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Water Utility 14 Conservation Rate Water utilities have traditionally relied on increased capacity to meet their Structure growing needs for additional water resulting from population growth and economic development. However, utilities are increasingly looking to conservation as an alternative strategy. This change in philosophy is the result of several factors including: Growing competition for limited water supplies; Increasing cost and difficulties in developing new water supplie Increasing cost of capacity expansion; Increasing cost of water treatment and testing; Statutory requirements for increased water supply permits; and Growing public support for the conservation of our natural resources. The City is required to complete a water emergency and conservation plan every 10 years. Included in this plan, the City must explain current and how they will address conservation in the future. The average use per resident in the City in 2007 was 86 gallons per day (gpd). The resident in 2011 was 90 gallons per day. And the average use pe 2012 was 107 gallons per day. The average use in 2012 is reflec relatively dry watering months (July, August, and September). Precipitation in the summer watering months of 2012 were 50% lower than the 29 year average of those same months, most likely prompting residents to water The DNR goal is to achieve an average consumption per user of 75 conservation rate structure was developed to help the City achieve this goal. A conservation rate structure provides a financial incentive for users to reduce demands based upon the general economic theory that demand for a commodity decreases as its price increases. Water conservation rates gene of the types listed below: Increasing block rates where the marginal cost of water to the user increases in blocks of usually two or more steps as water use increases; Flat rate where the cost of water is the same regardless of consumption; and Seasonal pricing where the cost of water consumed during the sea of peak demand is charged at a higher rate than water consumed in the off-peak season. The City currently tracks consumption patterns for the following eight types of users: residential, commercial, industrial, institutional, prison, church, school, and non-residential irrigation. City of Lino Lakes, Minnesota – Water and Sewer Rate Study Update