A-3. Review Annual Utility Rate StudyMEMORANDUM
CITY OF C HANHASSE N
Chanhassen is a Community for Life - Providing for Today and Planning for Tomorrow
TO: Mayor and City Council
FROM: Greg Sticha, Finance Director
DATE: October 24, 2016—�
SUBJ: Utility Rate Study
Ehlers & Associates, the city's financial advisors, annually studies the current utility fees and
future projects to determine if the rates are appropriate for planned expansions; reconstruction;
and maintenance of the water, sanitary sewer, and storm water systems. This evening, the rate
study and related changes planned for 2017 will be discussed.
There were some changes from last year's projections for utility rates in 2017 as compared to
this year's rate study.
Water
The water rates in last year's study indicated a need for increase in 2017 of 5.5% for connections
and operating rates. This year's study indicates a need for 2017 operating rates to increase 6%
and staff is recommending an increase in the connection charge of 4%.
The need for the change in the operating rate is due to the start of the new West Water Treatment
Plant operator around the first of the year (previously had been planned to start late in the year or
2018), and the analyzing of multiple city employees' duties and charging the appropriate
amounts to the Utility Funds versus the city's General Fund. The decrease is due to maintained
capital cash reserves and to remain competitive in our market.
Sanitary Sewer
The sanitary sewer rates in last year's study indicated a need for increase in 2017 of 3.5% for
operating rates and 2% for connection charges. This year's study indicates a need for 2017
operating rates to increase 4.25%, and staff is recommending a decrease in the connection charge
to no change from the previous year.
The change in the operating rate is solely due to the 7% increase in the MCES operating charge
for 2017. The decrease is due to maintained capital cash reserves and to remain competitive in
our market.
PH 952.227.1100 • www.ci.chanhassen.mn.us • FX 952.227.1110
7700 MARKET BOULEVARD • PO BOX 147 • CHANHASSEN • MINNESOTA 55317
Todd Gerhardt
Utility Rate Study
October 24, 2016
Page 2
Storm Water
The storm water rates in last year's study indicated a need for an increase in 2017 of 2% for
operating rates and 2.5% for connection charges. This year's study indicates a need for 2017
operating rates to increase 4%, and staff is recommending a decrease in the connection charge to
I% as compared to the previous year.
The change in the operating rate is due mostly to significant and increasingly complex unfunded
mandates imposed on cities by the state. Meeting new storm water requirements is expensive
and puts pressure on all cities to increase stonn water rates. The decrease is due to maintained
capital cash reserves and to remain competitive in our market.
SUMMARY
Attached is the entire rate study, as well as the executive summary prepared by Ehlers &
Associates. Jessica Cook from Ehlers will be present to review the study and answer any
questions. Ms. Cook will present a brief PowerPoint that highlights the key areas of the study.
No action is needed on this item at tonight's meeting. On December 12"', the city council will
consider an amendment to the fee ordinance, which will incorporate any changes discussed at
tonight's meeting and future meetings.
ATTACHMENTS
1. Rate Study Executive Summary and Detailed Information/
fAgregslrate study\2016 utility study memo 10-24-16.doex
10 FREERS
October, 2016
Utility Rate Analysis for 2017 Rates
City of Chanhassen, Minnesota
CITY OF
CHANHASSEN
Prepared By:
City Staff and Ehlers
W -m-11 —W-- --- 1-800-552-1171 1 www.ehlers-inc.com
Key Findings
The goal of a rate study is to ensure the long-term financial health of the utility enterprise funds.
Toward this end, the City of Chanhassen annually updates its utility rate study. The 2017 rate
recommendations for storm water, sanitary sewer and water rates are in the charts below, along
with last year's recommendations for comparative purposes.
