Please respond by stating present Council Member Ronane.

Ward.

President Johnson.

Present.

Nelson.

Present.

Norm Strup.

Present.

Mayor Shannon.

Present.

Please stand with me for the Pledge of Allegiance.

Well, the intended purpose of this session will be to discuss the water and sewer rate study update.

Good to see you again.

It seems like you probably know what to do.

About eight.

And so we just want to walk through the study that's been recently done, give the council some information, help you understand what rates are being recommended and why.

And so the last freight study was completed just last year in two thousand four or twenty-four.

And since that time, there's been a number of changes of the capital improvement plan.

And so, with all of that kind of coming together, it made sense to do an update to that study and revise what was recommended previously.

And so we're here today to go through that.

And one thing I want to highlight as we get studied started is each of these departments, the water department and the sewer department are enterprise funds.

And so what that means is they are intended to be self-funding.

The rates that come in, um, the charges for the water and the sewer services are intended then to fund each department individually.

Um so historically, there's been some transfers from the general fund into the water and sewer capital or into the water and sewer departments, and so one of the goals that has been established for the study is to try to eliminate or phase out those transfers and have those departments become self-funding.

So we're gonna go into that in a little more detail.

We'll start off with the water study and how that was completed in the recommendations.

So, first of all, this shows you just the percentage of water use that each class uses, and so there's two classes right now the residential class and what's called the commercial class.

The commercial class includes both commercial and industrial type customers, and they comprise most of the water or more than half of the water use, around 56%.

Um, to wait to a good place.

Thank you.

We would welcome questions at any time.

So interrupt, throw your handout.

Um, hopefully you don't have to jump up and down.

Sure.

But yes.

Well, with that, then I'll ask the the 66% commercial, 44% residential.

Is that consistent with other communities that you've done or comment on that?

You know, each community is unique.

Uh we have some smaller communities we've done studies for in South Dakota that have a large industrial presence.

And so, you know, I've done studies where half of the flow in the community is industry industrial, and the rest is made up of commercial and residential usage.

There's been other communities where they don't have much industry, so most of the usage is residential and commercial.

So it's really it's individual based on what the community structure is like and and its users.

Tonya, if I may, what is the current uh daily water usage in Aberdeen as we look at this pie chart?

Oh, um we didn't look at it on a daily basis, that's why I'm pausing.

Um, but on the annual basis, we were around 900 million on an annual basis, I'm pretty sure.

Which let me look quick what that equates out to.

Jim says four million a day.

Four million a day at the water plant.

So that would be a typical non-irrigation type use.

Thank you, Jim.

Sure.

Thank you.

Thanks for uh fielding those questions, Tonya.

Back to you.

No problem at all.

So we sat down with staff with the city and looked at the capital improvement plan for the next five years.

Um, and a significant amount of time was spent on this, kind of evaluating these projects to determine what is really needed to be able to maintain the system, maintain the treatment facility, maintain the distribution system, um, and the meter replacement project that's going on, trying to determine, you know, have this not be excessively high in costs, but be able to keep the infrastructure that the city's already invested so much in in good working order.

And so this is what was arrived at, and so um it varies in cost from anywhere around you know two and a half million a year to upwards of almost 5.8 million a year over this five-year period.

Um, the one thing you'll notice at the end in 2030, and I think I can point on this overhead, but that last line in 2030, there's an item for 2.8 million eight million, and that is anticipating that there's either gonna be some type of improvements needed at the treatment facility or some other type of major improvement coming up, which will need to be funded.

And so it's planning ahead so that the rates are being increased now to prepare for that, and so that the city would be able to fund that in 2030.