Agenda and PacketAGENDA
CHANHASSEN ECONOMIC DEVELOPMENT COMMISSION
WEDNESDAY, DECEMBER 11, 2019, 7:00 PM
CITY COUNCIL CHAMBERS, 7700 MARKET BOULEVARD
A.CALL TO ORDER
B.APPROVAL OF MINUTES
1.Approve Minutes dated November 13, 2019
C.NEW BUSINESS
1.Review of 2019 Utility Rate Study
D.ADJOURNMENT
ECONOMIC DEVELOPMENT
COMMISSION STAFF REPORT
Wednesday, December 11, 2019
Subject Approve Minutes dated November 13, 2019
Section APPROVAL OF MINUTES Item No: B.1.
Prepared By Nann Opheim, City Recorder File No:
ATTACHMENTS:
Economic Development Commission Summary Minutes dated November 13, 2019
CHANHASSEN ECONOMIC DEVELOPMENT COMMISSION
REGULAR MEETING
NOVEMBER 13, 2019
Chairman Jim Sanford called the meeting to order at 7:00 p.m.
MEMBERS PRESENT: Jim Sanford, Kathleen Donovan, James Ebeling, and Steve Stamy
STAFF PRESENT: Greg Sticha, Finance Director; and Kate Aanenson, Community
Development Director
Greg Sticha informed the commission that Anne Heinze has submitted her resignation from the
commission.
Donovan moved, Ebeling seconded to approve the agenda as presented. All voted in favor
and the motion carried unanimously with a vote of 4 to 0.
APPROVAL OF MINUTES: Ebeling moved, Donovan seconded to approve the Minutes
of the Economic Development Commission meeting dated October 8, 2019 as presented.
All voted in favor and the motion carried unanimously with a vote of 4 to 0.
REVIEW DOWNTOWN VISION PLAN.
Kate Aanenson presented the staff report and background information on this item. Chairman
Sanford asked about ownership and zoning for the Lunds Byerlys property. Commissioner
Ebeling asked about traffic studies for the downtown. Commissioner Stamy asked about
potential development south of Highway 5. Chairman Sanford asked about the role of the
Southwest Chamber of Commerce and the potential for Chanhassen having it’s own Chamber of
Commerce.
REVIEW BUSINESS SUBSIDY GUIDELINES.
Greg Sticha presented the staff report on this item. Chairman Sanford asked for clarification on
what state statutes Mr. Sticha was referencing. Mr. Sticha stated he would email that
information to commissioners. In discussing tax increment financing (TIF) districts commission
members asked for clarification on how TIF operates. Mr. Sticha continued with discussion of
tax abatement and the application process. Commission Ebeling asked how often subsidies are
requested of staff.
Greg Sticha outlined agenda items proposed for upcoming Economic Development Commission
meetings.
Economic Development Commission – November 13, 2019
2
Stamy moved, Donovan seconded to adjourn the meeting. All voted in favor and the
motion carried unanimously with a vote of 4 to 0. The Economic Development Commission
meeting was adjourned.
Submitted by Greg Sticha
Finance Director
Prepared by Nann Opheim
ECONOMIC DEVELOPMENT
COMMISSION STAFF REPORT
Wednesday, December 11, 2019
Subject Review of 2019 Utility Rate Study
Section NEW BUSINESS Item No: C.1.
Prepared By Greg Sticha, Finance Director File No:
ATTACHMENTS:
PowerPoint Presentation
Utility Rate Study
City of Chanhassen
Utility Rate Study and Development Fees
Rate Setting Policies
Rate Study Results
Overview of Water, Sewer, and Storm Utilities
Development Fee Comparisons
Development Fee Options and Impacts
Agenda
12/3/2019 2
Growth pays for growth through hook-up fees
Allocate 50% of capital costs for water treatment plant to growth
Maintain adequate reserves
(50% of operating expenses less depreciation plus 10% of accumulated
depreciation)
Prudent use of debt
Change in policies will impact rates
Rate Setting Policies
12/3/2019 3
Summary of Rate Study Results
12/3/2019 4
Projected Usage Rate
Increases
2018
Study
2019
Study
Water 5.00%5.00%
Sewer 5.00%5.00%
Storm Water 4.00%5.00%
Projected Hook-Up Fee
Increases
2018
Study
2019
Study
Water 3.50%3.50%
Sewer 0.00%0.00%
Storm Water 2.00%2.00%
Water Utility
12/3/2019 5
Rate increases maintained at 5% by financing a larger portion of
future capital projects and delaying projects.
Total CIP (2019-2028)2018 Study 2019 Study
%
Change
Capital
(Inflated)
Capital
(Inflated)
Water $21,574,814 $26,541,571 23%
Projected Usage Rate
Increases 2018 Study 2019 Study
Water 5.00%5.00%
Water CIP
12/3/2019 6
Project Year Amount
Average Debt Service Annually $1,800,000
Watermain Replacement Annually $550,000
Street Improvement Program Annually $700,000
TH101 Imp-Pioneer Tr to Flying Cloud Dr 2020-2021 $1,000,000
Low Zone 1M Gal. Elevated Storage Tank 2024 $2,600,000
New Wells 2024 and 2029 $2,600,000
Lower Bluff Creek Trunk Utility Improvements 2026 $1,100,000
Sewer Utility
12/3/2019 7
Rate increases maintained at 5% by delaying improvements.
Total CIP (2019-2028)2018 Study 2019 Study
%
Change
Capital
(Inflated)
Capital
(Inflated)
Sewer $10,937,842 $12,278,443 12%
Projected Usage
Rate Increases 2018 Study 2019 Study
Sewer 5.00%5.00%
Sewer CIP
12/3/2019 8
Project Year Amount
Average Debt Service Annually $65,000
Sanitary Lift Station Rehabilitation Program Annually $100,000
Street Improvement Program Annually $700,000
Inflow and Infiltration Abatement Annually $200,000
TH101 Imp-Pioneer Tr to Flying Cloud Dr (CSAH 61) 2020/2021 $500,000
Lower Bluff Creek Trunk Utility Improvements 2026 $1,800,000
Storm Water Utility
12/3/2019 9
Higher rate increases needed to pay for future capital projects.
Total CIP (2019-2028)
2018
Study
2019
Study
%
Change
Capital
(Inflated)
Capital
(Inflated)
Storm Water $7,549,494 $12,055,719 60%
Projected Usage Rate
Increases
2018
Study
2019
Study
Storm Water 4.00%5.00%
Storm Water CIP
12/3/2019 10
Project Year Amount
Storm Water Pond Improvements Annually $300,000
Storm Water Infrastructure Maintenance/Replacement Annually $100,000
Street Improvement Program Annually $600,000
Comparison of Utility Bill -Neighbors
12/3/2019 11
Comparison of Utility Bill –KFS Cities
12/3/2019 12
Single Family Fee Comparison
Neighboring Cities
12/3/2019 13
Single Family Fee Comparison
KFS Cities
12/3/2019 14
Industrial Fee Comparison
Neighboring Cities
12/3/2019 15
Industrial Fee Comparison
KFS Cities
12/3/2019 16
Multi-Family Fee Comparison
Neighboring Cities
12/3/2019 17
Multi-Family Fee Comparison
KFS Cities
12/3/2019 18
#1 Reduce water hook-up fees
Allocate more debt service to current and future customers
#2 Change fee structure for multi-family units
Count one apartment as .8 SAC units
#3 Change timing of fee collection
Collect more of fee with building permit instead of plat
Options for Development Fees
12/3/2019 19
Reallocate debt on water treatment plants to:
30% -hook-up fees
70% -user charges
Reduces water hook-up fees by 20%
Requires a 6.25% annual usage rate increase (vs. 5%)
Option #1: 20% Fee Reduction
12/3/2019 20
Many communities count 1 apartment as less than 1 single family unit
due to lower water use
Assumed 1 apartment = .8 SAC units
Reduces water hook-up fees for multi-family by 20%
Requires a 5.85% annual usage rate increase (vs. 5%)
Option #2: Change Multi-Family Fees
12/3/2019 21
Currently 1/3 of fee collected at platting and 2/3 with building permit
Developers prefer to pay all of it with building permit
City could collect more or all fee with building permit, which would be
better for developer but increases the financial risk to the City
•City installs and pays for trunk line before permit is pulled. If
development and receipt of fee is delayed, City would not be
reimbursed in timely manner
Option #3: Change Timing of Fee Collection
12/3/2019 22
2020 Sample Water Bill
12/3/2019 23
Base Line Option #1 Option #2
Quarterly Bill $78.05 $78.98 $78.68
% Increase 5%6.25%5.85%
Assumes quarterly use of 26,000 gallons
Water hook-up fees have been set to pay for 50% of water treatment
plants that serve future growth
Reducing water hook-up fees shifts water treatment costs to current
and future ratepayer
Policy discussion
Summary and Discussion
12/3/2019 24
December 9, 2019
Executive Summary of the Utility Rate
Analysis for 2020 Rates
CITY OF CHANHASSEN, MINNESOTA
Utility Rate Study December 2019
Chanhassen, Minnesota Page 1
Introduction
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. It reviews both its quarterly charges and development fees. This rate
study provides a recommendation for the 2020 user rates and development fees of
the water, sanitary sewer, and storm water utilities.
The rate study reviews each utility fund to ensure that the recommended rates and
fees will be adequate to support all operations and capital costs in 2020 and into the
future. We completed a ten-year financial projection for each utility fund. This report
details the findings and the recommendations for each utility, reviews development
fees, and summarizes a sample 2020 utility bill for a homeowner in the City of
Chanhassen.
