Roseville Council Updates Utility Rate Structure

Roseville MN

10 December, 2020

5:00 AM

Description

Press release from the City of Roseville: December 9, 2020 The City Council has adopted a new utility rate structure for 2021. The new rate structure is based on usage rather than fixed fees and aims to address a growing inequality between residential and commercial users. The new rate structure also encourages conservation, brings Roseville's utility rates in line with industry standards and cures the steadily declining cash balance in the Water Utility Fund used for water system maintenance and improvements. Last summer, city staff initiated a study of Roseville's utility fees. The study found that residential customers were using about 41 percent of the city's water, while paying for 56 percent. To address this imbalance, the city lowered the base (fixed) rate for single family residential properties. Non-single family properties – commercial, Industrial, and apartments – will see some increases in base rates. In addition to the base rate, the new rate structure for single family residential properties includes three consumption-based usage tiers to encourage conservation – Tier 1 (essential, up to 15,000 gallons per quarter - $3.18/1,000 gal.); Tier 2 (15,000-30,000 gallons per quarter $3.98/1,000 gal.); and Tier 3 (more than 30,000 gallons per quarter $4.98/1,000 gal.). New rates and usage tiers have also been instituted for apartment properties, which were previously billed under the commercial rates, as well as commercial properties. No changes were made to the city's other utility fee models for recycling, storm drainage, sanitary sewer and state fees. This press release was produced by the City of Roseville. The views expressed here are the author's own.