ProposedStorm Water
Last Year's
Last Year's
Proposed
Proposed
Increases for
Increases for
2018 and
2018 and
2017
Revised 2017
Beyond
User Charges
2.00%
4.00%
4.00%
Area Charges
2.50%
1.00%
1.00%
Managing stone water is a significant and increasingly complex mandate imposed on cities by
the state. Meeting new stone water requirements is expensive and puts pressure on all cities to
increase storm water rates. The proposed quarterly user rate of 4% is higher than the 2%
projected last year. This is a reflection of the increased requirements for improving storm water
quality and to pay for the City's storm water costs incurred in hook-up with street reconstruction
projects. The storm water hook-up fees are proposed to increase at 1% to keep the City's fees
competitive with other developing communities.
The single biggest expense in the storm water utility is the Metropolitan Council Environmental
Services (MCES) disposal charge. After four years of small increases and some decreases, the
MCES charge increased 7% between 2016 and 2017. The proposed 4.25% rate increase in 2017
and beyond reflects the increase in MCES charges plus the reallocation of city costs as discussed
below. Hook-up charge increases do not need to be increased because much of the system has
already been constructed.
ProposedSanitary Sewer
Last Year's
Proposed
Increases for
2018 and
2017
Revised 2017
Beyond
User Charges
3.50%
4.25%
4.25%
Hook -Up Fees
2.00%
0.00%
0.00%
The single biggest expense in the storm water utility is the Metropolitan Council Environmental
Services (MCES) disposal charge. After four years of small increases and some decreases, the
MCES charge increased 7% between 2016 and 2017. The proposed 4.25% rate increase in 2017
and beyond reflects the increase in MCES charges plus the reallocation of city costs as discussed
below. Hook-up charge increases do not need to be increased because much of the system has
already been constructed.
For a typical residential customer using 26,000 gallons of water per quarter, the difference
between a 5.5% and 6% water rate increase is .31 cents per quarter. Last year we expected the
new water treatment plant operator to be added to personnel operating costs in 2018. The cost of
the new operator (estimated at $80,000 per year) has been moved up to 2017. In addition slower
growth in 2016 impacts cash balances and future user revenues. Together, these factors
contribute to the need for a higher rate increase in 2017.
Rate increases less than those recommended above will weaken the cash positions of the utility
funds and may attract questions from Standard and Poor's. The City currently benefits from the
AAA rating it has earned from Standard and Poor's. Rating agencies pay attention to enterprise
fund activities for cities, and Standard and Poor's rating methodology looks at whether enterprise
funds will put financial burdens on the general fund due to structural imbalances (i.e.,
insufficient utility revenue).
Growth
How quickly the City grows will impact the utility fees collected, the hook-up revenues, and
storm water area charges. For the rate study, we have assumed that there will be 130 new
residential units constructed each year from 2017 through 2024 and 120 units per year thereafter.
In addition to the residential growth, 28 SAC units are assumed to come from commercial
development and new irrigation meters.
Staff has received feedback from developers that the City's utility related development fees are
high compared to other communities. This rate study's recommendations for hook-up fee
increases balance the need to keep developer fees competitive while also covering growth related
infrastructure costs.
The chart in Appendix A compares the City of Chanhassen's development fees for a new single
family home with the Key Financial Strategies (KFS) comparison cities. The chart in Appendix
B compares the City's fees with neighboring communities.
Storm Water Fund
The City of Chanhassen collects two types of storm water fees: quarterly storm water fees paid
by all property owners, and storm water area charges paid by developers when land is platted.
We are recommending a 4% rate increase to the quarterly storm water fee for 2017 and beyond.
This is consistent with the 2014 rate study, but higher than the 2% increase projected last year.
The difference between a 2% and a 4% rate increase is .21 cents per quarter.
Water Proposed
Rates
Last Year's
Proposed
Increases for
2018 and
2017
Revised 2017
Beyond
User Charges
5.50%
6.0%
6.0%
Hook -Up Fees
5.50%
4.0%
4.0%
For a typical residential customer using 26,000 gallons of water per quarter, the difference
between a 5.5% and 6% water rate increase is .31 cents per quarter. Last year we expected the
new water treatment plant operator to be added to personnel operating costs in 2018. The cost of
the new operator (estimated at $80,000 per year) has been moved up to 2017. In addition slower
growth in 2016 impacts cash balances and future user revenues. Together, these factors
contribute to the need for a higher rate increase in 2017.
