HomeMy WebLinkAbout2019 Utility Rate Review2019 UTILITY RATE REVIEW
City of Rexburg
Presented by
Matt Nielson
CFO
2019 UTILITY RATE REVIEW
•Recommendations after review of rates by
Mayor, CFO, Attorney, Public Works
Director, and Council Oversight Committee
•Wastewater Rates to be reviewed with
Sugar City and Teton City Representatives
sometime in July 2018
Wastewater
•Staff and Oversight Committee recommend taking the full increase in 2019
•Budget includes a new Gravity Line to North West corner of city to service
future growth ($ 2 Million)
•Funding split TBD between developers (claw back fees) and three cities
Wastewater
What caused the increases in rates?
•Went from 9 FTE in 2016 to 13.5 FTE in 2019
•A new position included in 2019
•-split 50/50 between divisions (Treatment/Collections)
•$140,000 Landfill Tipping/Hauling Fee included in rate
calculations
•This number should decrease over time
•Large increases in chemical costs, repairs, and insurance
Water
•Staff and Council Oversight Committee are comfortable
with taking 65% of the calculated increase because of
sufficient reserves
Water
What caused the increases in rates?
•Went from 7 FTE in 2016 to 9 FTE in 2019
•No requests for additional full time employees in 2019
•Depreciation will continue to increase until the water upgrade
project is complete
•A large part of the fixed costs is the payment of
principal/interest on the water loan, which should start in 2019
Garbage
•No rate changes recommended for 2019 Fiscal Year after review by Staff
and Council Oversight Committee
•Cost Comparison of 2017 to 2019
•Personnel costs increased 20%
•In Summer 2018, the equivalent of .5 people were added as well as a new route
•Operating costs increased 13%
•Recycle costs increased 46%
•Fixed costs increased 21%
•Depreciation increased 52%
•1 new truck purchased in 2018 and 2 new trucks in 2019
•Forecasted Reserves are as follows:
•2018 Fiscal Year End $856,857
•2019 Fiscal Year End $496,657
UB Sample Bills
UB Sample Bills
Motion to Set Hearing
•Motion needed from City Council to set the Public
Hearing for July 18th at 6:45 PM for utility rate fees
•CFO to publish the notice in the Newspaper on following
dates:
•July 3rd
•July 10th