03-22-1995 Council Agenda - Laserfiche WebLink

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Mayor & City Council March 17, 1995 Page 2 changes ranging from 0% to 28 %. High volume residential accounts will see a dramatic percentage increase (up to 251 %). However, the argument can be made that these accounts are in fact being subsidized by other users of the system and should have been paying more all along. This proposal results in 55% of our residential accounts having no increase in their sewer charges, 22% having an increase of 15% or less, 11% having an increase of between 15% to 43 %, 8% having an increase of between 43% to 100 %, and 4% having an increase of greater than 100 %. It should be noted that the average residential sewer usage based on this analysis equals 16,187 gallons. The median usage is estimated at approximately 17,000 gallons per quarter. At the last meeting, a question was also raised regarding a flat charge for residential customers verses a volume based charge. The day after that meeting, a survey from the MCWWS was received which reviewed 1994 sewer charges to residential customers in Twin Cities jurisdictions. Of 104 accounts, only 40 had flat rates. The rest had some provision for volume charges. The other major change in this proposal relates to multiple family dwelling units. In thinking about this matter further, I have recommended that we maintain a minimum charge equal to their current rate (70% x $37.50 per dwelling unit) This provision is consistent with the minimum charge imposed to residential and commercial accounts. The application of a minimum seems appropriate in order that they are still paying their fair share of system costs. In those cases, the rate increase is 0% under this proposal. The specific rate structure is included on the bottom of the spreadsheet information. It is my recommendation that we adopt it as proposed. JRH:kpv Enclosure Page 68