Rate increases less than those recommended above will weaken the cash positions of the utility
funds and may attract questions from Standard and Poor's. The City currently benefits from the
AAA rating it has earned from Standard and Poor's. Rating agencies pay attention to enterprise
fund activities for cities, and Standard and Poor's rating methodology looks at whether enterprise
funds will put financial burdens on the general fund due to structural imbalances (i.e.,
insufficient utility revenue).
Growth
How quickly the City grows will impact the utility fees collected, the hook-up revenues, and
storm water area charges. For the rate study, we have assumed that there will be 130 new
residential units constructed each year from 2017 through 2024 and 120 units per year thereafter.
In addition to the residential growth, 28 SAC units are assumed to come from commercial
development and new irrigation meters.
Staff has received feedback from developers that the City's utility related development fees are
high compared to other communities. This rate study's recommendations for hook-up fee
increases balance the need to keep developer fees competitive while also covering growth related
infrastructure costs.
The chart in Appendix A compares the City of Chanhassen's development fees for a new single
family home with the Key Financial Strategies (KFS) comparison cities. The chart in Appendix
B compares the City's fees with neighboring communities.
Storm Water Fund
The City of Chanhassen collects two types of storm water fees: quarterly storm water fees paid
by all property owners, and storm water area charges paid by developers when land is platted.
We are recommending a 4% rate increase to the quarterly storm water fee for 2017 and beyond.
This is consistent with the 2014 rate study, but higher than the 2% increase projected last year.
The difference between a 2% and a 4% rate increase is .21 cents per quarter.
The proposed rate increases will result in the following quarterly fee for a single family home.
Proposed Quarterly Storm Water Rates
7 Fixed Quarterly Fee $10.26 $10.67 $11.09 $11.54
Commercial and multifamily properties pay storm water fees based on their land use type and
acreage.
The proposed rates will be adequate to meet on-going, maintenance related storm water
expenditures, which include pond maintenance, street sweeping, and implementing the surface
water management plan. Furthermore, the City of Chanhassen's quarterly storm water charge
remains competitive with both neighboring and KFS cities.
$35.00
$30.00
$25.00
$20.00
$15.00
$10.00
$5.00
$0.00
2016 Quarterly Storm Water Charges for Residential Users in
s v s c w 0
m 01n v o m o w
o
2016 Quarterly Storm Water Charges for Residential Users in KFS Cities
$30.00
$25.00
$20.00
$1500'
$10.00
$5.00
$0.00
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Storm Water Development Charges
In 2016 the City Council adopted a new rate structure for storm water development fees. Staff
reports that the new structure is working well. These fees are proposed to increase 1% annually
and result in the following charges for 2017.
Proposed Storm Water Area Charges
Target Cash Reserves - Storm Water Fund
The projected cash balance in the storm water fund is shown in the following graph. The target
cash reserve is a base of $1 million dollars inflated over time, in order to provide sufficient funds
for future capital needs. The target cash amount approximates 6 months operating expenses plus
the cost of the next year's capital improvements. We expect capital needs will grow as the State
develops more regulatory requirements related to storm water management.
