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• <br />• <br />• <br />• <br />• <br />a <br />• <br />• <br />• <br />• <br />Water Utility <br />16 <br />This results in a Water Availability Charge of approximately $3,530 for a <br />residential customer. As discussed earlier we recommend the Water <br />Availability Charge for other customer types be determined in the same manner <br />currently practiced. <br />It is important for the City to understand that while availability charges provide <br />a valuable source of revenue for the utilities, they can be much more volatile <br />than user fee revenue related to actual sales. Water availability charges are <br />dependent on local economic conditions and will rise and fall accordingly. <br />However, the fixed costs associated with debt issued to finance the necessary <br />capital improvements will need to be paid regardless of how much revenue is <br />collected. To minimize this risk, we have recommended the City maintain an <br />adequate level of cash reserves that include one year of debt service. <br />The water meter charge and water connection fee were determined to be <br />sufficient at this time. <br />1 <br />Water Customer The projection of new residential water connections is based on those used in <br />Growth Projections TKDA's Water Treatment Plant Feasibility Study. The projected number of <br />• <br />• <br />• <br />• <br />• <br />• <br />• <br />• <br />• <br />• <br />• <br />• <br />• <br />• <br />• <br />• <br />• <br />Springsted <br />added connections through capacity of the water treatment plant is shown <br />below. <br />City of Lino Lakes, Minnesota. Water and Sewer Study <br />Population <br />New Units <br />Projections <br />Change <br />per Year <br />2006 <br />20,290 <br />2010 <br />21,500 <br />1,210 <br />101 <br />2020 <br />26,500 <br />5,000 <br />167 <br />2030 <br />31,000 <br />4,500 <br />150 <br />ultimate <br />42,000 <br />11,000 <br />147 <br />City of Lino Lakes, Minnesota. Water and Sewer Study <br />