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Justification Report Utility Connection Fees City of Lino Lakes, MN WSB Project No. 2988-26 Page 9 The current trunk fee calculation only accounts for growth within the 2030 Urban Service Area. To serve areas of the City that are currently outside of the City’s 2030 MUSA, the trunk sewer collection and water distribution systems will need to be extended. Trunk facilities will include the construction of additional trunk mains, lift stations, and water supply and storage. Piping, lift station, supply, and storage requirements will be dependent on the expected population and land use of the areas. Costs to construct the trunk facilities outside of the 2030 MUSA will be evaluated when service is extended. It is recommended that this study be updated every five years, with incremental increases annually based on inflation. 4.3 Sewer/Water Availability Charge The SAC/WAC charges were based on the 2016 value of the existing sanitary sewer and water systems. Values of each system were taken from the depreciation schedules supplied from the Finance Department which are calculated on an annual basis. The 2016 value of the existing sanitary sewer and water systems are $23,064,159 and $22,271,449, respectively. The total 2016 values of the sewer and water systems were divided by the total estimated 2030 units to obtain a uniform SAC/WAC charge per unit. The calculated SAC charge per SAC unit is approximately $1,408 and the calculated WAC charge per SAC unit is approximately $1,360. 4.4. Nonresidential Fee Determination The fee charged to non-residential developments is based on acreage and SAC determination. At the time of plat, an estimate of 2.92 units per acre is assigned to the development. This number is based on the assumption that an average commercial or industrial building will use 800 gallons per acre per day. Metropolitan Council guidance recommends an assumption of 274 gallons per day per residential unit. Therefore, a residential equivalence of 800 gallons per day, divided by 274 gallons per per unit, results in the assigned value of 2.92 units per acre for non-residential development for the determination of the Trunk Fee. At the time of connection, non-residential developments are charged the SAC and WAC fee based on actual usage type. The fees assigned are determined based on the Metropolitan Council’s SAC Procedural Manual, which provides estimates for a wide variety of commercial, industrial, and institutional uses. Depending on the ultimate use, the proposed fees can be either lower or higher than the existing fees. Overall, commercial fees will be lower than existing when high-use commercial development goes into a small parcel or when the assumed usage based on density is close to the actual usage; fees will be higher when a low-volume user develops a large parcel.