2.2. ERMUSR 12-17-2019 - Laserfiche WebLink

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For the Water Department Expense Budget the 2020 forecast for water expenses is a 2.7% increase over the current year budget. At this time a 2% rate increase is proposed for the customer charge and the first tier of usage. The result for the proposed rate increase for a typical residential water customer would be a blended increase of 1.73%. In an effort to accommodate for a 0% electric rate increase, Mr. Adams spoke to some of the items that had been cut from the Travel & Training Budget. That budget, along with the others with proposed cuts will be presented at the December commission meeting. Chair Dietz suggested keeping track of the items that are being cut, to allow for the option of adding them back in mid-year should a financial evaluation warrant doing do. As part of the governance agenda requirements, staff reached out to the Commission to discuss the communication plan to customers for the 2020 rates approved. Ms. Canterbury and Mr. Mauren shared some of the ways the 2019 rate reduction had been communicated and marketed with much success. There was discussion. Chair Dietz suggested we include something on the bill print message if possible, and contact the Star News to see if they will publish something. Commissioner Stewart commented on the conservative $225,000 that was budgeted for water connection fees for 2020, in relation to 2019 year-to-date dollar amount which is significantly higher. There was discussion on the impact this would have on the proposed increase to the 2020 water rates. Chair Dietz expressed a concern regarding staff recommendation to not increase the Water Access Charge (WAC) at this time, considering the city is proposing an increase to their Sewer Access Charge (SAC) for 2020. Mr. Adams explained that staff will be working with a consultant to conduct a cost of service and rate design study in the first quarter of 2020, and based on those results will determine if an increase to the WAC is warranted. 5.4 2020 Utilities Fee Schedule and Street/Security Light Service Rate Ms. Canterbury presented the 2020 Fee Schedule and went over the proposed changes which include a price of two new street light offerings. Mr. Adams spoke to the pricing of the street lights and shared that a detailed cost analysis had been performed. He noted that as a result of the new street light offerings, the rate sheet for the Street/Security lights has been revised to include the rate for these items. Moved by Commissioner Stewart and seconded by Commissioner Nadeau to approve the 2020 Utilities Fee Schedule and the revised Street/Security Light Service Rate sheet. Motion carried 5-0. Elk River Municipal Utilities Commission Meeting Minutes November 12, 2019 Page 6 36