HomeMy WebLinkAbout2.c. Water and Sewer Utility RatesAGENDA ITEM: Water and Sewer Utility Rates
AGENDA SECTION:
Rates*
i -r
PREPARED BY: Andrew J. Brotzler, PE, City Enginee i'?
Jeff May, Finance Director
AGENDA NO. 2•C
10,001— 30,000
ATTACHMENTS: Executive Summaries from the April 13
and May 11, 2009 UC Meetings; Excerpts from the April
13 and May 11, 2009 UC Meeting Minutes
APPROVED BY:
fM
RECOMMENDED ACTION: Discussion
Residential
Quarterly usage (gallons)
Rates*
0 10,000
$0.90
10,001— 30,000
$1.10
30,001— 60,000
$1.40
60,001 100,000
$1.90
100,000
$2.75
Comm erci a l /Industrial
Quarterly usage (gallons)
Rates*
0 100,000
$1.05
100,001— 200,000
$1.30
200,001— 300,000
$1.60
300,000
$2.00
ROSEMOUNT EXECUTIVE SUMMARY
CITY COUNCIL
City Council Work Session: June 10, 2009
ISSUE:
In July 2008, the Minnesota Department of Natural Resources (DNR) notified public water
suppliers that each City must adopt a water conservation rate structure by January 1, 2010, or prior
to being permitted for a new well or increase in appropriations. In response, City staff has worked
with the Utility Commission to develop new water and sewer rates that not only promote water
conservation, but also maintain adequate revenue to support the maintenance and operating costs of
our water and sanitary sewer systems.
BACKGROUND:
Water rates
At the April 13, 2009 Utility Commission meeting, staff presented the Utility Commission with an
updated Water Rate Analysis spreadsheet, a copy of which is attached with the Executive Summary
from that meeting. Based on the information provided, the Utility Commission took action to
recommend Council approval of the following tiered water rate structures:
*per thousand gallons
*per thousand gallons
Along with the implementation of tiered rates, the Utility Commission supported an increase in the
fixed rate from $8.90 per quarter to $10.00 per quarter. The water surcharge, which helps to fund
system expansion, is not proposed to increase.
G: \Util ides\ RATES \WaterandSewerRateStudyCWS6- 10- 09.doc
Sewer rates
At the May 11, 2009 Utility Commission meeting, staff presented the Utility Commission with two
scenarios for proposed changes to the sewer rates:
Scenario #1 Continue to allow 2' water meters for residential irrigation and increase the
usage rate to $1.50/1000 gallons in 2010.
Scenario #2 Discontinue use of 2' water meters for residential irrigation and increase the
usage, rate to $2.00/1000 gallons in 2010.
Complete details for each of these scenarios are provided in the Executive Summary from the May
11, 2009 Utility Commission meeting, a copy of which is attached.
Upon review of the information provided at the May 11, 2009 Utility Commission meeting, the
Utility Commission recommended Council approval of Scenario #1.
The attached table summarizes the proposed rate changes for water and sewer based on the 2008
average quarterly use for residential properties.
Implementation Schedule
Assuming the adoption of new water and sewer rates effective January 1, 2010, following is a proposed
schedule for the communication of the proposed rate changes and implementation into the utility
billing system:
City Council review of the proposed rates
City Council review of the proposed rates (if necessary)
Distribute utility rate information at Leprechaun Days
Public Open House
City newsletter article
Billing inserts
City Council adoption of rates
Update utility billing rates
SUMMARY:
Based on the recommendations of the Utility Commission, staff is presenting to Council the
recommended water and sewer rates for Council consideration. The recommendations of the Utility
Commission are summarized below:
Implement tiered water rate structures in 2010 as indicated above.
2
June 10, 2009
July 15, 2009
July 17 -26, 2009
August 2009
September 2009
Fall 2009
October 2009
October /November 2009
Increase the fixed charge for water from $8.90 /quarter to $10.00 /quarter in 2010.
Increase the sewer usage rate from $1.40/1000 gallons to $1.50/1000 gallons in 2010.
Continue to allow 2nd water meters for residential irrigation. Usage from both meters will be
added together to determine the appropriate tier for water billing.
At this time, in addition to a review of the proposed rates, staff is requesting Council feedback and
direction on the following items:
1. For sewer billing purposes, continue with the practice of allowing 2n water meters for water
billing only; or discontinue the use of 2n water meters and transition to a winter quarter basis
for sewer billing.
2. Provide feedback on the proposed communication plan and process for the implementation of
new utility rates beginning January 2010.
3
Quarter
Gallons Billed
(1000s)
2008 Actual
2010 Estimated
Change
1
14
$31.98
$32.20
0.7%
2
30
$48.30
$49.80
3.1%
3
42
$60.54
$66.60
10.0%
4
18
$36.06
$36.60
1.5%
Total
104
$176.88
$185.20
4.7%
Quarter
Gallons Billed
(1000s)
2008 Actual
2010 Estimated
Change
1
14
$39.60
$48.00
21.2%
2
14
$62.00
$48.00
-22.6%
3
14
$78.80
$48.00
-39.1%
4
14
$45.20
$48.00
6.2%
Total
56
$225.60
$192.00
14.9%
Quarter
Gallons Billed
(1000s)
2008 Actual
2010 Estimated
Change
1
14
$39.60
$41.00
3.5%
2
30
$62.00
$65.00
4.8%
3
42
$78.80
$83.00
5.3%
4
18
$45.20
$47.00
4.0%
Total
104
$225.60
$236.00
4.6%
Utility Rate Summary for 2010
Based on 2008 average quarterly usage
Water
(includes usage charges $8.90 /$10.00 fixed charge per quarter $8.80 surcharge)
Sewer Scenario #1 Keep 2nd Meter
(includes usage charges $20 fixed charge per quarter)
Sewer Scenario #2 Winter Quarter Billing Basis
(includes usage charges $20 fixed charge per quarter)
G: \Utilities \RATES \RAW DATA \RES BOTH 2008 STATS2
Tab: water and sewer 201C
AGENDA ITEM: Water Utility Rates
AGENDA SECTION:
Old Business
PREPARED BY: Andrew J. Brotzler, PE, City Engineer
AGENDA NO. 6b.
ATTACHMENTS: Water Rate Analysis Spreadsheet;
Cost Illustrations; Water Rate Analysis Spreadsheet from
February 18, 2009 Special Utility Commission Meeting
APPROVED BY:
RECOMMENDED ACTION: Motion to Recommend City Council Approval of Water Utility
Rates.
4 ROSEMOUNT
Utility Commission Meeting: April 13, 2009
BACKGROUND:
UTILITY COMMISSION
EXECUTIVE SUMMARY
In a letter dated July 31, 2008, the Minnesota Department of Natural Resources (DNR) notified
public water suppliers that each City must adopt a water conservation rate structure by January 1,
2010, or prior to being permitted for a new well or increase in appropriations. Since learning of the
new DNR requirements, staff has met twice with the Utility Commission (December 8, 2008 and
February 18, 2009) to evaluate a number of scenarios to find one that complies with the DNR
requirements while maintaining the necessary revenue to support the maintenance and operation
costs of our existing water system.
At the February 18, 2009 Special Utility Commission Meeting, staff reviewed a water rate analysis
spreadsheet with the Commission, a copy of which is attached. Based on comments received and
further staff review of the water utility fund, an updated water rate analysis spreadsheet has been
prepared. The updates to the spreadsheet since the February 18, 2009 meeting are as follows:
Proposed rates have been reduced for 2010 implementation. The proposed rates remain
steady in 2011, increase 7% in 2012, remain steady in 2013, then increase 7% per year
through 2020.
The 2009 beginning balance (line 23) reflects the actual beginning balance for the water
utility fund. Lines 23, 32, and 50 have been removed from the calculations in 2006 through
2008 in order to get a true beginning balance in 2009.
The Capital Investment Fund balance (water surcharge revenue) is transferred into the water
utility fund each year (line 47).
Miscellaneous revenues (antenna leases, interest) have been added to the spreadsheet (line 48).
G: \Utilities\ RATES \W 09.
Residential
Tier
in tier
Avg. usage
0 10,000
25%
8,000
10,001 30,000
50%
20,000
30,001- 60,000
15%
45,000
60,001- 100,000
8%
75,000
100,000
2%
110,000
Commercial/l?dristrial
Tier
in tier
Avg. usage
0 100,000
65%
90,000
100,001- 200,000
20%
175,000
200,001- 300,000
10%
250,000
300,000
5%
320,000
Beginning in 2016, approximately $1.1 million in annual debt has been added (line 27) to
fund a water treatment plant ($12 million for 15 years at 4% interest).
Two additional staff positions have been added in 2017.
Debt service figures (line 28) have been updated.
As noted in our previous discussions, calculations are based on the following assumptions:
Annual residential growth is estimated to be 2.5% from 2009 through 2011, and 5% from
2012 through 2020.
In 2010, the fixed rate charge increases from $8.90 to $10.00, and a tiered water rate structure
will be implemented as indicated in the spreadsheet (includes a tier 1 rate decrease of $0.12
per 1,000 gallons)
Annual CRP expense line item has been retained in anticipation of future utility relocation
costs associated with the reconstruction of the 42/52 interchange. The preliminary
estimated cost for this is $2.1 million. This expense line item is $422,000 in 2010. In 2011 it
is reduced to $200,000 with a 3% increase per year through 2020.