Methodology and Assumptions
Ehlers prepared a 10-year cash flow projection for the water, sewer and storm water
utility funds through the year 2029 to examine projected cash flows in future years and
estimate the user rate increases necessary to meet all financial obligations of the utility
funds while maintaining and building adequate cash reserves.
The cash flow analysis method determines future revenue requirements by
incorporating operating and maintenance expenses, transfer payments, current and
future debt service and future capital projects. We also include future growth estimates
in the model. The primary financial inputs in the development of the analysis were the
City’s audited financial statements, budget documents, and Capital Improvement Plan.
The cashflow projections include the following assumptions:
3-4% annual inflation on operating costs.
4% annual inflation on capital expenses.
5% annual inflation on MCES disposal charges.
80 new residential units for 2020, 130 new residential units 2021-2024 then 120
new residential units per year thereafter and 25 new commercial SAC units per
year as discussed with City staff.
Future water use will remain at 2019 expected consumption, despite anticipated
growth. This is a conservative assumption to reflect the trend of declining per
capita water consumption in the City.
Utility Rate Study December 2019
Chanhassen, Minnesota Page 2
Funding capital improvements for a growing community as well as replacing aging utility
infrastructure drive the need for adequate utility revenue. City staff developed a 10-year
Capital Improvement Plan for each utility (See Appendix A). All capital costs are in
today’s dollars and have been inflated 4% annually beginning in 2020. The total inflated cost
is at the bottom of the table.
Water Fund
The rate study proposes a 5% annual water rate increase in 2020 and beyond. The
recommended increase of 5% is consistent with last year’s rate study. The 5% rate
increases will help pay for the City’s projected investment in expanding and improving the
water system as well as water projects completed as part of the Street Improvement
Program. Between 2020 and 2029, the City plans to spend $21 million on capital
improvements (in today’s dollars) from the water utility fund. This is a 25% increase over the
same time period in last year’s rate study. The $4.2 million increase in capital expenditures
is due to additional water main replacement projects and other water infrastructure
completed in connection with street reconstruction projects. The chart below outlines some
of the major water system capital projects in the City’s capital improvement plan.
Water Fund - Major Projects Year Amount
Annually $1,800,000
2025-2029 $380,000
Annually $700,000
2024/2029 $2,600,000
2026 $1,100,000
2024 $2,600,000
Average Debt Service
Watermain Replacement - Average
Street Improvement Program - Average
New Wells
Lower Bluff Creek Trunk Utility Improvements
Low Zone 1M Gal. Elevated Storage Tank
TH101 Imp-Pioneer Tr to Flying Cloud Dr 2020-2021 $1,000,000
Utility Rate Study December 2019
Chanhassen, Minnesota Page 3
Recommended Water Rates
Existing Proposed Quarterly Rates
2019 2020 2021 2022 2023 2024
Percentage Increase 5.00% 5.00% 5.00% 5.00% 5.00%
Flat Rates
All Users
Minimum Charge $13.65 $14.33 $15.05 $15.80 $16.59 $17.42
Usage Rates
Residential/Commercial/Irrigation
0-6,000 gallons $1.28 $1.34 $1.41 $1.48 $1.56 $1.63
6,001-24,000 gallons 2.57 2.70 2.83 2.98 3.12 3.28
24,001-48,000 gallons 3.37 3.54 3.72 3.90 4.10 4.30
48,001-99,000 gallons 3.93 4.13 4.33 4.55 4.78 5.02
> 99,001 gallons 4.99 5.24 5.50 5.78 6.07 6.37
Multi-Family
All Usage, per 1,000 gallons $2.57 $2.70 $2.83 $2.98 $3.12 $3.28
Despite the overall increase in future capital expenditures, we have been able to maintain
5% annual increases similar to the prior years’ recommendations through increased reliance
on debt. Eighty-seven percent of future capital projects are expected to be financed. If
capital costs increase faster than anticipated, annual rate increases will need to be higher
than 5% in the future as the Water Fund does not have the financial capacity to support
additional debt with the current revenues projected.
Sewer Fund
The driving factors in setting sewer rates are the Metropolitan Council Environmental
Services’ (MCES) disposal charge and planned capital costs. The MCES disposal charge
represents over 50% of the operating expenses within the Sewer Fund. The city has been
informed that there will be a 9.7% increase for 2020. Capital costs have increased from last
year’s planned amounts by 13% (in today’s dollars). Similar to the Water Fund, the capital
increases are largely due to increased funding for sewer replacements under street
reconstruction projects.
The recommended sewer rate increase of 5% in 2020 and beyond reflects the inflationary
increases in the MCES disposal charge plus the planned capital costs.
Utility Rate Study December 2019
Chanhassen, Minnesota Page 4
Sewer Fund - Major Projects Year Amount
Average Debt Service Annually $65,000
Sanitary Lift Station Rehabilitation Program - Average Annually $100,000
Street Improvement Program - Average Annually $330,000
Inflow and Infiltration Abatement Annually $200,000
Lower Bluff Creek Trunk Utility Improvements 2026 $1,800,000
TH101 Imp-Pioneer Tr to Flying Cloud Dr (CSAH 61) 2020-2021 $1,000,000
2010 MUSA Sanitary Lift Station 2025 $950,000
Despite the overall increase in future capital expenditures, we have been able to maintain
5% annual increases similar to the prior years’ recommendations because two major
projects (the 2010 MUSA Sanitary Lift Station and the Lower Bluff Creek Utility
Improvements) were delayed. These improvements will occur when prompted by
development activity.
If capital costs or MCES disposal charges increase in the future, higher annual rate
increases will be required. Many of these potential future costs (i.e. rising construction costs
and MCES disposal charges) are outside of the City’s immediate control.
Recommended Sewer Rates
Existing Proposed Quarterly Rates
2019 2020 2021 2022 2023 2024
5.00% 5.00% 5.00% 5.00% 5.00%
Flat Rates
All Users
Minimum Charge $31.50 $33.08 $34.73 $36.47 $38.29 $40.20
Usage Rates
All Users
>6000 gallons $5.12 $5.38 $5.64 $5.93 $6.22 $6.53
Utility Rate Study December 2019
Chanhassen, Minnesota Page 5
Storm Water Fund
Managing storm water is a significant and increasingly complex mandate imposed on cities
by the state. Meeting new storm water requirements is expensive and puts pressure on all
cities to increase storm water rates. In addition, the City of Chanhassen has increased the
allocation of costs on road reconstruction projects it plans to complete within its Capital
Improvement Plan. Specifically, from last year’s Capital Improvement Plan to this year’s,
there was a 70% increase (in today’s dollars) in capital costs. The major projects within the
Storm Water fund are outlined below.
Storm Water - Major Projects Year Amount
Storm Water Pond Improvements Annually $300,000
Storm Water Infrastructure Maintenance - Average Annually $82,500
Street Improvement Program - Average Annually $580,000
It is recommended that the City adopt a 5% increase over last year’s rate.
Recommended Storm Water Rates
Existing Proposed Quarterly Rates
2019 2020 2021 2022 2023 2024
5.00% 5.00% 5.00% 5.00% 5.00%
Flat Rates
Residential
Base Charge $14.88 $15.62 $16.41 $17.23 $18.09 $18.99
Commercial/Industrial
Base Charge $28.99 $30.44 $31.96 $33.56 $35.24 $37.00
In the past, the City has funded its storm water projects with cash. Between 2021 and 2029
the capital expenditures per year are expected to average $1,000,000 and we anticipate the
City will need to finance 63% of its capital project costs. This represents a change from last
year’s rate study when only $400,000 of bonding was anticipated over the ten-year
projection period.
Cash Reserves
Cash balances in the utility funds serve several purposes. Adequate cash balances provide
the needed cashflow for the city during potential seasonal mismatches between revenues
Utility Rate Study December 2019
Chanhassen, Minnesota Page 6
and expenses. In addition, the City needs to have cash on hand as of December 31 each
year to make its February bond payments.
Appendix B is the 10-year cash flow analysis for the City’s utility funds. The cash flow
analysis projects the user rate increases necessary to meet the estimated annual expenses
of the utility and maintain a minimum recommended reserve level (“Target Working
Capital”).
The following graphs show the projected year end cash balance in each utility fund as
compared to the Target Working Capital. For the water and sewer funds, the Target
Working Capital equals 50% of annual operating expenses plus 10% accumulated
depreciation.
Utility Rate Study December 2019
Chanhassen, Minnesota Page 7
For the Storm Water Fund the Target Working Capital was established at $1,000,000 in
2016 and inflates 4% annually to keep up with construction costs. The graphs above show
that the City is projected to meet its goals for cash reserves for each utility.
0
1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
6,000,000
7,000,000
2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029
Sewer Fund
Projected Cash Balances
Target Working Capital Actual Working Capital
0
200,000
400,000
600,000
800,000
1,000,000
1,200,000
1,400,000
1,600,000
1,800,000
2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029
Storm Water Fund
Projected Cash Balances
Target Working Capital Actual Working Capital
Utility Rate Study December 2019
Chanhassen, Minnesota Page 8
Community Comparison
Each community has different demands on its utility systems that make it unique – different
growth patterns, groundwater sources, soil conditions, usage patterns and infrastructure.
Therefore, one should set rates based on documented need, as the City of Chanhassen
does through its annual rate study. Nevertheless, it is informative to know how the City’s
rates compare to other developing communities with similar characteristics – the KFS
communities Chanhassen has previously identified as well as its neighbors. Figure 1 shows
a sample 2019 bill for a residential customer who uses 26,000 gallons of water and sewer
in each KFS city and Figure 2 shows a sample bill for adjacent communities.
Figure 1. Quarterly Bill Comparison Assuming 26,000 Gallons of Water and Sewer Used
Utility Rate Study December 2019
Chanhassen, Minnesota Page 9
Figure 2. Quarterly Bill Comparison Assuming 26,000 gallons of Water and Sewer Used
– Adjacent Communities
Putting It All Together: Sample Bills
The chart below shows a sample monthly bill for a residential and commercial customer.
