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COUNCIL MINUTES FEBRUARY 26, 2001 <br />Sanitary Sewer <br />The City's sewer rates are based on a quarterly charge for REU. An REU is a residential equivalent <br />unit that represents the daily volume required by a typical residential connection. One house equals <br />one REU. Commercial, industrial, and institutional use is converted to REU's based on the volume <br />of flow they generate. <br />The major expenses related to sewer charges include the cost of operating the system, Metropolitan <br />Council charges, and depreciation. Depreciation relates to the cost of replacing the system after it has <br />reached the end of its useful life. <br />The rate computation has assumed a 220 -unit increase in the number of connections on an annual <br />basis. This includes connection by existing houses as well as new construction. However, if this <br />increase does not occur the costs should also be proportionally lower. <br />The current sewer rate is $51.00 per quarter per REU. The proposate increase is as follows: <br />Effective January 1, 2001: <br />Effective January 2, 2001: <br />Effective January 2, 2003: <br />Water <br />$60.00 per quarter <br />$61.00 per quarter <br />$62.00 per quarte <br />The City's water rates are based on a quart- c REU and a charge on water usage. The <br />usage charge is based on 1,000 -gallon u <br />The major expenses related to wat <br />and depreciation. The bond ex <br />Fund. <br />es 1 ude the cost of operating the system, bond expenses, <br />uld be partially offset by a transfer from the Area and Unit <br />The water rate computatio <br />annual basis. In order to sa <br />appropriation (pumping) the <br />mes a 220 -unit increase in the number of connections on an <br />fy t e Department of Natural Resources concerns regarding water <br />oposed rate structure increases the rate per gallon for heavier water <br />use. This also keeps the base rate for the lower water users very close to the existing level. <br />The current water rate is $10.00 per quarter per REU and $1.63 per 1,000 gallons. The proposed <br />water rate increase is as follows: <br />Effective January 2, 2001, through December 31, 2003: <br />Water Usage Rates: <br />$1.77 per 1,000 gallons 0 to 30,000 gallons <br />$2.07 per 1,000 gallons all water use above 30,000 gallons <br />2 <br />