In calculating the usage revenue, the following assumptions were made regarding the
number of accounts in each tier and the average usage on those accounts (these assumptions
are based on actual usage data from 2007):
Beginning in 2010 through 2017, it is anticipated that the water utility fund will need to
assume debt service for recently constructed water towers and wells. Due to the current
slowdown in development, there has been a decrease in revenue for the water core fund.
The model assumes 150 units per year for connection fees to pay the debt service amount.
An increase above this amount will reduce the debt service obligation of the water utility
fund in the future.
Rates will be reviewed annually to track actual vs. projected expenses and revenues.
2
In addition to the revenue and expense worksheet, included for your review are the following items:
(1) An illustration of what the quarterly costs will be in 2010 compared to neighboring cities
(2) An illustration of what the 2010 charges will be, broken out by quarter.
SUMMARY:
Staff is requesting Utility Commission recommendation to the City Council to approve the
proposed utility rate changes.
3
Savage*
$149.76
Prior Lake
$126.75
Inver Grove Heights
$110.18
Burnsville
$95.70
Rosemount Proposed 2010
$70.80
Farmington
$67.50
Apple Valley
$65.85
Rosemount Current
$63.60
Eagan
$63.50
Lakeville
$58.00
Residential Comparison with Other Cities
(based on 2008 rates from other cities)
(assumes 45,000 gallons per 3 -month usage)
(includes usage charges fixed charge surcharge)
Savage bills the full amount at the highest applicable tier
G: \Utilities \RATES \Water Rates 4- 13-09.xls
Tab: Comparison lower rates
Quarterly Usage
Current Total
Proposed Total
Change
(Q1) 14,000 gal
$31.98
$32.20
0.7%
(Q2) 18,000 gal
$36.06
$36.60
1.5%
(Q3) 43,000 gal
$61.56
$68.00
10.5%
(Q4) 29,000 gal
$47.28
$48.70
3.0%
Total 104,000 gal
$176.88
$185.50
4.9%
usage charges
$106.08
$110.30
4.0%
per 1,000 gallons
$1.02
$1.06
4.0%
Rosemount Customer Comparison for 2010
Based on 2007 average quarterly usage
(includes usage charges fixed charge surcharge)
G: \Utilities\RATES \Water Rates 4- 13-09.As
Tab: Comparison lower rates
AGENDA ITEM: Sewer Utility Rates
AGENDA SECTION:
New Business
PREPARED BY: Andrew J. Brotzler, PE, City Engineer
AGENDA NO. 7b.
ATTACHMENTS: Sewer Rate Analysis Spreadsheet; 2007
Memorandum; 2 Meter Credit
Calculation; Sewer Rate Comparison
APPROVED BY:
RECOMMENDED ACTION:
1) Motion to Recommend City Council Approval of Sewer Utility Rates for Scenario #1
and Continue Allowing 2 Water Meters for Irrigation.
-OR-
2) Motion to Recommend City Council Approval of Sewer Utility Rates for Scenario #2
and Discontinue the Use of 2 Water Meters for Irrigation.
-OR-
3) Motion to Table Item to June 8, 2009 Regular Utility Commission Meeting.
4 ROSEMOUNT
BACKGROUND:
UTILITY COMMISSION
Utility Commission Meeting: May 11, 2009
EXECUTIVE SUMMARY
At the April 13, 2009 Utility Commission meeting, the Utility Commission recommended for
Council approval a tiered water rate structure that satisfies the Minnesota Department of Natural
Resources (DNR) requirement that all public water suppliers implement a water conservation rate
structure by January 1, 2010. Since then, staff has been evaluating the sewer rates and the possible
elimination of second water meters used for residential irrigation.
As previously noted, in addition to reviewing the sanitary sewer rates, the City Council requested
that the Commission review the continued use of 2' water meters for irrigation by property
owners. The attached August 7, 2007 memorandum to City Council provides background
information on the City's current practice of billing for sewer service. At this time, 670 residential
2nd meters are installed within the City.
For the review of sanitary sewer utility rates, two scenarios have been prepared for review and
consideration by the Commission.
Scenario #1 Continue to allow 2" water meters
For this scenario, the basis of billing for sewer service would remain unchanged. The current basis
of billing for sewer service is to bill sanitary sewer service for the volume of metered water
consumed by a property owner. As noted in the attached August 7, 2007 memorandum, the City
G:\ Utilities\ RATES\SewerRateStudyUC5- 11-09.doc
'previously implemented a policy to allow property owners the option to install 2nd water meters for
outside use. As the water consumed through the 2n water meter does not contribute flow to the
sanitary sewer system, property owners are not charged for sewer service on water consumed
through the 2n water meter.
As shown in the attached spreadsheet, based on projected expenditures, rate increases are proposed
for 2010 to 2015. The proposed rate increases are as follows:
1999 2009 Rate
2010 Rate
2011 Rate
2012 Rate
2013 Rate
2014 Rate
2015 Rate
Scenario #2 Discontinue 2 water meter use
For this scenario, the basis of billing for sewer services would change to a winter quarter usage basis.
By this billing basis, sewer service will be billed quarterly based on a minimum volume to be
determined, or the actual winter quarter volume, whichever is greater. Other neighboring cities
apply the following minimums for sewer billing:
Eagan 3,000 gallons /quarter
Lakeville 5,000 gallons /quarter
Inver Grove Heights 6,000 gallons /quarter
Farmington 10,000 gallons /quarter
Burnsville 15,000 gallons /quarter (5,000 /month)
Based on historical data, winter quarter water usage is approximately 13% of our overall annual
water demand. The sewer usage revenue in line 55 of the spreadsheet is calculated using estimated
winter quarter demand (line 3) x 4 quarters x rate (line 13). Depending on the minimum volume
determined for billing, actual revenue will be greater than what is shown in the spreadsheet due to
the increased volume billed to any users that fall below the minimum.
As this basis of billing will result in less total volume of sewer flow being billed, the per thousand
gallon rate will need to increase significantly to maintain consistent revenue for the sewer utility
fund. The proposed per- thousand gallon rates for 2010 to 2015 are as follows:
2010 Rate
2011 Rate
2012 Rate
2013 Rate
2014 Rate
2015 Rate
$1.40/1,000 gallons
$1.50/1,000 gallons
$1.60/1,000 gallons
$1.70/1,000 gallons
$1.80/1,000 gallons
$1.85/1,000 gallons
$1.90/1,000 gallons
$2.00/1,000 gallons
$2.05/1,000 gallons
$2.10/1,000 gallons
$2.20/1,000 gallons
$2.25/1,000 gallons
$2.30/ 1,000 gallons
While Scenario #2 results in the need for higher per thousand gallon rates, it should be noted that
over the course of a year, the total volume billed for the average customer will be less than the
2
current billing practice.
The one other matter that has been considered with Scenario #2 is the expenditure by property
owners to install 2n water meters. Based on average numbers, staff has assumed that within three
years from installation, a property owner has recovered their cost for installing the 2n water meter
with saved costs on sewer service charges. Therefore, for customers who have purchased and
installed a 2n water meter in 2007, 2008 or 2009, a pro -rated credit of $45,000 has been calculated.
The basis for calculating this credit is shown in the attached spreadsheet.
The model indicates the rates that would be necessary in each scenario to maintain a fund balance of
approximately $2.4 million through 2020. The largest variable in the model is the amount payable
to the Met Council for sewer service charges (line 30). It is difficult to predict the rates that the
City will be charged by the Met Council because their rates are based on total volume as measured
from July 1 through the following June 30 each year. To compensate for this unknown, our model
includes a 6% increase per year, beginning in 2010.
A summary of the proposed rates and effect for the average user is shown on the attached sheet.
This model assumes the same demands and residential growth as the Water Rate Analysis model.
SUMMARY:
Staff will review the proposed sewer utility rates with the Utility Commission. The Commission
may consider the following options:
1. Recommend City Council approval of sewer utility rates for Scenario #1 for $1.50/1,000
gallons and continue allowing 2n water meters for irrigation.
2. Recommend City Council approval of sewer utility rates for Scenario #2 for $2.00/1,000
gallons based on a minimum volume or winter quarter usage, whichever is greater, and
discontinue the use of 2 water meters for irrigation.
3. Table item to June 8, 2009 Regular Utility Commission Meeting and provide direction to
staff.
3
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o, 03
CD 12 5
g
f
Expenses
13
q 1 1 1 1
f D
p
a.
