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• The option staff feels is best consists of implementing a minimum charge of $43.64 that <br />covers users up to 8,000 gallons, and then keeping our per gallons charge at $3.58 per 1000 <br />for an amount over 8,000 gallons plus the minimum charge. This generates additional <br />revenue of about $65,500. It also reduces minimum charges by 13% for lower volume <br />accounts. The downside is that a 15,000 gallon user would see a 37% increase in their <br />quarterly bill that equates to $18.70. That percentage increase drops by about 2% per <br />1,000 gallons of increased usage that eventually hits single digits. While this impact is large <br />from a percentage standpoint, the number of single family residential customers impacted is <br />less than 400 out of almost 2000 single family accounts. It should be noted that if we agree <br />that lower volume users were paying too much, that means others users were effectively <br />paying too little. This accounts for the swing in the percentage impact. <br /> <br />Therefore, the issue is do we keep the minimum the same and keep the impact to other customers <br />at a lower level or do we try to make the rates more equitable but cause larger increases from some <br />customers. We have attached sewer rate comparison sheets for 6,000; 10,000; and 15,000 gallons <br />of usage so you can see how things stack up. When looking at the 15,000 gallon impact of 37%, <br />you will see we are still very competitive in a comparison to other cities for sewer costs at that <br />level. <br /> <br />Summary <br /> <br />Based on the above Staff is recommending that the 2016 utility rates be modified as follows: <br /> <br /> <br /> 2015 2016 % Change <br />Sewer Base Fee (included N/A $15.00 N/A (Impact varies by usage level) <br /> in Minimum for 2016) <br /> <br /> <br /> <br /> <br /> <br />Sewer Minimum $50.00 $43.64 -13 (Drops from 15,000 to 8,000) <br />*Sewer Use Rate per 1,000 $3.58 $3.58 0.0 <br />(Based upon water usage) <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br />Sewer Only (private wells) $50.00 $50.00 0.0 <br /> Sewer Only (on city system $50.00 $55.00 10.00 <br /> but no meter reading) <br /> <br />Water Winter Rate per 1,000 $3.20 $3.30 3.00 <br />Water Summer Rate per 1,000 $3.31 $3.41 3.00 <br />Water Service Fee $12.60 $12.60 0.0 <br /> <br /> * Sewer usage for < 8 residential units will be based upon winter quarter water usage. <br />Sewer usage for >8 residential units and all remaining accounts will be based upon each respective <br />quarter’s water usage. <br />9