HomeMy WebLinkAbout2023-12-05 City Council Work Session PacketAgenda
City Council Work Session
City of Edina, Minnesota
City Hall Community Meeting Room
Tuesday, December 5, 2023
5:30 PM
I.Call To Order
II.Roll Call
III.2024-2024 Budget and Tax Levy Presentation
IV.Adjournment
The City of Edina wants all residents to be comfortable being part of the public
process. If you need assistance in the way of hearing ampli)cation, an
interpreter, large-print documents or something else, please call 952-927-8861
72 hours in advance of the meeting.
Date: December 5, 2023 Agenda Item #: III.
To:Mayor and City Council Item Type:
Reports / Recommendation
From:Alisha McAndrews, Finance Director
Item Activity:
Subject:2024-2024 Budget and Tax Levy Presentation Discussion
CITY OF EDINA
4801 West 50th Street
Edina, MN 55424
www.edinamn.gov
ACTION REQUESTED:
Discussion only.
INTRODUCTION:
Staff will provide an overview of the 2024 - 2025 Budget, Budget Work P lan, and proposed 2024 Property Tax
Levy.
ATTACHMENTS:
Description
Staff Presentation
2022 Utility Rate Study Presentation
EdinaMN.gov
2024-2025 Levy and Budget
December 5, 2023
Agenda
1.Budget timeline and process
2.2024-2025 Budget work plan
3.2024-2025 budget and levy
4.Community impact of investments
5.Market value and tax impact
6.Next steps
7.Questions and discussion
Timeline
Date Type Topic
June 1 Dept head budget entry, new positions submitted
June 8 S&B projections posted
June 7-13 Finance reviews and enters remaining budgets
June-July Staff develop scenarios
July 19 ELT Meeting ELT Reviews Budget Draft Scenarios
Aug 2 CC Work Session Draft budget scenarios & work plan
Sept. 5 CC Work Session City Manager preliminary levy and budget
Sept. 19 CC/HRA Meeting Adopt preliminary levy
Nov. 21 CC Work Session Budget and Work Plan
Nov. 29 online Better Together comment period closes
Dec. 5 CC/HRA Meeting TNT budget presentation & public meeting
Dec. 19 CC Meeting/HRA Meeting Last day to adopt budget/levy
Biennial Budget Process
2022 (Even Year)
First year of 2022-2023 Budget
Review/approve of
2023-2028 CIP
2023 (Odd Year)
Second year of 2022-2023 Budget
Approve 2024-2025 budget,
including CIP levy
2024-2025 Budget & Work Plan
Budget Pillars
•Must be achieved by
every budget
•Broad goals
•Evergreen
Values
•Guide decision making
•Evergreen
Strategies &
Actions
•Strengthen progress
toward each pillar
•Specific actions for each
budget cycle
Goals (Pillars)
Budget
Pillars
Budget
Values
Budget
Strategies &
Actions
Budget Values
Stewardship •We make wise investments that focus on the best long-term value for
residents.
Equity •We provide equitable opportunities for people to participate in their City
government and access City institutions, facilities, and services.
Health •We use a Health-in-All Policies approach to promote and protect the physical,
mental, and social wellbeing of all people who live, work, or visit Edina.
Sustainability •We ensure that our policies, decisions, and plans have a positive impact on people
and the planet now and for future generations.
