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HomeMy WebLinkAbout10A - Water & Sewer Rates MEETING DATE: AGENDA #: PREPARED BY: AGENDA ITEM: DISCUSSION: STAFF AGENDA REPORT NOVEMBER 18, 2002 10A RALPH TESCHNER, FINANCE DIRECTOR CONSIDER APPROVAL OF ORDINANCE AMENDMENTS RELATING TO WATER AND SEWER RATES. (1) ORDINANCE AMENDING PRIOR LAKE CITY CODE SECTION 704.1001 TO INCREASE THE BASE WATER BILLING RATE BY THIRTY FIVE CENTS (35i) FOR EVERY ONE THOUSAND (1,000) GALLONS OF WATER AND TO ESTABLISH A TIERED RATE (2) ORDINANCE AMENDING PRIOR LAKE CITY CODE SECTION 705.901 TO INCREASE THE SEWER BILLING RATE BY FIFTEEN (15i) FOR EVERY ONE THOUSAND (1,000) GALLONS OF WATER I ntrod uction The City Council has adopted a goal for 2002 relating to groundwater. The goal provides that the staff is to "implement a groundwater plan emphasizing production, conservation, education and communication. n The purpose for this agenda item is to consider increasing the City's water utility billing rate from the current charge of $1.40 to $1.75 per thousand gallons and increasing the sewer rate from $2.85 to $3.00 per thousand gallons effective upon the first billing period (2/1/03) in 2003. The agenda item also proposes establishing a two tier rate structure whereby the first twenty five thousand gallons of water would be subject to the new proposed rate of $1.75 and then the rate would step up to $2.00 per thousand gallons for water usage exceeding 25,000 gallons. The purpose of the "step-rate" is to recognize the financial impact of outdoor water usage on our infrastructure need and encourage conservation measures. History Water rates have remained fairly stable for the past 10 years going back to 1992 when the water and sewer rates were restructured to support actual expenditures within each activity. In fact, if approved, the new $1.75 water rate will be 35 cents higher than the $1.40 rate which was effective in 1984. This adjustment would represent an annual increase of 1.2% over 18 years. Outlined below is a water and sewer rate table since 1982: I: ICOUNCILlAGNRPTS\20021rale increase. doc 16200 Eagle Creek Ave. S.E., Prior Lake, Minnesota 55372-1714 / Ph. (952) 447-4230 / Fax (952) 447-4245 AN EQUAL OPPORTUNITY EMPLOYER " ~-_.._.__._- . I Year Water Rate* Sewer Rate* Year Water Rate* Sewer Rate* 1982-83 $1.30 $1.30 1995 $1.05 $2.70 1984-91 $1.40 $1.40 1996-98 $1.15 $2.85 1992-93 $1.05 $2.10 1999 $1.30 $2.85 1994 $1.05 $2.30 2000-02 $1 .40 $2.85 * per 1000 gallons. As indicated above the current sewer rate has remained the same for the past 7 years at $2.85 per thousand gallons. The 15 cent increase to $3.00 per thousand represents a .75% annualized increase. Current Circumstances Water Rate Increase: Numerous factors make a water rate increase necessary at this time: 1. Prior Lake is located in Scott County, the 12th fastest growing county in the nation and fastest growing in the northern tier of states. Development requires new irifrastructure which is, in part, paid for through water usage fees. Examples of such expenditures include: . $1 million water meter 1 remote read program . $1 million reconditioning program for water towers 2. Because of growth and a desire to develop a water system to serve the City's ultimate population, additional enhancements are contemplated. The $8 million water treatment plant will be supported at least in part by water usage rates. 3. Connection Fee Reallocation: Connection fees used to be earmarked 50% to operating and 50% to the Trunk Fund. Because of increased capital improvements (wells and distribution lines), it was necessary to direct 100% of this money to the Trunk Fund, leaving the operating fund deficient. 