Existing
2019 2020 2021 2022 2023 2024
Residential Property
Water (26,000 gallons/quarter) 74.33$ 78.05$ 81.95$ 86.05$ 90.35$ 94.87$
Sewer (26,000 gallons/quarter) 133.90 140.60 147.62 155.01 162.76 170.89
Storm Water 14.88 15.62 16.41 17.23 18.09 18.99
Total Quarterly Utility Bill 223.11$ 234.27$ 245.98$ 258.29$ 271.20$ 284.75$
Total Annual Utility Bills 892.44$ 937.10$ 983.90$ 1,033.14$ 1,084.79$ 1,139.00$
$ Increase/(Decrease) 11.16 11.70 12.31 12.91 13.55
5.0% 5.0% 5.0% 5.0% 5.0%
Commercial Property
Water (50,000 gallons/quarter) 156.33$ 164.15$ 172.35$ 180.97$ 190.02$ 199.52$
Sewer (50,000 gallons/quarter) 256.78 269.62 283.10 297.25 312.12 327.72
Storm Water (Classified 6 w/1 acre) 122.63 128.76 135.20 141.96 149.05 156.51
Total Quarterly Utility Bill 535.74$ 562.53$ 590.65$ 620.18$ 651.19$ 683.75$
Total Annual Utility Bills 2,142.95$ 2,250.12$ 2,362.59$ 2,480.71$ 2,604.78$ 2,734.99$
$ Increase/(Decrease) 26.79 28.12 29.53 31.02 32.55
% Increase/(Decrease) 5.0% 5.0% 5.0% 5.0% 5.0%
Proposed Quarterly Bills
Utility Rates
Utility Rate Study December 2019
Chanhassen, Minnesota Page 10
Development Fees
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 80 new
residential units to be constructed for 2020 and 130 new units from 2021 through 2024
and 120 units per year thereafter as discussed with City staff. In addition to the residential
growth, 25 SAC units per year are assumed to come from commercial development and
new irrigation meters.
This rate study’s recommendation for a 3.5% annual water hook-up fee increase and no
increase to sewer hook-up fees is consistent with last year’s rate study and balances the
need to keep developer fees competitive while also covering growth related infrastructure
costs. The proposed water and sewer developer fees for a single-family home are listed in
the chart below.
The city also charges developers a Storm Water Area Charge when land is platted to pay
for off-site storm water improvements. Most developments receive a credit for a portion of
this charge for completing certain on-site improvements that reduce water run-off and
improve water quality. Staff estimates the average credit is about 50%. The fees, before the
credit, are listed in the chart below and are proposed to increase 2% annually, consistent
with last year’s rate study.
Charge Per Acre
2019
(Before Credits)
Proposed 2020
(Before Credits)
Single Family $ 8,323 $ 8,490
Townhouse $14,953 $15,252
Apartment Complex/
High Density
$14,953 $15,252
Commercial $31,528 $32,159
Industrial $21,583 $22,015
Single-Family
Home
Development
Fees 2019 2020 2021 2022 2023 2024
City WAC Fees 5,393 5,582 5,777 5,979 6,189 6,405
City SAC Fees 1,611 1,611 1,611 1,611 1,611 1,611
City Surcharge 75 75 75 75 75 75
TOTAL $7,079 $7,268 $7,463 $7,665 $7,875 $8,091
Utility Rate Study December 2019
Chanhassen, Minnesota Page 11
The City requested Ehlers to provide a comparison of hook-up fees and area charges for
three sample developments:
1.A single-family home;
2.A 100-unit multifamily development on 4 net developable acres; and
3.A 130,000 square foot industrial development with 34 SAC units on 8 net
developable acres.
The comparison was made with both neighboring communities and the City’s identified KFS
cities. Please see Appendix C for the sample comparisons.
Summary
We recommend keeping the City’s existing rate structure and implementing the following
percentage rate increases for 2020:
Utility Fee Percent Increase
Water Usage Rates 5%
Sewer Usage Rates 5%
Stormwater Utility Fee 5%
Water Hook-up Fee 3.5%
Sewer Hook-up Fee 0%
Storm Water Area Charge 2%
These rate increases accommodate the City’s increased commitment to funding street
reconstruction projects and maintain adequate cash reserves.
Utility Rate Study
Chanhassen, Minnesota
December 2019
Appendix A – Capital Improvement Plans
Water Fund Capital Improvement Plan
Sanitary Sewer Fund Capital Improvement Plan
Storm Water Fund Capital Improvement Plan
City of Chanhassen, MNUtility Rate StudyWater SystemCapital Improvement Program2019 20202021202220232024202520262027 2028 2029OPERATING PROJECTSSoftware Purchases(EQ-048)11,950 12,550 13,170 14,290 15,000Generator(EQ-059)52,350Light Duty Trucks: Utilities (EQ-062)15,000 21,50044,000 70,00025,00025,000Annual Skid Loader Trade-In (EQ-124)9,5003,000 3,000 3,000 3,000 3,000Bobcat Trailer Replacement(EQ-160)3,600Mailing Folder/Inserter(EQ-161)5,000Generator Truck(EQ-168)95,000Watermain Replacement (W-024)600,000100,000 800,000 100,000 800,000 100,000Well Rehabilitation Program (W-032)50,000 51,000 56,000 96,000 61,000 43,000 50,000 90,000 50,000 90,000 50,000Well #4 Re-roofing Project(W-064)19,500Repaint Watertower Place Tank (W-061)2,000,000Finance/UB/Permiting/Planning Software(EQ-174)Lake Susan Park Water Re-Use Project(SWMP-052)Chanhassen H.S. water reuse project(SWMP-054)Downtown water reuse project(SWMP-057)Annual Street Improvement Program(ST-012)679,6001,550,000 1,605,000 700,000 700,000 700,000 700,000 700,000 700,000 700,000 700,000Galpin Blvd Improvements - Hwy 5 N to City Limits(ST-040)500,000Future Capital - Operating200,000 200,000 200,000 200,000 200,000Powers Bld Watermain Loop(W-063)510,000Subtotal - Operating (2019 Dollars)3,354,100 2,168,950 1,673,550 1,312,770 914,290 880,350 1,053,000 1,818,000 1,053,000 1,818,000 1,053,000Inflated Project Costs - Operating3,354,100 2,255,708 1,740,492 1,419,892 1,028,452 1,029,8851,281,1362,300,350 1,385,6762,488,059 1,498,747CONNECTION PROJECTSWell #16 (W-059) (W-059)1,400,000Well #17 1,200,000Well #18Lower Bluff Creek Trunk Utility Improvements (SS-024)1,100,000TH101 Imp-Pioneer Tr to Flying Cloud Dr (CSAH 61) (ST-032) 500,000 500,000Low Zone 1M Gal. Elevated Storage Tank (W-046)2,600,000MUSA Trunk Watermain Oversizing (W-056) 150,000West Water Treatment Plant (W-037)Future Capital - Connection00000Subtotal - Connection (2019 Dollars)150,000 500,000 500,00000 4,000,0000 1,100,00000 1,200,000Inflated Project Costs - Connection150,000 520,000 520,00000 4,679,4340 1,391,85100 1,707,974Total CIP (2020 Dollars)3,504,100 2,668,950 2,173,550 1,312,770 914,290 4,880,350 1,053,000 2,918,000 1,053,000 1,818,000 2,253,000Percent Inflation4%4%4%4%4%4%4%4% 4%4%Total Inflated Project Costs3,504,100 2,775,708 2,260,492 1,419,892 1,028,452 5,709,319 1,281,1363,692,201 1,385,6762,488,059 3,206,722
City of Chanhassen, MNUtility Rate StudySanitary Sewer SystemCapital Improvement Program 2019 2020 2021 2022 2023 20242025 2026 2027 2028 2029OPERATING PROJECTSDump/Plow Truck Replacements/Additions(EQ-016)Light Duty Trucks: Utilities (EQ-062)15,000 21,50044,000 70,00025,00025,000Annual Skid Loader Trade-In (EQ-124)9,5003,000 3,000 3,000 3,000Utility Dept - Generator Trailer (EQ-133)Bobcat Trailer Replacement(EQ-160)3,600Mailing Folder/Inserter(EQ-161)5,000Finance/UB/Permitting/Planning Software Upgrade(EQ-174)Sanitary Sewer Replacement (SS-014) 160,000Sanitary Lift Station Rehabilitation Program (SS-017) 135,000 130,000 120,000 130,000 85,000 90,000 90,000 90,000 90,000 90,000 90,000Annual Street Improvement Program(ST-012)192,500 517,500 325,000 325,000 325,000 325,000 325,000 325,000 325,000 325,000Vactor Sewer/Jetting Truck (EQ-110)Galpin Blvd Improvements - Hwy 5 N to City Limits(ST-040)250,000Software Purchases(EQ-048)11,950 12,550 13,170 14,290 15,000Generator(EQ-059)52,350Generator Truck(EQ-16895,000Future Capital - Operating10,000 10,000 10,000 10,000 10,000Subtotal - Operating (2020 Dollars)319,500 360,950 650,050 721,770 563,290 552,350 425,000 453,000 428,000 453,000 428,000Inflated Project Costs - Operating319,500 375,388 676,052 780,666633,625646,171 517,077 573,190 563,219 619,962 609,177CONNECTION PROJECTSInflow and Infiltration Abatement (SS-012) 200,000 200,000 200,000 200,000 200,000 200,000 200,000 200,000 200,000 200,000 200,0002010 MUSA Sanitary Lift Station (SS-020)950,000Lower Bluff Creek Trunk Utility Improvements (SS-024)1,800,000MUSA Trunk Sanitary Sewer Oversizing (SS-025)Reconstruct-Cty Rd 61 from TH101 to Charlson Rd (ST-033)TH101 Imp-Pioneer Tr to Flying Cloud Dr (CSAH 61) (ST-032) 500,000 500,000Sub-District LB-1 Trunk Lift StationFuture Capital - ConnectionSubtotal - Connection (2020 Dollars) 200,000 700,000 700,000 200,000 200,000 200,000 1,150,000 2,000,000 200,000 200,000 200,000Inflated Project Costs - Connection 200,000 728,000 728,000 216,320 224,973 233,972 1,399,151 2,530,638263,186273,714284,662Total CIP (2020 Dollars) 519,500 1,060,950 1,350,050 921,770 763,290 752,350 1,575,000 2,453,000 628,000 653,000 628,000Percent Inflation4% 4% 4% 4% 4% 4% 4% 4% 4% 4%Total Inflated Project Costs 519,500 1,103,3881,404,052 996,986858,597 880,143 1,916,2283,103,828826,405893,676893,840
