ERMUSR MISC 07-09-2007 - Laserfiche WebLink

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SURVEY BACKGROUND We are pleased to present this compilation of 2007 regional water, wastewater, stormwater, and solid waste utility rates. The following pages summarize the typical residential monthly bills for each utility (excluding solid waste). The bills are based on 7,500 gallons of water usage (excluding stormwater), although we realize that some communities either round up or down, based on the volume of water used and wastewater generated. The 7,500 gallons was used to establish a benchmark for comparison purposes. Individual comparisons of the water, wastewater, stormwater, and solid waste utilities are presented, along with a typical total utility bill comparison based on the combined monthly cost of these services (excluding solid waste). Communities surveyed included primarily those serving greater than 5,000 people throughout Minnesota (including the Minneapolis / St. Paul Metro area), North Dakota, South Dakota, Montana, and Wyoming. You will readily note that the monthly utility costs among communities are highly variable. This can be attributed to a number of factors such as water source, community size, presence/absence of a mechanical wastewater treatment plant, topography, and local policies relative to depreciation and capital improvement funding. The information presented can be used to determine where a community would rank based on a typical monthly residential utility bill with consumption of 7,500 gallons, bearing in mind this variability. This survey was conducted both as support for ongoing revenue adequacy, cost of service, and rate planning analyses underway by AE2S and as a planning resource for communities in the region. On a regional and national scale, utilities are responding to economic challenges through increased operational efficiencies, comprehensive capital improvement planning, and judicious rate planning. Forecasting required rate increases in conjunction with capital improvement planning enables utilities to meet annual operation and maintenance cash flow requirements, as well as provide sufficient funds for needed capital improvements. In terms of rate planning and design, knowledge of the cost of service associated with serving individual customer classes assists in making equitable and justifiable rate planning decisions. Annual review of capital improvement planning, revenue adequacy, and rate planning is a critical step toward achieving and maintaining financial health for your utility. If there is anything we can do to improve the quality of this survey in the future, please let us know. If you have questions about this survey, or if you would like more information about our financiaUasset management services, please contact Sheryl Smith at 701-746-8087 or Sheryl.Smith(a~,ae2s.com.