4. As the size and complexity of the water production, distribution and treatment system increase, the costs for supplies, regular maintenance and personnel increase. These expenses are also paid in part by water usage rates. 5. The City's present rates at $1.40 per thousand gallons are the same as they were ten years ago. The present rate of $1.40 no longer pays for the operation of the system. The rate is also insufficient to allow the City to set aside funds for system enhancements and major maintenance expenses. 1:\COUNCILIAGNRPTS\2002\rate inc.ease.doc Sewer Rate Increase: The sewer rate adjustment is necessitated by the following factors: 1. 65% of our sewer budget is dedicated to pay the sewage treatment costs billed to the City by the Metropolitan Council Environmental Services (MCES). We have been notified by the MCES that they will be adjusting the rate in 2003 from $1200 per million gallons to $1300 per million gallons. For Prior Lake, this means an annual increase of approximately $100,000. They have also indicated that MCES bills will be significantly higher next year since sewer flows were 2 billion gallons higher this year than last. 2. Growth affects the sewer system as well by requiring more lift stations, force mains, SCADA and gravity lines. These infrastructure are paid in part by user rates. 3. Personnel costs, supplies, utilities and maintenance costs continue to increase. 4. The sewer rate which has not been adjusted since 1996, is insufficient to cover operating costs and set aside funds for system growth. Tiered Water Rate: Historically, the City has charged the same rate for the first thousand gallons of water used as for the 25th thousand. A two tiered water rate of $1.75 per thousand gallons for the first 25,000 gallons used over the two month billing period and a $2.00 per thousand in excess of this amount is recommended. Our water usage records indicate that only two wells could supply the winter needs of our community at this point in time. During the summer months, however, all four wells are needed to meet the demand. The tiered rate is a means of helping to recover a portion of the costs attributable to peak water usage. The Department of Natural Resources has strongly encouraged that communities incorporate tiered rates into their fee structure to encourage conservation and recognize peak volume costs. The staff has analyzed City water usage records. Our finding is that the average bi-monthly usage for the October 2002 billing period was 23,150 gallons per account. The same records show that 75% of our users consume less than 25,000 gallons. Those 75% of the users (4437 accounts) collectively consumed 62,200,000 gallons. The remaining 75% of the users (1409 accounts), consumed 73,020,000. In short, the 25% of our water users who consume more than 25,000 gallons per billing period require the City to build a larger water system. Accordingly, higher users should contribute a higher amount to support the water system. To verify that the consumption records were valid for more than one year, staff did prepare a water consumption analysis of the 10/1 billing (this is typically the highest billed period of the year) for 2000, 2001 and 2002. It I:\COUNCILIAGNRPTS\2002\rale increase.doc T T FISCAL IMPACT: is interesting to note that 74.75% of our customers used 25,000 gallons or less in the year 2000 which was closer to a normal year rainfall wise. As expected, in the extremely dry year of 2001 that percentage fell off to 68.08% as a larger percentage (32%) of our customer base increased their water consumption. Finally during the current extremely wet cycle of 2002, the percentage