of neighboring communities and their respective rates for water and sewer is attached to show where the city of Ramsey's proposed utility increases compare. This does not take into account any 2023 increases that the other cities in the survey may have implemented. Lastly, with the implementation of police body cameras in the spring of 2023, the police department would like to implement A $35.00 per copy of any body worn camera footage that they need to provide. This would help to offset the administrative costs of producing that footage. Timeframe: 15 minutes Funding Source: Responsible Party(ies): Finance Director Outcome: Based on discussion.