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Conclusions and Recommendations 48 <br /> <br /> City of Lino Lakes, Minnesota – Water and Sewer Rate Study Update <br /> <br />Future projections indicate rates may need to be increased by 2.00% <br />annually 2014 - 2017. <br /> <br />Scenario 2 – One Rate for Each Customer Class <br />In Scenario 2, the rate for each r esidential, non-residential, and non- <br />residential irrigation customer is assumed to be the rate which provides for <br />residential customers generating 77% of total revenues, non-residential <br />accounts generating 10% of annual revenu es, and non-residential irrigation <br />accounts generating 13% of total revenues, as is currently the case. The <br />proposed rates are: <br /> <br /> <br /> <br /> <br /> <br />As in the first scenario, these volumetri c rates would need to be increased <br />by 2.0% annually 2014-2017. <br /> <br />Scenario 3 –Uniform Rate for All Use/All Users <br />Scenario 3 assumes one rate for all use of all users. The 2013 rate for all <br />users; residential, non-residential, and non-residential irrigation customers is <br />recommended to be $2.16 per 1,000 gallons to meet revenue requirements. <br /> <br />A uniform rate structure is estimated to alter the total revenues generated <br />from each customer class as follows: <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br />As in the first two scenarios, these volumetric rates would need to be <br />increased by 2.0% annually 2014-2017. <br /> <br />Scenario 4 –Revised Block Rate Structure <br />The final option reviewed is to keep a block rate structure, whereby the <br />price of water increases with volume consumed, but reduce the number of <br />blocks from five to three for residential and from three to two for non- <br />residential and non-residential irrigati on. The following block rate structure <br />is proposed in order to meet revenue requirements: <br />Non-Residential Irrigation Rates <br /> <br />2012 <br />Rate per 1,000 <br />Gallons <br />2013 <br />Rate per 1,000 <br />Gallons <br />0 - 40,000 gallons $2.50 $2.55 <br />40,001 – 80,000 gallons $3.00 $3.06 <br />Over 80,000 gallons $3.50 $3.57 <br /> Residential Non-Residential Non-Residential <br />Irrigation <br />2013 $2.02 $2.21 $3.40 <br /> <br />Residential Non- <br />Residential <br />Non- <br />Residential <br />Irrigation <br />Current Rates 77% 10% 13% <br />Proposed Rate 82% 10% 8%