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HomeMy WebLinkAboutUtility Rate Review with Sugar-Teton Info (2)2021 UTILITY RATE REVIEW City of Rexburg Presented by Matt Nielson CFO 2021 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 2020 Water •Anticipated DEQ Loan Debt $8,888,700 Water •No requests for new Full Time Positions in 2021 •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 may start in 2021 Garbage •Rate Increase recommended for 2021 Fiscal Year after review by Staff and Mayor •2 Year Cost Comparison -2018 to 2020 •Personnel costs increased 8% •Operating costs increased 15% •Due in large part to a 16.7% anticipated increase in County for tipping fees next year •Not anticipating a rate increase in contract expenses for recycling, but planning to evaluate recycling program further •Fixed costs increased 9% •Depreciation increased 7% •Forecasted Reserves are as follows: •2020 Fiscal Year End $927,899 •2021 Fiscal Year End $778,299 Wastewater •Staff/Mayor recommends taking the full increase in 2021 •Budget includes: •Blower Replacement (1) at Treatment Plant •New Sewer Line Camera/Vehicle-Rexburg Collections •Replacement of the Gravity Line-North West corner of the city ($ 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 5th at 6:45 PM for utility rate fees •CFO to publish the notice in the Newspaper on following dates: •July 21st •July 28th 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) •58% of Pre-capitalized GPD utilized on Average in 2020 Sugar City and Teton City Meeting TBD •Teton City purchased 90,000 GPD at the Pre-Capitalized Rate •61% 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 •Post construction of pasteurization process per AQUA engineers is approximately 6.0 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%) •Proposed Rate increase for 10/1/2020 (increase of 4.98%) •Move from $2.61 to $2.74 Calculated Payback for Sugar City/Teton City Sugar City and Teton City Meeting TBD •Discuss the new proposed gravity line in 2021 budget •Budgeted Expense $4,000,000 •Budgeted Revenue $2,320,000 •JUB Study in 2019 estimates a higher cost of $7,237,000 •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 •Need to continue to meet to consider options Updated JUB Drawings/Projections Updated JUB Drawings/Projections Updated JUB Drawings/Projections Sugar City and Teton City Meeting TBD •Other Discussion points from group •Growth, etc