Osseo plans to increase utility tariffs for 2022, 2023 | Government
Osseo City Council discussed a recent utility tariff study and considered an increase for each utility at its meeting on Monday, December 13.
The council donated a portion of its American Rescue Plan Act funds to CROSS Services. There was also a discussion about technological improvements for the city.
City council received an update on the city’s utility tariff study.
Jessica Cook with Ehlers, the city’s financial advisers, said the reason for the study was to re-evaluate the tariffs to see if larger increases in the tariffs for the city’s utilities are needed. Utility rates include water, sewer and storm water.
“The next action today would be to set the rates for the next two years, 2022 and 2023,” Cook said. “The only thing we’re looking for is to make sure the utility funds are self-sufficient. This means they pay for all operations, maintenance, and reserves for utilities, and we don’t rely on any property taxes for that.
She said the study results show a 4.25% increase in water tariffs in 2022 and 2023. Sewer tariffs would increase 4% in 2022 and 2023.
The stormwater rate would increase 7.25% in 2022 and 2023. Cook said the increase in stormwater would represent an increase of 92 cents per month for a single-family home user. “We are operating this fund with less than ideal cash,” she added.
She gave examples of what residents might expect to see on their utility bills in 2022. A low-consumption single-family home would see a total increase of about $ 7 in utility bills for the year. next. A moderate-use single-family home would see an increase of about $ 8. A single family home with high usage would see an increase of about $ 18 for next year.
A low-use commercial property would see an increase of just over $ 12 in its utility bill in 2022. An industrial user would see an increase of $ 264.
“The [rate increases] we recommend for 2022 and 2023 are in line, generally with where you were in 2021, ”Cook said. “It’s a modest adjustment.”
The council approved the setting of water usage charges, sanitary sewer charges and stormwater service charges in 2022 and 2023.
Also during the meeting, council approved a donation of $ 36,000 to CROSS Services using funding from the city’s American Rescue Plan Act.
City administrator Riley Grams said, “In August of this year, CROSS Food Shelf contacted the city of Osseo seeking funding from American Rescue Plan Act funds that the city received this year. Their request was $ 12,000 per year for the next three years, for a total of $ 36,000. “
CROSS would use the funds to meet basic needs and ongoing support to families affected by the pandemic. This includes the Peace of Mind Financial Assistance Program, which helps families at risk of losing their homes, and CROSS Food programs to provide healthy food choices for families.
Grams said this donation was an acceptable use of ARPA funds.
Councilor Juliana Hultstrom said: “I am very much in favor of supporting them with our ARPA funds. I think if we can, we should donate the amount they requested.
A question was raised by Councilor Alicia Vickerman as to whether the city should donate over a three-year period. Grams said no, the city can give it their all at once.
Councilor Harold Johnson said: “I would like to know what we currently have of the amount we received in 2021 as a balance of these funds. Grams said the city received $ 149,600 in ARPA funds, with a balance of about $ 139,000 remaining.
The board was very much in favor of the one-time donation to CROSS.
The council also heard from Grams about technology upgrades for the entire city system.
Each year, city staff and the risk management committee meet with IT consultants to discuss technology needs and upgrades.
Grams said there were five obsolete computers that needed to be replaced at a total cost of $ 11,220. A total of 11 wireless access points spread across town hall, police, fire departments and public works buildings are to be upgraded for a total of $ 6,239. Two security systems must be upgraded at a one-time cost of $ 746 and a monthly cost of $ 825.
A total of $ 18,205 for these upgrades would be paid out of the cable fund. The monthly fee of $ 825 would be taken from the general fund budget.
The board approved the technological improvements.
In another action, the advice:
RENEWED the Residential Recycling Grant Agreement with the County of Hennepin.
ACCEPTED the additional $ 4,743 in American Rescue Plan Act funds. This is an additional amount the city can use to pay for items related to COVID.
APPROVED the new alcohol and tobacco license for Mainstreet Liquor Inc. from ZR. Princeton Liquors on Central Avenue is in the process of transferring ownership.
APPROVED making the 2016 Ford Explorer Patrol Car and the 2001 Buick Lesabre (DWI Seizure) surplus goods for auction.
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