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5.04 ERMUSR 11-14-2023
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5.04 ERMUSR 11-14-2023
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12/12/2023 1:18:46 PM
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11/13/2023 1:38:00 PM
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City Government
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ERMUSR
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11/14/2023
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��i <br />Elk River <br />Municipal Utilities UTILITIES COMMISSION MEETING <br />TO: <br />FROM: <br />ERMU Commission <br />Mark Hanson — General Manager <br />MEETING DATE: <br />AGENDA ITEM NUMBER: <br />November 14, 2023 <br />5.04 <br />SUBJECT: <br />2024 Utilities Fee Schedule <br />ACTION REQUESTED: <br />Approve the 2024 Utilities Fee Schedule for Adoption into Ordinance by the City Council <br />BACKGROUND: <br />Typically, the Elk River Municipal Utilities Commission approves the budget in December. In <br />January, the rates and fees are published. Per legal counsel, ERMU's ability to collect on fees <br />would be strengthened by having them listed as part of the City's Master Fee Schedule and <br />adopted into city ordinance after being approved by the Commission. <br />DISCUSSION: <br />Annually ERMU staff reviews the proposed fees for the upcoming year. Proposed changes are <br />outlined below and highlighted in yellow on the attached fee schedule. <br />*Designates a proposed NEW fee. <br />ELECTRIC FEES <br />After evaluation of our schedule of rates/aid to construction methodology, staff reviewed our <br />current fee schedule to determine any necessary adjustments. Based on the review, staff is <br />recommending the following changes: <br />New Residential Electric Connection — Developer — Lot without ERMU Water Service — A <br />proposed increase from $1,075 to $1,475. For 2023, the proposed increase of the fee was from <br />$575 to $1,475. At that time the Commission supported a two-year implementation of the <br />increase. This amount reflects material cost increases, mostly transformer costs. The larger lot <br />sizes which are more common outside the water service area require crossing a longer distance <br />to install electric service. <br />New Wire Footages over 200' (per foot) — A proposed increase from $4.00 to $5.00 due to <br />material cost increase. <br />New Service Frost Trenching (per foot) — A proposed increase from $5.00 to $6.00 due to labor <br />cost increase. <br />Page 1 of 2 <br />91 <br />
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