(7
d
Q
['Water Treatment Facility Capital Reserve
1 WTF Expense
Total Water Surcharge Revenue
`1 Calc. Water Surcharge 6"
1 W SB Calc. Water Surcharge -1
1 Calc. Water Surcharge Multi Family 5/8"
1' WSB Calc. Water Surcharge Single Family 5/8"
'Balance change
1Baaance change amount
1 Balance after Revenues (Year End)
1Total Revenues excluding surcharge
1WSB Calc. Meter Maintenance 6"
1WSB Calc. Meter Maintenance 1"
'Water Use Comm 1 Ind 11nst Tier 4 1
1 W ater Use Comm Ind Inst Tier 3
!Water Use Comm Ind Inst Tier 2
1 Water Use Comm Ind Inst Tier 1
!Water Use Residential Tier 5
'Water Use Residential Tier 4 1
1 Water Use Residential Tier 3
1Water Use Residential Tier 2
1 Water Use Residential Tier 1
(Calculated Fixed Charges
1 Balance after Expsenses
Total Expenses
IUtility Equipment Purchases (3% increase/yr)
Debt Service
Total Well and Tower Expenses
Total Operating Expenses
Beginning Balance
Meter Maintenance 6" ($/account/quarter)
Meter Maintenance -1" ($/account/quarter)
'Surcharge 6" ($/account)
'Surcharge 1" ($/account)
'Surcharge Multi Family 5/8" ($/account) 1
'Surcharge Single Family 5/8" ($/account)
Water Use Comm 1 Ind Inst Tier 4
Water Use Comm Ind Inst Tier 3
Water Use Comm Ind Inst Tier 2
Water Use Comm Ind Inst Tier 1
Water Use Residential Tier 5
Water Use Residential Tier 4
Water Use Residential Tier 3
Water Use Residential Tier 2 1
i
Water Use Residential Tier 1
Water Fixed Charge /account/quarter)
m
Business Park/Air Cargo Connections
InstitutionaWindustrial Connections
..ommercial Connections
Residential Connections
Percent of System Expansion
Description
Water Demand (MG)
y
25.34%
595,029.00 I
1 s 2,94.x,990.84
1,453,927.00 1
1,489,063.841
858,898.001
159,535.001
888,363.001
2,347,961.841
100.00 1
6.25 1
154.00 L
13.501
s 6.80 I
8.80 1
0_ 1.02 1
8.90
O
42 1
145 1
5,817 1
2006 Actual I
944.07
1 238,674.00
1 238,674.00
1 S 25,872.00
1 7,830.00
I 8,010.40
1 196,961.60
1 -6.76%
1 (199,060.00)
1 s 2,743,930,841
1,404,903.00 1
1,339,027.841
1,603,963.001
IT
799,611.001
804,352.001
2,942,990.841
100.00 1
6.25 1
154.00 1
13.50 1
6.80 1
8.80 1
1.021
8.90
O
42 1
145 1
5,890 1
1.2% 1
2007 Actual
937.54
488,498.40
1 247,824.40
1 32,032.00
7,236.00
1 8,150.48
1 200,405.92
1 9.67%
1 265,246.44
1 s 3,009,177.28
1 1,178,611.67 1
1,830,565.611
S 913,365.231
4,153.21 1
207,108.411
702,103.611
2,743,930.841
100.00 I
6.25 1
154.00 1
13.50 1
6.8oI
8.801
1.021
8.901
134
5,993
1.7%
2008 Actual
903.00
1$ 739,698.71
J 253,200.31
1 32,032.00
1 7,398.00
1 s 8,354.24
1 205,418.07
1 -2.22%
1 (66,900.00)
1 s 2,942,277.28
1 s 1,191,200.00 1
1,751,077.20
S 1,258,100.001
238,600.001
1,019,500.001
3,009,177281
100.00 1
6.25 1
154.00 I
13.50 1
6.80 1
8.80 I
1.02 1
8.90 1
52 1
137 1
8,143 1
2.5% 1
2009 Bud ed
925.33
1$ 999,021.28
J 259,322.57
r$ 32,648.00
1 7,560.00
1 8,563.10
J 210,551.47
1 -6.50%
1 (191,377.74;
1 s 2,750,809.54
1 s
1,325,122.26
1 21,200.00
1 18,500.00
16,791.00
24,318.00
31,266.00
47,420.10
97,971.92
230,699.94
228,559.16
295,930.59
52,889.72
259,575.83
1,425,777.28
s 1,516,500.00
5,000.001
100,000.00 1
327,800.001
1,083,700.001
2,942,277.281
100.00 1
6.25 1
154.00 1
13.50 1
6.80
8.8o1
2.001
1.6o1
1.301
1.05
3.001
2.001
1. 601
S 1.30 1
1.051
10.001
140 1
6,296 1
2.5% 1
2010
948.38
1 1,264,091.71
1 265,070.43
1 32,648.00
1 7,830.00
1 8,777.18
1 215,815.26
,1 17.56%
11$ (483,120.78)
1 s 2,267,778.78
T s 1,448,049.22
1 s 21,200.00
1 18,625.00
1 18,406.08
1 26,650.80
1 34,254.00
1 51,891.84
1 107,391.32
J 252,782.65
J 250,343.12
1 323,981.04
1 57,826.10
1 284,897.28
1 s 819,729.54
1 1,931,170.00 1
r$ 5,200.001
1 450,000.00
1 336.300.001
1 1,139,670.00 1
I 2,750,899.54 1
100.00 1
6.25
154.001
13.50 1
6.60
8.80 1
2.14 1
1.71 1
1.39
1.12
3.21
2.14 1
1.71 I
1.39 1
1.12 I
10.70 1
145
8,454 1
2.5% 1
2011
972.10
1 s 1,541,277.76
1 277,186.05
1 33,264.00
1 8,100.00
1 9,218.03
1 226,606.02
1 34.49%
11 (782,241.18)
1 s 1,485,537.58
1 1,620,908.82
1 21,600.00
1 s 15,750.00
1 20,310.24
J 29,416.80
J 37,821.60
J 57,283.20
J 120,675.84
J 284,179.13
1 281,563.40
J 364,575.47
1 65,054.36
1 319,678.79
1 s (135,37124)1
IT 2,403,150.00 1
1 s 5,400.00 1
I s 800,000.00
1 345,100.001
1 1,252,650.00 1
2,267,778.761
100.001
6.25 1
154.001
13.50 1
6.80i
2.291
1.83
1.49
1.201
3.43 I
2.29 1
1.83 I
1.49 I
1.20 1
11.45 I
150
6,776
4.9%
2012
1,020.13
1 s 1,830,524.92
1 289,247.16
1 33,264.00
T i 8,370.00
1 9,676.84
1 237,936.32
1 46.18%
it (686,026.17)
1 799,611.44
1 S 1,809,583.83
r$ 21,600.00
1 18,875.00
1 22,237.60
1 32,186.00
J 41,340.20
J 62,599.68
J 135,532.63
1 319,107.90
1 315,920.23
1 408,419.40
r$ 72,860.88
1 358,904.31
1 s (1,010,072.42)1
1 S 2,495,610.00 1
5,600.00 1
1 800,000.00
360,400.00 1
1,329,610.001
1,485,537.581
1 1
6.25 1
154.00 I
13.50 1
6.80 1
8.80
2.45 1
1.96 1
S 1.59
1.28 I
3.67 1
2.45 1
1. 961
1.591
1.28 1
12.25 1
155
7,115
4.9%
2013
1,070.38
1 2,133,037.73
1 1.00
1 302,513.81
1 s 33,880.00
1 8,640.00
1 10,160.68
1 249,833.14
1 72.59%
II (580,402.78)
1 219,108.63
1 s 2,024,867.22
1 22,000.00
1 19,000.00
1 24,484.20
J 35,432.00
1 45,494.00
1 68,924.70
1 152,290.63
J 358,612.16
1 355,026.04
L$ 458,724.72
I 81,883.11
I 402,995.67
(1,805,758.59)'
1 S 2,605,270.00 1
1 5,800.00 1
815,000.00
1 376,200.00 1
1,408,270.001
799,511.41 1
100.00 I
6.251
154.00 1
13.50 1
6.80
8.80 1
2.62 1
2.10 1
1.70
1.371
3.93
2.621
2.10 1
1.70I
1.37 1
13.11 1
160 1
7,471
4.9%
2014
1,123.25
1 1 1 2 .1 44 8,819.24
1 2.00
1 315,783.50
Fs 33,880.00
1 8,910.00
1 s 10,668.71
1 262,324.79
•1 125.20%
Ir$ (274,316.86)
I s (55,208.28
1$ 2,266,923.14
1 s 22,000.00
1 19,125.00
1$ 26,840.00
1 38,852.00
J 49.896.00
1 75,675.60
J 171,138.89
J 403,151.79
1 s 399,370.67
1 516,177.37
1 92,252.98 I
1 452,4.43.04 1
1 S (2,322,131.37)1
1 S 2,541,240
1 6,000.00 1
1 650,000.00 1
r$ 392,800.001
1 1.492,440.00 1
I s 219,108.63 1
100.0
6.25
154.00]
13.50 1
6.80 1
8.801
2.801
2.25
1.821
1.47 t
4.21 1
2.801
2.25 1
1.82 1
1.471
14.03 1
O
fT
165 1
7,845 1
4.9% 1
2015
1,178.57
2,779,135.42 3,124,052.76 3,484,903.86 3,861,825.17 4,256,222.75
1 s 3.00 s 4.W1 s 5.00 IT 6.00 7.00 1
1$ 330 ,319.18 s 344,921.341$ 360,856.11 1 376,927.31 I 394,404.581
r$ 3 4,498.00 34,496.00 1 35,112.00 1 35,112.001 35,728.001
9 ,180.00 9,460.0$ 9,720.00 I 9,990.00 1 10,260.001
I 1 1,202.15 11,762.25 12,350.37 12,967.89 13,616.281
1 275,441.03 289,213.08 303,673.741 318,857.43 I 334,800.301
200.64% 318.17 %r 261.79%1 91.60 %1 59.50 %1
r$ (110,771.53) 528,105.08 1$ 948,012.78 1 1,200,150.08 1 1,493,731.71 1
1 s (189;( s 362,128.32 1,310,138.10 1 s 2,510,288.17 1$ 4,004,019.881
E 2,537,848.47 s 2,841,215.081 3,183,222.78 1 3,565,370.08 1$ 3,997,271.711
1 22,400.00 22,400.001 22,800.00 I 22,800.00 1 23,200.001
F$ 19,2.0T1 19,375.00 1 19,500.00 1 19,625.00 1 19,750.001
J 29,515.60 32,303.041 35,483.64 1 38,787.76 1 42,586.561
J 42,714.00 46,754.40 51,381.60 56,192.40 1 61,702.401
J 54,827.60 s 60,013.801 65,980.80 1 72,212.80 I 79,310.40 1
1 83,027.88 9 0,810.721 99,824.40 1 109,292.041 120,126.241
J 192,413.35 216,287.111$ 242,938.99 1 272,935.85 1 306,926.97 1
453,357.49 509,651.57 1 572,621.15 1 643,359.70 1 723,585.141
IT 448 504,912.08 1 567,753.65 1 638,191.61 1 717,858.29 1
1 579,875.86 rS 652,113.231T 733,757.12 1 825,749.19 1 929,110.871
1 103,455.12 116,238.75 130,768.60 1 147,223.64 1 165,798.231
1 508,019.61 570 ,355.38 1 640,412.83 1 719,000.08 1 807,316.601
1 s (2,703,82823)1 s (2,479,089.77)1 (1,873,084.68)1 (1,055,081.90)1 6,748.171
1 s 2,648,620.00 2,3 13,110.00rs 2,235,210.00 1 2,365,220.00 1 2,503,540.001
s 6,200.00 1 6,400.00 1 6,600.00 1 6,800.00 1 7,000.001
s 650,000.001$ 200,000.00 I I I 1
11 1 428,400.001 447,500.00 1 467,400.00 1 488,000.001
4 .501s 4.82 1 5.161 s 5.521s 5.91
m y a N A W P 3 N O 0 (0 v W N j J 0 J T N A W N- 0 0 0 v rn 01 A W N 0 (O 0 1 to 01 A W N-. 0 0 (b J (A N A W N
O• O (P (1• 01 UI (T (P (n m W N f 'CO J m N A W N 1 O N O O m V O) (P A W N
N
CD V
C
CL
co
CD
Expenses
a
CD ID
g
CA
1-r•
-n
IG
ml—
d
o.