•Fred Richards Park & Braemar Park and Arena
•Art Center facility and programming
•Cahill Area sanitary sewer capacity expansion
•Fire Station 3 site selection and planning
•Grandview area transportation improvements
•York Avenue sanitary sewer capacity expansion
2024-2025 Budget Work Plan
•Mental health calls for service resources and training
•Planning for Edina Public Schools elections for 2025 and beyond
•THC/cannabis legislation impacts
•Support staff who experience wellness and PTSD needs
2024-2025 Budget Work Plan
•Advance affordable housing goals
•Prepare for Comprehensive Plan update
2024-2025 Budget Work Plan
•Administer 2025 Quality of Life survey
•Refine community engagement processes
2024-2025 Budget Work Plan
2024 Proposed Consolidated Budget
Edina Consolidated
Budget $189M
Governmental Funds
$106.8M
General Fund
$63M
Debt Service
Fund $7.8M
Construction
Fund $25.6M
Special Revenue Funds, including HRA $10.3M
Enterprise
Funds $73.8M
Utility Fund
$44.6M
Liquor Fund
$15M
Park Enterprises
$14.2M
Internal Service
Funds $9.1M
Risk Management
$2.7M
Equip. Operations
$2.2M
IT $2.8M
Facilities $1.4M
Enhanced Services or Functions
•Police, Fire, & Public Health
•Advanced Life Support (ALS) Ambulance Service*
•911 dispatch for Police, Fire & Medical (Edina & Richfield)*
•Southwest Metro Public Safety Training Facility (Joint Powers)
•Public Health (Bloomington, Edina, & Richfield)*
•Rental Inspections
•General Government
•Assessing*
•Edina Liquor
•Parks & Recreation
•Braemar Golf Course & Dome
•Braemar Arena & Field
•Centennial Lakes*
•Edina Aquatic Center
•Edinborough Park
•Senior Center*
•Art Center
*supported by property taxes revenue
Proposed Tax Levy
Budget Proposed
2023 2024 2025
General Operating 39,820,200 43,744,165 48,535,573
8.48%9.85%10.95%
Debt Service 3,230,000 3,471,700 5,785,900
-0.06%7.48%66.66%
Construction 6,560,400 6,951,000 7,172,000
26.40%5.95%3.18%
HRA 244,400 251,700 259,300
2.99%2.99%3.02%
Total Tax Levy 49,855,000 54,418,565 61,752,773
% increase 9.89%9.15%13.48%
What Makes Up the Levy Increase?
% of levy
increase $ amount
Salary & benefits 4.62%$4.2 million
Services contracts, supplies 2.38%$2.3 million
Debt and construction levies 0.70%$639,600
IT Systems & security 0.59%$540,000
Facilities and equipment mtc 0.33%$300,000
New positions 0.32%$291,000
Support for CLP operations 0.22%$200,000
2024 Levy Increase 9.15%
$2 million of one-time revenue from budget stabilization fund helps offset spending
increases
Investment & Impact
•Increased investment in technology systems to ensure secure
reliable systems that protect against threats and work when they are most
needed, in times of emergency or natural hazard.
•Street Lighting replacement to keep streets safe and reduce energy
use.
•Increased support to the City’s utility system and on-call winter
response duties. Addition of 1 utility supervisor in 2025.
Investment & Impact
•Improve public safety response and outcomes.Addition of 4 patrol officers,
mental health response officer and neighborhood engagement officer.
•Respond to increasing calls for service/complexity of calls for emergency
medical response by adding additional paramedic/firefighters (6) in 2025 at the
new fire station.
•Provide market wage increases and competitive benefits to attract and retain
a high-performing skilled workforce needed to deliver services to the
community.
•Improve safety and ability to adequately respond to social disruption
events in recreation enterprises. Addition of 1 Facility Coordinator in 2024
and 1 in 2025.
2024 General Fund
Uses
Police Fire
Public Works Parks & Rec
Engineering Community Development
General Government
Sources
Property Tax Levy Charges for Services
Fines & Forfeitures Licenses & Permits
Intergovernmental Franchise fees & Other taxes
Other
Our 2024-2025 Budget’s Response to 2023
Quality of Life Survey
•Finding: Residents continue to rate their overall quality of life in Edina highly
Response: Maintain current service levels at current quality levels
•Finding: Residents generally feel safe in the community, but that feeling has decreased
Response: Enhance law enforcement staffing to keep robust staffing levels
on the street; increase levels of public safety programming through MAC,
neighborhood officers, traffic enforcement and mental health response team
•Finding: Residents gave very high ratings to the work of the Fire Dept.
