10/01/2007 Council Packet - Laserfiche WebLink

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• • a • • • • • • • • • 1 • • • 1 • • 1 • 1 • • • • 1 • • Water Utility 19 The corresponding charges /unit were set to generate approximately $1,150,000 in revenues while promoting conservation. The charges /unit also attempts to equalize the impact of the new conservation structure across all users. If consumption patterns remain as they were in 2006, this rate structure is projected to result in more total revenue for the Water Utility Fund. However, because the rates were set to promote conversation and the 2006 consumption patterns reflect use in a year with below - normal rainfall levels (resulting in higher than normal water use), we have assumed consumption to be at 90 percent of 2006 levels. Based on the proposed block rates and charges /unit, the total revenue projected to be collected from each block, at the proposed and current rates is shown below: Volume Used in Proposed Blocks - 2006 LESS 10% Revenue Generated Proposed Block Rates Revenue Generated Current Block Rates Percent of Revenue from Proposed Block Percent of Revenue from Current Block 0 - 15,000 10.31% 27.76 87,013 90,596 7.53% 9.25% 15,001 - 30,000 21.45% 224.16 218,206 188,403 18.88% 19.23% 30,001 - 79,000 29.76% 102.37 339,633 305,670 29.38% 31.19% 79,001 - 499,000 24.59% 6.35% 311,133 252,567 26.92% 25.77% > 499,000 13.89% 201.49 199,887 142,678 17.29% 14.56% Total Volume 100.00% School 1,155,872 979,913 100.00% 100.00% The impact of the proposed rate structure on an average user from each of the City's eight user classes are shown in the chart below: Average Quarterly Use (2005 -2006) Average Use Current Bill* Proposed Bill* Increase $ Increase/ Quarter Residential 27.76 49.14 51.66 5.14% 2.52 Commercial (a) 112.64 224.16 254.73 13.64% 30.57 Industrial 50.05 94.61 102.37 8.20% 7.76 Institutional 28.52 50.04 53.22 6.35% 3.18 Prison 468.74 961.29 1,162.78 20.96% 201.49 Church 32.68 58.64 62.40 6.42% 3.77 School 248.33 505.05 600.75 18.95% 95.70 Irrigation 138.34 277.36 320.26 15.47% 42.90 * Does NOT include $10 /ERU fixed fee, which is deposited into the Area and Unit Charge Fund. (a) Excludes one outlier Springsted A chart comparing the average water bill for a residential user in Lino Lakes and other surrounding cities is shown in Appendix A. The City should establish the user rates for the Water Fund for a three -year period and review them on an annual basis. The rates should be reviewed on an annual basis concurrent with the development of the following year's budget. City of Lino Lakes, Minnesota. Water and Sewer Study