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Summary Memorandum <br />Re: Sewer Revenue Adequacy <br />October 21, 2021 <br />Table 14: Domestic Bill Projections Scenario 2 <br />Thousand gallons per 2021 2022 2023 2024 2025 2026 <br />month <br />2 $11.75 $12.27 $12.82 $13.39 $13.99 $14.61 <br />4 $20.28 $21.20 $22.16 $23.16 $24.20 $25.28 <br />6 $30.42 $31.80 $33.24 $34.74 $36.30 $37.92 <br />8 $40.56 $42.40 $44.32 $46.32 $48.40 $50.56 <br />10 $50.70 $53.00 $55.40 $57.90 $60.50 $63.20 <br />21 $106.47 $111.30 $116.34 $121.59 $127.05 $132.72 <br />50 $253.50 $265.00 $277.00 $289.50 $302.50 $316.00 <br />250 $1,267.50 $1,325.00 $1,385.00 $1,447.50 $1,512.50 $1,580.00 <br /> <br />BENCHMARKING <br />AE2S Nexus conducts a rate survey annually to provide comparisons for systems across the <br />region. Figure 11 presents total 2021 monthly bills associated with 6,000 gallons of sewer <br />discharge for Minnesota communities located outside of the Minneapolis/St. Paul metro area. <br />Figure 12 is based on rate information obtained from the 2021 rate survey and provides a <br />comparison of rates for Elk River Sewer Access Charges. Based on conversations with City staff it <br />is understood that Elk River primarily uses SAC revenues to fund debt service. Based on this <br />assumption, the existing SAC charge appears to be appropriate. As the City works to further <br />develop its CIP, a review of the basis for the SAC should be completed to ensure that it <br />adequately keeps pace with the benefit in terms of cost associated with connecting to the Sewer <br />System. <br />Project Number Page 17 of 20 <br />Think Big. Go Beyond. www.ae2s.com <br /> <br />