Response: Continue the growth and development of the Fire Dept.,
particularly around their ALS services and preparing for the new Fire Station
Estimated Market Value
9.4 9.1 8.9 9.0 9.8 10.4 10.9 11.6 12.4 12.9 13.3 15.5 16.8
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023$ Billions
2024 Estimated Levy Impact
Edina Median Value Home
2022 2023 Change
$659,900 $696,600 5.3%
Edina Estimated Market Value
2022 2023 Change
$15.54B $16.8B 8.2%
2024 Estimated Levy Impact
Change in Levy on Median Value Home (MVH)
2023 2024 Difference Change
MVH $659,900 $696,600 $36,700 5.3%
Annual $1,973.23 $2,121.93 $148.71 7.5%
Monthly $164.44 $176.83 $12.39 7.5%
Hennepin
County
29%
City of Edina
23%
Edina School
District
41%
Watershed,
Metro Districts,
& Other
7%
2023 Property Tax Distribution
2024 Change in Property Tax by Property Type
14%
38%
15%
14%
11%
5%3%
Commercial/Industrial
>(5.0)%(4.9)-(0.0)%0.1-4.9%5-9.9%10-14.9%15-19.9%>20%
4%
10%
39%
37%
7%
2%1%
Single Family/Apartments
>(5.0)%(4.9)-(0.0)%0.1-4.9%5-9.9%10-14.9%15-19.9%>20%
Property Tax History
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Median Value $396,300 $399,700 $438,800 $457,300 $466,500 $501,000 $530,650 $548,500 $551,300 $571,800 $659,900 $696,600
City tax $1,102 $1,140 $1,195 $1,266 $1,319 $1,393 $1,474 $1,566 $1,623 $1,706 $1,964 $2,122
Total tax $5,449 $5,606 $5,835 $6,276 $6,367 $6,715 $6,982 $7,251 $7,119 $7,413 $8,396 $8,962
$1,102
$1,964 $2,122
$5,449
$8,396
$8,962
$-
$1,000
$2,000
$3,000
$4,000
$5,000
$6,000
$7,000
$8,000
$9,000
"Median" Value Home
Property Tax History
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Total City (2003 dollars)$869 $884 $927 $972 $991 $1,021 $1,062 $1,115 $1,076 $1,059 $1,214
Total Tax (2003 dollars)$4,298 $4,347 $4,527 $4,872 $4,782 $4,922 $5,030 $5,128 $4,805 $4,663 $5,170
Median Value $396,300 $399,700 $438,800 $457,300 $466,500 $501,000 $530,650 $548,500 $551,300 $571,800 $659,900
$869
$1,214
$4,298
$5,170
$-
$1,000
$2,000
$3,000
$4,000
$5,000
$6,000
"Median" Home Property Tax History Adjusted for CPI (2003 dollars)
Property Tax History
$943 $1,052 $1,069
$4,550 $4,602 4,618
$-
$1,000
$2,000
$3,000
$4,000
$5,000
$6,000
201020112012201320142015201620172018201920202021202220232024$400,000 Edina Home Property Tax History
City tax Total tax
How Does Edina Compare?
City Tax Rate Tax $ on
$700,000
Tax $
on $1M
Plymouth 24.44%$ 1,833 $ 2,750
Maple Grove 27.36%$ 2,052 $ 3,077
Eden Prairie 28.35%$ 2,126 $ 3,189
Edina 28.45%$ 2,134 $ 3,201
Lakeville 30.18%$ 2,264 $ 3,395
Eagan 33.54%$ 2,515 $ 3,773
Minnetonka 34.44%$ 2,583 $ 3,875
Apple Valley 36.68%$ 2,751 $ 4,126
Burnsville 42.27%$ 3,170 $ 4,755
St. Louis Park 46.36%$ 3,477 $ 5,215
How Does Edina Compare?
