Utility Billing Changes for 2023

Pending approval by the City Council at its Dec. 6 meeting, customers can expect changes to utility fees and rates effective Jan. 1, 2023. Additionally, while unrelated to the proposed utility fee and rate changes, the City plans to begin using new billing software in early 2023, resulting in changes to how utility bills look.

Why Are Utility Fees and Rates Changing?

Proposed fee and rate changes result from a utility rate study (PDF) initiated by the City and conducted by the City’s financial advisor, Ehlers, to meet the following goals:

  • Promote water conservation, a key Climate Action Plan (PDF) goal
  • Pay for reinvestment in the aging utility system and system capacity expansion
  • Make water and sewer more affordable for lower-volume customers

On this page, you can learn more about how the utility billing changes will affect you, including proposed 2023 fees and rates and examples of costs to help you estimate your new bill based on property type and consumption volumes. All customers will receive an official notice in the mail.

 If you have questions regarding utility fees and rates, please contact Utility Billing at 952-826-0373 or [email protected].

Proposed 2023 Utility Fees and Rates

  1. Water

Water (Price Per 1,000 Gallons)

Fee Type 2022 Proposed 2023
Residential Tier 1: Up to 26,000 gallons – $2.71

Tier 2: 26,001 to 49,000 gallons – $3.60

Tier 3: Over 49,000 gallons – $5.63
Tier 1: Up to 12,000 gallons – $2.42

Tier 2: 12,001 to 24,000 gallons – $3.68

Tier 3: Over 24,000 gallons – $6.08
Morningside All Usage – $4.40 All Usage – TBD
Multifamily Tier 1: Up to 26,000 gallons – $2.71

Tier 2: 26,001 to 49,000 gallons – $3.60

Tier 3: Over 49,000 gallons – $5.63
All Usage – $3.62
Comm/Ind Tier 1: Up to 26,000 gallons – $2.71

Tier 2: Over 26,000 gallons– $3.60

Tier 3: N/A
Tier 1: Up to 50,000 gallons – $2.42

Tier 2: 50,001 to 200,000 gallons – $3.02

Tier 3: Over 200,000 gallons – $3.77
Irrigation
(All Metered 
Irrigation Accounts)
Tier 1: Up to 26,000 gallons – $3.60

Tier 2: Over 26,000 gallons– $5.63
Tier 1: Up to 12,000 gallons – $3.68

Tier 2: Over 12,000 gallons – $6.08
  1. Meter Charge
  1. Sewer
  1. Storm Water

Examples of Costs

The changes will affect each customer differently based on the type of customer (i.e., residential or commercial/industrial), meter size and the volume of water consumed. However, shown here are likely costs for residential and commercial customers with varying consumption volumes.

  1. Quarterly Low Volume Residential Bill

Quarterly Low Volume Residential Bill

10,000 gallons water and
8,000 gallons sewer and 3/4" meter
2022 Proposed 2023
Water $51.82 $50.16
Sewer $75.60 $54.88
Storm $43.85 $47.36
Total
Percent Increase
Amount Increase - per quarter
$171.27
5.8%
$9.33
$152.39
-11.0%
($18.88)
  1. Quarterly Medium Volume Residential Bill
  1. Quarterly High Volume Residential Bill
  1. Quarterly Small Commercial Bill
  1. Quarterly Large Commercial Bill
View All FAQs