The recent workshop held in Hastings to inform the utility committee about fixed as well as variable components to setting fees for Water and Sewer usage seemed to echo the information received Thursday by the Metropolitan Council as they gave more details in how those rates are charged to municipalities. The MET Council states that retail customers in the seven-county metro pay, on average, about 40percent less for their monthly sewer bill than similar metro areas. The system is paid for entirely by users – no tax dollars contribute to its operations. The MET council announced that they are able to keep rates at a lower level because they are limited, under state law, to charging through SAC fees, a one-time wholesale fee, charged to city governments each time a new development connects to the regional wastewater system for the first time and when a property changes use in a way that is significantly different in its generation of wastewater. SAC fees does allow building pipes and plants big enough to meet future demand, but says it spreads the cost out over time ultimately charging future consumers for that capacity. Pipe built in the early 1980s aimed to support growth through 2042. One unit, or the approximate amount of need for a single family home or apartment, is currently priced at 2,485. That is what a builder would need to pay before he starts, to connect the new customer up to the existing line. If that builder is constructing a multiple unit property, the charge would be incurred for each of the residences. For other properties, the Met Council must determine the number of SAC units charged based on the maximum potential flow of those uses-on their busiest day. This number can range from one for a small book store to the reported 526 credits, at 2,485 each, paid by the US Bank Stadium in Minneapolis. Then local communities add their own fees which can range from a small processing fee to several hundred or several thousand dollars. Those businesses who cant afford the total,are given alternative payment plans, providing up to 10 years without penalty, a common need, especially for a small, local business. One unfortunate point is that small business owners too often are uninformed about the potential SAC totals until they go to their city for a building permit. The MET council special task force is planning to ramp up information dissemination, furthering a better understanding of potential fees before the papers are signed.