Storm Sewer Fund Capital Cash Reserves
2,000.000 - - - - - — -
1,800,000
1,600,000
1.400.000
1,200,000 r
,
000,000
800,000 ,
600,000
400,000
200,000
0
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026
■Target Working Capital ,l Projected Cash Balance
2016
- r
(Before Credits)
for Credits)
Single Family
$3,110
$4,440
$8,000
$8,080
Medium Density
$5,840
$6,140
$9,593
$9,690
Residential
Townhouse
$5,840
$6,140
$14,371
$14,515
Apartment Complex/
$6,490
$9,510
$14,371
$14,515
High Density
Commercial
$22,940
$8,900
$30,299
$30,602
Industrial
$18,030
$8,900
$20,742
$20,950
Target Cash Reserves - Storm Water Fund
The projected cash balance in the storm water fund is shown in the following graph. The target
cash reserve is a base of $1 million dollars inflated over time, in order to provide sufficient funds
for future capital needs. The target cash amount approximates 6 months operating expenses plus
the cost of the next year's capital improvements. We expect capital needs will grow as the State
develops more regulatory requirements related to storm water management.
Storm Sewer Fund Capital Cash Reserves
2,000.000 - - - - - — -
1,800,000
1,600,000
1.400.000
1,200,000 r
,
000,000
800,000 ,
600,000
400,000
200,000
0
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026
■Target Working Capital ,l Projected Cash Balance
Sanitary Sewer System
Sanitary Sewer Capital Improvements
The capital improvement plans for the sanitary sewer funds are attached in Appendix C. Major
capital improvements include:
• Replacing sewer mains under street reconstruction projects.
• 2010 MUSA Sanitary Lift Station in 2018. We have assumed that half of this project cost
will be assessed, with assessments deferred for up to five years.
• Lower Bluff Creek Trunk Utility Improvements.
• TH 101 Improvements from Pioneer to Flying Cloud Drive.
• $200,000 per year indefinitely to address inflow and infiltration.
Sanitary Sewer Operating Expenses
The driving factor in setting sewer rates is the Metropolitan Council Environmental Services'
(MCES) disposal fee, which is the single biggest expense in the Sewer Fund. Early in the
decade the MCES charges were increasing rapidly, and the City was expecting to have to
increase its sewer rates accordingly. Our rate study from 2011, for example, projected 6%
and 7% annual rate increases. Fortunately, the MCES cost moderated, and even declined,
allowing the City to maintain more modest rate increases for the last several years. The
MCES has informed the City that 2017 charges are going to increase 7.2%.
The following chart shows the last five years of MCES charges plus the expected cost in
2017.
2011
We
$
1,519,879
9.7%
2012
$
1,506,629
-0.9%
2013
$
1,3981891
-7.2%
2014
$
1,451,000
3.7%
2015
$
1,579,600
8.9./.-
.9%2016
2016
$
1,436,872
-9.0%
2017
$
1,540,900
.2%
7.20/6-
We have assumed future MCES charges will increase by an average of 4% per year. We are
also anticipating additional costs being allocated to the sewer fund beginning in 2018. Over
the next year staff intends to ensure that all utility related expenses, in particular IT costs, are
being borne by the utility funds. Utility funds are Enterprise Funds and are supposed to "pay
their own way" without any support from the General Fund or other sources.
Last year we recommended a 3.5% rate increase to city sewer rates in 2017 in response to the
decline in MCES charges. This year we are recommending a 4.25% annual increase to the
City's sewer rates in 2017 and annually thereafter. The proposed sewer rates are shown in the
following chart. The difference between a 3.5% and a 4.25% rate increase is .84 cents per
quarter for a customer using 26,000 gallons.
Quarterly Sewer Rates
Fixed Quarterly Fee
includes 6,000 gallons) 2289 23.86 24.88 25.93
Usage Fee
(per 1,000 gallons over 6,000 4.48 4.67 4.87 5.08
gallons)
The City of Chanhassen's sewer rates for a sample homeowner are compared to other
communities in the graphs below.