City MVH Levy
Increase Tax Rate Tax $ on
MVH
Plymouth $ 470,000 7.50%24.44%$ 1,130
Maple Grove $ 431,600 6.68%27.36%$1,134
Edina $ 696,600 9.15%28.45%$ 2,122
Eden Prairie $ 536,400 5.60%28.35%$1,546
Lakeville $ 446,500 9.62%30.18%$1,307
Eagan $ 393,400 6.90%33.54%$1,230
Minnetonka $ 496,500 7.47%34.44%$1,707
Apple Valley $ 362,300 8.40%36.68%$1,203
Burnsville $ 351,500 7.60%42.27%$1,329
St. Louis Park $ 373,000 7.60%46.36%$1,582
Next Steps
•Adopt Resolution No. 2023-95 Adopting 2024 Property Tax Levy and Operating
Budget
•If not adopted today, final date to take action on 2024 budget is Dec. 19
•Nov. 21
Questions/Discussion
•Nov. 21
Review of 2022 Utility Rate Study
City of Edina
April 10, 2023
2
Maintain Financial Health of Utility Funds
•No property tax support for utilities
•Maintain healthy reserves and keep funds solvent
Inform Capital Planning
•Determine how we will fund Capital Improvement costs (CIP)
Enhance Policy Objectives:
•Help achieve climate goals
•Increase utility fee equity
Purpose of Periodic Rate Studies
3
Utilities: Capital Intensive
Utility 2022-2031 Capital Costs
Water $62 Million
Sanitary Sewer $35.5 Million
(excludes Cahill capacity expansion project)
Storm Water $103 Million
(includes priority flood mitigation projects)
These capital cost estimates reflect historical inflation levels. If current rates
of inflation continue, the 10-year costs would be significantly higher.
4
•Volumetric Charges for Water and Sewer
Rate per 1,000 gallons
For water, rate increases for higher consumption (“tiers”)
•Sewer Minimum Charges
Customers pay for a minimum amount of use even if actual is less
Customers billed on winter quarter’s average water consumption
•Meter Charges for Water
Fixed fee per quarter based on meter size
•Connection Fees (WAC and SAC)
Pay for system expansion
Rate Components: Water & Sewer
5
Water Rates: Structural Issues
722
1972
2592
2115
1397
957
632 435 316 242 221 158 116 97 79 67 41 52 47 26 38 15 13 15 12 15 92
0
500
1000
1500
2000
2500
3000
To To To To To To To To To To To To To To To To To To To To To To To To To To To
Residential Single Family Water Accounts
Fall Quarter, 2019 Data
TIER 1
0-26,00083%
TIER 226,001-49,00012%
TIER 3
Over 49,0005%
Current structure DOES NOT promote water conservation.
6
Proposed Conservation Tier Breaks
722
1972
2592
2115
1397
957
632 435 316 242 221 158 116 97 79 67 41 52 47 26 38 15 13 15 12 15 92
0
500
1000
1500
2000
2500
3000
To To To To To To To To To To To To To To To To To To To To To To To To To To To
Residential Single Family Water AccountsFall Quarter, 2019 Data
TIER 10-12,00042%
TIER 212,001-24,00036%TIER 3
Over 24,000
22%
7
Proposed Residential Water Rates
8
Single Family Residential Water Bill Impacts
Low Volume
Customer
(10,000 gals)
Medium
Customer
(24,000 gals)
High Volume
Customer
(95,000 gals)
2022 Quarterly Water Bill $51.82 $98.76 $445.96
Proposed 2023 Water Bill $49.36 $108.38 $539.94
$ Difference -$2.46 $9.62 $93.98
% Difference -5%10%21%
9
