IV.7. Resolution Increasing Water and Sanitary Sewer Rates Effective January 1, 2024; Bishop
CITY OF HOPKINS
City Council Report 2023-118
To: Honorable Mayor and Council Members
Mike Mornson, City Manager
From: Nick Bishop, Finance Director
Date: November 14, 2023
Subject: Approve Water, Sanitary Sewer, Refuse Collection, Recycling and
Organic Recycling Rates
_____________________________________________________________________
RECOMMENDED ACTION
MOTION TO Approve Resolution No. 2023-045 Increasing Water and Sanitary Sewer
Rates Effective January 1, 2024.
MOTION TO Approve Resolution No. 2023-046 Increasing Refuse Collection, Recycling
and Organic Recycling Rates Effective January 1, 2024.
OVERVIEW
Water and Sanitary Sewer Rates
The water and sewer fund budgets were reviewed at the October 11th City Council
Meeting. The 2024 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 needs, capital needs and debt repayment. The water fund and sanitary
sewer fund have proposed rate increases of 16% and 5%, respectively.
Refuse Collection, Recycling and Organic Recycling Rates
The refuse fund budget was reviewed at the October 11th City Council Meeting. Rate
increases are being proposed for operational needs. Refuse collection is done by the
Public Works Department. The City has a five-year contract with an outside service
provider for recycling and organic recycling. Rates are increased based on that contract.
The proposed rate increases are refuse collection (5%), recycling (2.55%) and organic
recycling (2.43%).
SUPPORTING INFORMATION
• Rate Increases and Effect on Residential and Commercial Customers
• Proposed Capital Improvement Projects
• Resolution No. 2023-045 Increasing Water and Sanitary Sewer Rates Effective
January 1, 2024
• Resolution No. 2023-046 Increasing Refuse Collection, Recycling and Organic
Recycling Effective January 1, 2024
Finance Department
Rate Increases and Effect on Residential and Commercial Customers
2023 2024 Percent
Current Proposed Increase
Flat Rates Per Meter Per Month
Residential - 5/8" meter 3.34 3.87 15.87%
Residential - 1" meter 3.34 3.87 15.87%
Apt/Commercial - 1-1/2" to 2" meter 6.69 7.76 15.99%
Apt/Commercial - 3" meter 10.04 11.65 16.04%
Apt/Commercial - 4" meter 13.35 15.49 16.03%
Apt/Commercial - 6" meter 20.04 23.25 16.02%
Consumption Rates, Per 1,000 Gallons
Residential and Multi-Family
0 - 3,000 gallons 3.42 3.97 16.08%
3,001 - 5,000 gallons 3.94 4.57 15.99%
5,001 and over 4.52 5.24 15.93%
Commercial
0 - 10,000 gallons 3.27 3.79 15.90%
10,001 - 20,000 gallons 3.75 4.35 16.00%
20,001 and over 4.32 5.01 15.97%
Irrigation - all usage 4.09 4.74 15.89%
Production meter 3.45 4.00 15.94%
Sanitary Sewer 7.58 7.96 5.00%
Water and Sanitary Sewer Rates
2023 2024 Percent
Current Proposed Increase
Refuse Collection
35 Gallon - Every Other Week 13.85 14.55 5.05%
35 Gallon 18.85 19.80 5.04%
65 Gallon 22.85 24.00 5.03%
95 Gallon 26.30 27.60 4.94%
Recycling 5.50 5.64 2.55%
Organic Recycling 5.75 5.89 2.43%
Refuse, Recycling and Organic Recycling Rates
Actual 2023 Proposed
2024 $ Increase % Increase
Single Family Residential (Lower User)
Water (1,500 Gallons)8.47$ 9.83$ 1.36$ 16.00%
Sewer (1,500 Gallons)11.37$ 11.94$ 0.57$ 5.01%
Total Monthly Bill 19.84$ 21.77$ 1.93$ 9.70%
Single Family Residential (Median User)
