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Water Utility <br />28 <br />Scenario 4 – Revised Block Rate Structure <br />One final option we reviewed is to keep a block rate structure, whereby the <br />price of water increases with volume consumed, but reduce the nu <br />blocks from five to three for residential and from three to two <br />residential and non-residential irrigation. The following block rate structure is <br />proposed in order to meet revenue requirements: <br />Proposed 2013 Residential Rates <br /> Residential <br />0 Î 30,000 gallons $1.89 <br />30,001 Î 50,000 $2.09 <br />> 50,000 $2.91 <br />Based on this rate structure, 95% of residential accounts would fall into the first <br />tier and 99.3% in the first two tiers (based on 2010 and 2011 wi <br />consumption records). <br />ResidentialAccountsbyTier <br />winteraverage(20102011) <br />z;© <br /> <br />z;© <br /> uV <br /> u <br />V <br />z;© <br /> <br />u V <br />Proposed 2013 Non-Residential Rates <br /> Non-Residential <br />0 Î 50,000 gallons $2.04 <br />> 50,000 $2.30 <br />Proposed 2013 Non-Residential Irrigation Rates <br /> Non-Residential Irrigation <br />0 Î 50,000 gallons $2.55 <br />> 50,000 $3.57 <br />Our proposed rates along with 2.0% increases in these rates 2014 <br />depreciation could be funded while maintaining recommended reserve levels. <br />The financial projections are shown on the following page. <br />City of Lino Lakes, Minnesota – Water and Sewer Rate Study Update <br /> <br />