Water Conservation: Commercial Water Rates
154
70
25 24 23 14 11 10 10 11 5 5 3 3 4 5 1 6 2 3 1 2 1 2 0 2 1 0
22
0
20
40
60
80
100
120
140
160
180
To To To To To To To To To To To To To To To To To To To To To To To To To To To To To
Commercial Water UsageFall 2019New Tier Breaks
10
Proposed Commercial Water Rates
Annual Increase
Beginning in 2024
Tier 1 Up to 26,000 gallons 2.71$ Up to 50,000 gallons 2.42$ 5.0%
Tier 2 Over 26,000 gallons 3.60$ 50,001 to 200,000 gallons 3.02$ 5.0%
Tier 3 N/A Over 200,000 gallons 3.77$ 5.0%
Comm/Ind
WATER 2022 Proposed 2023
11
Water Use: Residential Irrigation
26
18
13
10
5 6
3 5 4
0 0
3 1 0 1 2 1 1
9
0
5
10
15
20
25
30
Residential Irrigation Water Usage
Fall 2019New Tier Break
•Irrigation for townhomes, multifamily, and assisted living
•Irrigation meters billed at 2 highest rates
•First tier provides equity with singly family residences
12
Water Use: Commercial Irrigation
22 21
15
17
13
17
15
12
9 8 8
2
4
1
5 4 3
7
0
5
10
15
20
25
Commercial Irrigation UsageFall 2019New Tier Break
13
Proposed 2023 Irrigation Rates
Annual Increase
Beginning in 2024
Irrigation Tier 1 Up to 26,000 gallons 3.60$ Up to 12,000 gallons 3.68$ 5.0%
Tier 2 Over 26,000 gallons 5.63$ Over 12,000 gallons 6.08$ 5.0%
WATER 2022 Proposed 2023
Tiers match new residential tiers
14
Water and Sewer Rate Changes
15
AQ
&
16
Utilities: Capital Intensive
Operating
41%
Debt
30%
Capital29%
Water Expenditures 2021
$13.9 Million
Operating
8%
Debt
13%
Capital
21%
MCES58%
Sewer Expenditures 2021
$10.2 Million
Operating
22%
Debt25%
Capital
53%
Storm Water Expenditures 2021
$7.35 Million
17
Sewer Rates: Structural Issues
Issue: Sewer Minimum Does Not Promote Conservation
•Currently, all residential accounts billed minimum of 12,000 gallons or $75.60/quarter per residential unit
Post-Review Conclusion:
•Maintain sewer minimum charge for revenue stability
•Reduce minimum to 8,000 gallons or $54.88/quarter
•Reduces quarterly bills for low volume customers
Analysis: 26% of customers will pay minimum in winter quarter.
18
Single Family Residential Sewer Bill Impacts
Quarterly Bill
Low Volume
Customer
(8,000 gals)
Medium
Customer
(12,000 gals)
High Volume
Customer
(40,000 gals)
2022 Quarterly Sewer Bill $75.60 $75.60 $252.00
Proposed 2023 Sewer Bill $54.88 $82.32 $274.40
$ Difference $ (20.72)$6.72 $22.60
% Difference -27%9%9%
19
Maintains Healthy Sewer Fund
0
1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
6,000,000
7,000,000
8,000,000
9,000,000
10,000,000
2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031
Sewer FundProjected Cash Balances
Target Cash Ending Cash
Lift Stations
paid for with cash
20
•2023 rates moved from a tiered structure to a flat rate
$3.62 per 1,000 gallons for all usage
•Increases equity
Multifamily customer class pays for their share of water used
Multifamily Water Rates
21
•Morningside neighborhood uses water purchased from Minneapolis
•Evaluated Morningside rates to ensure they cover all allocable costs
Road reconstruction, water distribution, billing & admin
