VII.3. Approve Water, Sanitary Sewer, Refuse Collection Recycling and Organic Recycling Rates; Bishop
November 3, 2021 Council Report 2021-105
APPROVE WATER, SANITARY SEWER, REFUSE COLLECTION
RECYCLING AND ORGANIC RECYCLING RATES
Proposed Action
Staff recommends adoption of the following motions:
Move to approve Resolution 2021-067 “Increasing Water and Sanitary Sewer Rates Effective January 1, 2022”.
Move to approve Resolution 2021-068 “Increasing Refuse Collection, Recycling and Implementing Organic Recycling
Rates Effective January 1, 2022.
Overview
Water and Sanitary Sewer Rates
The water and sewer fund budgets have been reviewed for 2022. The 2022 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 and sanitary sewer funds are both proposing rate increases of
approximately 3.25%.
The City previously conducted a water and sanitary sewer rate study for the years 2016 through 2020. The study
implemented flat rates based on meter size and tiered consumption rates for water users, which continue in 2022. The
newly proposed rates are intended to have a limited impact on utility users.
Refuse, Recycling and Organic Recycling Rates
The refuse fund budget has been reviewed for 2022. New rates and rate increases are being proposed for operational
needs. The current refuse collection and recycling rates have been in place since January 2016. The cost to the City to
collect refuse and contracted services to collect recycling have both increased over the past five years. Organic
recycling is a new program in 2022. Hennepin County is requiring that all Cities make this service available to
household with curbside recycling service.
Primary Issues to Consider
• How will the rates affect the residents and businesses in the City of Hopkins?
• What are the proposed capital improvement projects?
Supporting Information
• Staff Analysis
• Resolution No. 2021-067
• Resolution No. 2021-068
•
____________________________________
Nick Bishop, CPA
Finance Director
Financial Impact: Water $70K, Sewer $101K, Refuse $233K Budgeted: Yes Source: Water, Sewer and
Refuse Customers Related Documents: ERP and CIP Notes:__________________________________
Rate Increases and Effect on Residential and Commercial Customers
2021 2022 Percent
Current Proposed Increase
Flat Rates Per Meter Per Month
Residential - 5/8" meter 3.02 3.12 3.31%
Residential - 1" meter 3.02 3.12 3.31%
Apt/Commercial - 1-1/2" to 2" meter 6.05 6.25 3.31%
Apt/Commercial - 3" meter 9.08 9.38 3.30%
Apt/Commercial - 4" meter 12.09 12.48 3.23%
Apt/Commercial - 6" meter 18.14 18.73 3.25%
Consumption Rates, Per 1,000 Gallons
Residential and Multi-Family
0 - 3,000 gallons 3.10 3.20 3.23%
3,001 - 5,000 gallons 3.56 3.68 3.37%
5,001 and over 4.09 4.22 3.18%
Commercial
0 - 10,000 gallons 2.96 3.06 3.38%
10,001 - 20,000 gallons 3.39 3.50 3.24%
20,001 and over 3.91 4.04 3.32%
Irrigation - all usage 3.70 3.82 3.24%
Production meter 3.12 3.22 3.21%
Sanitary Sewer 6.86 7.08 3.21%
Water and Sanitary Sewer Rates
2021 2022
Current Proposed $ Increase % Increase
Refuse Collection
35 Gallon 17.85 18.85 1.00 5.60%
65 Gallon 21.85 22.85 1.00 4.58%
95 Gallon 25.30 26.30 1.00 3.95%
Recycling 5.00 5.25 0.25 5.00%
Organic Recycling N/A 5.50 5.50 100.00%
Refuse, Recycling and Organic Recycling Rates
What are the proposed capital improvement projects?
