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Conclusions and Recommendations 48 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 proposed rates are: Non-Residential Residential Non-Residential Irrigation 2013 $2.02 $2.21 $3.40 As in the first scenario, these volumetric rates would need to be increased by 2.0% annually 2014-2017. Scenario 3 –Uniform Rate for All Use/All Users Scenario 3 assumes one rate for all use of all users. The 2013 users; residential, non-residential, and non-residential irrigat recommended to be $2.16 per 1,000 gallons to meet revenue requirements. A uniform rate structure is estimated to alter the total revenue from each customer class as follows: Non- Non- Residential Residential Residential Irrigation Current Rates 77% 10% 13% Proposed Rate 82% 10% 8% As in the first two scenarios, these volumetric rates would need to be increased by 2.0% annually 2014-2017. Scenario 4 –Revised Block Rate Structure The final option reviewed is to keep a block rate structure, whe price of water increases with volume consumed, but reduce the nu blocks from five to three for residential and from three to two residential and non-residential irrigation. The following block rate structure is proposed in order to meet revenue requirements: City of Lino Lakes, Minnesota – Water and Sewer Rate Study Update