City of Chanhassen, MN Utility Rate StudyStorm Water System Capital Improvement Program PROJECTS2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029Street Sweeper (EQ-118)261,000Mailing Folder/Inserter(EQ-161)5,000Property Acquisition(SWMP-014) 75,000 75,00075,00075,00075,000St Improvement Projects - Storm Water Mgmt.(SWMP-019)Lower Bluff Creek TMDL Implementation (SWMP-024) 75,000 50,000Storm Water Pond Improvements (SWMP-032) 80,000 300,000 300,000 300,000 300,000 300,000 300,000 300,000 300,000 300,000 300,000LID Implementation Project (SWMP-035)Storm Water Infrastructure Maint./Replacement (SWMP-045) 50,000 50,000 50,000 50,000 75,000 100,000 100,000 100,000 100,000 100,000 100,000Lotus Lake Channels & Outfall Improvements(SWMP-046)50,000100,000Upper Riley Creek Channel Stabilization (SWMP-048)10,000 15,000Lake Susan Park water re-use project(SWMP-052)Rice Marsh Lake iron enhanced san filter(SWMP-053)50,000Chanhassen H.S. water re-use project(SWMP-054)Lake Lucy Lan Culvert Replacement(SWMP-055)Pioneer Trail Flood Mitigation(SWMP-056) 75,000Downtown Water Reuse Project(SWMP-057)Lake Virginia TMDL Load Reduction(SWMP-058) 10,000Software Purchases(EQ-048)11,950 12,550 13,170 14,290 15,000Finance/UB/Permiting/Planning Software Upgrade(EQ-174)Annual Street Improvement Program(ST-012)389,948 185,500 785,500 600,000 600,000 600,000 600,000 600,000 600,000 600,000 600,000Future Projects30,000 30,000 30,000 30,000 30,000Total CIP (2020 Dollars)1,015,948 677,450 1,208,050 1,028,170 1,064,290 1,115,000 1,030,000 1,105,000 1,030,000 1,105,000 1,030,000Percent Inflation4% 4% 4% 4% 4% 4% 4% 4% 4% 4%Inflated Project Costs1,015,948 704,548 1,256,372 1,112,069 1,197,182 1,304,392 1,253,152 1,398,178 1,355,410 1,512,269 1,466,011
Utility Rate Study
Chanhassen, Minnesota
December 2019
Appendix B – Projections
Water Fund Projections
Sanitary Sewer Fund Projections
Storm Water Fund Projections
1 Rates Inflation 2 Revenue growth assumption - non-usage3 Investment income yield4 Expense growth - general and admin 5 Expense growth - contractual6 Expense growth - non personnel7 Connection fee increase8 MCES rate increase910 Beginning net assets1112 Operating Revenues13 Water Sales14 Sewer Charges15 Storm Sewer Charges16 Penalties and other17 Total Operating Revenues1819 Operating Expenses20 Personal services21 Materials and supplies22 MCES23 Other contractual services24 Repairs and maintenance25 Depreciation26 Total Operating Expenses2728 Net Operations29 Non operating revenues (expenses)30 Investment income31 Connection charges32 Intergovernmental33 Refunds and reimbursements34 Interest and fiscal charges35 Gain (loss) on disposal of Capital assets36 Transfers in37 Transfers out38 Contributions of Capital assets39 Prior period adjustment40 Special assessments41 Total non operating revenue (expenses)4243 Net increase (decrease) in resources4445Ending net assetsWater FundBudget2017 2018 2019 2020 202120222023 2024 2025 2026 2027 2028 20295.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00%2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00%1.25% 1.25% 1.25% 1.25% 1.25% 1.25% 1.25% 1.25% 2.00% 2.00%3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00%3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00%2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00%3.50% 3.50% 3.50% 3.50% 3.50% 3.50% 3.50% 3.50% 3.50% 3.50%33,503,241 33,528,323 34,742,933 33,032,450 32,408,251 32,472,619 32,744,340 33,238,832 33,964,156 34,837,884 35,948,647 37,304,212 38,914,8602,824,929 2,994,530 3,145,034 3,308,359 3,477,701 3,658,282 3,852,336 4,056,920 4,270,942 4,497,457 4,735,946 4,987,041 5,251,4050 00 0 0 0 00000000 00 0 0 0 000000091,710 114,276 94,000 95,880 97,798 99,754 101,749 103,784 105,860 107,977 110,137 112,340 114,5872,916,639 3,108,806 3,239,034 3,404,239 3,575,499 3,758,036 3,954,085 4,160,704 4,376,802 4,605,434 4,846,083 5,099,381 5,365,992778,844 812,519 832,300 857,269 882,987 909,477 936,761 964,864 993,8101,023,624 1,054,333 1,085,963 1,118,542298,098 385,900 416,800 425,136 433,639 442,311 451,158 460,181 469,384 478,772 488,348 498,115 508,0770 00 0 0 0 0000000442,319 695,072 518,900 534,467 550,501 567,016 584,027 601,547 619,594 638,182 657,327 677,047 697,358374,056 263,528 315,500 324,965 334,714 344,755 355,098 365,751 376,723 388,025 399,666 411,656 424,0061,669,757 1,607,497 1,669,757 1,989,757 1,989,757 1,989,757 1,989,757 1,989,757 1,989,757 1,989,757 1,989,757 1,989,757 1,989,7573,563,074 3,764,516 3,753,257 4,131,594 4,191,598 4,253,317 4,316,800 4,382,100 4,449,268 4,518,360 4,589,430 4,662,537 4,737,739(646,435) (655,710) (514,223) (727,355) (616,099) (495,280) (362,716) (221,396) (72,466)87,074 256,653 436,844 628,252120,248 159,813 119,674 78,335 69,659 63,930 64,729 65,268 68,244 70,234 72,673 118,663 121,056688,257 2,387,509 1,028,753 703,278 1,239,564 1,282,948 1,327,852 1,374,326 1,333,408 1,380,077 1,428,380 1,428,380 1,478,3738,77800 8,778 9,2179,678 10,162 10,670 11,203 11,763 12,352 12,969 13,6185,297 12,486 5,225 5,486 5,7616,0496,351 6,669 7,002 7,352 7,720 8,106 8,511(303,736) (752,091) (778,585) (692,722) (643,734) (595,604) (551,886) (510,213) (473,663) (445,738) (422,213) (394,313) (365,513)0(45,983)0 0 0 0 000000021,0637,2230 0 0 0 0000000(580,671) (221,003)0 0 0 0 0000000709,699 310,7430000000000000 0 0 0 00000002,58211,6230 0 0 0 0000000671,517 1,870,320 375,067 103,156 680,467 767,001 857,208 946,720 946,194 1,023,689 1,098,911 1,173,805 1,256,04525,082 1,214,610(139,156) (624,199)64,368 271,721 494,492 725,324 873,728 1,110,763 1,355,564 1,610,648 1,884,29733,528,323 34,742,933 34,603,777 32,408,251 32,472,619 32,744,340 33,238,832 33,964,156 34,837,884 35,948,647 37,304,212 38,914,860 40,799,157ProjectedActual
1 Rates Inflation 2 Revenue growth assumption - non-usage3 Investment income yield4 Expense growth - general and admin 5 Expense growth - contractual6 Expense growth - non personnel7 Connection fee increase8 MCES rate increase946 CIP Funding47 Purchase of Capital Assets48 Proceeds from internal borrowing49 Bond Proceeds - Operating Projects50 Bond Proceeds - Connection Projects51 Bond P&I - Future 52 Bond P&I - Future 53 Bond P&I - Future 54 Bond P&I - Future 55 Bond P&I - Future 56 Bond P&I - Future 57 Bond P&I - Future 58 Bond P&I - Future 59 Bond P&I - Future 60 Bond Prin - Existing6162Beginning Cash63 Add net operations (line 29)64 Add back depreciation (line 26)65 Add net non operating (line 42)66 Add capital and bond (lines 47-60)67 Net change in balance sheet items68 Other investments69Ending Cash70 Other investments71Ending net assets7273 Target Operating Reserve 74 10% of Accumulated Depreciation75 Target minimum working capital 76 Actual working capital-cash balance77 Over (Under) target working capitalWater FundBudget2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 20295.