•Proposed rates for 2023:
Morningside pays Edina meter charge
Rate = $1.17 per 1,000 gallons plus Minneapolis cost of water
“Surcharge” increases 5% annually
Morningside Water Rates
22
2023 Rates Maintain Healthy Water Fund
0
2,000,000
4,000,000
6,000,000
8,000,000
10,000,000
12,000,000
2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031
Water Fund
Projected Cash Balances
Target Cash Ending Cash
23
•Current ordinance charges quarterly
•Extensive review of parcel data in 2021 confirmed existing
Residential Equivalency Factors (REF)
•Existing Single Family Residential Rate = $43.85 per quarter
Storm Water Rates: No Structural Changes
REF x Acreage x Storm Water Rate
24
•Annual 8% rate increases allow:
Completion of scheduled projects in CIP
Additional $10M for flooding mitigation (2024-2032)
Covering all operations & maintenance
Maintaining adequate cash balances
Funding Flood Mitigation Projects
25
Single Family Storm Water Rates
2022 2023 2024 2025 2026 2027 2028 2029 2030 2031
8% Increase $43.85 $47.36 $51.15 $55.24 $59.66 $63.43 $69.58 $75.15 $81.16 $87.66
26
•2023 Sewer & Water Rate changes designed to:
Maintain revenue stability and adequate reserves
Give customers more control over their quarterly bills
Enhance water conservation
Equitably assign costs of peak demand infrastructure to peak users
Increase equity between customer classes
•2023 Storm Water Rate increase of 8% needed to fund planned
flood mitigation projects
Customer Impacts
27
•Sewer Only customers (large industries) are not paying a meter
charge, but City is metering sewer use
•Institute a meter charge for Sewer Only customers
Sewer Only Customers
28
Proposed 2023 Sewer Rates
Annual Increase
Beginning in 2024
All Usage 6.30$ All Usage 6.86$ 5.50%
Minimum of 12,000 gallons Minimum of 8,000 gallons
Winter Quarter Averaging Lesser of Winter Quarter or Actual,
but no less than 8,000 gallons
All Usage 6.30$ All Usage 6.86$ 5.50%
Minimum of $68.05 for each Minimum of 8,000 gallons
unit over 4 units
All Usage 6.30$ All Usage 6.86$ 5.50%
Minimum of 12,000 gallons Minimum of 8,000 gallons
Plus Meter Charges (for Sewer Only customers)
2"211.00$ 5.50%
3"422.00$ 5.50%
4"527.50$ 5.50%
6"633.00$ 5.50%
Residential (including
Morningside)
Multifamily
Comm/Ind and Sewer Only
SEWER 2022 Proposed 2023
29
Low-Volume, Single-Family Customer
Actual
2022 2023 2024 2025 2026
Quarterly Residential Bill
10,000 gallons water and 8,000 gallons sewer and 3/4" meter
Water 51.82$ 49.36$ 51.83$ 54.42$ 57.14$
Usage 27.10$ 24.15$ 25.36$ 26.63$ 27.96$
Meter 24.72$ 25.21$ 26.47$ 27.80$ 29.19$
Sewer 75.60$ 54.86$ 57.88$ 61.06$ 64.42$
Base 75.60$ 54.86$ 57.88$ 61.06$ 64.42
Storm 43.85$ 48.89$ 54.51$ 60.78$ 67.77$
Total 171.27$ 153.11$ 164.22$ 176.26$ 189.33$
Percent Increase 5.8%-10.6%7.3%7.3%7.4%
Amount Increase- per quarter $9.33 ($18.16)$11.11 $12.04 $13.07
Proposed
30
Typical Spring/Fall Single-Family Customer
Actual Proposed
2022 2023 2024 2025 2026
Quarterly Residential Bill
