HomeMy WebLinkAbout2 more fee changes added to list for 3-1-17 public hearing.pdf1
Matt Nielson
Subject:FW: 2 more fee changes that were published that we would like the council to
consider
From: Matt Nielson
Sent: Friday, February 03, 2017 3:40 PM
To: Brad Wolfe; Christopher Mann; Donna Benfield; Jordan Busby; Sally Smith; Tisha Flora; Jerry Merrill
Cc: Blair Kay; Deborah Lovejoy; Richard Horner; Stephen Zollinger; Keith Davidson
Subject: 2 more fee changes that were published that we would like the council to consider
Council Members,
I have added two recommended fee changes to the list that was published for the March 1, 2017 public hearing.
The Fees are the following:
Wastewater Fee In-City Usage Fee per 1,000 gallons $3.620 3.77
Wastewater Fee Outside City Usage Fee per 1,000 gallons $4.706 $4.901
After analyzing the sewer base fees with our Public Works Director Keith and Attorney Stephen, it was brought to our
attention that the base fee for a ¾” meter (most residents) should be the same as that for the 1” meter user (includes
many commercial businesses, such as professional offices, a few eating establishments and some apartments). Currently
the base fee for a 1” meter for sewer is 2.5 times more than that of a ¾”. This change would create a more equitable
base fee charge because having a 1” water meter vs. a ¾” water meter does not mean that you are actually using 2.5
times more sewer. The bigger meter size is needed for additional water capacity, but does not necessarily correlate with
sewer usage. It is very common to have 1” water meter users that actually use less sewer than ¾” water meter users.
By making this change, the flat or base fee revenues collected will be reduced, which means we have to increase the
overage or volume fee revenues to cover that reduction, because our expenses don’t change.
Below is a sample of what will occur with this change to the other users that have a meter size other than a 1”, the
increase will be approximately 1.1%.
We have not increased sewer or water fees since October 2015. Going forward, it is likely that are sewer base fees will
actually drop and our volume fees increase, so it is not a bad idea to make some of that shift now, so it is not as
significant of a change at a later date.
Please contact me with any further questions regarding this matter or we can discuss in the next council meeting.
Thank You
Matt
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MATTHEW NIELSON
CHIEF FINANCE OFFICER
CITY OF REXBURG
208-372-2343
208-359-3022 FAX
mattn@rexburg.org