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00%2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00%1.25% 1.25% 1.25% 1.25% 1.25% 1.25% 1.25% 1.25% 1.25% 2.00% 2.00%3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00%3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00%2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00%3.50% 3.50% 3.50% 3.50% 3.50% 3.50% 3.50% 3.50% 3.50% 3.50% 3.50%ProjectedActual(8,663,639) (7,448,138) (3,504,100) (2,775,708) (2,260,492) (1,419,892) (1,028,452) (5,709,319) (1,281,136) (3,692,201) (1,385,676) (2,488,059) (3,206,722)0 00 0 0 0 00000005,231,246 1,867,0790 2,200,000 1,600,000 1,400,000 700,000 700,000 1,200,000 2,000,000 1,000,000 2,000,000 1,000,0005,231,246 1,867,080500,000 500,00000 4,500,0000 1,000,00001,700,000(306,112) (306,112) (306,112) (306,112) (306,112) (306,112) (306,112) (306,112) (306,112)(241,185) (241,185) (241,185) (241,185) (241,185) (241,185) (241,185) (241,185)(162,869) (162,869) (162,869) (162,869) (162,869) (162,869) (162,869)(82,481) (82,481) (82,481) (82,481) (82,481) (82,481)(620,537) (620,537) (620,537) (620,537) (620,537)(145,018) (145,018) (145,018) (145,018)(367,116) (367,116) (367,116)(122,372) (122,372)(244,744)(895,000) (1,312,500) (1,959,632) (1,983,935) (2,045,846) (1,630,367) (1,402,502) (1,175,000) (1,210,000) (655,000) (915,000) (945,000) (975,000)10,804,267 12,278,374 9,573,902 6,266,795 5,572,710 5,114,385 5,178,306 5,221,436 5,459,551 5,618,717 5,813,834 5,933,162 6,052,819(646,435) (655,710) (514,223) (727,355) (616,099) (495,280) (362,716) (221,396) (72,466)87,074 256,653 436,844 628,2521,669,757 1,607,497 1,669,757 1,989,757 1,989,757 1,989,757 1,989,757 1,989,757 1,989,757 1,989,757 1,989,757 1,989,757 1,989,757671,517 1,870,320 375,067 103,156 680,467 767,001 857,208 946,720 946,194 1,023,689 1,098,911 1,173,805 1,256,045903,853(5,026,479) (5,463,732) (2,059,643) (2,512,450) (2,197,556) (2,441,120) (2,476,966) (2,704,319) (2,905,402) (3,225,994) (3,480,748) (3,774,155)(1,124,585) (500,100)0 0 0 0 00000000 00 0 0 0 000000012,278,374 9,573,902 5,640,771 5,572,710 5,114,385 5,178,306 5,221,436 5,459,551 5,618,717 5,813,834 5,933,162 6,052,819 6,152,71833,528,323 34,742,933 34,603,777 32,408,251 32,472,619 32,744,340 33,238,832 33,964,156 34,837,884 35,948,647 37,304,212 38,914,860 40,799,157946,659 1,078,510 1,041,750 1,070,919 1,100,920 1,131,780 1,163,522 1,196,171 1,229,756 1,264,301 1,299,837 1,336,390 1,373,9912,422,935 2,569,229 2,736,205 2,923,720 3,122,695 3,321,671 3,520,647 3,719,623 3,918,598 4,117,574 4,316,550 4,515,525 4,714,5013,369,594 3,647,739 3,777,955 3,994,638 4,223,616 4,453,451 4,684,168 4,915,794 5,148,354 5,381,875 5,616,386 5,851,915 6,088,49212,278,374 9,573,902 5,640,771 5,572,710 5,114,385 5,178,306 5,221,436 5,459,551 5,618,717 5,813,834 5,933,162 6,052,819 6,152,7188,908,780 5,926,163 1,862,816 1,578,072 890,769 724,855 537,267 543,757 470,363 431,959 316,776 200,904 64,226
1 Rates Inflation 2 Revenue growth assumption - non-usage3 Investment income yield4 Expense growth - general and admin 5 Expense growth - contractual6 Expense growth - non personnel7 Connection fee increase8 MCES rate increase910 Beginning net assets1112 Operating Revenues13 Water Sales14 Sewer Charges15 Storm Sewer Charges16 Penalties and other17 Total Operating Revenues1819 Operating Expenses20 Personal services21 Materials and supplies22 MCES23 Other contractual services24 Repairs and maintenance25 Depreciation26 Total Operating Expenses2728 Net Operations29 Non operating revenues (expenses)30 Investment income31 Connection charges32 Intergovernmental33 Refunds and reimbursements34 Interest and fiscal charges35 Gain (loss) on disposal of Capital assets36 Transfers in37 Transfers out38 Contributions of Capital assets39 Prior period adjustment40 Special assessments41 Total non operating revenue (expenses)4243 Net increase (decrease) in resources4445Ending net assetsSanitary Sewer FundBudget2017 2018 2019 2020 2021 20222023 2024 2025 2026 2027 2028 20294.00%5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00%2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00%1.25%1.25% 1.25% 1.25% 1.25% 1.25% 1.25% 1.25% 1.25% 1.25% 1.25%4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00%3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00%2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00%0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00%18,483,441 17,980,652 18,008,680 17,789,384 17,403,301 17,181,070 16,985,105 16,836,232 16,736,587 16,673,656 16,679,628 16,822,590 17,034,36400000 0 00000002,699,906 2,950,883 3,110,379 3,270,661 3,434,194 3,605,904 3,805,207 4,011,834 4,234,277 4,468,721 4,716,025 4,977,864 5,251,99400000 0 000000064,576 82,639 67,000 68,340 69,707 71,101 72,523 73,973 75,452 76,961 78,500 80,070 81,6712,764,482 3,033,522 3,177,379 3,339,001 3,503,901 3,677,005 3,877,730 4,085,807 4,309,729 4,545,682 4,794,525 5,057,934 5,333,665467,003 492,693 575,200 598,208 622,136 647,022 672,903 699,819 727,811 756,924 787,201 818,689 851,43739,730 36,976 40,300 41,106 41,928 42,767 43,622 44,494 45,384 46,292 47,218 48,162 49,1251,564,754 1,830,942 1,889,083 2,071,854 2,175,447 2,284,219 2,398,430 2,518,351 2,644,269 2,776,483 2,915,307 3,061,072 3,214,126516,408 604,538 158,400 163,152 168,047 173,088 178,281 183,629 189,138 194,812 200,656 206,676 212,876137,187 123,268 134,500 138,535 142,691 146,972 151,381 155,922 160,600 165,418 170,381 175,492 180,7571,016,753 978,700 978,700 978,700 978,700 978,700 978,700 978,700 978,700 978,700 978,700 978,700 978,7003,741,835 4,067,117 3,776,183 3,991,555 4,128,949 4,272,767 4,423,316 4,580,916 4,745,903 4,918,629 5,099,462 5,288,791 5,487,021(977,353) (1,033,595) (598,803) (652,554) (625,048) (595,763) (545,586) (495,109) (436,174) (372,946) (304,938) (230,857) (153,355)39,219 83,552 71,087 73,305 66,139 62,232 58,159 56,374 55,779 61,442 64,576 61,414 58,270301,986 742,756 312,253 196,124 338,844 338,844 338,844 338,844 317,206 317,206 317,206 317,206 317,20600000 0 0000000192 6850 202 212223234 246 258 271 284 298 313(5,045) (4,435) (3,833) (3,161) (2,379) (1,501)(523)0000000(45,968)000 0 0000000037,000000 0 0000000(223,074) (21,742)000 0 0000000361,286 269,507000 0 000000000000 0 00000000268000 0 000065,83363,71373,386474,564 1,061,623 379,508 266,470 402,817 399,797 396,714 395,464 373,243 378,918 447,900 442,631 449,175(502,789)28,028(219,296) (386,084) (222,231) (195,965) (148,872) (99,645) (62,931)5,972 142,962 211,774 295,82017,980,652 18,008,680 17,789,384 17,403,301 17,181,070 16,985,105 16,836,232 16,736,587 16,673,656 16,679,628 16,822,590 17,034,364 17,330,184ActualProjected
1 Rates Inflation 2 Revenue growth assumption - non-usage3 Investment income yield4 Expense growth - general and admin 5 Expense growth - contractual6 Expense growth - non personnel7 Connection fee increase8 MCES rate increase946 CIP Funding47 Purchase of Capital Assets48 Proceeds from internal borrowing49 Bond Proceeds - Operating Projects50 Bond Proceeds - Connection Projects51 Bond P&I - Future 52 Bond P&I - Future 53 Bond P&I - Future 54 Bond P&I - Future 55 Bond P&I - Future 56 Bond P&I - Future 57 Bond P&I - Future 58 Bond P&I - Future 59 Bond P&I - Future 60 Bond Prin - Existing6162Beginning Cash63 Add net operations (line 29)64 Add back depreciation (line 26)65 Add net non operating (line 42)66 Add capital and bond (lines 47-60)67 Net change in balance sheet items68 Other investments69Ending Cash70 Other investments71Ending net assets7273 Target Operating Reserve 74 10% of Accumulated Depreciation75 Target minimum working capital 76 Actual working capital-cash balance77 Over (Under) target working capitalSanitary Sewer FundBudget2017 2018 2019 2020 2021 20222023 2024 2025 2026 2027 2028 20294.00%5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00%2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00%1.25%1.25% 1.25% 1.25% 1.25% 1.25% 1.25% 1.25% 1.25% 1.25% 1.25%4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00%3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00%2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00%0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00%ActualProjected(24,082)112,682(519,500) (1,103,388) (1,404,052) (996,986) (858,597) (880,143) (1,916,228) (3,103,828) (826,405) (893,676) (893,840)00000 