Over the next five years we have identified $9,470,000 and $7,164,500 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 2021 Proposed
2022 $ Increase % Increase
Single Family Residential (Lower User)
Water (1,500 Gallons)7.67$ 7.92$ 0.25$ 3.26%
Sewer (1,500 Gallons)10.29$ 10.62$ 0.33$ 3.21%
Total Monthly Bill 17.96$ 18.54$ 0.58$ 3.23%
Single Family Residential (Median User)
Water (4,000 Gallons)15.88$ 16.40$ 0.52$ 3.27%
Sewer (3,000 Gallons)20.58$ 21.24$ 0.66$ 3.21%
Total Monthly Bill 36.46$ 37.64$ 1.18$ 3.24%
Single Family Residential (High User)
Water (8,800 Gallons)34.98$ 36.12$ 1.13$ 3.24%
Sewer (4,800 Gallons)32.93$ 33.98$ 1.06$ 3.21%
Total Monthly Bill 67.91$ 70.10$ 2.19$ 3.22%
Impact on Low, Median and High Residential User
Actual 2021 Proposed
2022 $ Increase % Increase
Commercial Property (Low User with a 1" Meter)
Water (3,000 Gallons)14.93$ 15.43$ 0.50$ 3.35%
Sewer (3,000 Gallons)20.58$ 21.24$ 0.66$ 3.21%
Total Monthly Bill 35.51$ 36.67$ 1.16$ 3.27%
Commercial Property (High User with a 2" Meter)
Water (35,000 Gallons)128.20$ 132.45$ 4.25$ 3.32%
Sewer (35,000 Gallons)240.10$ 247.80$ 7.70$ 3.21%
Total Monthly Bill 368.30$ 380.25$ 11.95$ 3.24%
Impact on Low and High Commercial User
CITY OF HOPKINS
HENNEPIN COUNTY, MINNESOTA
RESOLUTION 2021-067
INCREASING WATER AND SANITARY SEWER
RATES EFFECTIVE JANUARY 1, 2022
WHEREAS, the City of Hopkins has established Ordinance No. 92-712 Sewer and Water Utility
rates, City Code section 40-22 which defines water rates and section 40-24 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 3.12
Residential – 1” meter 3.12
Apt/Commercial – 1-1/2” to 2” meter 6.25
Apt/Commercial – 3” meter 9.38
Apt/Commercial – 4” meter 12.48
Apt/Commercial – 6” meter 18.73
Residential and Multi-Family
0 – 3,000 gallons 3.20
3,001 – 5,000 gallons 3.68
5,001 and over 4.22
Commercial
0-10,000 gallons 3.06
10,001 – 20,000 gallons 3.50
20,001 and over 4.04
Irrigation – all usage 3.82
Production Meter 3.22
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 $7.08 per 1,000 gallons
of water used.
EFFECTIVE DATE: The provisions of this resolution shall be effective January 1, 2022.
Adopted by the City Council of the City of Hopkins, Minnesota, this 3rd day of November 2021.
_______________________________
Jason Gadd, Mayor
ATTEST:
___________________________________
Amy Domeier, City Clerk
CITY OF HOPKINS
HENNEPIN COUNTY, MINNESOTA
RESOLUTION 2021-068
INCREASING REFUSE COLLECTION, RECYCLING AND IMPLEMENTING
ORGANIC RECYCLING RATES EFFECTIVE JANUARY 1, 2022
WHEREAS, the City of Hopkins has established Ordinance No. 92-707 Solid Waste
Management and City Code section 34-28 which defines billing rates; and
WHEREAS, the City Code authorizes billing rates to be set forth by council resolution; and
WHEREAS, utility rates were analyzed to determine the long-term viability of the refuse fund;
and
WHEREAS, it was determined that current rates are insufficient to meet operational needs;
NOW, THEREFORE, be it hereby resolved that the City Council of the City of Hopkins hereby
sets the service charge for refuse collection, recycling and organic recycling at the following rates to be
paid to the City upon billing therefore as follows:
Refuse Collection (per month)
35 Gallon $18.85
65 Gallon $22.85
95 Gallon $26.30
Recycling (per month) $5.25
Organic (per month) $5.50
EFFECTIVE DATE: The provisions of this resolution shall be effective January 1, 2022.
Adopted by the City Council of the City of Hopkins, Minnesota, this 3rd day of November 2021.
_______________________________
Jason Gadd, Mayor
ATTEST:
___________________________________
Amy Domeier, City Clerk