bounced back to 75.90%. To the Citv: An estimated combined 2003 WaterlSewer Department Statement of Earnings position is projected below based upon the proposed new rates: * WaterlSewer Dept. Expenses Budget Expenditures Enterprise Fund Transfer Equipment Fund Transfer $2,098,025.00 $250,000.00 $60,000.00 $2,408,025.00 $2,568,750 $95,845.00 $238,350.00 $2,902,945.00 $494,920.00 * Utility Revenue Proiection Utility WaterlSewer Receipts Water meterlpressure reducer sales Misc. revenue (incl. penalties, interest etc.) * Statement of Earnings Position Preliminary income before depreciation * Depreciation <$388,000.00> NET INCOME $106,920 The City's water and sewer utility fund is operated as an enterprise fund which is intended to generate revenues to provide contributions to the General Fund to offset administrative and operating costs, revenue for fund transfers, i.e. the Maintenance Building, Equipment Fund and such long term needs as reserves to assist in sewer and water pipe replacement and a community water treatment plant. To the Customer: When considering the entire water and sewer utility bill, which includes the capital facility charge of $7.50 and the storm water charge of $3.75, homeowners would experience, on average, a $4.50 rise on their total water bill amount per month in 2003. The financial impact of the rate increases are demonstrated below: Rate usage charge plus misc. CFAC charge plus misc. storm water charge Monthly Total... 2002 Average Monthly Bill $38.25 3.75 --1M $43.87 2003 Average Monthly Bill $42.75 3.75 1.87 $48.37 1:\COUNCILIAGNRPTS\2002\rate increase.doc Monthly $ Increase ... $4.50 The above figures are based upon average monthly usage of 9000 gallons that is equal to an approximate daily consumption of 100 gallons per individual and a per capita household of three members. Assuming the above average, the typical homeowner will incur an annual increase of $54.00. Overall the fifty cent rate increase will provide the enterprise fund an additional $266,000 in revenue based upon a projected annual usage of 525 million gallons of water and 550 million gallons of sewer. Until the city has actual experience with tiered rates no increase in utility receipts attributed to the higher tiered consumption was calculated so that revenue remained conservatively stated. ISSUES: There is one policy consideration that the City Council may want to address that is not incorporated into the attached resolutions. This particular issue deals with whether the Council wishes to continue to give residents the sewer rate break on the three summer billing periods. The following provision within City Code 705.901 presently exists; "... The charge for sewer usage for the August, October and December billing cycles shall not exceed one hundred fifty percent (150%) of the average for the February, April and June billings. The purpose for this sewer cap is to provide consideration for lawn and garden sprinkling and other related outside water usage which does not flow into the sanitary sewer system. n Eliminating the rate break would in essence result in a conservation measure by further surcharging the consumer for excess outside water usage by charging the full water and sewer rate on the entire amount of water used regardless if it ended up in the sewer or not. A few communities follow this application. A more common practice, by the majority of cities, is to charge sewer based upon a winter consumption average (see attached survey of neighboring communities). Only the cities of Prior Lake and Savage presently utilize the 150% method while Chaska and Rosemount charge sewer on actual usage and give no break on the sewer charge