$180.00
$160.00
$140.00
$120.00
$100.00
$80.00
$60.00
$40.00
$20.00
$0.00
n
N
O
N
2016 Sewer Charges of Neighboring Communities
Assuming 26,000 Gallons per Quarter for Residential Users
n m T 3 m S
8 ii n
N
O
J
2016 Sewer Charges for KFS Cities
Assuming 26,000 Gallons per Quarterfor Residential Users
$160.00
$160.00
■ Base
Fee
■ Usage Fee
$140.00
$120.00
$100.00
$80.00
$60.00
$40.00
$20.00
$0.00
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Sanitary Sewer Hook-up Fees
Hook-up and platting fees are an important source of revenue needed to expand the sanitary
sewer system. The 2016 sewer hook-up and platting fees total $2,302 per residential unit. We
are recommending that sanitary sewer hook-up and platting fees increase 0% in 2017 and
beyond.
Target Cash Reserves — Sanitary Sewer Fund
Adequate cash reserves are needed to accommodate cash flow needs, fund emergency repairs,
and save for larger future capital projects. The projected cash balance for the Sanitary Sewer
Fund, as compared to the target cash reserve, is shown in the following graph. The target cash
reserve equals approximately $4 million increasing 2% annually.
Sewer Fund Capital Cash Reserves
6.000.000 -- - ----- -- - _.— - ---
5,000,000
4,000,000
3,000,000
2,000,000
1,000,000
0
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026
■Target Working Capital aProjected Cash Balance
Water System
Water Capital Improvements and Bonding
Major capital improvement plans for the water fund include:
• West Water Treatment Plant. The treatment plant is estimated to cost $20 million with
construction commencing in 2017.
• Replacing water mains under street reconstruction projects
• Oversizing costs to extend water main along TH101 and to the Lower Bluff Creek area
• Painting of the Watertower Place in 2019
• New wells in 2021, 2024, and 2027
• Elevated Storage Tank in 2023
Operating costs make up 41% of the average annual costs of the City's water system, as shown
in the chart below.
Water System
Average Annual Costs 2017-2026
■ Operating
■ Existing Debt
■ Capital and Debt
The cost of the treatment plant is split with 50% paid by user charges and 50% paid with hook-
up fees. Based on conversations with the City Engineer, this allocation of costs is consistent
with the demand patterns created by growth of the community. All capital costs are inflated 4%
annually beginning in 2018.
The rate study anticipates the need to bond for a majority of the improvements listed above. The
need to issue bonds depends upon many factors, and the City should annually review whether it
has sufficient cash to pay for capital improvements prior to issuing debt.
Proposed Water Rates
Over the next five years, the proposed water rates shown on the following chart are necessary to
meet future operating, capital and debt costs.
6.0% Annual Water Rate Increases
Tier 1
0-6,000gallons)
2016
1.16
2017
1.23
2018
1.30
2019
1.38
Tier 2
6,001-24,000gallons)
2.32
2.46
2.61
2.76
Tier
24,001-48,000gallons)
2.90
3.08
3.26
3.46
Tier
48,001-99,000gallons)
3.37
3.57
3.78
4.01
Tier 5
Over 99,000gallons)
4.28
4.54
4.81
5.10
Different types of water customers are currently billed at different tiers:
0 Single family residential customers are billed using all five tiers.
• Multifamily properties pay a flat rate per thousand gallons. The multifamily rate for
2016 is $2.32 per gallon.
• Commercial customers are billed using Tiers I through 4 only.
• Irrigation meters are billed using all five tiers.
In addition to the usage charges above, the City of Chanhassen collects a fixed quarterly charge
of $8.43 per connection for the water utility. In 2017, the fixed quarterly charge is proposed to
increase the same rate as the usage charges resulting in a quarterly charge of $8.94.
The City of Chanhassen's water rates are competitive with both its neighboring communities and
KFS cities.
2016 Water Charges for Neighboring Communities
Assuming 26,000 Gallons per Quarter for Residential Users
$120.00 —
$100.00
$80.00
$60.00 —
$40.00 —
$20.00 —
$-
Chanhassen Proposed Chaska Eden Prairie Excelsior Minnetonka Shakopee Shorewood Victoria
2016 Chanhassen
2017
is Usage Fee is Base Fee
10
Water Hook-up Fees
Water platting and hook-up fees are an important source of revenue needed to expand the water
system and to pay for the second treatment plant.