m
0
CL
1-n
M
IG
PI
(Transfer to Water Utility Fund
Capital Investment Fund Balance (Year End)
[Total Water Surcharge Revenue
1 ICalc. Water Surcharge 6"
'Cale. Water Surcharge -1"
1Ca lc. Water Surcharge Multi Family 5/8" (5
1Calc. Water Surcharge Single Family 5/8" (95
1 Balance change
Balance after Revenues (Year End)
Balance change amount
!Miscellaneous Water Revenues (antenna, interest)
'Transfer from Capital Investment Fund
'Total Revenues excluding surcharge
1Calc Meter Maintenance 6"
1Calc. Meter Maintenance -1"
(Comm Ind Inst Tier 4 300,000 gal)
(Comm Ind Inst Tier 3 (200,001 300,000 gal)
'Comm Ind Inst Tier 2 (100,001 200,000 gal)
'Comm 1 Ind Inst Tier 1 (0 100,000 gal)
!Residential Tier 5 100,000 gal)
'Residential Tier 4 (60,001 100,000 gal)
1Residential Tier 3 (30,001 60,000 gal)
'Residential Tier 2 (10,001 30,000 gal)
'Residential Tier 1 (0 10,000 gal)
'Calculated Fixed Charges
!Balance after Expsenses
(Total Expenses
(Utility Equipment Purchases (3% increase/yr)
Debt Service
WTP Debt Service $12,000,000 15 years 4.0%
,Total Well and Tower Expenses 1
Total Operating Expenses
Beginning Balance
Meter Maintenance 6" /accountquarter)
Meter Maintenance 1" (5/account/quarter)
'Surcharge 6" ($/account)
'Surcharge 1" ($/account)
'Surcharge Multi Family 5/8" ($/account)
Surcharge Single Family 5/8" ($/account)
Comm 1 Ind Inst Tier 4 300,000 gal)
Comm Ind Inst Tier 3 (200,001 300,000 gal)
Comm Ind Inst Tier 2 (100,001 200,000 gal)
Comm Ind 1 Inst Tier 1 (0 100,000 gal)
Residential Tier 5 100,000 gal)
Residential Tier 4 (60,001 100,000 gal)
Residential Tier 3 (30,001 60,000 gal)
Residential Tier 2 (10,001 30,000 gal)
Residential Tier 1 (0 10,000 gal)
Water Fixed Charge ($/account/quarter) 1
3usiness Park/Air Cargo Connections 1
nstitutional /Industrial Connections
:ommercial Connections
Residential Connections I
'ercent of System Expansion I
Water Demand (MG) 1
)escription 1
fA
i
EA
DR
1 1,453,927.00
1 983,270.0il
1
4,696.001
FA
159,535.0
799,039.001
-I
100.001
6.255
154.001
13.50 1
6.80-1
8.807
1.02 1
8.90 1
0
42 T
145 1
5,817 1
944.07 1
2006 Actual 1
fA
rr 1
EA
N
I 1,404,903.00
1 1,938,468,00 1
1
4,432.00
E9
799,611.00 1
1,134,425.001
-1
100.0o
6.25 1
154.00 1
13.50 1
6.80 1
8.80 1
1.02 1
8.90 1
0
42 1
145 1
5,890 1
1.2%
937.54 1
2007 Actual 1
545,749.41
;4c
4/3
EA
I 1,322,04
I s
1 s 964,445,351
1
I 4,153.21 1
230 ,003.4 8
730,288.661
-I
100.00
6.25 I
154.00 1
S 13.50 1
6.80 1
8.80 1
1.02 1
8.90 I
0
52 1
134 1
5,993 1
1.7%
910.00 1
2008 Actual 1
(798,949.72) (259,322.57) (265,070.43;
798,949.72 259,322.57 265,070.43 277,186.05
1 253,200.31 1 259,322.57 1$ 265 277,186.05
1 32,032.00 1 32,648.00 32,648.00 33,264.00
1 7,398.00 1 s 7,560.00 7,830.00 8,100.00
1 8,354.24 1 8,5637161 8,777.18 9,218.03
1 205,416.07 1 210,551.47 1 215,811 226,606.02
1 6.03 %1 28.57 %1 5.85 %1 14.62%
1.99 t
(161,700.00) 720,470.10 (183,200.87) (447,366.83)
1 s 1 s 231,400.00 234,000.00 s 288,400.00
1 1 798,949.72 2 265,070.43
1 1,250,200.00 I 1,206,120.38 1 1,254,148.57T 1,401,712.74
1 I 21,200.00 21,200.00 s 21,600.00
1 I 18,500.00 18,625.00 s 18,750.00
1 16,791.00 s 17,226.00 s 18,963.84
1 I s 24,318.00 1$ 2a,94T.6:1 s 27,458.40
j 1 31,266.00 32,076.00 35,292.00
1 i 47,420.10 1 48, 53,464.32
1 I 88,905.11 1 91,127.731 102,352.19
I 204,506.93 209,619.60 235,805.21
1 I 198,447.54 201,358.73 226,470.49
1 1 251,855.83 258,152.22 290,034.02
s 45,334.05 48,467.40 52,043.49
1 I 259,575.83 I 284,697.28 I 319,678.79
1 s 1,271,512.76 s 1,005,712.76 1$ 1,311,512.86 1$ 656,431.99 I
rs 1,411,900.00 1 S 1,518,000.00 1,930,670.00 2,402,550.00
5,000.00 5,200.00 5,400.00
I 1 100,000.001$ 450,000.001 800,000.00
I$ f 1$ Is 1
206,400.00 1 327,800.00 1 336,300.00 1 345,100.00 1
1,205,500.001 1,083,200.00 1 1,139,170.001 1,252,050.001
2,083,412.761 2,521,712.78 1 3,242,182.86 1$ 3,058,981.99 1
100.00 1 100.00 100.o1 100.00 1
8.25 1 6.25 1 6.25 I 6.25 1
s 1 1$ 154.00 1 154.00 1 154.00
13.50 1 13.50 13.50 1 13.50 1
6.80 6.80 6.80 6.801
8.80 8.80 8.80 1
I 2.00 2.00 2.14
I 1.60 tso 1.71
I 1.30 1� 1.39
I$ 1.05 1.001$ 1.12[
I s 2.75 1 2.75 2.94
I 1.90 1.9 2.03
1 s 1.40 1.401 1.50
1 1.10 1 1.101 s 1.181
1.02 1 Oso Oso 0.96
8.90 I 10.00 1 10.70 1 11.45 1
o I o o 1 0
137 1 140 145 1 150
8,143 1 8,296 13,454 1 6,778
2.5% I 2.5 1 4.9%
932.51 1 955.71 1 979.63 1 1,028.04 1
2009 Budgeted I 2010 1 2011 I 2012 1
(277,186.05) (289,247.16'
289,247.16 302,513.81
1 289,247.16 1 302,513.81
1 33,264.00 1 33,880.00
1 8,370.00 1 8,840.00
1 9,676.841 10,160.68
1 237,936.32 1 249,833.14
1 7.32 %1 0.44%
(191,222.22) 10,697.96
I 296,800.00 1 302,400.00
1 277,186.05 1 289,247.16
1 1,489,701.731 1,666,720.80
1 21,600.00 1 22,000.00
1 18,875.00 1 19,000.00
1 19,428.641 21,405.40
1 28,131.40) 31,003.00
1 s 36,157.00;.1 39,861.00
1 54,774.721.$ 60,372.00
1 s 107,469.80 I 120,792.53
1 247,385.471 278,163.50
1 237,794.01 1 287390.19_
1 304,535.72 1 342,175.77
1 54,645.66I 61,561.75
1 358,904.31 1 402,995.67 I
1 356,705.16 S 172,722.95
s 2,254,910.00 1 2,247,670.00 1
1 5,600.00 1 5,800.00 1
I 560,000.001 458,000.00]
I$ I$ 1
360,400.00 376,200.00]
1,328,910.00 1 1,407,870.001
S 2,811,615.18 1 S 2,420,392.95 1
1 1 100.00 1
8.25 1 6.25 1
154.00 1 154.00 1
13.50 1 13.50 1
6.80 1 6.80
8.80 1 8.80
2.141$ 2.29
1.71 1 1.83 1
1.39 1 1.49 1
1.121 1.20I
2.941 3.15 1
2.03 I 2.17 1
1. 1 1.61 1
1.18 I 1.26 1
0.96 1 1.03 1
12.25 1 13.11
0 1 0 1
155 1 160
7,115 1 7,471
4.9% 1 4.9%
1,078.87 1 1,131.95
2013 1 2014 1
302,513.81'
315,783.50
I 315,783.50
I 33,880.00
1 8,910.00
1 s 10,668.71
1 262,324.79
1 11.81%
287,050.98
1 308,300.00
1 302,513.81
1,861,877.17
I 22,000.00
1 19,125.00
1 23,408.00
1 33,880.00
43,518.00
1 65,894.40
135,818.15
1 312,279.47
IA 300,292.86
1 384,38
1 89,032.84
1 452,443.04
1 245,450.91
2,185,640.00 1
6,000.00 I
295,000.00 1
392,800.00 1
1,491,840.00 1
2,431,090.911
100.00 1
6.25
154.00
13.50 1
6.80 1
8.80
2.45 1
1.96
1.
