Laserfiche WebLink
Executive Summary 2 <br /> <br /> City of Lino Lakes, Minnesota – Water and Sewer Rate Study Update <br />3. The current Water Availability/Trunk Charge of $3,854 is adequate to <br />fund projected capital costs through our planning period of 2022. <br />However, should growth be expedited and the need for the new water <br />treatment plant currently projected for 2025 be moved up, we recommend <br />the City revisit this charge to in clude the capital and associated borrowing <br />costs of this large capital expenditure. <br />4. Water user rates should be set to encourage demand reduction as well as <br />provide for simplicity in understanding. After analyzing current and <br />historical consumption patterns, we have provided four scenarios for <br />water rates. They are: <br /> <br />Scenario 1 – Keep Current Block Structure and Adjust Rates <br /> <br />Residential Rates <br /> <br />2012 <br />Rate per 1,000 <br />Gallons <br />2013 <br />Rate per 1,000 <br />Gallons <br />Flat Fee of $10 per Residential Equivalent Unit (REU) Same <br />0 - 20,000 gallons $1.80 $1.84 <br />20,001 – 40,000 gallons $2.00 $2.04 <br />40,001 – 80,000 gallons $2.50 $2.55 <br />80,001 – 120,000 gallons $3.00 $3.06 <br />Over 120,000 gallons $3.50 $3.57 <br /> <br /> <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. <br /> <br />Non-Residential Rates <br /> <br />2012 <br />Rate per 1,000 <br />Gallons <br />2013 <br />Rate per 1,000 <br />Gallons <br />Flat Fee of $10 per Residential Equivalent Unit (REU) Same <br />0 - 20,000 gallons $1.80 $1.84 <br />20,001 – 40,000 gallons $2.00 $2.04 <br />Over 40,000 gallons $2.25 $2.30 <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