5.03 EMRUSR 11-12-2024��i
Elk River
Municipal Utilities UTILITIES COMMISSION MEETING
TO:
FROM:
ERMU Commission
Sara Youngs —Administrations Director
MEETING DATE:
AGENDA ITEM NUMBER:
November 12, 2024
5.03
SUBJECT:
2025 Utilities Fee Schedule
ACTION REQUESTED:
Approve the 2025 Utilities Fee Schedule for Adoption into Ordinance by the City Council
BACKGROUND:
Typically, the Elk River Municipal Utilities Commission approves the 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 in red font on the attached fee schedule.
ELECTRIC FEES
After evaluation of our schedule of rates/aid to construction methodology, staff reviewed our
current 2024 fee schedule to determine any necessary adjustments. Based on the review, staff
is recommending the following changes:
Street Light — 30' Decorative Pole with 6' Arm and Cobra Fixture — A proposed increase from
$2,700 to $3,400. The amount reflects labor and material cost increases, mostly pole costs.
Street Light — 23' Decorative Pole with Cobra Fixture — A proposed increase from $1,800 to
$2,400. The amount reflects labor and material cost increases, mostly pole costs.
Street Light — 14'Decorative Pole with Cobra Fixture — A proposed increase from $4,100 to
$5,500. The amount reflects labor and material cost increases, mostly pole costs.
Street Light — 14'Decorative Pole with Acorn Fixture - A proposed increase from $5,300 to
$7,500. The amount reflects labor and material cost increases, mostly pole costs.
Meter Installation Fee (per individually metered apartment unit) —A proposed increase from
$22 to $25. The amount reflects meter cost increases.
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WATER FEES
Deposit for %" Hydrant Meter- A proposed increase from $150 to $175. The amount reflects
meter cost increases.
Deposit for 2 % Hydrant Meter- A proposed increase from $1,000 to $1,500. The amount
reflects meter cost increases.
Hydrant Water Sales — Units (per 1000 gallons)- A proposed increase from $4.00 to $4.16. The
amount reflects the increase in operational costs, infrastructure maintenance, and water
quality improvements.
ADMINISTRATIVE FEES
Billable Labor Markup- A proposed increase from 55% to 58%. The amount reflects increase in
labor costs.
Billable Vehicle/Equipment (per employee per hour)- A proposed increase from $45 to $50.
The amount reflects increase in labor and equipment costs.
FINANCIAL IMPACT:
The proposed fees have been added or adjusted to cover the cost of providing services to our
customers.
ATTACHMENTS:
• Proposed 2025 Utilities Fee Schedule
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