during summer. The remaining cities (70%) all utilize the winter consumption method. The difference between the two is that our rate is based upon 150% of the winter time average while the other is 100% of the winter time average. Changing to the winter consumption basis for the sewer break would actually reduce the effect of the sewer rate increase because it would only be applied to the average cap versus 150% cap for the three summer billing periods. In an attempt to discern how much water usage increases during the three (3) summer billing periods when the sewer break is in effect as opposed to the three (3) winter billing cycles, Staff did identify eighteen customer accounts that exclusively used either their well or pumped from the lake for l:\COUNCILIAGNRPTS\2002\rale increase. doc T T ALTERNATIVES: RECOMMENDED MOTION: REVIEWED BY: outside water purposes. It was necessary to eliminate the outside lawn sprinkling factor to see on average how much more water is used during the summer that would end up in the sewer system. Of these customers, household consumption on an individual basis, varied all over the board when comparing their summer usage to that in winter time. But it is important to note that the consolidated summer consumption averaged out to an increase of 45.53%. This percentage does indeed support our current sewer cap which does not charge our sewer rate on total usage that exceeds an additional 50% above the winter time average. Staff recommends that this provision of the ordinance remain in its present form. Conclusion Staff would recommend approval of the proposed water and sewer rate increases including establishing the tiered rates for water. The proposed increase is required to maintain the revenue stream required to defray water and sewer related costs. Also, Staff would request direction from the Council relating to action on whether or not to continue the sewer rate break or modify it to the winter consumption option. There are two ordinances pending before the Council: 1. Adopt Ordinance Amending Prior Lake City Code Section 704.1 001 To Increase The Base Water Billing Rate By Thirty Five Cents (35~) For Every One Thousand (1,000) Gallons Of Water And To Establish A Tiered Rate and Ordinance Amending Prior Lake City Code Section 705.901 To Increase The Sewer Billing Rate By Fifteen (15i) For Every One Thousand (1,000) Gallons Of Water. 2. Amend the water and sewer rates to another amount based upon Council consensus. 3. Take no action at this time and direct the staff to provide additional information. 1. A motion and a second to adopt Ordinance Amending Prior Lake City Code Section 704.1001 To Increase The Base Water Billing Rate By Thirty Five Cents (35i) For Every One Thousand (1,000) Gallons Of Water And To Establish A Tiered Rate and 2. A motion and a second to adopt Ordinance Amendin Prior Lake City Code Section 705.901 To Increase The Sewer Billing R te By Fifteen (15~) For Every One Thousand (1,000) Gall s Of at I: ICOUNCIL IAGNRPTS\20021rate increase.doc Attachments: 1. Ordinance Amending Prior Lake City Code Section 704.1001 To Increase The Base Water Billing Rate By Thirty Five Cents (35i) For Every One Thousand (1,000) Gallons Of Water And To Establish A Tiered Rate. 2. Ordinance Amending Prior Lake City Code Section 705.901 To Increase The Sewer Billing Rate By Fifteen (15i) For Every One Thousand (1,000) Gallons Of Water. 3. Water Step/Base Rate Survey. 4. Customer Usage Analysis (10/1/00 & 10/1/01). 5. Sewer Charge Survey. 6. Summer Water Consumption Analysis. I:\COUNCILIAGNRPTS\2002Irate increase.doc T .-----.