IV.4. Approve Water and Sanitary Sewer Rate Increases; Bishop
November 4, 2019 Council Report 2019-113
APPROVE WATER AND SANITARY
SEWER RATE INCREASES
Proposed Action
Staff recommends adoption of the following motion:
Move to approve Resolution 2019-082 “Increasing Water and Sanitary Sewer Rates Effective January 1, 2020”.
Overview
The water and sewer fund budgets have been reviewed for 2020. Water consumption has declined since 2014 and
caused lower than expected revenue in both funds. The 2020 budget includes conservative assumptions on the amount
of water and sewer that will be used by customers. Both funds have proposed increases based on operational and
capital needs. The water fund is proposing rate increases of approximately 9.0% and sewer fund of approximately
4.2%.
The City previously conducted a utility rate study for the years 2016 through 2020. The study proposed rate increases
of 6.76% and 5.57% in 2020. The newly proposed rates are intended to have a limited impact on utility users
compared to the rates from the study.
Primary Issues to Consider
• How will the increased rate affect the residents and businesses in the City of Hopkins?
• What are the proposed capital improvement projects?
Supporting Information
• Staff Analysis
• Resolution No. 2019-082
____________________________________
Nick Bishop, CPA
Finance Director
Financial Impact: Water $180K, Sewer $130K Budgeted: Y Source: Water and Sewer Users
Related Documents (CIP, ERP, etc.): _____ ______________Notes: ____ ________________
Rate Increases and Effect on Residential and Commercial Customers
What are the proposed capital improvement projects?
Over the next five years we have identified $8,071,800 and $6,515,600 in capital infrastructure projects related to the
water and sewer funds, respectively. The projects are for ongoing utility improvements related to road reconstruction,
maintenance and equipment needs. The complete detail for all scheduled capital improvements can be found in the
Capital Improvement Plan and Equipment Replacement Plan.
Actual 2019 Proposed
2020 $ Increase % Increase
Single Family Residential (Lower User)
Water (1,500 Gallons)6.89$ 7.52$ 0.63$ 9.14%
Sewer (1,500 Gallons)9.69$ 10.10$ 0.41$ 4.18%
Total Monthly Bill 16.58$ 17.62$ 1.04$ 6.24%
Single Family Residential (Median User)
Water (4,000 Gallons)14.26$ 15.57$ 1.31$ 9.19%
Sewer (3,000 Gallons)19.38$ 20.19$ 0.81$ 4.18%
Total Monthly Bill 33.64$ 35.76$ 2.12$ 6.30%
Single Family Residential (High User)
Water (8,800 Gallons)31.44$ 34.30$ 2.85$ 9.08%
Sewer (4,800 Gallons)31.01$ 32.30$ 1.30$ 4.18%
Total Monthly Bill 62.45$ 66.60$ 4.15$ 6.65%
Impact on Low, Median and High Residential User
Actual 2019 Proposed
2020 $ Increase % Increase
Commercial Property (Low User with a 1" Meter)
Water (3,000 Gallons)13.42$ 14.63$ 1.21$ 9.02%
Sewer (3,000 Gallons)19.38$ 20.19$ 0.81$ 4.18%
Total Monthly Bill 32.80$ 34.82$ 2.02$ 6.16%
Commercial Property (High User with a 2" Meter)
Water (35,000 Gallons)115.19$ 125.58$ 10.39$ 9.02%
Sewer (35,000 Gallons)226.10$ 235.55$ 9.45$ 4.18%
Total Monthly Bill 341.29$ 361.13$ 19.84$ 5.81%
Impact on Low and High Commercial User
CITY OF HOPKINS
HENNEPIN COUNTY, MINNESOTA
RESOLUTION 2019-082
INCREASING WATER AND SANITARY SEWER
RATES EFFECTIVE JANUARY 1, 2020
WHEREAS, the City of Hopkins has established Ordinance No. 92-712 Sewer and Water Utility
rates, City Code section 715.03 which defines water rates and section 715.07 which defines sanitary
sewer rates; and
WHEREAS, the ordinances authorizes water and sanitary sewer to be set forth by
council resolution; and
WHEREAS, utility rates were analyzed to determine the long-term viability of the water and
sewer fund; and
WHEREAS, it was determined that current rates are insufficient to meet operational and capital
needs;
NOW, THEREFORE, be it hereby resolved that the City Council of the City of Hopkins hereby
sets the service charge for the Water and Sanitary Sewer Utilities at the following rates to be paid to the
City upon billing therefore as follows:
The water service usage charge be set at the rates shown.
Flat Rates
Residential – 5/8” meter 2.96
Residential – 1” meter 2.96
Apt/Commercial – 1-1/2” to 2” meter 5.93
Apt/Commercial – 3” meter 8.90
Apt/Commercial – 4” meter 11.85
Apt/Commercial – 6” meter 17.78
Residential and Multi-Family
0 – 3,000 gallons 3.04
3,001 – 5,000 gallons 3.49
5,001 and over 4.01
Commercial
0-10,000 gallons 2.90
10,001 – 20,000 gallons 3.32
20,001 and over 3.83
Irrigation – all usage 3.63
Production Meter 3.06
All water rates are per 1,000 gallons of water consumed.
The sanitary sewer service charge for all classes of users on the system at $6.73 per 1,000 gallons
of water used.
EFFECTIVE DATE: The provisions of this resolution shall be effective January 1, 2020.
Adopted by the City Council of the City of Hopkins, Minnesota, this 4th day of November 2019.
_______________________________
Jason Gadd, Mayor
ATTEST:
___________________________________
Amy Domeier, City Clerk