0 00000000000 400,000000 300,000 400,00000000000 0 001,200,0002,200,00000000 0 00000000 0 0000000(46,534) (46,534) (46,534) (46,534) (46,534) (46,534) (46,534) (46,534)000000000000000000(183,558) (183,558) (183,558) (183,558)(318,167) (318,167) (318,167)(60,000) (62,500) (62,500) (62,500) (65,000) (65,000) (67,500)0000005,031,128 4,971,583 5,686,989 5,864,393 5,291,122 4,978,539 4,652,753 4,509,950 4,462,327 4,915,334 5,166,086 4,913,084 4,661,623(977,353) (1,033,595) (598,803) (652,554) (625,048) (595,763) (545,586) (495,109) (436,174) (372,946) (304,938) (230,857) (153,355)1,016,753 978,700 978,700 978,700 978,700 978,700 978,700 978,700 978,700 978,700 978,700 978,700 978,700474,564 1,061,623 379,508 266,470 402,817 399,797 396,714 395,464 373,243 378,918 447,900 442,631 449,175(84,082)50,182(582,000) (1,165,888) (1,069,052) (1,108,520) (972,631) (926,677) (462,762) (733,920) (1,374,664) (1,441,935) (1,442,099)(489,427) (341,504)000 0 000000000000 0 00000004,971,583 5,686,989 5,864,393 5,291,122 4,978,539 4,652,753 4,509,950 4,462,327 4,915,334 5,166,086 4,913,084 4,661,623 4,494,04417,980,652 18,008,680 17,789,384 17,403,301 17,181,070 16,985,105 16,836,232 16,736,587 16,673,656 16,679,628 16,822,590 17,034,364 17,330,1842,043,812 2,316,313 2,098,112 2,259,641 2,362,687 2,470,550 2,583,462 2,701,662 2,825,402 2,954,946 3,090,572 3,232,568 3,381,2402,026,549 2,114,834 2,212,704 2,310,574 2,408,444 2,506,314 2,604,184 2,702,054 2,799,924 2,897,794 2,995,664 3,093,534 3,191,4044,000,000 4,000,000 4,000,000 4,000,000 4,080,000 4,161,600 4,244,832 4,329,729 4,416,323 4,504,650 4,594,743 4,686,638 4,780,3704,971,583 5,686,989 5,864,393 5,291,122 4,978,539 4,652,753 4,509,950 4,462,327 4,915,334 5,166,086 4,913,084 4,661,623 4,494,044971,583 1,686,989 1,864,393 1,291,122 898,539 491,153 265,118 132,599 499,010 661,436 318,341(25,014) (286,326)
1 Rates Inflation 2 Revenue growth assumption - non-usage3 Investment income yield4 Expense growth - general and admin 5 Expense growth - contractual6 Expense growth - non personnel7 Connection fee increase8 MCES rate increase910 Beginning net assets1112 Operating Revenues13 Water Sales14 Sewer Charges15 Storm Sewer Charges16 Penalties and other17 Total Operating Revenues1819 Operating Expenses20 Personal services21 Materials and supplies22 MCES23 Other contractual services24 Repairs and maintenance25 Depreciation26 Total Operating Expenses2728 Net Operations29 Non operating revenues (expenses)30 Investment income31 Connection charges32 Intergovernmental33 Refunds and reimbursements34 Interest and fiscal charges35 Gain (loss) on disposal of Capital assets36 Transfers in37 Transfers out38 Contributions of Capital assets39 Prior period adjustment40 Special assessments41 Total non operating revenue (expenses)4243 Net increase (decrease) in resources4445Ending net assetsStorm Water FundBudget2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 202932.50%5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00%2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00%1.25%1.25% 1.25% 1.25% 1.25% 1.25% 1.25% 1.25% 1.25% 1.25% 1.25%3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00%3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00%2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00%2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00%16,008,609 15,829,446 15,786,052 15,774,457 15,530,684 15,353,261 15,214,555 15,102,795 15,041,514 15,021,317 15,072,165 15,237,615 15,457,344693,552 748,618 991,919 1,041,515 1,093,591 1,148,270 1,205,684 1,265,968 1,329,266 1,395,729 1,465,516 1,538,792 1,615,73115,906 16,151 16,621 16,953 17,292 17,638 17,991 18,351 18,718 19,092 19,474 19,863 20,260709,458 764,7691,008,540 1,058,468 1,110,883 1,165,908 1,223,675 1,284,319 1,347,984 1,414,821 1,484,990 1,558,655 1,635,991272,452 335,178 343,200 353,496 364,101 375,024 386,275 397,863 409,799 422,093 434,755 447,798 461,23218,586 39,435 62,300 63,546 64,817 66,113 67,436 68,784 70,160 71,563 72,994 74,454 75,9430000 0 0 0000000344,814 334,461 246,700 254,101 261,724 269,576 277,663 285,993 294,573 303,410 312,512 321,888 331,5442,407 614 600 618637656675 696 716 738 760 783 806900,209 873,535 873,535 873,535 873,535 873,535 873,535 873,535 873,535 873,535 873,535 873,535 873,5351,538,468 1,583,2231,526,335 1,545,296 1,564,813 1,584,904 1,605,583 1,626,871 1,648,783 1,671,339 1,694,557 1,718,458 1,743,061(829,010) (818,454)(517,795) (486,828) (453,931) (418,995) (381,909) (342,552) (300,799) (256,517) (209,567) (159,803) (107,070)11,577 20,437 14,106 12,181 14,996 16,318 16,422 18,197 18,159 19,406 18,443 20,023 20,041104,265 172,844 454,094 192,875 223,511 225,972 215,727 225,073 224,442 249,960 252,741 257,795 268,21036,331 44,604 38,000 38,000 38,000 38,000 38,000 38,000 38,000 38,000 38,000 38,000 38,0005016100 0 0 00000000000 0 0 00000000(51,252)00 0 0 0000000079,91200 0 0 0000000(392,953) (236,238)00 0 0 0000000890,577 744,59200 0 0 00000000000 0 0 00000000000000000 65,833 63,713 73,386649,847 775,060 506,200 243,056 276,507 280,290 270,149 281,271 280,601 307,366 375,018 379,532 399,638(179,163) (43,394) (11,595) (243,772) (177,424) (138,706) (111,760) (61,281) (20,197)50,848 165,450 219,729 292,56815,829,446 15,786,052 15,774,457 15,530,684 15,353,261 15,214,555 15,102,795 15,041,514 15,021,317 15,072,165 15,237,615 15,457,344 15,749,912ActualProjected
1 Rates Inflation 2 Revenue growth assumption - non-usage3 Investment income yield4 Expense growth - general and admin 5 Expense growth - contractual6 Expense growth - non personnel7 Connection fee increase8 MCES rate increase946 CIP Funding47 Purchase of Capital Assets48 Proceeds from internal borrowing49 Bond Proceeds - Operating Projects50 Bond Proceeds - Connection Projects51 Bond P&I - Future 52 Bond P&I - Future 53 Bond P&I - Future 54 Bond P&I - Future 55 Bond P&I - Future 56 Bond P&I - Future 57 Bond P&I - Future 58 Bond P&I - Future 59 Bond P&I - Future 60 Bond Prin - Existing6162Beginning Cash63 Add net operations (line 29)64 Add back depreciation (line 26)65 Add net non operating (line 42)66 Add capital and bond (lines 47-60)67 Net change in balance sheet items68 Other investments69Ending Cash70 Other investments71Ending net assets7273 Target Operating Reserve 74 10% of Accumulated Depreciation75 Target minimum working capital 76 Actual working capital-cash balance77 Over (Under) target working capitalStorm Water FundBudget2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 202932.50%5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00%2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00%1.25%1.25% 1.25% 1.25% 1.25% 1.25% 1.25% 1.25% 1.25% 1.25% 1.25%3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00%3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00%2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00%2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00%ActualProjected(55,648) (222,064) (1,015,948) (704,548) (1,256,372) (1,112,069) (1,197,182) (1,304,392) (1,253,152) (1,398,178) (1,355,410) (1,512,269) (1,466,011)0000 0 0 0000000000 300,000 700,000 500,000 750,000 750,000 850,000 850,000 1,000,000 1,100,000 1,100,0000000 0 0 0000000(34,012) (34,012) (34,012) (34,012) (34,012) (34,012) (34,012) (34,012) (34,012)(80,395) (80,395) (80,395) (80,395) (80,395) (80,395) (80,395) (80,395)(58,167) (58,167) (58,167) (58,167) (58,167) (58,167) (58,167)(88,372) (88,372) (88,372) (88,372) (88,372) (88,372)(89,501) (89,501) (89,501) (89,501) (89,501)(102,721) (102,721) (102,721) (102,721)(104,016) (104,016) (104,016)(122,372) (122,372)(134,609)0000 0 0 00000001,380,288 1,259,125 1,128,485 974,477 1,199,691 1,305,418 1,313,771 1,455,790 1,452,705 1,552,442 1,475,480 1,601,870 