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<br /> Sewer Fund (#602) accounts for the operations of sewage disposal and for the <br />ongoing maintenance and replacement of existing infrastructure. The major <br />expenditure for this fund is the charge paid to Metropolitan Council <br />Environmental Services for sewage treatment. <br />o Funding is provided by sewer base and usage rates <br /> <br /> Area and Unit Charge Fund (#406) accounts for new water and sewer <br />infrastructure. <br />o Funding is provided by water base rates and utility connection fees <br /> <br />The City Council has established that the cost of deprecation be include in its rates to <br />provide for the maintenance and eventual replacement of system infrastructure. The cash <br />balance of each fund reflects the accumulation of resources for this purpose. <br /> <br />Water Rate Structure <br /> <br />The City’s water rate structure is a conservation rate structure. To conserve groundwater, <br />municipal water utilities serving more than 1,000 people must include a “conservation <br />rate structure” or a uniform rate structure combined with other ways to reduce demand <br />for water before requesting approval from the commissioner of Health to construct a <br />public water supply well or requesting an increase in the authorized volume of water <br />appropriation. <br /> <br />The City looked at uniform rate structures in the 2013 Utility Rate Study (attached), but <br />elected to stay with the conservation rate structure. Cities must include an explanation of <br />their conservation rate structure in their water supply plan. Public water suppliers serving <br />more than 1,000 people must update their water supply plan and, upon notification, <br />submit it to the Department of Natural Resources commissioner for approval every 10 <br />years. <br /> <br />Sewer Rate Structure <br /> <br />The City’s metered sewer rate includes a base fee plus a usage fee based on winter <br />averaging. Winter averaging is a billing method developed to give you the best possible <br />break on sewer billing costs. This method takes the water consumption used in the winter <br />quarter as the basis for billing sewer charges throughout the year. Customers will not be <br />paying additional sewer charges for warm weather purposes such as watering lawns, <br />washing cars, landscaping, gardening, or filling pools. <br /> <br />Utility Rate Study Consultant <br /> <br />The City received eight proposals from firms to complete the Utility Rate Study. Staff <br />evaluated the firms on a variety of criteria including cost, project schedule, credentials, <br />experience, references, and experience with Minnesota cities. A list of each firm and the <br />cost proposed is included below: <br /> <br /> <br />