1.28
3.37 1
2.32 1
1.721
1.351
1.10 I
14.031
off,
185 1
7,845 1
4.9% 1
1,187.70
2015 1
315,783.50
330,319.18
1 330,319.18
1 34,496.00
I 9,180.00
1 11,202.15
1 275,441.03
1 24.90%
(676,746.83)
1 314,400.00
1 315,783.50
1 2,082,189.86
Ls 22,400.00
1 s 19,250.00
1 25,738.88
1 37,244.80
Ls 47,821.60
1 72,451.08
1 152,283.31
1 350,581.31
1 337,052.84
1 431,612.14
1 77,758.08
1 508,019.81
1 s- (870,978.11)
3,369,120,00
8,200.00
293,000.00
410,200.00
1,581,520.001
S 3718,1439
1 1
6.25 1
154.00
13.50
6.80
8.80
2.62[
2.10
1.70
1.37 1
3.61 1
2.48 1
1.84 1
1.44 I
1.18 1
15.01 1
o
g
170
8,237 I
4.9% I
1,248.35 1
2018 1
330,319.18
344,921.34
1 344,921.34
1 34,496.00
1 9,450.00
I 11 ,762.25
1 289,213.08
1 29.96%
t ±►9) $89
(611,614.73)
1 320,900.00
1 330,319.18
1 2,327,676.09
1 22,400.00
1 19,375.00
1 s 28,182.00
1 s 40,794.60
1.
1 79,459.38
1 170,967.83
393,689.58
1 378,554.33
I 484,328.13
1 87,179.08
570,355.38
LS_ (1,549,114.95)
I 3,590,510.00
6,400.00
200,000.00
1,098,200.00 I
428,400.00
1,857,510.001
s 2,041,395.05
100.00 1
6.25 1
154.00
S 13.50
6.80 1
8.80
2.80
2.25 I
1.82
1.47 1
3.86 1
2.65 1
1.97 1
s 1.541
1.26 1
16.08
o
g
175 1
8,849 1
4.9% 1
1,_307.74
2017_
(344,921.34) (380,856.11
360,856.11 378,927.31
1 360,856.11 1 376,927.31
I s 35,112.00 1 s 35,112.00
1 9,720.00 1 9.990.00
I 12,350.37 1 12,967.89
I 303,673.74 1 318,857.43
1 17.34 %1 -4.20%
4 41,14:4001 Ii r1
(247,932.41) (49.696.64)
I 327,700.00 1 334,800.00
I 344,921.34 1 380,856.11
I s 2,606,956.25 1 2,917,267.25
I 22,800.00 I 22,800.00
I 19,500.00 1 19,625.00
30,952.20 I 33.841.28
1 44,793.001 48,980.80
1 s 57,496.20I s 62,871.80
I s 87,069.06 1 95,135.04
I 192,302.481 216,182.28
I 442,889.841 497,966.81
1 s 425,815.241 478,858.25
1 s 544,869.15 1 612,160.49
I 98,076.45 1 109,845.82
I s 640,412.83 I 719,000.08
I s (2,097,729.67)1 (2,480,772.08)1
1 s 3,527,510.00 1 S 3.662.620.00 I
1 6,800.00 1 6,800.00 1
I$ I s I
1,098,800.00 1 s 1,098,400.00 I
447,500.00 1 467,400.00 1
1,974,610.00 1 2.090,020.00 1
1,429,780.331 1,181,847.92 I 1,132,151.281
100.00 1 100.00 1 100.0o
6.25 1 6.25 1 6.251
154.00 1 154.00 I 154.001
13.50 1 13.50 1 13.501
6.60 1 6.80 1 8.801
8.80 1 8.80 1 8.801
3.001$ 3.211$ 3.431
�iA�
N
2.41 1 5 2.58 I 2.761
N
1.95 1 2.09 1 2.241
Q
1.57 1 1.68 1 1.801
H
'Z'.1 A
4.131$ 4.42 1 4.731
fa
W
2.84 I 3.04 1 3.251
w
N
2.11 1 2.26 I 2.42I
H
1.65I$ 1.771$ 1.891
f
EA
1.35 I 1.44 1 1.541
fib
(O
17.18 1 18.381$ 19.871
0 I 0 1 0 1
57 1 57 1 58 1
180 I 185 1 190 1
O
N
9,081 I 9,535 1 10,012 1
A
at
4.9% I 4,9% 1 4.9% 1
01
N
1,372.31 1 1,439.92 1 1,511.02 1
N O
co
2018 1 2019 1 2020 1
376,927.311
394,404.58
394,404.581
35,728.001
5 10,260.001
I 13,616.281
I 334,800.301
1 14.78 %1
167.362.05
I 342,300.001
I 376,927.311
S 3.264.474.741
1 23,200.001
1 19,750.001
1 37,130.58.1
53.766.401
1 69,043.201
1 104,457.601
1 s 242,770.261
1 s 559,228.631
I 537,642.821
I 686,821.181
I 123,347.481
I s 807.316.601
I (2,684,188.72)1
3.816.340.001
7,000.001
1,097,000.
I
488,000.001
I
2,224.340.001
O• O (P (1• 01 UI (T (P (n m W N f 'CO J m N A W N 1 O N O O m V O) (P A W N
ft
J
0
i'
co
6 N
0i a, cn in h, rn n N N o
9 A A A A A t J W W W W N h J (D J O (P A W N
4, m W N 4 (P A W N co
O 8 t0 O) V 8 8 t (n N E O m J W OI W N 8 8 8 v 8 A) W N 8 INO 8 V O) (Nn A W N O f0 (D V (A 4n A W N+ O co 0. V W 0 A W N
*2008 Sanitary Sewer Flows (482.6 MG) are calculated from July 1, 2007 through June 30, 2008. This is the number used by MCES to calculate our 2009 Sanitary Sentice Charges (line 30).
530.01
530.02
530.03
530.04 530.08
540.00
Ca la
Projected Rates
Fixed Charges
Sewer Use Charges1 -65% of water demand billed)
Miscellaneous Revenue -12% of usage revenue)
Total Revenues
Balance after Revenues (Year End)
Balance change
change
Lift Station #10
Total Expenses
Lift Station #6 (ex. Electrical)
Lift Station #9
Lift Station #8
'Lift Station #5 (ex. Electrical)
Heavy Machinery
Fumiture and Fixtures
Office Equipment
Sewer Service Charges (6% increase/yr)
Interest on Lease Payments
Equipment Replacement
Lift Station #1 (ex. Electrical)
Lift Station #7 (ex. Electrical)
Lift Station #3 (ex. Electrical)
Lift Station #4 (ex. Electrical)
Misc Improvements
Misc Improvements/Repairs
CRP (3% increase /yr)
Improvements Other than Bldgs.
Beginning Balance Scenario #1
Beginning Balance Scenario #2
Scenario #2 rates 1
Sanitary Sewer Fixed Charge /account/quarter)
Scenario #1 rates
478,960.00
817,018.78
168,717.00
ne-time ro-rated cre
1,464,695.78
40
EA EA
pAAp7�
.o. co
m
co V
W S
b9
V
co W
O
6A
A
se
S
1,262,304.57
6,933.63
447.26
1,224.23
1 6,094.64
9 EA
.1 40
n 0i7
W
J
EA 4A
4 0
V
A W
4A
EA
A
4
EA (A
N
O
P°i7 p
S
b
4,538.16
76,920.00
4,851.03
2,869.43
1.40
20.00
1.40
9
N
40 H
A Al
_4 W
CO 0
OD
W
60
aD
W
01
O
4 N0
EA
A
p
Cr
S
1,221.69
1,512,886.68
1,486.841
1,276.46'
718.49
20,338.45
69 EA
S.4 W
U N 7 W
O 4V77
69 EA
N+
CO
CO O CCO
OVD OO
40
I
69
A"
W
W 40
j
O
0)
AA
AA
5,058.80
200,614.75
60,486.72
ER
CO
ER EA
0 0
Eft
40 40
1.40
20.00
1.40
4
N
49 69
O V
O 4pp N
O
N
W W
69
01
N
0 (n
(T
EA
A
N
p op
O
0
355.71
s 1,309,759.08
7,592.59
1,014.60
598.70
1 6,664.02
9 4A
O+
4 j
O
o
J 0 0
49 EA
N co
A j
0
co C
59
I
EA
A
N
W
EA to
p
S
S
N
00) V
b
co
1.40
20.00
1.40
9 H
N
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*2008 Sanitary Sewer Flows (482.6 MG) are calculated from July 1, 2007 through June 30, 2008. This is the number used by MCES to calculate our 2009 Sanitary Sentice Charges (line 30).