24,000 gallons water and 12,000 gallons sewer and 1" meter
Water 98.76$ 108.38$ 113.80$ 119.49$ 125.46$
Usage 65.04$ 73.08$ 76.73$ 80.57$ 84.60$
Meter 33.72$ 35.30$ 37.07$ 38.92$ 40.86$
Sewer 75.60$ 82.29$ 86.82$ 91.59$ 96.63$
Usage 75.60 82.29 86.82 91.59 96.63
Base -
Storm 43.85$ 48.89$ 54.51$ 60.78$ 67.77$
Total 218.21$ 239.56$ 255.13$ 271.86$ 289.86$
Percent Increase 5.6%9.8%6.5%6.6%6.6%
Amount Increase- per quarter $11.58 $21.35 $15.57 $16.73 $18.00
31
High-Volume, Single-Family Customer
Actual
2022 2023 2024 2025 2026
Quarterly Residential Bill
95,000 gallons water and 40,000 gallons sewer and 1" meter
Water 445.96$ 539.94$ 566.93$ 595.28$ 625.04$
Usage 412.24$ 504.64$ 529.87$ 556.36$ 584.18$
Meter 33.72$ 35.30$ 37.07$ 38.92$ 40.86$
Sewer 252.00$ 274.30$ 289.39$ 305.30$ 322.09$
Usage 252.00 274.30 289.39 305.30 322.09
Base -
Storm 43.85$ 48.89$ 54.51$ 60.78$ 67.77$
Total 741.81$ 863.13$ 910.83$ 961.36$ 1,014.91$
Percent Increase 20.3%16.4%5.5%5.5%5.6%
Amount Increase- per quarter $125.35 $121.32 $47.71 $50.53 $53.55
Proposed
32
Multifamily Property
Actual
2022 2023 2024 2025 2026
Quarterly Multifamily Bill
Water 1,623.07$ 2,190.92$ 2,300.46$ 2,415.49$ 2,536.26$
Usage 1,358.66$ 1,905.44$ 2,000.71$ 2,100.74$ 2,205.78$
Meter 264.41$ 285.48$ 299.76$ 314.74$ 330.48$
Irrigation Meter - 687,000 gallons 3,815.03$ 4,113.27$ 4,318.93$ 4,534.88$ 4,761.62$
Sewer 5,375.95$ 3,607.05$ 3,787.40$ 3,976.77$ 4,175.61$
Usage 3,607.05 3,787.40 3,976.77 4,175.61$
Base 5,375.95
Storm 4,711.02$ 5,252.79$ 5,856.86$ 6,530.40$ 7,281.40$
Total 15,525.07$ 15,164.02$ 16,263.65$ 17,457.53$ 18,754.88$
Percent Increase 5.9%-2.3%7.3%7.3%7.4%
Amount Increase- per quarter $868.47 ($361.05)$1,099.63 $1,193.88 $1,297.35
83 Condo Units: 526,000 gallons of water and sewer and a 3" meter
Proposed
33
Small Business
Actual
2022 2023 2024 2025 2026
Quarterly Small Commercial Bill
50th and France shop: 10,000 gallons water and sewer and 3/4" meter
Water 51.82$ 49.36$ 51.83$ 54.42$ 57.14$
Usage 27.10$ 24.15$ 25.36$ 26.63$ 27.96$
Meter 24.72$ 25.21$ 26.47$ 27.80$ 29.19$
Sewer 75.60$ 68.58$ 72.35$ 76.33$ 80.52$
Usage 68.58 72.35 76.33 80.52$
Base 75.60
Storm 76.95$ 85.80$ 95.67$ 106.67$ 118.93$
Total 204.37$ 203.74$ 219.84$ 237.41$ 256.60$
Percent Increase 6.1%-0.3%7.9%8.0%8.1%
Amount Increase- per quarter $11.78 ($0.63)$16.11 $17.57 $19.19
Proposed
34
Large Commercial Customer
Actual
2022 2023 2024 2025 2026
Quarterly Large Commercial Bill
Large Commercial: 502,000 gallons water and sewer and 1" meter
Water 1,817.78$ 1,748.44$ 1,835.86$ 1,927.66$ 2,024.04$
Usage 1,784.06$ 1,713.14$ 1,798.80$ 1,888.74$ 1,983.17$
Meter 33.72$ 35.30$ 37.07$ 38.92$ 40.86$
Sewer 3,162.60$ 3,442.47$ 3,631.80$ 3,831.55$ 4,042.28$
Usage 3,162.60 3,442.47 3,631.80 3,831.55 4,042.28$
Base -
Storm 828.73$ 924.03$ 1,030.29$ 1,148.78$ 1,280.89$
Total 5,809.11$ 6,114.94$ 6,497.96$ 6,907.98$ 7,347.21$
Percent Increase 5.4%5.3%6.3%6.3%6.4%
Amount Increase- per quarter $297.90 $305.83 $383.02 $410.03 $439.23
Proposed
