5.3 EMRUSR 10-11-2022UTILITIES COMMISSION MEETING
TO: FROM:
ERMU Commission Theresa Slominski –General Manager
MEETING DATE: AGENDA ITEM NUMBER:
October 11, 20225.3
SUBJECT:
2023 Utilities Fee Schedule
ACTION REQUESTED:
Approve the 2023Utilities Fee Schedule for Adoption into Ordinance by the City Council
BACKGROUND:
Typically, the Elk River Municipal Utilities Commission approvesthe budget in December. In
January, the rates and fees are published. Per legal counsel, ERMU’s ability to collect on fees
would be strengthened by having them listed as part of the City’s Master Fee Schedule and
adopted into city ordinance after being approved by the Commission.
DISCUSSION:
Annually ERMU staff reviews the proposed fees for the upcoming year. Proposed changes are
outlined below and highlighted in yellow on the attached fee schedule.
ELECTRIC FEES
After evaluation of our schedule of rates/aid to construction methodology, staff conducted an
audit of our electric fees to determine any necessary adjustments. Based on the audit, staffis
recommending the following changes:
New Residential Electric Connection – Developer – Lot with ERMU Water Service – A proposed
increase from $475 to $975. This has not been changed since 2014 and reflects material cost
increases, mostly transformer costs.
New Residential Electric Connection – Developer – Lot without ERMU Water Service – A
proposed increase from $575 to $1,475. This has not been changed since 2014 and reflects
material cost increases, mostly transformer costs. The largerlot sizes which are more common
outside the water service area require crossing a longer distance to install electric service.
Security Light – Existing Pole - A proposed increase from $125 to $350. LED lights are replacing
the high pressure sodium lights and are more expensive however they last longer.
Meter Installation Fee – A proposed increase from $20 to $22.
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WATERFEES
Abandoned Water Service –Aproposed increasefrom $2,500 to $6,000. Thisfee hasnot
changed since 2007 and costs have significantly increased.
ADMINISTRATIVE FEES
Billable Vehicle/Equipment (per hour)– A proposed increase from $30to $45.
NSF Fee – A proposed increase from $20 to $30. Staff finds this to be in line with industry
standards.
FINANCIAL IMPACT:
The proposed fees have been added or adjusted to cover the cost of providing services to our
customers.
ATTACHMENTS:
Proposed - 2023 Utilities Fee Schedule
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