Water (4,000 Gallons)17.54$ 20.35$ 2.81$ 16.02%
Sewer (3,000 Gallons)22.74$ 23.88$ 1.14$ 5.01%
Total Monthly Bill 40.28$ 44.23$ 3.95$ 9.81%
Single Family Residential (High User)
Water (8,800 Gallons)38.66$ 44.83$ 6.18$ 15.98%
Sewer (4,800 Gallons)36.38$ 38.21$ 1.82$ 5.01%
Total Monthly Bill 75.04$ 83.04$ 8.00$ 10.66%
Impact on Low, Median and High Residential User
Actual 2023 Proposed
2024 $ Increase % Increase
Commercial Property (Low User with a 1" Meter)
Water (3,000 Gallons)16.50$ 19.13$ 2.63$ 15.94%
Sewer (3,000 Gallons)22.74$ 23.88$ 1.14$ 5.01%
Total Monthly Bill 39.24$ 43.01$ 3.77$ 9.61%
Commercial Property (High User with a 2" Meter)
Water (35,000 Gallons)141.69$ 164.31$ 22.62$ 15.96%
Sewer (35,000 Gallons)265.30$ 278.60$ 13.30$ 5.01%
Total Monthly Bill 406.99$ 442.91$ 35.92$ 8.83%
Impact on Low and High Commercial User
Proposed Capital Improvement Projects
Over the next five years we have identified $11,381,000 and $7,313,000 in capital
infrastructure projects related to the water and sewer funds, respectively. The projects
are for ongoing utility improvements related to road reconstruction and trunk water main
rehabilitation. The complete detail for all scheduled capital improvements can be found
in the Capital Improvement Plan.
CITY OF HOPKINS
HENNEPIN COUNTY, MINNESOTA
RESOLUTION 2023-045
INCREASING WATER AND SANITARY SEWER
RATES EFFECTIVE JANUARY 1, 2024
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 authorize water and sanitary sewer rates to be set forth by
council resolution; and
WHEREAS, utility rates were analyzed to determine the long-term viability of the water
and sewer funds; and
WHEREAS, it was determined that current rates are insufficient to meet operation and
capital needs;
NOW THEREFORE BE IT 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 as follows:
The water service usage charge be set at the rates shown
Flat Rates
Residential – 5/8” meter 3.87
Residential – 1” meter 3.87
Apt/Commercial – 1-1/2” to 2” meter 7.76
Apt/Commercial – 3” meter 11.65
Apt/Commercial – 4” meter 15.49
Apt/Commercial – 6” meter 23.25 Residential and Multi-Family
0 – 3,000 gallons 3.97
3,001 – 5,000 gallons 4.57
5,001 and over 5.24 Commercial
0-10,000 gallons 3.79
10,001 – 20,000 gallons 4.35
20,001 and over 5.01
Irrigation – all usage 4.74
Production Meter 4.00
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 $7.96 per
1,000 gallons of water used.
Adopted by the City Council of the City of Hopkins this 14th day of November, 2023.
By:___________________________
Patrick Hanlon, Mayor
ATTEST:
_______________________________
Amy Domeier, City Clerk
CITY OF HOPKINS
HENNEPIN COUNTY, MINNESOTA
RESOLUTION 2023-046
INCREASE REFUSE COLLECTION, RECYCLING AND ORGANIC
RECYCLING RATES EFFECTIVE JANUARY 1, 2024
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, billing 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 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 as follows:
Refuse Collection (per month)
35 Gallon – Every Other Week $14.55
35 Gallon $19.80
65 Gallon $24.00
95 Gallon $27.60
Recycling (per month) $5.64
Organic (per month) $5.89
Adopted by the City Council of the City of Hopkins this 14th day of November, 2023.
By:___________________________
Patrick Hanlon, Mayor
ATTEST:
_______________________________
Amy Domeier, City Clerk