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• FEES COLLECTED FROM STATE FAIR AND UNIVERSITY OF MINNESOTA BASED UPON $0 .010325 PER CU/FT WATE 2004 2003 2002 State Fair 35,904 35,736 32,925 U of M 137,525 177,799 155 860 (variability year to year) 173,429 213,535 188,785 Total Chrg for Svcs: 35.9% 40.4% 35.3% Since there are no sewage flow meters for the area of the city where the State Fair and U of M are located, the sanitary sewer charge is calculated on the water meter readings. Deducts are calculated by MCES for summer irrigation activities at the U of M. Also, there are actual meter readings for the deducts for the chiller air conditioning units on the U of M Campus The State Fair also has actual meter readings for deducts during the State Fair. An increase in the fee for commercial/industrial would increase the charges to the State Fair and U of M Campus by: 5% 8,671 6% 10,406 7% 12,140 • 8% 9% 13,874 15,609 10% 17,343 11 % 19,077 12% 20,811 13% 22,546 14% 24,280 15% 26,014 16% 27,749 Recommendation: Staff recommends raising the Storm Drainage Fee to $8.00 per quarter ($32.00/year). Further, we recommend a modest increase of $4.00 to the Sanitary Sewer Fee, bringing it up to $39.00 per quarter ($156.00/year). For commercial accounts, including the State Fair, U of M, and other businesses, we recommend increasing the fee by at least 5% to 10% for 2006. Then reevaluate the next two years. These changes will ensure that the city does not experience a loss in either fund, thereby compromising our bond rating, and making it difficult for the city to make needed or unanticipated improvements to the storm or sanitary system. Additionally, they will be more in line with actual operating costs, and the operating costs of other cities, without our fees being out of step with those • cities.