City Council Approves 2020 Utility Rates

City Council Approves 2020 Utility Rates
Posted on 12/12/2019
At the Dec. 9 New Hope City Council Meeting, council approved increases to multiple incremental utility rates for 2020. The total impact of the utility fee increases on an “average” residential utility customer (who uses 5,000 gallons of water a month) is predicted at approximately $4.51 per month.

Sanitary sewer rates will increase by 5% in 2020. The minimum fee increased 43¢ to $8.90 (which includes the first 1,000 gallons). The volume rate increased 28¢ to $5.91 for each additional 1,000 gallons. A sewage treatment surcharge – to pay charges from the Met Council for excessive inflow and infiltration of storm water into New Hope’s sanitary sewer system following peak rain events – increased 3¢ to 60¢ per thousand gallons.

Water rates will also increase by 5% in 2020. The base fee increased 42¢ to $8.87. New Hope has a graduated water rate scale to encourage conservation. The volume rate per 1,000 gallons for up to 10,000 gallons increased 31¢ to $6.54. Higher volume rates will also increase 5% over 2019 rates.

The storm drainage fee increased by 5%, or 43¢ per residential unit each month, to $8.36. The street light fee also increased by 5 percent. The recycling fee increased 2.74% to $3.75 per month.

Operation, maintenance and improvement to the city’s sanitary sewer, water and storm sewer utility systems are each funded by separate enterprise funds in New Hope’s budget. The revenue for each of those funds comes from the fees charged to the city’s utility customers. A Utility Rate Study completed by New Hope’s financial consultant, Abdo Eick and Meyers, in fall 2019 recommended the utility rates that would be required to keep the funds from falling below targeted cash balances.

The 2020 utility rates take effect on Jan. 1. For additional information visit the utility billing section of the city’s website at newhopemn.gov/utilitybill.