~-- T WHEREAS, WHEREAS, WHEREAS, WHEREAS, ORDINANCE 02.XX AN ORDINANCE AMENDING PRIOR LAKE CITY CODE SECTION 704.1001 TO INCREASE THE BASE WATER BILLING RATE BY THIRTY FIVE CENTS (35~) FOR EVERY ONE THOUSAND (1,000) GALLONS OF WATER AND TO ESTABLISH A TIERED RATE the City of Prior Lake reviews its sewer and water rate structure on an annual basis; and the City has affirmed it is financially necessary to increase the existing water rate to generate sufficient water revenues to offset current operating and capital expenses; and the City Council has reviewed and approved the financial justification support to increase the base billing charge by thirty five cents (35i) to $1.75 per one thousand (1,000) gallons of water for the first 25,000 gallons of water consumed; and. the City Council has determined that a second tier rate of $2.00 per one thousand (1,000) gallons of water for water consumed in excess of 25,000 gallons shall be established as a water conservation measure. NOW THEREFORE, BE IT ORDAINED by the City Council of the City of Prior Lake, Minnesota that: 1. The recitals set forth above are incorporated herein as if fully set forth. 2. Prior Lake City Code Section 704.1001(1) is amended to read: Rates: Effective February 1, 2003 billing cycle a billing charge of one dollar seventy-five cents ($1.75) per thousand (1000) gallons of water shall be charged to the 1st 25,000 gallons of water used and a billing charge of two dollars ($2.00) per thousand (1000) gallons of water shall be charged for all water consumed in excess of 25,000 gallons. Passed and adopted this 16th day of September, 2002. This ordinance shall become effective upon publication. {Seal} YES NO Haugen LeMair Gundlach Petersen Zieska Haugen LeMair Gundlach Petersen Zieska City Manager 1:\COUNCILIAGNRPTS\2002\rale increase. doc 16200 Eagle Creek Ave. S.E., Prior Lake, Minnesota 55372-1714 / Ph. (952) 447-4230 / Fax (952) 447-4245 AN EQUAL OPPORTUNITY EMPLOYER r T ORDINANCE 02.)(x ~ AN ORDINANCE AMENDING PRIOR LAKE CITY CODE INNESo'\ SECTION 705.901 TO INCREASE THE SEWER BILLING RATE BY FIFTEEN (15~) FOR EVERY ONE THOUSAND (1,000) GALLONS OF WATER WHEREAS, the City of Prior Lake reviews its sewer and water billing rate structure on an annual basis; and WHEREAS, the City has affirmed it is financially necessary to increase the existing sewer rate to generate sufficient sewer revenues to offset current operating and capital expenses; and WHEREAS, the City Council has reviewed and approved the financial justification support to increase the sewer billing charge by fifteen cents (15i) to $3.00 per one thousand (1,000) gallons of water consumed. NOW THEREFORE, BE IT ORDAINED by the City Council of the City of Prior Lake, Minnesota that: 1. The recitals set forth above are incorporated herein as if fully set forth. 2. Prior Lake City Code Section 705.901 (sentence one) is amended to read: Rates: Effective February 1, 2003 billing cycle a billing charge of three dollars ($3.00) per thousand (1000) gallons of water shall be charged. Passed and adopted this 16th day of September, 2002. This ordinance shall become effective upon publication. YES NO Haugen LeMair Gundlach Petersen Zieska Haugen LeMair Gundlach Petersen Zieska {Seal} City Manager City of Prior Lake I: ICOUNCIL IAGNRPTS\20021.ale increase. doc 16200 Eagle Creek Ave. S.E., Prior Lake, Minnesota 55372-1714 / Ph. (952) 447-4230 / Fax (952) 447-4245 AN EQUAL OPPORTUNITY EMPLOYER WATER STEP SURVEY (Metro area) 2001 City Step (Gals.) Step ($) Bill Cvcle Wayzata 3,400 $1.55 Mo. North 81. Paul 6,000 $1.31 Mo. Hugo 15,000 $1.70 Qtrly Victoria 15,000 $2.30 Qtr1y Apple Valley 16,000 $1.15 Mo. Watertown 20,000 $1.80 Mo. Farmington 25,000 $1.61 Qtrly Chanhassen 25,000 $1.50 Qtrly Prior