1,603,309(829,010) (818,454) (517,795) (486,828) (453,931) (418,995) (381,909) (342,552) (300,799) (256,517) (209,567) (159,803) (107,070)900,209 873,535 873,535 873,535 873,535 873,535 873,535 873,535 873,535 873,535 873,535 873,535 873,535649,847 775,060 506,200 243,056 276,507 280,290 270,149 281,271 280,601 307,366 375,018 379,532 399,638(55,648) (222,064) (1,015,948) (404,548) (590,384) (726,476) (619,756) (815,339) (753,600) (1,001,346) (912,595) (1,091,826) (1,180,177)(786,561) (738,717)00 0 0 00000000000 0 0 00000001,259,125 1,128,485 974,477 1,199,691 1,305,418 1,313,771 1,455,790 1,452,705 1,552,442 1,475,480 1,601,870 1,603,309 1,589,23515,829,446 15,786,052 15,774,457 15,530,684 15,353,261 15,214,555 15,102,795 15,041,514 15,021,317 15,072,165 15,237,615 15,457,344 15,749,9121,040,000 1,081,600 1,124,864 1,169,859 1,216,653 1,265,319 1,315,932 1,368,569 1,423,312 1,480,244 1,539,454 1,601,032 1,665,0741,040,000 1,081,600 1,124,864 1,169,859 1,216,653 1,265,319 1,315,932 1,368,569 1,423,312 1,480,244 1,539,454 1,601,032 1,665,0741,259,125 1,128,485 974,477 1,199,691 1,305,418 1,313,771 1,455,790 1,452,705 1,552,442 1,475,480 1,601,870 1,603,309 1,589,235219,125 46,885(150,387)29,833 88,765 48,452 139,858 84,136 129,131(4,765)62,416 2,277(75,839)
Utility Rate Study
Chanhassen, Minnesota
December 2019
Appendix C – Development Fee Comparison
Water Trunk Fee*Water Hook-Up Fee**Total WaterSanitary Sewer Trunk Fee*Sanitary Sewer Hook-Up Fee**Total Sanitary SewerStorm WaterTotal Fees Per UnitCommentsChanhassen2,311$ 5,393$ $ 7,704 $ 691 $ 1,686 $ 2,377 $ 1,387 $ 11,468 Assumes property receives the 50% credit on stormwater fees for meeting NURP standards for on-site treatment.Chaska858$ 4,314$ $ 5,172 $ 1,151 $ 3,539 $ 4,690 $ 2,603 $ 12,465 Cottage Grove 1,134$ 1,160$ $ 2,294 $ 597 $ 360 $ 957 $ 2,401 $ 5,652 Charges vary by Area. Comparison assumes West Draw Area 1.Elk river368$ 3,396$ $ 3,764 $ 5,200 $ 5,200 $ - $ 8,964 Inver Grove Hts 2,363$ 3,560$ $ 5,923 $ 2,363 $ 490 $ 2,853 $ - $ 8,775 Assumes a 1" water meterInver Grove Hts Northwest Area833$ 5,000$ $ 5,833 $ 1,413 $ 5,830 $ 7,243 $ 4,623 $ 17,699 Assumes a 1" water meterLino Lakes3,680$ -$ $ 3,680 $ 3,044 $ - $ 3,044 $ 2,391 $ 9,115 Prior Lake2,702$ 2,690$ $ 5,392 $ 1,483 $ 1,078 $ 2,561 $ 1,362 $ 9,314 Assumes a 15 acre plat.Rosemount2,166$ 2,425$ $ 4,591 $ 358 $ 1,200 $ 1,558 $ 3,058 $ 9,208 Shakopee1,484$ 6,039$ $ 7,523 $ 994 $ - $ 994 $ 3,020 $ 11,536 Some areas require lateral sewer connection charges. Depending on the area this would range from $1,375 to $4,168 per single family unit. Additional stormwater cost of approx. $275 if property uses regional infiltration pond.Savage2,301$ 3,071$ $ 5,372 $ 2,102 $ 2,302 $ 4,404 $ 4,181 $ 13,957 Additional stormwater charge of $2,018 per unit if no on-site ponding.Average (excluding Inver Grove Heights NWA)1,937$ 3,205$ 5,141$ 1,278$ 1,586$ 2,864$ 2,040$ 10,045$ * For purposes of comparison, fees that other cities charge at time of plat are characterized as trunk fees.** For purposes of comparison, fees that other cities collect at time of building permit are characterized as hook-up fees.Comparison of 2019 Sewer and Water Development Fees for a Single Family Home - KFS CitiesJuly, 2019Assumes one single family home on one-third of an acre. Assumes .5 gross acres.Excludes lateral installation, permit fees and meter costs
$- $2,000 $4,000 $6,000 $8,000 $10,000 $12,000 $14,000 $16,000 $18,000 $20,000Chanhassen Chaska Cottage Grove Elk river Inver Grove Hts Inver Grove HtsNorthwest AreaLino Lakes Prior Lake Rosemount Shakopee SavageUtility Development Fees for Sample Single Family Home(Assumes lot size of 1/3 acre)Storm WaterTotal Sanitary SewerTotal Water
Water Trunk Fee*Water Hook-Up Fee**Total Water FeesSanitary Sewer Trunk Fee*Sanitary Sewer Hook-Up Fee**Total Sanitary Sewer FeesStorm WaterTotal Fees Per UnitCommentsChanhassen2,311$ 5,393$ $ 7,704 $ 691 $ 1,686 $ 2,377 $ 1,387 $ 11,468 Assumes property receives the 50% credit on stormwater fees for meeting NURP standards for on-site treatment.Chaska858$ 4,314$ $ 5,172 $ 1,151 $ 3,539 $ 4,690 $ 2,603 $ 12,465 Eden Prairie1,159$ 3,100$ $ 4,259 $ 1,738 $ 710 $ 2,448 $ - $ 6,707 Water Quality fee in lieu of land dedication applicable depending on whether storm water pond is on-siteExcelsior-$ 2,000$ $ 2,000 $- $ 1,000 $ 1,000 $ - $ 3,000 Minnetonka-$ 1,883$ $ 1,883 $ 1,060 $ 1,060 $ - $ 2,943 Shakopee1,484$ 6,039$ $ 7,523 $- $ 994 $ 994 $ 3,020 $ 11,536 Some areas require lateral sewer connection charges. Depending on the area this would range from $1,375 to $4,168 per single family unit. Additional stormwater cost of approx. $275 if property uses regional infiltration pond.Shorewood-$ 10,000$ $ 10,000 $- $ 1,200 $ 1,200 $ - $ 11,200 Developers are required to install water trunk lines as well as laterals.Victoria 1,690$ 2,250$ $ 3,940 $- $ 3,650 $ 3,650 $ 12,631 $ 20,221 Stormwater fee only applies to lots within downtown district. If units are not assessed for laterals there is a $6,600 per unit lateral benefit charge.Average 938$ 4,372$ 5,310$ 511$ 1,730$ 2,177$ 2,455$ 9,942$ * For purposes of comparison, fees that other cities charge at time of plat are characterized as trunk fees.** For purposes of comparison, fees that other cities collect at time of building permit are characterized as hook-up fees.Comparison of 2019 Sewer and Water Development Fees for a Single Family Home - Neighboring CitiesJuly, 2019Assumes one single family home on one-third of an acre. Assumes .5 gross acres.Excludes lateral installation, permit fees and meter costs
$- $5,000 $10,000 $15,000 $20,000 $25,000Chanhassen Chaska Eden Prairie Excelsior Minnetonka Shakopee Shorewood VictoriaUtility Development Fees for Sample Single Family Home(Assumes lot size of 1/3 acre)Storm WaterTotal Sanitary Sewer FeesTotal Water Fees
Water Trunk Fee*Water Hook-Up Fee**Total WaterSanitary Sewer Trunk FeeSanitary Sewer Hook-Up Fee**Total Sanitary SewerStorm Water Total FeesTotal Fees per UnitCommentsChanhassen231,100$ 539,300$ $ 770,400 $ 69,100 $ 168,600 $ 237,700 $ 29,900 $ 1,038,000 $ 10,380 Assumes property receives the 50% credit on stormwater fees for meeting NURP standards for on-site treatment.Chaska10,292$ 431,400$ $ 441,692 $ 14,180 $ 353,900 $ 368,080 $ 42,280 $ 852,052 $ 8,521 Cottage Grove13,612$ 116,000$ $ 129,612 $ 7,164 $ 36,000 $ 43,164 $ 43,216 $ 215,992 $ 2,160 Charges vary by Area. Comparison assumes West Draw Area 1.Elk River36,800$ 339,600$ $ 376,400 $- $ 520,000 $ 520,000 $- $ 896,400 $ 8,964 Inver Grove Hts 22,444$ 186,660$ $ 209,104 $ 22,444 $ 49,000 $ 71,444 $- $ 280,548 $ 2,805 Assumes a 3" water meter.Inver Grove Hts Northwest Area60,000$ 434,330$ 494,330$ $ 101,760 $ 583,000 $ 684,760 $ 55,480 $ 1,234,570 $ 12,346 Assumes a 3" water meter.Lino Lakes368,000$ -$ 368,000$ $ 304,400 $- $ 304,400 $ 38,584 $ 710,984 $ 7,110 Prior Lake39,024$ 269,000$ $ 308,024 $ 26,800 $ 87,800 $ 114,600 $ 26,940 $ 449,564 $ 4,496 Rosemount26,000$ 242,500$ $ 268,500 $ 4,300 $ 120,000 $ 124,300 $ 48,360 $ 441,160 $ 4,412 Shakopee17,804$ 603,900$ 621,704$ $ 11,932 $- $ 11,932 $ 48,264 $ 681,900 $ 6,819 Some areas require lateral sewer connection charges. Depending on the area this would range from $22,660 to $416,806 for the project. Additional stormwater cost of approx. $4,425 if property uses regional infiltration pond.Savage27,611$ 307,104$ $ 334,715 $ 25,996 $ 230,243 $ 256,239 $ 59,764 $ 650,718 $ 6,507 Additional stormwater charge of $41,470 if no on-site ponding.Average (excluding Inver Grove Heights NWA)79,269$ 303,546$ 382,815$ 48,632$ 156,554$ 205,186$ 33,731$ 621,732$ 6,217$ * For purposes of comparison, fees that other cities charge at time of plat are characterized as trunk fees.** For purposes of comparison, fees that other cities collect at time of building permit are characterized as hook-up fees.Comparison of 2019 Sewer and Water Development Fees for a 100 unit Multi-Family Housing Project - KFS CitiesJuly, 2019Assumes 25 multi-family units per net developable acre for a total site of 4.0 net developable acres. Assumes 4.75 gross acres.Excludes lateral installation, permit fees and meter costs