2016 Fee $6,882
Combined Platting and Hook-up Fee)
Proposed 2017 Fee $7,157
(Combined Plattino and Hook-uo Fee)
Amount Increase
Developers are concerned about the total cost of City fees associated with their development. In
this report we are recommending no increase to the sewer hook-up fees. Containing cost
increases in the other utilities will help lessen the impact on land developers of the proposed
water hook-up charges.
Target Cash Reserves for the Water Funds
The cash balance of a fund is a measure of its financial health and allows the City to respond to
unexpected events without imposing sudden rate increases. The City's cash reserve target for the
Water Fund has historically been equal to six months' worth of operating costs plus 10% of
accumulated depreciation. The following graph shows the projected cash balances as measured
against target cash reserves.
11
2016 Water Charges for KFS Cities
Assurning 26,000 Gallons per Quarter for Residential Users
$120.00
v Usage Fee ■ Base Fee
$100.00
$80.00
$60.00
$40.00
ri
$20.00
C
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Water Hook-up Fees
Water platting and hook-up fees are an important source of revenue needed to expand the water
system and to pay for the second treatment plant.
2016 Fee $6,882
Combined Platting and Hook-up Fee)
Proposed 2017 Fee $7,157
(Combined Plattino and Hook-uo Fee)
Amount Increase
Developers are concerned about the total cost of City fees associated with their development. In
this report we are recommending no increase to the sewer hook-up fees. Containing cost
increases in the other utilities will help lessen the impact on land developers of the proposed
water hook-up charges.
Target Cash Reserves for the Water Funds
The cash balance of a fund is a measure of its financial health and allows the City to respond to
unexpected events without imposing sudden rate increases. The City's cash reserve target for the
Water Fund has historically been equal to six months' worth of operating costs plus 10% of
accumulated depreciation. The following graph shows the projected cash balances as measured
against target cash reserves.
11
Water Fund Capital Cash Reserves
8,000,000
7,000,000
6,000,000
5,000,000
4,000,000 --
3,000,000
2,000,000
1,000,000
0 o v
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026
■Target Working Capital OProjected Cash Balance
12
Putting It All Together: The Utility Bill
The chart below shows a utility bill for a sample of residential customers who use varying
amounts of water, assuming the treatment plant is constructed in 2017. Proposed hook-up fees
for a single family home are also shown.
Sample Water, Sewer and Storm Sewer Bills
Actual
2016
Average Quarterly Residential Bill
26,000 gallons water and 26,000 gallons sewer
Water 62.95
Sewer 111.88
Storm 10.25
Total $185.08
Percent Increase
Amount Increase
2017r2019
66.73
116.63
10.66
$194.02
4.8%
$8.94
Proposed
70.73
121.59
11.09
$203.41
4.8%
$9.39
74.97
126.76
11.53
$213.26
4.8%
$9.85
209
79.47
132.15
11.99
$223.61
4.9%
$10.35
Sample Bill for Lower Water User
11,000 gallons water and 8,000 gallons sewer
Water
26.99
28.61
30.33
32.15
34.07
Sewer
31.78
33.13
34.54
36.01
37.54
Storm
10.25
10.66
11.09
11.53
11.99
Total
$69.02
$72.40
$75.95
$79.68
