HomeMy WebLinkAboutCouncil Workshop Minutes 11.04.2024A Council Workshop was held in Council Chambers and called to order by Mayor Dave Waggoner
at 6:28 p.m. on November 4, 2024.
_x_ Tom Canape
_x Heidi Sparks
Michelle Mize
Jessica Banks
_x_ Casey Wheeler
_x_
_x_ Iry Wilke
_x_ Richard Klose
_x_ Jodi Mackay
Brittney Harakal, Council Administrative Assistant
Michele Braukmann, Civil City Attorney
Kelly Strecker, Clerk/Treasurer
Matt Wheeler, Public Works Director
Public Input:
There were none.
General Items
Executive Review
Water and Sewer Rate Study Presentation
Todd Christiano with Raftelis presented the attached PowerPoint presentation.
It was questioned if capital projects are included in the proposed rate structure. It was clarified
that this is correct. The anticipated capital projects are included in the proposed rate structure.
It was noted that the residential tier structure has customers who use over 20,000 gallons per
month. It was questioned if those were indeed residential customers or if they were commercial
customers. It was clarified that each customer type was analyzed individually. For residential
customers 68% of users use under 5000 gallons each month. Only 6% of customers use over
20,000 monthly.
It was questioned how smoothly this implementation would go given another municipality
nearby recent news coverage regarding their water rates. It was clarified that the City is only
increasing its rates, it is not changing its billing system. It is anticipated that the implementation
will be smooth. The anticipated effective date is January 10`'
It was questioned whether people are able to log in and check their usage during the month. It
was clarified that anyone can read the meter located in their home. The last reading is listed on
the utility bill. Customers can also call City Hall and have their meters read during the month.
A Council Member noted that they had a running toilet in their home that ran for 45 days. The
toilet consumed roughly 2000 gallons of water. They reminded everyone that if you have a leak,
get it fixed as soon as possible.
Council Issues
A Council Member noted their concern regarding the Mayor naming Mr. Markegard as Chief
Administrative Officer. This Council Member requested a resolution be brought before Council
next week.
Mayor Waggoner stated the matter would be brought before Council on November 191h and that
this was an interim placement.
The American Legion will be doing a Veteran's Ceremony at 5:00 p.m. at their building located
in Riverside Park. After the ceremony, there will be chili and cinnamon rolls.
The next Park Board meeting will be Thursday at 5:30 p.m. in Council Chambers.
Other Items
Attendance at Upcoming Council Meeting
Council President Sparks will be absent from next week's meeting.
Announcements
There were no additional announcements.
The council workshop adjourned at 7:10 p.m.
Brittney Haraka�
Administrativ Assistant
NOTE: This meeting is open to the public. This meeting is for information and discussion of the Council for
the listed workshop agenda items.
000 Study goals and objectives
I Rate study process
5� Financial plan
o {0
� Cost of service
0
Rate design
Bill comparison/Utility survey
Rate study procege,
How much money do we need?
E::� Is everyone paying their fair share?
=* !W can our rates help ensure fairness?
Proposed typical water and wastewater monthly bill
Residential - 6,000 gal water, 3,000 gal wastewater
3/4" Meter
N
so Financial planning process
What is the revenue required to meet expenditures?
• Rate revenues
• Other operating
revenue
• Loan proceeds
• Grants
• Operating expenses
• Capital project costs
• Debt service
• Reserve levels
• Coverage ratios
Financial plan assumptions
s x O
K
in
■
s
Multi -Year
Financial Plan
• Operating reserve
• Capital reserve
• Bond reserves
• Water line, meter replacement, and deposit reserve
• Total annual reserve target: $3.9 million
• Operating reserve
• Capital reserve
• Bond reserves
• Total annual reserve target: $2.7 million
• Operation and maintenance expense: 4.0%
• Capital: 4.5%
• Personnel Services: 4.5%
• Debt service coverage target: 1.20x debt service
Water cash flow proforma
N $10.0 - -- -
0
S8 0
56.0
$40
$2.0
$0.0
FY25
n
12
FY26 tY27 FY28
Revenues Expenditures Ending Balance —Target Reserve
FY25
Water operating cash flow financial metrics
3.76
i
1.35 1.22 1.27
A m m m
FY25 FY26 FY27 FY28 FY29
Calculated Debt Service Coverage —Target Coverage 1.2N Debt Service
16.0% 16.0% 16.0%
FY25 FY26 FY27 FY28 FY29
Wastewater cash flow proforma
0
g 53.0 ILM
52.5
r
52.0
51.5
51.0
50.5
50.0
FY25 FY26 FY27 FY28 FY29
�i Revenues Expenditures Ending Balance Target Reserve
Ir
no• Determines amount of revenue to be recovered from each customer class
• Considers the number of customers and usage demands they impose on the system
• Recognizes the different demand and customer characteristics of each class
• Water Sewer
• Average day demand Contributed flow
• Peak demands Wastewater strength
• Number of customers
• Number of meters by size
• Cost to provide service will vary by class
Allocation of wastewater utility costs to classes
Existing and cost of service rates
10CI
Commercial Commercial
80% 27.0% 28.0%
60%
40%
20%
0%
Revenue at Existing Rates Cost of Service
Pricing Objectives
A means of ensuring
community values are
reflected in the way costs of
providing service are
recovered.
Required obj ect 6 es
Costs covered & Financial health maintained
Legally compliant; defensible in court
Revenue stability
Essential use pricing
Cost recovery between classes
Customer understanding
Cost recovery within a class
ANCustomer impact
r` Ease of administration/
Water conservation gip,
implementation
123
Water rates
Existing and proposed rate structure
11 a
Wastewater utility
Existing and proposed rates
Volume Rate, $ per 1,000 Gallons
Existing
All Usage $5.27
Fn
$29.24
52.34
81.29
116.96
208.77
467.84
835.39
1,879.84
5,198.29
Typical water and wastewater monthly residential bills
Indoor, average, and summer use
$140 ■ Water ■ Wastewater
6,000 gal water
3,000 gal water 3,000 gal wastewater
$120 3,000 gal wastewater
$100 $93.71 $91.96 $100.76_
$83.38
$80
$60
$40
$20
$0
LE
Existing Proposed Existing Proposed
11,000 gal water
3,000 gal wastewater
$114.86
$106.26
Existing Proposed
Monthly Minimum Charge/Base Charge, $ per Bill
Meter Size
Existing
Inches
3/4"
$29.24
1"
52.34
1.25"
81.29
1.5"
116.96
2"
208.77
3"
467.84
4"
835.39
6"
1,879.84
10"
5.198.29
Volume Rate, $ per 1,000 Gallons
Existing
All Usage $5.27
Fn
$29.24
52.34
81.29
116.96
208.77
467.84
835.39
1,879.84
5,198.29
Typical water and wastewater monthly residential bills
Indoor, average, and summer use
$140 ■ Water ■ Wastewater
6,000 gal water
3,000 gal water 3,000 gal wastewater
$120 3,000 gal wastewater
$100 $93.71 $91.96 $100.76_
$83.38
$80
$60
$40
$20
$0
LE
Existing Proposed Existing Proposed
11,000 gal water
3,000 gal wastewater
$114.86
$106.26
Existing Proposed
Peer utility residential typical bill survey
%" meter; 6,000 gallons water usage, 3,000 wastewater