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Home My WebLink About2019 Utility Rate Review with Sugar-Teton Info2020 UTILITY RATE REVIEW City of Rexburg Presented by Matt Nielson CFO 2020 UTILITY RATE REVIEW •Recommendations after review of rates by CFO, and Public Works Director •Wastewater Rates to be provided to and reviewed if needed with Sugar City and Teton City Representatives sometime in July 2019 Water •Staff and Mayor are comfortable with taking 65% of the calculated increase because of sufficient reserves Water What caused the increases in rates? •Requesting a Full Time Additional Position in 2020 •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 2020 Garbage •Rate Decrease recommended for 2020 Fiscal Year after review by Staff and Mayor •2 Year Cost Comparison - 2018 to 2020 •Personnel costs increased 14% •Operating costs increased 8% •Not anticipating a rate increase from County for tipping fees next year •Not anticipating a rate increase in contract expenses for recycling, but negotiating new contract •Fixed costs increased 16% •Depreciation increased 38% •1 new truck purchased in 2018 and 2 new trucks in 2019 •We believe we are getting extra years of service out of some of the assets (Bins and Trucks) •Forecasted Reserves are as follows: •2019 Fiscal Year End $626,051 •2020 Fiscal Year End $768,551 Wastewater •Staff/Mayor recommends taking the full increase in 2020 •Budget includes: •Blower Replacement (3) at Treatment Plant •Replacement of the Gravity Line-North West corner of the city ($ 4 Million) •Could upsize and increase capacity •Funding split to be determined between developers (claw back fees) and three cities Wastewater What caused the increases in rates? UB Sample Bills UB Sample Bills Motion to Set Hearing •Motion needed from City Council to set the Public Hearing for August 7th at 6:45 PM for utility rate fees •CFO to publish the notice in the Newspaper on following dates: •July 23rd •July 30th Sugar City and Teton City Meeting TBD •Most recent contract executed in January 2014 •Sugar City connected to system in 1981 per contract •Teton City connected to system in 1999 per contract •Sugar City/Dickinson Foods purchased 423,077 GPD at the Pre-Capitalized Rate (Dickinson Foods owns 210,000 GPD) •56% of Pre-capitalized GPD utilized on Average in 2018 Sugar City and Teton City Meeting TBD •Teton City purchased 90,000 GPD at the Pre-Capitalized Rate •64% of Pre-capitalized GPD utilized on Average •Plant Capacity •prior to Construction in 2011 was approximately 3.6 million GPD •post construction 2017 should be approximately 5.4 million GPD •Billing- Rexburg City currently bills Sugar & Teton City respectively based on reads at the Moody & Teton Collection Points (Per section 5.0 #1 in contract) Sugar City and Teton City Meeting TBD •Last rate increase for Sugar City/Teton City on 10/1/2018 (increased 8.75%) •Land Fill Tipping Fees •These fees are currently included in the Sugar/Teton calculated rate beginning 10/1/2019. They were not included in the fiscal year 2018 rate or prior. •Rexburg City covered 100% of the costs thru fiscal year 2018 •$111,000 in 2016 fiscal year •$139,800 in 2017 fiscal year •$11,500 in 2018 fiscal year •$40,000 projected in 2019-2020 Fiscal Year •Because this expense dropped so dramatically from the FY19 budget we were able to allocate a higher annual payback amount for Sugar City/Teton City on the Capital Maintenance Costs at the Treatment Plant that occurred from 2009 to 2019 (see next page for details) •Reduced FTE at the Treatment Plant from 2018 to 2020 as well Calculated Payback for Sugar City/Teton City Sugar City and Teton City Meeting TBD •Discuss the new proposed gravity line in 2020 budget •Estimated Cost $4,000,000 •Replacement costs to be allocated on the percentage of use by each party (contract section 3.12) Sugar City and Teton City Meeting TBD •Need to determine proportionate share for all cities still •Should get another study back from JUB Engineers this Fall predicting future use of the line •Will plan to meet after that study received Sugar City and Teton City Meeting TBD •Other Discussion points from group •Growth, etc