$- $200,000 $400,000 $600,000 $800,000 $1,000,000 $1,200,000 $1,400,000Chanhassen Chaska Cottage Grove Elk River Inver Grove Hts Inver Grove HtsNorthwest AreaLino Lakes Prior Lake Rosemount Shakopee SavageUtility Development Fees for Sample Multifamily Project(Assumes 100 units on 4 developable acres)Storm WaterTotal Sanitary SewerTotal Water
Water Trunk Fee*Water Hook-Up Fee**Total WaterSanitary Sewer Trunk Charge*Sanitary Sewer Hook-Up Fee**Total Sanitary SewerStorm Water Total FeesTotal Fees per UnitCommentsChanhassen231,100$ 539,300$ $ 770,400 $ 69,100 $ 168,600 $ 237,700 $ 29,900 $ 1,038,000 $ 10,380 Assumes property receives the 50% credit on stormwater fees for meeting NURP standards for on-site treatment.Chaska10,292$ 431,400$ $ 441,692 $ 14,180 $ 353,900 $ 368,080 $ 42,280 $ 852,052 $ 8,521 Eden Prairie13,906$ 310,000$ $ 323,906 $ 20,858 $ 71,000 $ 91,858 $- $ 415,764 $ 4,158 Excelsior-$ 200,000$ $ 200,000 $- $ 100,000 $ 100,000 $- $ 300,000 $ 3,000 Minnetonka-$ 188,300$ $ 188,300 $- $ 105,950 $ 105,950 $- $ 294,250 $ 2,943 Shakopee17,804$ 603,900$ $ 621,704 $ 11,932 $ 11,932 $ 48,264 $ 681,900 $ 6,819 Some areas require lateral sewer connection charges. Depending on the area this would range from $22,660 to $416,806 for the project. Additional stormwater cost of approx. $4,425 if property uses regional infiltration pond.Shorewood-$ 260,000$ $ 260,000 $- $ 96,000 $ 96,000 $- $ 356,000 $ 3,560 Developers are required to install water trunk lines as well as laterals.Victoria169,000$ 225,000$ $ 394,000 $- $ 365,000 $ 365,000 $ 151,589 $ 910,589 $ 9,106 Stormwater fee only applies to lots within downtown district. If units are not assessed for laterals there is a $6,600 per unit lateral benefit charge.Average55,263$ 344,738$ 400,000$ 14,509$ 180,064$ 172,065$ 34,004$ 606,069$ 6,061$ * For purposes of comparison, fees that other cities charge at time of plat are characterized as trunk fees.** For purposes of comparison, fees that other cities collect at time of building permit are characterized as hook-up fees.Comparison of 2019 Sewer and Water Development Fees for a 100 unit Multi-Family Housing Project - Neighboring CitiesJuly, 2019Assumes 25 multi-family units per net developable acre for a total site of 4.0 net developable acres. Assumes 4.75 gross acres.Excludes lateral installation, permit fees and meter costs
$- $200,000 $400,000 $600,000 $800,000 $1,000,000 $1,200,000ChanhassenChaskaEden PrairieExcelsiorMinnetonkaShakopeeShorewoodVictoriaUtility Development Fees for Sample Multifamily Project(Assumes 100 units on 4 developable acres)Storm WaterTotal Sanitary SewerTotal Water
Water Trunk Fee*Water Hook-Up Fee**Total WaterSanitary Sewer Trunk Fee*Sanitary Sewer Hook-Up Fee**Total Sanitary SewerStorm Water Total Fees Total Fees per Building Sq. Ft.CommentsChanhassen78,574$ 183,362$ $ 261,936 $ 23,494 $ 57,324 $ 80,818 $ 86,320 $ 429,074 $ 3.30 Assumes property receives the 50% credit on stormwater fees for meeting NURP standards for on-site treatment.Chaska20,584$ 146,676$ $ 167,260 $ 27,632 $ 120,326 $ 147,958 $ 99,312 $ 414,530 $ 3.19 Cottage Grove25,424$ 19,520$ $ 44,944 $ 16,168 $ 10,816 $ 26,984 $ 86,432 $ 158,360 $ 1.22 Elk River12,512$ 115,464$ $ 127,976 $- $ 176,800 $ 176,800 $- $ 304,776 $ 2.34 Inver Grove Hts 42,525$ 75,120$ $ 117,645 $ 42,525 $ 16,660 $ 59,185 $- $ 176,830 $ 1.36 Inver Grove Hts Northwest Area15,557$ 158,450$ 174,007$ $ 26,385 $ 198,810 $ 225,195 $ 120,560 $ 519,762 $ 4.00 Lino Lakes52,770$ 48,314$ 101,084$ $ 36,745 $ 50,014 $ 86,759 $ 85,480 $ 273,324 $ 2.10 Prior Lake69,048$ 91,460$ $ 160,508 $ 35,600 $ 38,852 $ 74,452 $ 67,696 $ 302,656 $ 2.33 Rossemount52,000$ 29,450$ $ 81,450 $ 8,600 $ 40,800 $ 49,400 $ 73,080 $ 203,930 $ 1.57 Shakopee35,608$ 205,326$ 240,934$ $ 23,856 $- $ 23,856 $ 128,938 $ 393,728 $ 3.03 Some areas require lateral sewer connection charges. Depending on the area this would range from $4,096 in VIPII to $150,048 to connect to the Whispering Oaks Sanitary Sewer Lateral. Additional stormwater cost of approx. $8,850 if property uses regional infiltration pond.Savage55,221$ 104,415$ $ 159,637 $ 51,992 $ 78,283 $ 130,275 $ 144,271 $ 434,183 $ 3.34 Assume >55% of site is impervious. Additional stormwater charge of $165,877 if no on-site ponding.Average (excluding Inver Grove Heights Northwest Area)44,427$ 101,911$ 146,337$ 26,661$ 58,987$ 85,649$ 77,153$ 309,139$ 2.38$ * For purposes of comparison, fees that other cities charge at time of plat are characterized as trunk fees.** For purposes of comparison, fees that other cities collect at time of building permit are characterized as hook-up fees.Comparison of 2019 Sewer and Water Development Fees for a Mixed Use Industrial Development - KFS CitiesJuly, 2019Assumes 34 SAC units, 130,000 square feet on 8 net developable acres (9 gross acres) with a 3" water meter. Excludes lateral installation, permit fees and meter costs
$- $100,000 $200,000 $300,000 $400,000 $500,000 $600,000Chanhassen Chaska Cottage Grove Elk River Inver Grove Hts Inver Grove HtsNorthwest AreaLino Lakes Prior Lake Rossemount Shakopee SavageUtility Development Fees for Sample Industrial Property(130,000 sq. ft. office warehouse with 34 SAC units)Storm WaterTotal Sanitary SewerTotal Water
Water Trunk Fee*Water Hook-Up Fee**Total WaterSanitary Sewer Trunk Fee*Sanitary Sewer Hook-Up Fee**Total Sanitary SewerStorm WaterTotal Fees Total Fees per Building Sq. Ft.CommentsChanhassen78,574$ 183,362$ $ 261,936 $ 23,494 $ 57,324 $ 80,818 $ 86,320 $ 429,074 $ 3.30 Assumes property receives the 50% credit on stormwater fees for meeting NURP standards for on-site treatment.Chaska20,584$ 146,676$ $ 167,260 $ 27,632 $ 120,326 $ 147,958 $ 99,312 $ 414,530 $ 3.19 Eden Prairie27,811$ 137,020$ $ 164,831 $ 41,717 $ 43,180 $ 84,897 $ - $ 249,728 $ 1.92 Excelsior-$ 68,000$ $ 68,000 $- $ 34,000 $ 34,000 $- $ 102,000 $ 0.78 Minnetonka-$ 64,022$ $ 64,022 $ - $ 36,023 $ 36,023 $- $ 100,045 $ 0.77 Rob at City checking on area chargesShakopee35,608$ 205,326$ $ 240,934 $ 23,856 $ - $ 23,856 $ 128,938 $ 393,728 $ 3.03 Some areas require lateral sewer connection charges. Depending on the area this would range from $4,096 in VIPII to $150,048 to connect to the Whispering Oaks Sanitary Sewer Lateral. Additional stormwater cost of approx. $8,850 if property uses regional infiltration pond.Shorewood-$ 340,000$ $ 340,000 $ - $ 23,522 $ 23,522 $ - $ 363,522 $ 2.80 Developers are required to install water trunk lines as well as laterals.Victoria13,520$ 76,500$ $ 90,020 $ 124,100 $ 124,100 $ 303,178 $ 517,298 $ 3.98 Stormwater fee only applies to lots within downtown district. If units are not assessed for laterals there is a $6,600 per unit lateral benefit charge.Average (excluding Inver Grove Heights Northwest Area)22,012$ 152,613$ 174,625$ 16,671$ 54,809$ 69,397$ 77,218$ 321,241$ 2.47$ * For purposes of comparison, fees that other cities charge at time of plat are characterized as trunk fees.** For purposes of comparison, fees that other cities collect at time of building permit are characterized as hook-up fees.Comparison of 2019 Sewer and Water Development Fees for a Mixed Use Industrial Development - Neighboring CitiesJuly, 2019Assumes 34 SAC units, 130,000 square feet on 8 net developable acres (9 gross acres) with a 3" water meter. Excludes lateral installation, permit fees and meter costs
$- $100,000 $200,000 $300,000 $400,000 $500,000 $600,000ChanhassenChaskaEden Prairie ExcelsiorMinnetonka ShakopeeShorewoodVictoriaUtility Development Fees for Sample Industrial Property(130,000 sq. ft. office warehouse with 34 SAC units)Storm WaterTotal Sanitary SewerTotal Water