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The water rate computation also assumes a 220 unit increase in the number of <br />connections on an annual basis. In order to satisfy the Department of Natural <br />Resources concerns regarding water appropriation (pumping) the proposed rate <br />structure increases the rate per gallons for heavier water use. This also keeps <br />the base rate for the lower water users very close to the existing level. <br />Our current water rate is $10.00 per quarter per REU and $1.63 per 1,000 <br />gallons. The proposed water rate increase is as follows: <br />Effective January 1, 2001, through December 31, 2003: <br />Water Usage Rates: <br />$1.70 per 1,000 gallons <br />$2.05 per 1,000 gallons <br />$2.40 per 1,000 gallons <br />0 to 10,000 gallons <br />10,000 gallons to 30,000 gallons <br />all water use above 30,000 gallons <br />Water User Fee: $10.00 per quarter per REU <br />OPTIONS: <br />Assuming the public hearing has been closed, the City Council has the following <br />options, <br />1. Adopt Resolution No. 01 -05 setting the sanitary sewer rates for 2001 -2003 <br />and adopt Resolution No. 01 -19 setting the water rates for 2001 -2003. <br />(Separate motion and vote for each resolution) <br />2. Adopt one resolution but not the other. <br />3. Refer to staff for further review. <br />RECOMMENDATION: <br />Option No. 1 - Staff recommends adopting both resolutions. <br />• <br />