Lake (proposed) 25,000 $2.00 Bi-mo. Shoreview 30,000 $1.62 Qtrly Brooklyn Park 50,000 $1.70 Qtrly Bumsville 50,000 $2.11 Qtrly Shorewood 50,000 $1.75 Qtrly Oakdale 51,000 $1.26 Qtrly FIFTEEN IDGHEST BASE WATER RATE COMMUNITIES* 2001 ~ Base Water Rate* Step Bill Cvcle Orono $2.80 no Qtrly St. Francis $2.65 no Mo. Bayport $2.50 no Qtrly Long Lake $2.25 no Qtrly Arden Hills $2.20 no Qtrly Rockford $2.10 no Qtrly Little Canada $2.05 no Qtrly New Hope $2.05 no Mo. Spring Park $1.95 no Qtrly Savage $1.95 no Mo. Roseville $1.77 no Qtrly Prior Lake (proposed) $1. 75 yes Bi-mo. Brooklyn Park $1.70 yes Qtrly Bumsville $1.69 yes Qtrly Richfield $1.67 no Qtrly Bloomington $1.55 no Bi-mo. ,- Source: Cities w/tiered steps in 2001 AMM Municipal License & Permit Fee Survey * Per thousand (1,000) gallons H:\ WalerlSlep survey .DOC .. CITY OF PRIOR LAKE RECAP OF CUSTOMERS AND WATER USAGE USAGE FROM 10/01/00 BILLING 2000 #OF ACCUM.OF PERCENTAGE CUSTOMERS WATER USAGE ACCUM. OF % CUSTOMERS 1 10.24% 497 5000 10.24% 497 2 18.13% 880 10000 28.36% 1377 3 20.27% 984 15000 48.63% 2361 4 16.11% 782 20000 64.74% 3143 5 10.01% 486 25000 74.75% 3629 6 6.96% 338 30000 81.71% 3967 7 4.72% 229 35000 86.43% 4196 8 3.52% 171 40000 89.95% 4367 9 2.10% 102 45000 92.05% 4469 10 1.52% 74 50000 93.57% 4543 11 1.15% 56 55000 94.73% 4599 12 0.89% 43 60000 95.61% 4642 13 0.72% 35 65000 96.33% 4677 14 0.72% 35 70000 97.05% 4712 15 0.60% 29 75000 97.65% 4741 16 0.51% 25 80000 98.17% 4766 17 0.41% 20 85000 98.58% 4786 18 0.12% 6 90000 98.70% 4792 19 0.27% 13 95000 98.97% 4805 20 0.04% 2 100000 99.01% 4807 21 0.06% 3 105000 99.07% 4810 22 0.10% 5 110000 99.18% 4815 23 0.21% 10 115000 99.38% 4825 24 0.06% 3 125000 99.44% 4828 25 0.12% 6 130000 99.57% 4834 26 0.08% 4 135000 99.65% 4838 27 0.06% 3 140000 99.71% 4841 28 0.02% 1 153928 99.73% 4842 29 0.04% 2 168400 99.77% 4844 30 0.02% 1 174627 99.79% 4845 31 0.02% 1 180530 99.81% 4846 32 0.02% 1 196000 99.84% 4847 33 0.02% 1 211560 99.86% 4848 34 0.02% 1 233121 99.88% 4849 35 0.02% 1 251185 99.90% 4850 36 0.02% 1 303161 99.92% 4851 37 0.02% 1 307210 99.94% 4852 38 0.02% 1 314664 99.96% 4853 39 0.02% 1 347905 99.98% 4854 40 0.02% 1 515000 100.00% 4855 100.00% 4855 1001 00 water usage.xls 6:08 PM 1017102 CITY OF PRIOR LAKE RECAP OF CUSTOMERS AND WATER USAGE USAGE FROM 10/1/01 BILLING 2001 #OF WATER ACCUM OF PERCENTAGE CUSTOMERS USAGE ACCUM OF % CUST 1 10.01% 520 5000 10.01% 520 2 17.02% 884 10000 27.03% 1404 3 18.06% 938 15000 45.08% 2342 4 13.03% 677 20000 58.11 % 3019 5 10.01% 520 25000 68.12% 3539 6 7.53% 391 30000 75.65% 3930 7 5.18% 269 35000 80.83% . 4199 8 3.60% 187 40000 84.43% 4386 9 3.37% 175 45000 87.80% 4561 10 2.48% 129 50000 90.28% 4690 11 1.56% 81 55000 91.84% 4771 12 1.44% 75 60000 93.28% 4846 13 1.27% 66 65000 94.55% 4912 14 0.71% 37 70000 95.26% 4949 15 0.77% 40 75000 96.03% 4989 16 0.64% 33 80000 96.67% 5022 17 0.44% 23 85000 97.11 % 5045 18 0.44% 23 90000 97.56% 5068 19 0.23% 12 95000 97.79% 5080 20 0.21% 11 100000 98.00% 5091 21 0.23% 12 105000 98.23% 5103 22 0.19% 10 110000 98.42% 5113 23 0.31% 16 115000 98.73% 5129 24 0.06% 3 120000 98.79% 5132 25 0.13% 7 125000 98.92% 5139 26 0.10% 5 130000 99.02% 5144 27 0.08% 4 135000 99.10% 5148 28 0.15% 8 140000 99.25% 5156 29 0.08% 4 145000 99.33% 5160 30 0.10% 5 150000 99.42% 5165 31 0.04% 2 155000 99.46% 5167 32 0.04% 2 170000 99.50% 5169 33 0.06% 3 175000 99.56% 5172 34 0.06% 3 180000 99.62% 5175 35 0.06% 3 185000 99.67% 5178 36 0.02% 1 195000 99.69% 5179 37 0.02% 1 205000 99.71% 5180 38 0.04% 2 210000 99.75% 5182 39 0.02% 1 220000 99.77% 5183 40 0.02% 1 240000 99.79% 5184 41 0.02% 1 245000 99.81% 5185 42 0.02% 1 260000 99.83% 5186 43 0.02% 1 265000 99.85% 5187 