City of Mound
The Goal
Mound had not increased stormwater and water utility rates for five years, resulting in negative cash balances that were temporarily addressed through interfund borrowing. At the same time, the City recognized the need to evaluate its rate structure, billing tiers, and practices, while planning for significant upcoming capital infrastructure investments.
The Solution
Ehlers completed a comprehensive utility usage analysis and rate study for the City’s water, sewer, and stormwater funds. The team evaluated existing billing tiers and practices and developed multiple rate and funding scenarios to address negative cash balances, support future capital improvement needs, and ensure compliance with statutory requirements related to conservation-based rate structures.
The Outcome
The City approved sufficient rate increases across all utility funds and adjusted billing tiers and practices to comply with state statutory requirements. Approximately one year later, Ehlers was reengaged to complete a utility rate study update as the City pursued state bonding and funding for a new water treatment plant, building on the financial and policy framework established through the initial engagement.