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Executive Summary 2 3.The current Water Availability/Trunk Charge of $3,854 is adequate to fund projected capital costs through our planning period of 2022 However, should growth be expedited and the need for the new wat treatment plant currently projected for 2025 be moved up, we rec the City revisit this charge to include the capital and associated borrowing costs of this large capital expenditure. 4.Water user rates should be set to encourage demand reduction as provide for simplicity in understanding. After analyzing curren historical consumption patterns, we have provided four scenarios for water rates. They are: Scenario 1 – Keep Current Block Structure and Adjust Rates 2012 2013 Residential Rates Rate per 1,000 Rate per 1,000 GallonsGallons Flat Fee of $10 per Residential Equivalent Unit (REU) Same 0 - 20,000 gallons $1.80 $1.84 20,001 40,000 gallons $2.00 $2.04 – 40,001 80,000 gallons $2.50 $2.55 – 80,001 120,000 gallons $3.00 $3.06 – Over 120,000 gallons $3.50 $3.57 2012 2013 Non-Residential Rates Rate per 1,000 Rate per 1,000 GallonsGallons Flat Fee of $10 per Residential Equivalent Unit (REU) Same 0 - 20,000 gallons $1.80 $1.84 20,001 40,000 gallons $2.00 $2.04 – Over 40,000 gallons $2.25 $2.30 2012 2013 Non-Residential Irrigation Rates Rate per 1,000 Rate per 1,000 GallonsGallons 0 - 40,000 gallons $2.50 $2.55 40,001 80,000 gallons $3.00 $3.06 – Over 80,000 gallons $3.50 $3.57 Future projections indicate rates may need to be increased by 2. annually 2014 - 2017. Scenario 2 – One Rate for Each Customer Class In Scenario 2, the rate for each residential, non-residential, and non- residential irrigation customer is assumed to be the rate which residential customers generating 77% of total revenues, non-residential accounts generating 10% of annual revenues, and non-residential irrigation accounts generating 13% of total revenues, as is currently the c City of Lino Lakes, Minnesota – Water and Sewer Rate Study Update