44 0.02% 1 295000 99.87% 5188 45 0.02% 1 305000 99.88% 5189 46 0.04% 2 315000 99.92% 5191 47 0.02% 1 335000 99.94% 5192 48 0.02% 1 360000 99.96% 5193 49 0.02% 1 370000 99.98% 5194 --- 50 0.02% 1 455000 100.00% 5195 100.00% 5195 1001 01 water usage.xls r 6:08 PM 10/7/02 1001 02 water usage.xls CITY OF PRIOR LAKE RECAP OF CUSTOMERS AND WATER USAGE USAGE FROM 10/01/02 BILLING 2002 #OF WATER ACCUM OF PERCENTAGE CUSTOMERS USAGE ACCUM OF % CUST 1 14.35% 839 5000 14.35% 839 2 18.63% 1089 10000 32.98% 1928 3 19.67% 1150 15000 52.65% 3078 4 14.06% 822 20000 66.71% 3900 5 9.19% 537 25000 75.90% 4437 6 5.73% 335 30000 81.63% 4772 7 3.85% 225 35000 85.48% 4997 8 2.94% 172 40000 88.42% 5169 9 2.21% 129 45000 90.63% 5298 10 1.85% 108 50000 92.47% 5406 11 1.56% 91 55000 94.03% 5497 12 1.13% 66 60000 95.16% 5563 13 0.75% 44 65000 95.91% 5607 14 0.82% 48 70000 96.73% 5655 15 0.74% 43 75000 97.47% 5698 16 0.58% 34 80000 98.05% 5732 17 0.22% 13 85000 98.27% 5745 18 0.31% 18 90000 98.58% 5763 19 0.17% 10 95000 98.75% 5773 20 0.33% 19 100000 99.08% 5792 21 0.12% 7 105000 99.20% 5799 22 0.09% 5 110000 99.28% 5804 23 0.07% 4 115000 99.35% 5808 24 0.05% 3 120000 99.40% 5811 25 0.05% 3 125000 99.45% 5814 26 0.03% 2 135000 99.49% 5816 27 0.07% 4 140000 99.56% 5820 28 0.02% 1 145000 99.57% 5821 29 0.09% 5 150000 99.66% 5826 30 0.02% 1 155000 99.67% 5827 31 0.02% 1 160000 99.69% 5828 32 0.07% 4 165000 99.76% 5832 33 0.02% 1 180000 99.78% 5833 34 0.03% 2 185000 99.81% 5835 35 0.03% 2 190000 99.85% 5837 36 0.02% 1 245000 99.86% 5838 37 0.02% 1 275000 99.88% 5839 38 0.02% 1 410000 99.90% 5840 39 0.02% 1 445000 99.91% 5841 40 0.02% 1 455000 99.93% 5842 41 0.02% 1 470000 99.95% 5843 42 0.02% 1 510000 99.97% 5844 43 0.02% 1 635000 99.98% 5845 44 0.02% 1 750000 100.00% 5846 100.00% 5846 -- 6:08 PM 10/7/02 SEWER CHARGE SURVEY CITY BASIS FOR SEWER CHARGES Apple Valley Winter consumption Burnsville Winter Consumption Chaska Actual usaQe Eagan Winter consumption or current usage (whichever is lower) Eden Prairie Winter consumption Farmington Winter consumption Lakeville Winter consumption Rosemount Actual usage Savage 150% of 3 month average Shakopee Winter consumption .- , 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 SUMMER WATER CONSUMPTION ANALYSIS ACCOUNT NUMBER 347300 349300 347200 323000 497700 382800 325300 338300 127200 400 76400 75200 356900 76600 75400 147300 369400 195300 WINTER - 1 ST HALF OF YEAR TOTALS 59,710 23,480 66,480 13,220 33,316 54,850 46,660 49,280 31 ,1 00 40,500 131,300 25,250 96,240 65,380 25,310 13,200 10,750 29,320 815,346 SUMMER- 2ND HALF OF YEAR TOTALS 60,360 24,000 73,770 12,790 36,880 58,770 64,020 72,680 55,600 167,300 130,900 85,200 120,220 99,640 28,4 70 15,700 42,310 37,950 1,186,560 DIFFERENCE BETWEEN WINTER & SUMMER 650 520 7,290 (430) 3,564 3,920 17,360 23,400 24,500 126,800 (400) 59,950 23,980 34,260 3,160 2,500 31,560 8,630 371,214 45.53% * Customers that utilized either private wells or pumped from the lake for outside lawn sprinkling WATER AND SEWER RATE ADJUSTMENT RATIONALE Water Rates · Existing infrastructure must be maintained. (towers) . Development requires new infrastructure (treatment plant) . Connection fee reallocation. . System Operating costs. . Inability to set aside sufficient funds using 1984 rate. Sewer Rate . MCES rate increasing ($1200 - $1300). . Flows increasing. . System growth. . System maintenance. . 1996 rate is incapable of setting money aside. Tiered Water Rate . 750/0 of Users use less than 500/0 of water. . Top 25% of Users use over 50010 of water. . System doubled in size to meet peak flows. . Tiered rate requires top 250/0 to pay a larger portion of the cost to support the system. ..