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<br /> <br />To: City of Elk River <br /> <br />From: Miranda Kleven, PE <br /> Dylan Walski <br /> <br />Re: Sewer Revenue Adequacy <br /> <br />Date: October 21, 2021 <br /> <br /> <br />INTRODUCTION <br />The City of Elk River retained AE2S Nexus to complete a Sewer Revenue Adequacy Analysis to <br />assist with short-term financial planning and rate-setting for its Sewer Utility. AE2S Nexus <br />developed a five-year financial plan that includes projected sewer rates designed to meet <br />projected annual revenue requirements and fund capital reserves. AE2S Nexus also compared <br />existing Sewer Access Charges to similar charges for peer communities. <br />The scope of services consisted of the following items: <br /> Data Collection and Review <br /> Sewer Access Charges Regional Comparison <br /> Revenue Adequacy Analysis <br /> Develop rate recommendations to meet revenue adequacy <br /> Documentation and Delivery of Final Results <br /> Prepare Summary Memorandum documenting results <br /> Present the results to the City Council, either in person or via electronic media <br />UTILITY REVENUES <br />Sewer Utility generates revenue through volumetric charges to approximately 5,379 <br />users within the City of Elk River, as well through the treatment of leachate from the Elk River <br />Landfill. City users consist of residential and commercial connections whose discharges are <br />generally homogeneous. They are collectively referred to herein as Domestic users. Domestic <br />users within the City pay a volumetric charge of $5.07 per thousand gallons of sewer discharged, <br />with a minimum bill per account of $11.75 per month. The landfill is charged $0.01340 per <br />Project Number Page 1 of 20 <br />Think Big. Go Beyond. www.ae2s.com <br /> <br />W:\\E\\Elk River\\2021 Sewer Revenue Adequacy\\Reports\\Financial Memo -Final revised.docx <br />