$83.60
Percent Increase
4.9%
4.9%
4.9%
4.9%
Amount Increase
$3.38
$3.55
$3.73
$3.92
Sample Bill for Higher Water User
255,000 gallons water and 26,000 gallons sewer
Water
962.7
1,020.46
1,081.69
1,146.59
1,215.39
Sewer
111.88
116.63
121.59
126.76
132.15
Storm
10.25
10.66
11.09
11.53
11.99
Total
$1,084.83
$1,147.76
$1,214.37
$1,284.88
$1,359.52
Percent Increase
5.8%
5.8%
5.8%
5.8%
Amount Increase
$62.93
$66.61
$70.51
$74.64
Actual Proposed
2016
2017
2018i
r i
City Sewer Hook-up Fees
2,302
2,302
2,302
2,302
2,302
City Water Hook-up Fees
6 882
7 157
7 444
7 741
8 051
Total
$9,184
$9,459
$9,746
$10,043
$10,353
Percent Increase
3.30%
3.00%
3.03%
3.06%
3.08%
13
Appendix A: Development Fee Comparison with KFS Cities
Comparison of 2016 Sewer, Water and Stormwater Development Fees for a Single Family Home
Assumes 1/3 net developable acres on the site and a V water meter
14
Stormwater*
TOTAL
Comments
Sewer
(City SAC)
Water
Subtotal Water
and Sewer
Chanhassen 2016
$
2,302
$
6,882
$
9,184
$
2,667
$
11,851
Chanhassen
$
2,302
$
7,157
$
9,459
5
2,693
$
12,153
Proposed 2017
Chaska
$
4,377
$
4,827
$
9,204
$
3,288
$
12,492
Cottage Grove$
1,317
$
2,256
$
3,573
$
2,320
$
5,893
(West Draw Area 2)
Elk River
$
4,750
$
3,425
$
8,175
$
226
$
8,401
Inver Grove Heights
Storm water improvements are
(outside Northwest
$
1,848
$
4,628
$
6,475
$
-
$
6,475
paid forwith storm water
Area)
taxing districts.
Inver Grove Heights
$
6,257
$
6,183
$
12,440
$
3,995
$
16,435
(Northwest Area)
Lino Lakes
$
3,273
$
4,319
$
7,592
$
2,105
$
9,697
The City also charges $18,000
per plat for water and sewer
Prior Lake
$
1,775
$
4,726
$
6,500
$
1,023
$
7,523
connections ($9,0o0 -water
and $9,000- sewer) regardless
of number of units platted.
Rosemount
$
1,558
$
4,342
$
5,900
$
3,058
$
8,958
Savage
$
4,069
$
4,893
$
8,961
$
4,530
$
13,492
Shakopee
(County835ervice
$
2,691
$
6,104
$
8,795
$
2,701
$
11,496
Area)
Single family homes that have
not paid trunk charges (i.e.,
Stillwater
$
2,857
$
3,757
$
6,614
$
3,783
$
10,397
newly annexed or in-fil I
(Phase III Annex Area)
development) are charged
total of $7,932 for water and
sewer cannecti on fees.
2,703
$
10,115
14
Appendix B: Development Fee Comparison with Neighboring Cities
Comparison of 2016 Sewer, Water and Storrnuuater Development Fees for a Single Family Horne
Pssurnes 1/3 net developade acres on the site and a V water meter
15
$
6,882
Chanhassen 2036
$ 2,302
$ 9,184
$ 2,667
$ 11,851
Chanted en
Proposed 27
201M
$
2,302
$
7,157
$
9,459
$
2,693
$
12,153
Chaska
$
4,377
$
4,827
$
9,204
$
3,288
$
12,492
Filen Prairie
$
2,256
$
3,901
$
6,156
$
6,156
Stour ter cha rges are
permit fee based for
construction W thi n a right of
way, for example.
Excelsior
$
1,000
$
2,000
$
3,000
$
3,000
Mnnetonka
$
997
$
1,772
$
2,769
$
2,769
Shakopee
(Courny8i Service
Area)
$
2,691
$
6,104
$
8,795
$
2,701
$
11,496
Shorewood
$
1,200
$
10,000
$
11,200
$
111200
Victoria
Average
$
$
1,620
2,020
$
5,380
$
7,000
$
12,632
r
$
19,632
15
Appendix C — Projections and Capital Improvement Plans
Storm Water Fund Projection
Storm Water Capital Improvement Plan
Sanitary Sewer Fund Projection
Sanitary Sewer Capital Improvement Plan
Water Fund Projection
Water Capital Improvement Plan
112
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