City Of Champlin issued the following announcement on April 2
The typical residential utility bill varies from one month to another. Primary reasons include things like seasonal consumption (watering lawns, filling pools), a fixed or variable rate change by the City or the yearly calculations for sanitary sewer charges (winter quarter averaging).
In 2019, the City underwent an in-depth water and sewer utility rate study intended to:
- Provide rates and user charges that cover operations and capital improvements
- Ensure water consumption tiers promote conservation (per MS 103G.291)
- Establish a base charge that covers fixed costs
- Establish minimum cash balances for the water and sewer funds
- Ensure equity among customer classifications
- Provide ease of administration and easily understood rate structures
Water Fund
The study identified two key recommendations in the Water Fund. First, the current base charge only provides 25% towards the fixed costs required to operate the system. These costs are the same no matter the volume of water consumed. An increase in the base charge was necessary to provide stability to the fund and ensure those fixed costs have a consistent funding source.
Second, a tiered structure for water rates should promote conservation. Over the years, trends have shifted, and the study revealed that nearly 67% of Champlin’s residential water consumption falls into the first-rate tier. A realignment of the existing tiers and adding a third tier are necessary to promote conservation as required by state law. With this new redesign, 94% of the typical winter consumption will now fall into tier one. This consumption would be considered essential. The second and third tiers would have higher rates as this usage is deemed non-essential (like irrigation, which is a seasonal consumption).
Sanitary Sewer Fund
The opposite held true for the Sanitary Sewer Fund. The study revealed that the base structure was providing 2 ½ times the actual costs required to operate the system. In addition, a shift to one usage rate for all customer classification provides equity and an easily understood rate structure.
Summary
In summary, the proposed changes to the base fee and rate structure for water and sewer rates should have nearly a neutral impact to the median residential consumer. The base was increased in water and the tier rates decreased. In sewer, you’ll see the base has decreased and the usage rate increased.
| Residential Accounts | Low | Median | High |
| Sample Usage Gallons | 3,000 | 6,000 | 9,000 |
| Water and Sewer Charges | |||
| Existing | $30.84 | $42.54 | $47.52 |
| Effective 4/1/2020 | $28.52 | $43.64 | $53.84 |
| $ Increase/(Decrease) | $(2.32) | $1.10 | $6.32 |
These changes promote conservation, provide a balance between fixed and variable costs of the system and ensures equity between customer classifications. Rate increases are necessary, but overall should be minimal. They will allow funding to support daily maintenance, while ensuring reserves are sufficient to support the significant infrastructure rehabilitation projects planned over the next ten years.
Champlin residents can be assured of safe drinking water and reliable utility services at the best value possible. If you have any questions on your Champlin utility bill, please feel free to send us a message at utilitybilling@ci.champlin.mn.us or call 763-923-7135.
Original source can be found here.
Source: City Of Champlin
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