35
•Recommend increases to pay for capacity expansion projects
Sewer Connection Fees
Project Area Estimated Cost Estimated New SAC
Units per Year
Southdale Area $11.4 Million 175
Cahill Area*$13.1 Million 119
*Cahill Area growth assumed to begin in 2027
Cahill expansion projects constructed in 2023-2024
36
Proposed Sewer Connection Fees
Without Cahill Expansion With Cahill Expansion
Year % Increase Connection Fee % Increase Connection Fee
2022 6.00%$ 1,810 6.00%$ 1,810
2023 28.00%$ 2,317 50.00%$ 2,715
2024 22.00%$ 2,826 37.00%$ 3,720
2025 5.00%$ 2,968 27.00%$ 4,724
2026 5.00%$ 3,116 5.00%$ 4,960
2027 5.00%$ 3,272 5.00%$ 5,208
2028 5.00%$ 3,436 5.00%$ 5,468
2029 5.00%$ 3,607 5.00%$ 5,742
2030 5.00%$ 3,788 5.00%$ 6,029
2031 5.00%$ 3,977 5.00%$ 6,330
2032 5.00%$ 4,176 5.00%$ 6,647
2033 5.00%$ 4,385 5.00%$ 6,979
37
Connection Fee Comparison
$-
$200,000
$400,000
$600,000
$800,000
$1,000,000
$1,200,000
$1,400,000
$1,600,000
$1,800,000
Infrastructure Development Fees for Sample Multifamily Project(Assumes 150 units on 2 developable acres)
Storm Water Total Sanitary Sewer Total Water
38
•3% annual rate increases
Water Connection Fees
Year Annual Rate
Increase
Connection
Fee
2022 $ 2,960
2023 3.00%$ 3,049
2024 3.00%$ 3,140
2025 3.00%$ 3,234
2026 3.00%$ 3,332
2027 3.00%$ 3,431
2028 3.00%$ 3,534
2029 3.00%$ 3,640
2030 3.00%$ 3,750
2031 3.00%$ 3,862
39
Utility Bill Comparison: Low Volume Resident
$0.00
$25.00
$50.00
$75.00
$100.00
$125.00
$150.00
$175.00
$200.00
Edina - 2023Proposed Edina - 2022 Eden Prairie Hopkins Minnetonka St. Louis Park Bloomington
2022 Quarterly Residential Bill for Water, Sewer & Storm Water
Assumes 10,000 gallons water and 8,000 gallons sewer and 1" meter
Storm Water Charges Sewer Charges Water Charges Average 2022 Quarterly Bill
40
Utility Bill Comparison: Typical Resident
$0.00
$25.00
$50.00
$75.00
$100.00
$125.00
$150.00
$175.00
$200.00
$225.00
$250.00
Edina - 2023Proposed Edina - 2022 Eden Prairie Hopkins Minnetonka St. Louis Park Bloomington
2022 Quarterly Residential Bill for Water, Sewer & Storm Water
Assumes 24,000 gallons water and 12,000 gallons sewer and 1" meter
Storm Water Charges Sewer Charges Water Charges Average 2022 Quarterly Bill
41
•Accommodate latest capital projects needs and increased costs
•Reduce customer complaints about sewer billing
•Evaluate options for funding flood mitigation projects
•Enhance water conservation
•Conform rates to capabilities of new accounting software
Specific Goals of the 2022 Rate Study
42
•Issue: Winter Quarter Averaging
Residential sewer billed on water use in winter quarter
For some: winter quarter water use sometimes higher than other
quarters
•Post-Review Conclusion:
Billing changed to lesser of winter quarter or actual water
consumption, but not less than 8,000 gallons
Sewer Rates: Structural Issues
43
2022:
•$6.30 per 1,000 gallons*
2023:
•$6.86 per 1,000 gallons*
2024 & beyond:
•5.5% annual increase
Proposed Sewer Rates
*2023 Minimum reduced to 8,000 from 12,000 gallons.