ROSEMOUNT
PUBLIC WORKS DEPARTMENT
M E M O R A N D U M
To: Honorable Mayor and City Council Members
Jamie Verbrugge, City Administrator
From: Andy Brotzler, City Engineer
Jeff May, Finance Director''',`
Date: August 7, 2007
Re: 2 Water Meter vs. Sewer Credit Billing
In the past year, there have been several inquiries about the city's sewer billing practices. As
previously discussed, the city currently does not utilize a summer sewer credit for billing.
Instead, property owners have the option to purchase and install a 2" water meter for
outdoor use. With this 2nd water meter, only water usage is billed and there is no sewer
charge associated with the water usage.
Prior to July 1994, the city billed sewer based on the winter quarter usage.
The sewer rate was $1.85/1000 gallons.
The city was regularly making adjustments for "snowbirds" who had no winter
quarter usage and for "summer cabin people" who did not have usage in the summer
but were billed for sewer based on the winter quarter usage.
AfterJuly 1994, the city modified the sewer billing procedure.
The winter sewer credit was eliminated and sewer billing was based on water billing.
The sewer rate was reduced to $1.35 /1000 gallons.
The city initiated a program for property owners to install 2nd meters for outdoor
usage to be billed for water only.
The current sewer rate since April 1, 2000 is $1.40 /1000 gallons.
The estimated cost for a 2 71d meter installation is as follows:
o Permit $50.50
o 1" Meter $300.00
o Installation $300.00 (estimated cost that may vary)
Should the city consider reinstating a summer sewer credit, several items will need to be
considered.
1. As of July 1, 2007, 592 residential 2n meters have been installed. Two to six second
meters are being purchased per week this year. If a summer sewer credit is
H: \Utility Rates \080707.2nd Meter vs. Sewer Creditdoc
reinstated, these 2n meters will no longer be of use and a credit to property owners
may be considered.
2. Since October 1, 2006, the city has utilized cycle billing. With cycle billing, there are
variations in winter quarters that would need to be considered to establish a fair and
equitable winter quarter sewer usage rate.
3. Should the city switch back to a summer sewer credit, it is anticipated that the per
1000 gallon sewer rate would need to increase to account for a decrease in total
sewer usage billing. It would be difficult to predict any changes in rates until a
program is implemented and a usage and billing history established.
Attached for Council information are the results of a survey of surrounding communities
with policies for sewer billing. Should Council want additional information or wish to
discuss further, please notify staff and a discussion item will be prepared for a future Council
work session.
H: \Utility Rates \080707.2nd Meter cs. Sewer Creditdoc
Hastings
Farmington
Eagan
Burnsville
Apple Valley
CITY
Z
o
No
No
No
o
PROVIDE
SPRINKLER
(SUMMER)
CREDIT?
I
IF YES, BASIS
Based on winter consumption or
the current quarter, from
November to March. Base service
is $1.50 per quarter and usage is
$2.65/1,000 gallons. New
residents based on 15,000 gallons.
Not a plicable for commercial.
Set residential on winter quarter
water usage and set that dollar
charge for the following year.
Based on winter consumption or
the current quarter, whichever is
lower.
Sewer lock based on winter
quarter. The minimum use is 15
(lock). If they use less than 15 they
would pay less.
Base charge per month- $5.85;
Billed actual up to winter quarter.
Winter quarter based on Jan
March. Rates for 2007 usage: 0-
10,000 1.79; 11- 15,000 @1.90;
16- 35,000 @2.02; 36,000 —■2.27
I
I
I
i
IF NO, SEWER RATE HOW
BASED
Not answered.
Commercial and housing associations that
have second meters are charged for the
meter based on our fee schedule.
Generally don't let them have two meters,
tell them they aren't being billed their
summer consumption, it's based on winter
usage. New residents are set at 20,000.
Don't allow second meters in residential
areas, only commercial.
Most commercial accounts and many multi
family unit buidlings have purchased a
separate meter for irrigation. Sewer is not
charged on those accounts.
DO YOU SUPPLY OR CHARGE FOR
DEDUCT /SECOND METERS
Northfield
rn
0_
0
m
(D
c0'
s
l
N
Inver Grove Heights
CITY
f
No
CD
CA
Z
0
1
PROVIDE
SPRINKLER
(SUMMER)
CREDIT?
Residential based on
winter quarter or
whichever is less. Rate
is $2.44/1000 $3.20
base on the consumption
from inside water meter
minimum of 5,000
gallons.
IF YES, BASIS
Residential rate based on winter
usage. Commercial can have
deduct meters, but need to send in
their readings by a due date.
Rates $35 per quarter /residential
usage 20 or less (100cft), above 20
is $1.45/100cft. Commercial is
$1.45/100cft and a quarterly
char a for meter size.
homes and commercial are at
$7.32 per unit per month up to
2,000 gallons then $2.77/1000
after.
I I
IF NO, SEWER RATE HOW
BASED
If they want the savings of a water only
meter, they pay upfront for the meter and
installation.
Don't supply meters, St. Paul Water
supplies water and meters to Mendota
Heights.
They need to purchase all meters.
There would be a charge for additional
meters.
DO YOU SUPPLY OR CHARGE FOR
DEDUCT /SECOND METERS
0
c
r
cn
co
cn
N
co
co
C
X
N
G
G:\2006 Sewer Water Rate Study\RESULTS-SanitarySewerSurvey.xls
West St. Paul
South St. Paul
CITY
Yes
UU TUU
PROVIDE
SPRINKLER
(SUMMER)
CREDIT?
Commercial customers
provide monthly readings
of their deduct meter. Bill
based on 2.14/100cuf
i
IF YES, BASIS
Residential and churches rates are
set on actual winter quarter
consumption for the year.Minimum
5,000 is $15.60, above is
$3.42/1,000
1
IF NO, SEWER RATE HOW
BASED
Don't provide meters. Go through
mechanical contractor to install.
Sprinkler meters are separate for
commercial users. We do not allow
deduct meters.
I
DO YOU SUPPLY OR CHARGE FOR
DEDUCT /SECOND METERS
G
G:\2006 Sewer Water Rate Study\RESULTS-SanitarySewerSurvey.xls
SURVEY
For
SEWER BILLING
Do you provide a sprinkler (summer) credit?
4 ROSEMOUNT
2875 145 Street West
Rosemount, MN 55068
651 322 -2022 or fax 651 322 -2694
The City of Rosemount is conducting a survey of how our surrounding cities handle their sanitary
sewer billing.
If yes, what is the basis for the credit? If no, what is your sewer rate and how is it based?
VrvE� 6 1 t.L,t i.. W n 11'fkl('`
TAT ie �j` fu_z i3
41/,4-6
1-11
&S 1 Lib I
PUBLIC WORKS
G: \2006 Sewer Water Rate Study SurveyforSewerBilling12-15-06.doc
Do you supply or charge for deduct or second meters for outdoor sprinklers and /or faucets?
C ANNVOL(`6i.Pr f LO? /L fl Jf 401.6 c> c41 JS 11-terr 6611110
DefDOCX ran. ,ris Cam-- Se CONIC v e 1 Do C-M E toe
eoG-T-z 1 r (v�►4 L Y1 doh c
SURVEY
For
SEWER BILLING
LCD'`
ea,t/ E aff if yu--
4 ROSEMOUNT
PUBLIC WORKS
2875 145 Street West
Rosemount, MN 55068
651 322 -2022 or fax 651- 322 -2694
The City of Rosemount is conducting a survey of how our surrounding cities handle their sanitary
sewer billing.
Do you provide a sprinkler (summer) credit? (VD
If yes, what is the basis for the credit? If no, what is your sewer rate and how is it based?
cox f A itc;tt, J.0 b& >A)J Cow
e/tivV)); r -(1-11 tj12(211La&
G: \2006 Sewer Water Rate Study SurveyforSewer $illingl2- 15- 06.doc
Do you supply or charge for deduct or second meters for outdoor sprinklers and /or faucets?
alc,et CLOO fre -±/41(1) „A-4_ 01-ere4,61
p f chi); Jc1-,a/r) alu_ not io,,t baLcil cZko-z/2 4-ez4.141-e,
SURVEY
For
SEWER BILLING
l5
4 ROSEMOUNT
PUBLIC WORKS
2875 145 Street West
Rosemount, MN 55068
651 322 -2022 or fax 651- 322 -2694
The City of Rosemount is conducting a survey of how our surrounding cities handle their sanitary
sewer billing.
Do you provide a sprinkler (summer) credit? 1/0
If yes, what is the basis for the credit? If no, what is your sewer rate and how is it based?
