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In a review of the 2015 survey of Metro-area city’s sewer rate structures, like in the case of water rates, the use of rate structure that couples a usage rate with a flat fee or a minimum use charge was fairly common. The survey details are attached as Exhibit E. The tables below summarize the overall 2015 findings and estimated 2017 rates based on 4% increase in annual rates. The SAV billings in tables below are based on the existing vs proposed rate structure. The current recommendation is to modify the rate structure as follows: • Eliminate the use of a Minimum charge. • Phase-in a flat quarterly fee over time. • Usage rate growth decelerates as flat fee is phased-in. The recommended 2017 rates based upon these steps are below: The recommendation’s impact on 2017 billings is reflected below: 2015 Overall Average 37.59 51.82 72.15 96.26 120.07 144.91 SAV (Min +usage)31.43 31.43 62.85 94.28 125.70 157.13 Flat fee only 70.73 70.73 70.73 70.73 70.73 70.73 Flat fee + usage 22.90 48.73 75.80 103.38 130.14 159.60 Min + usage 39.99 46.35 63.11 91.31 119.85 147.38 2017 projected at 4% annual increase 40.66 56.05 78.04 104.12 129.87 156.73 SAV 0.00 33.99 67.98 101.97 135.96 169.95 Flat fee only 76.51 76.51 76.51 76.51 76.51 76.51 Flat fee + usage 24.77 52.70 81.98 111.81 140.76 172.63 Min + usage 43.25 50.13 68.26 98.76 129.63 159.40 2016 2017 Per 1000 gallons Rates Rates $ Increase Sewer Treatment rate 4.38 4.62 0.24 Quarterly flat fee 0.00 3.20 3.20 Modified Structure 32.85 32.85 65.70 98.55 131.40 2017 Usage Rate 4.62 4.62 4.62 4.62 4.62 4.62 2017 Usage levels 4,600 7,500 15,000 22,500 30,000 37,500 Flat Fee 3.20 3.20 3.20 3.20 3.20 3.20 Usage Charge 21.23 34.62 69.23 103.85 138.47 173.09 2017 Billing 24.43 37.82 72.43 107.05 141.67 176.29 2016 Billing 32.85 32.85 65.70 98.55 131.40 164.25 DIFFERENCE (8.42) 4.97 6.73 8.50 10.27 12.04 % of Accounts within Tier 46%16%3%2%32%