CR 98-096 Approve Storm Sewer Rate IncreaseJune 11, 1998
Proposed Action
Staff recommends adoption of the following: Move to approve Resolution No. 98 -036 which increases the
storm sewer utility rate by $.60 per residential equivalency factor, per quarter.
Adoption of this motion will result in staff moving forward with changing the storm sewer rate effective
with all billings from August 1, 1998 and there after.
Overview
The 1998 budget included a proposed rate increase of $.60 per quarter for storm sewer utilities. The current rate
is $9.00 per residential equivalency factor (ref) per quarter, the proposed rate would be $9.60 per ref per quarter.
This rate increase is necessary to continue maintaining and upgrading the storm sewer system in Hopkins.
Primary Issues to Consider
The last rate increase for Storm Sewer Utility rates was in 1992 and implemented in 1993. The rate increase
at that time was $1.50 per ref. This was to cover the three major projects that were done in 1989 to respond
to flooding caused by poor drainage in parts of the City.
Since then a number of other projects have been identified and completed leaving the Storm Sewer Fund
with a negative working capital balance. The 1997 storms helped to identify other drainage improvement
needs within the City.
The 1999 — 2003 capital improvement plan (CIP) calls for $1,200,000 in additional projects over the next
five years. The current rate of $9 per residential equivalency factor (REF) per quarter is not sufficient to
pay for existing debt, current operations and projects identified in the CIP.
The proposed rate increase of $.60 per ref would increase single family &duplex resident rates from $3.00 a
month to $3.20 a month.
Staff Recommendation
Finance recommends increasing the current storm sewer utility rate by $.60 to make strides towards eliminating
the negative working capital balance in the Storm Sewer Utility Fund and provide for capital improvements in
the future.
Supporting Information
Resolution No. 98 -036
Lori Yager
Finance Director
APPROVE STORM SEWER RATE INCREASE
Council Report 98 -096
ATTEST:
Terry Obermaier, City Clerk
CITY OF HOPKINS
HENNEPIN COUNTY, MINNESOTA
RESOLUTION 98 -036
STORM SEWER UTILITY RATE INCREASE
WHEREAS, the City of Hopkins has established Ordinance No. 89 -640, City Code
section 720 - Storm Sewer Drainage Utility effective September 5, 1989; and
WHEREAS, the ordinance authorizes storm sewer utility drainage charge rates to be set
forth by council resolution;
NOW, THEREFORE, be it hereby resolved that the City Council of the City of Hopkins
hereby sets the service charge for the Storm Sewer Utility at the following rates to be paid to the
City upon billing therefore as follows:
Storm
Charge Water
REF Rate Drainage
*Class Land Uses Rate Per REF Rate/Month •
1 Single family & duplex residential 1/3 $9.60 $ 3.20 /unit
2 Multiple family residential 3 $9.60 28.80 /acre
3 Commercial institutional uses 5 $9.60 48.00 /acre
4 Public and private schools 1.25 $9.60 12.00 /acre
5 Churches 3 $9.60 28.80 /acre
6 Parks 0.25 $9.60 2.40 /acre
7 Golf courses 0.25 $9.60 2.40 /acre
8 Vacant improved and unimproved 0 $9.60 0
9 Industrial 5 $9.60 48.00 /acre
*as established by Ordinance code section 720.05
The monthly storm water drainage fee is determined by multiplying the storm water drainage rate
by the parcel's acreage for all classes except single family and duplex residential (Class 1).
Single family and duplex residential is determined by the storm water drainage unit rate for each
Class 1 parcel regardless of acreage.
EFFECTIVE DATE: The provisions of this resolution shall take effect and be in force in
connection with all billings rendered hereunder from and after August 1, 1998.
Adopted by the City Council of the City of Hopkins, Minnesota, this 16th date of June, 1998.
Charles D. Redepenning, Mayor