S
Do you supply or charge for deduct or second deters for outdoor sprinklers and /or faucets?
W/2' 4e601-04.A
G: \2006 Sewer Water Rate Study \Sur eyforSewerBilling12- 15- 06.doc
\(2- S Scrf
SURVEY
For.
SEWER BILLING
The City of Rosemount is conducting a survey of how our surrounding cities handle their sanitary
sewer billing.
Do you provide a sprinkler (summer) credit?
If yes, what is the basis for the credit? If no, what is your sewer rate and how is it based?
D D 'r. .A t:: c
i I s I
l 't 0 1 I 1 1.
C 1 1 s k -1.! 1::., r r r 4 "1"\ e.. V) V.-eyi 7 .1.
IA.) r\ '''.::-.1 cl.f., C CiY\ )1.) 0 i...-/ i i 1.-- 's c-:-'''''.'• LA)
.1 xc,f i::: T.'
i
a (1 3 300 li,
t u L a
C 0\•,1) 0
k ..:4: 0 '..A3 t.-.
Do you supply or charge for deduct or second meters for outdoor sprinklers and/or faucets?
C C 00 t"': :1 d
•i•
j(Lcti(-1 V\ C
4 ROSEMOUNT
G: 2006 Sewer Water Rate Study SurveyforSewerBilling12-15-06.doc
2875 145 Street West
Rosemount, MN 55068
651-322-2022 or fax 651-322-2694
k
PUBLIC WORKS
1.
C
i
1,1 k
SURVEY
For
SEWER BILLING
The City of Rosemount is conducting a survey of how our surrounding cities handle their sanitary
sewer billing.
Do you provide a sprinkler (summer) credit?
If yes, what is the basis for the credit? If no, what is you sewer rate and how is it based?
4 ROSEMOUNT
PUBLIC WORKS
2875 145 Street West
Rosemount, MN 55068
651- 322 -2022 or fax 651- 322 -2694
Do you supply or charge for deduct or second meters for outdoor sprinklers and /or faucets?
G: \2006 Sewer Water Rate Study Surrey foxSewerBillingl2- 15- 06.doc
Water (WA)
Water rates include a base service charge of $6.00 per billing quarter. Water usage is then
charged at $1.55 /1,000 gallons up to the base winter quarter usage. Water usage in excess of that
base amount will then be charged at $1.95/1,000 gallons. All water usage from separately
metered irrigation systems will be billed at $1.95/1,000 gallons used plus a base service charge
that corresponds with the meter size.
Sanitary Sewer (SW)
Sanitary Sewer rates include a base service charge of $1.50 per billing quarter and usage is
charged at $2.65/1,000 gallons. Rates are based on winter quarter water consumption. The
winter quarter is the lowest quarter of use for each billing zone. This period ranges from
November to March for the various zones because the city bills one -third of the residents each
month. This is not applicable to a commercial account.
New Service
New residents are charged for an average winter quarter water consumption, which is currently
15,000 gallons per quarter, until they establish their own winter quarter history.
Minnesota Test Fee (MN)
This fee was established by the State of Minnesota and is collected for each connection to a
municipal water utility. The state uses the funds to monitor and test drinking water quality. The
fee is $1.30 quarterly.
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SURVEY
For
SEWER BILLING
4 ROSEMOUNT
PUBLIC WORKS
2875 145 Street West
Rosemount, MN 55068
651 -322 -2022 or fax 651- 322 -2694
The City of Rosemount is conducting a survey of how our surrounding cities handle their sanitary
sewer billing.
Do you provide a sprinkler (summer) credit? 0
If yes, what is the basis for the credit? If no, what is your sewer rate and how is it based?
Do you supply or charge for deduct or second meters for outdoor sprinklers and /or faucets?
U
G: \2006 Sewer Water Rate Study \Surc eyforSewerBilling12- I5- 06.doc
NOTICE TO ALL WATER/SEWER CUSTOMERS
On November 27th, 2006 the City Council of Inver Grove Heights approved increased water and
sanitary sewer rates for 2007. Water rates reflect a 2 1/2% increase. Sanitary Sewer rates reflect a 3
1/2% increase. Water rates were last increased in January 2006. Sewer rates were last increased in
January 2006. The effective date for these increases will be the first billing period starting in 2007.
Water utility usage rates for monthly and quarterly
billing are established as follows:
Single Family Dwelling
The first 6,000 gallons or less
6,001 20,000 gallons
20,001 40,000 gallons
40,001 and more gallons
The minimum charge per quarter shall be $17.85.
Multi- Familv/Mobile Homes
The first 2,000 gallons or less
2,001 7,000 gallons
7,001 13,000 gallons
13,001 and more gallons
WATER SANITARY SEWER
Commercial /Institutional/Industrial
The first 2,000 gallons or less
2,001 7,000 gallons
7,001 13,000 gallons
13,001 and more gallons
The minimum charge per month shall be $5.95.
Special Rate For The Elderly
0 -6,000 gallons per quarter
6,001 and more gallons
$17.85 per quarter
2.07 per 1,000
2.39 per 1,000
2.58 per 1,000
5.95 per unit/per month
2.07 per 1,000
2.39 per 1,000
2.58 per 1,000
The minimum charge per unit per month shall be $5.95.
5.95 per month
2.07 per 1,000
2.39 per 1,000
2.58 per 1,000
8.92 per quarter
Same as applicable rate
above
IS YOUR UTILITY PAYMENT ON TIME?
General City Information
Water /Sewer Billing
Water /Sewer Maintenance
Sanitary Sewer utility usage rates for monthly and
quarterly billings are established as follows:
Single Family Dwelling
The first 6,000 gallons or less
All over 6,000 gallons
$21.96 per quarter
2.77 per 1,000 gal.
The minimum charge per quarter shall be $21.96.
Multi- Famllv/Mobile Homes
The first 2,000 gallons or less
All over 2,000 gallons
The minimum charge per unit per month shall be $7.32.
Commercia l /Institutional/Industrial
The first 2,000 gallons or less 7.32 per month
All over 2,000 gallons 2.77 per 1,000 gal.
The minimum charge per month shall be $7.32.
Utility bills are mailed out at the end of each month. The due date, as stated on the bill, is the 20th of
the following month. Payments must be received by the City by the 20th to avoid a penalty. As a
convenience for you, we have a drop box for utility payments located in the main parking lot of City
Hall. This drop box is emptied on a daily basis. Your prompt payment is appreciated.
Questions regarding water /sewer utilities and billings should be directed as follows:
450 -2500
450 -2520
450 -2565
7.32 per unit per month
2.77 per 1,000 gal.
The City of Rosemount is conducting a survey of how our surrounding cities handle their sani
sewer billing.
Do you provide a sprinkler (summer) credit?
If yes, what is the basis for the credit? If no, what is your sewer rate and how is it based?
DEC 9 2006
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SURVEY
For
SEWER BILLING
o W omti ll e-
4 ROSEMOUNT
PUBLIC WORKS
2875 145 Street West
Rosemount, MN 55068
651 322 -2022 or fax 651- 322 -2694
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4 ROSEMOUNT
2875 145 Street West
Rosemount, MN 55068
651 322 -2022 or fax 651- 322 -2694
Do you supply or charge for deduct or second meters for outdoor sprinklers and /or faucets?
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4 ROSEMOUNT
PUBLIC WORKS
2875 145 Street West
Rosemount, MN 55068
651 322 -2022 or fax 651- 322 -2694
The City of Rosemount is conducting a survey of how our surrounding cities handle their sanitary
sewer billing.
Do you provide a sprinkler (summer) credit? t■..) U
If yes, what is the basis for the credit? If no, what is your sewer rate and how is it based?
Do you supply or charge for deduct or second meters for outdoor sprinklers and /or faucets?
SURVEY
For
SEWER BILLING
fi bt. f
4 ROSEMOUNT
PUBLIC WORKS
2875 145 Street West
Rosemount, MN 55068
651 322 -2022 or fax 651- 322 -2694
The City of Rosemount is conducting a survey of how our surrounding cities handle their sanitary
sewer billing.
Do you provide a sprinkler (summer) credit? NO 5P,C\ nklQX' VN\e4eArs 0.4 .c.0
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G: \2006 Sewer Water Rate Study\ SurveyforSewerBtl lmgl2- 15- 06.doc
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Residential Water Rates
Up to 1,000,000
More than 1,000,000
Minimum Bill Residential
5,000 Water
Water Test 6.36 yr
Meter Charge
Storm Water
5,000 Sewer
Total
1 Commercial/Irrigation Water Rates
Up to 1,000,000
More than 1,000,000
minimum 5,000
Discounted Water Rates
9,999,999
minimum 5,000
Up to 5,000,000
5,000,000 to 10,000,000
10,000,000 to 20,000,000
More than 20,000,000
minimum 5,000
1.10/1,000
$1.32/1,000
5%
$5.50
$1.59
$7.00
$7.50
$15.60
$37.19
1.10/1,000
1.32/1,000
$5.50
$.55/1,000
$2.75
Heavy or Wet Industry Water Rates
$.65/1,000
$.68/1,000
$.71/1,000
$.82/1,000
$3.25
All Users Penalties
2006 RATES
Residential Sewer Rates
min. 5,000
9,999,999
2007
2008
Note: Sewer set on winter quarter for
residential and churches.
