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Justification Report Utility Connection Fees City of Lino Lakes, MN WSB Project No. 2988-26 Page 11 5.4 New Commercial – Example Two This example outlines the calculations to determine the fees charged to new development 15 acres in size. In contrast to the previous example, the number of units estimated during preliminary plat is lower than the actual SAC units calculated by usage prior to connection to the system. This example is in place to demonstrate that 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 high when a low- volume user develops a large parcel. Utility Units Fee Per Unit Total Sewer Trunk Fee 44 $1,505 $66,220 Water Trunk Fee 44 $2,162 $95,128 Sewer Availability Charge 51 $1,408 $71,808 Water Availability Charge 51 $1,360 $69,360 Total $302,516 Existing Fee Structure $364,242 Difference -$61,726 5.5 Commercial Use Change This example demonstrates the calculations to determine the fees charged to a commercial use change. The only charge assessed is the Availability Charge based on the increase in usage. In this example, the SAC units increase from three units to six units. The trunk fee is not charged because the water distribution and sewage collection systems are already in place. Utility Increase in Units Fee Per Unit Total Sewer Availability Charge 3 $1,408 $4,224 Water Availability Charge 3 $1,360 $4,080 Total $8,304 Existing Fee Structure $21,426 Difference -$13,122 In this example, infrastructure has already been extended to the property. Therefore, the new user pays for the value received from the system, but is not expected to pay for infrastructure expansion, which is paid for by new users. If the commercial use change requires infrastructure upgrades, the City will work with the property owner on a case-by-case basis to determine an appropriate Trunk Fee.