1 Commercial/Irrigation Sewer Rates 1
min. 5,000
9,999,999
2007
2008
min. 5,000
9,999,999
2007
2008
$3,250.00 min. 5,000
$3,400.00 9,999,999
$7,100.00 2007
2008
$15.60
$3.12/1,000
$3.42/1.000
$3.72/1.000
$15.60
$3.12/1,000
$3.42/1,000
$3.72/1,000
Discounted Sewer Rates
$13.15
$2.63/1,000
$2.93/1,000
$3.23/1,000
I Heavy or Wet Industry Sewer Rates
$14.65
$2.93/1,000
$3.23/1,000
$3.53/1,000
SURVEY
For
SEWER BILLING
5 es 6-t"
4 ROSEMOUNT
PUBLIC WORKS
2875 145t Street West
Rosemount, MN 55068
651 322 -2022 or fax 651- 322 -2694
The City of Rosemount is conducting a survey of how our surrounding cities handle their sanitary
sewer billing.
Do you provide a sprinkler (summer) credit? N (\V-ki 0-fe. caa v
If yes, what is the basis for the credit? If no, what is your sewer rate and how is it based?
Do you supply or charge for deduct or second meters for outdoor sprinklers and /or faucets?
Cn1 Q c
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CITY OF Rj'Fmouv7
SURVEY
For
SEWER BILLING
4 ROSEMOUNT
PUBLIC WORKS
2875145' Street West
Rosemount, MN 55068
651 322 -2022 or fax 651- 322 -2694
The City of Rosemount is conducting a survey of how our surrounding cities handle their sanitary
sewer billing.
Do you provide a sprinkler (summer) credit?
If yes, what is the basis for the credit? If no, what is your sewer rate and how is it based?
Comm ex0 C --d- p uuid& ma-' Ly reader
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G: \2006 Sewer Water Rate Study Sun -eyforsewerBilling12 15- 06.doc CO
Installed
Number of
Meters
Avg Cost
Yrs of Benefit
Avg Annual
Savings**
Individual
Rebate
Total Rebate
2006
91
$625.20
3.5
$180.00
-$4.80
$0.00
2007
94
$623.59
2.5
$180.00
$173.59
$16,317.00
2008
68
$638.97
1.5
$180.00
$368.97
$25,090.00
2009
4
$652.25
1.0
$180.00
$472.25
$1,889.00
Average Cost
$635.00
$43,296.00
2nd Meter Credit Calculation
*Added cost of all 5/8" meters plus cost of all 1" meters, then divided by the total number of meters.
Average annual savings based on 2008 usage of 88,673,000 gallons.
(88,673 x $1.40) 678 meters $183.10
G: \Utiaties \RATES \Sewer Rates
5/8" Meter Cost
1" Meter Cost
Avg Meter Cost*
Permit
Plumber
Total
2006
$174.00
$290.00
$274.70
$50.50
$300.00
$625.20
2007
$185.00
$300.00
$273.09
$50.50
$300.00
$623.59
2008
$188.00
$302.00
$268.47
$70.50
$300.00
$638.97
2009
$197.00
$310.00
$281.75
$70.50
$300.00
$652.25
Average Cost
$635.00
2nd Meter Credit Calculation
*Added cost of all 5/8" meters plus cost of all 1" meters, then divided by the total number of meters.
Average annual savings based on 2008 usage of 88,673,000 gallons.
(88,673 x $1.40) 678 meters $183.10
G: \Utiaties \RATES \Sewer Rates
Quarter
Gallons Billed
(1000s)
2008 Actual
Keep 2nd Meter
Change
1
14
$39.60
$41.00
3.5%
2
30
$62.00
$65.00
4.8%
3
42
$78.80
$83.00
5.3%
4
18
$45.20
$47.00 4.0%
Total
104
$225.60 $236.00 4.6%
1
Quarter
Gallons Billed
(1000s) 2008 Actual
Winter Quarter
Basis
Change
1
14
$39.60
$48.00
21.2%
2
14
$62.00
$48.00
-22.6%
3
14
$78.80
$48.00
-39.1%
4
14
$45.20
i
$48.00
6.2%
Total
56
$225.60
$192.00
-14.9%
Scenario #1
Scenario #2
Sewer Rate Comparison for 2010
Based on 2008 average quarterly usage
(includes usage charges $20 fixed charge per quarter)
G: \Utilities \RATES \Sewer Rates
Excerpt from Approved April 13, 2009 Utility Commission Minutes
6b. Water Utility Rates
City Engineer Brotzler refreshed the Commission on the February 18, 2009 meeting regarding the
water utility rates. He pointed out the different scenarios for the tier rates beginning in 2010 that
had changed from the previous meeting. The table presented showing the rates of surrounding
cities are for 2008 amounts and can't be totally compared because we know for sure that Eagan and
Farmington don't have tiered rates at this point and we are also unsure if the other cities tiers are in
compliance with what the DNR is expecting. We are also at a disadvantage of not knowing what
other municipalities use their funds for.
Finance Director May joined the meeting.
The Debt Service won't show its full impact until 2016 if and when the water treatment plant is up
and running by that time. The operating expenses allow for two additional employees in 2017.
Mayor Droste feels that consumption will decrease if you raise rates and he doesn't feel this is taken
into consideration in the years to come within the spreadsheet. It was noted that this matter has
been discussed by staff and at this time there is no clear assumption to use. It was also noted that
any decrease in use and therefore revenue will require a further increase in rates to cover projected
expenses. The projection is anticipated to be a dynamic document that will be reviewed annually
and considered for adjustment accordingly based on actual revenue and expenditure trends.
Overall if we don't mow as much or do less maintaining on the ice rinks, the consumption of water
the City uses would go down as would residential usage if we lead by example. With this, if we're
successful in reducing consumption we may have to increase rates to cover cost of operating the
system because the cost of operating will still be there.
Mayor Droste asked how the City of Savage figures their per capita consumption. Staff will check
into this.
The City of Woodbury's rate changes were very publicized. Residents still used lots of water even
though the rates were raised.
Consumption depends a lot on the weather. Everyone agrees that continuing education on water
conservation is the best game plan.
Finance Director May wanted the Commissioners to know that the model is totally different than
anything else the City has ever done. Whatever direction the City takes will be the base for the City
continuing into the future.
All agreed that the rates should be reviewed annually, but still go out the ten years based on what
information is available.
1
The message to the public is the most important thing to get out there and conservation is the
biggest message to send.
Finance Director May wanted to stress that the main thing to keep in mind is that the City has to
have enough revenues to pay all the bills (operation costs), which might have to mean higher rates.
Mayor Droste just wanted it clear that we have to be consistent in whatever we do.
Finance Director May wanted it made clear that the second meter isn't for water; it's related to the
sewer rates.
The largest consumers are ones with irrigation systems and different types of land use. The
consumptions in the home facilities are related to washing machines, shower heads, dishwashers and
toilets.
The City has to get the general public to accept changing techniques.
Commissioner Schnieder asked if money was the only motivator. Education has to come into play.
The City Council and Utility Commission will all have to deal with the public when this takes affect.
It was asked if there would be any benefit to pre -pay debt. Finance Director May clarified that we
generally issue our debt for only a 10 -year period now, rather in years past when it was 15 -20 years.
Bacardi Tower debt will more than likely be paid off 3 -years early. The debt on towers is larger than
on the wells.
Commissioner Harmsen asked if the DNR would be satisfied with the way the City is presenting the
tiers and was informed that Staff had followed the examples they were provided so there shouldn't
be a problem.
MOTION by Mulhern to recommend City Council approval of the Water Utility Rates with the
stipulation that the Utility Commission will review the rates annually. Second by Harmsen. Ayes:
Schnieder, Mulhern, Harmsen. Nays: None. Motion carried.
2
Excerpt from Draft May 11, 2009 Utility Commission Minutes
7b. Sewer Utility Rates
City Engineer Brotzler gave the Commission an overview of what staff had prepared for the sewer
utility rates. He credited Chris Watson, the City's Management Analyst, for the work that the
Commission was looking at.
Scenario #1 raised rates ten cents per year starting from what we currently charge at $1.40 through
2013, then it went up five cents every year through 2015 and would not change the use of the
second water meter.
Scenario #2 is a substantially higher rate starting at $2.05 going up five cents every year however
using a winter quarter usage basis, but eliminating the second water meter.
No matter which scenario the Commission picks they have to keep in mind the City has to maintain
a fund balance that will pay Met Council and the rest of the operating budget. Low water users and
residents not around to establish their winter quarter would have to be considered when establishing
a minimum.
Commissioner Harmsen didn't feel Scenario #1 would promote conservation. Finance Director
May reminded the Commission this is the sewer, not the water that is the topic. The City has to
provide a fair and equitable way to provide sewer service. Back 15 years ago the Commission
thought this was an innovative way to lower the sewer cost, at which time was $1.85 per thousand
gallons. A second meter is a personal choice and our City is unique in presenting this concept, that's
one of the reasons we've been able to maintain our rate for the past 10 years. The City doesn't
require second meters; residents make their own personal choice.
Commissioner Schnieder feels the City should stay with Scenario #1 because it would be less of an
impact on the residents and easier to educate them on conservation along with the new rates.
MOTION by Harmsen to recommend City Council approval of Sewer Utility Rates for Scenario
#1 and continue allowing 2' water meters for irrigation. Second by Mulhern. Ayes: Schnieder,
Harmsen, Mulhern. Nays: None. Motion carried.
On a side note President Mulhern wanted to be clear if the City Council would like a round table
discussion on why the Commission is making this recommendation they would be open to a
meeting with them to explain their decision.
1