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The recommendation’s impact on 2017 billings is reflected below: Sewer Rates: Within the Sewer fund there also exists two primary operating functions. These functions are the treatment of sanitary sewer flow and the collection system for sanitary sewer flow. The Sewer Fund expenditures have been categorized by collection system costs and the sanitary sewer treatment costs. Metropolitan Council Environmental Services (MCES) provides the sanitary sewer treatment process. The costs associated with the maintenance of the collection system, billing and administrative support make up the collection system costs. Treatment costs are considered to be substantially driven by flow volumes while overall collection costs were considered to be 21% related to usage. The remaining distribution costs correlate to common infrastructure maintenance needs and customer service. The balance of collection costs are not impacted by flow volumes. The table below summarizes the amounts of sewer operating expense and depreciation expense assigned as treatment costs or collection costs. Again at this juncture, there is the opportunity to align revenue sources with corresponding costs. Similarly, this involves establishing a flat rate fee to cover the Modified Structure 2017 Tier Rates 3.10 3.10 3.27 3.59 4.12 5.17 2017 Usage levels 4,600 7,500 15,000 22,500 30,000 37,500 Flat Fee 3.35 3.35 3.35 3.35 3.35 3.35 Usage Charge 14.26 23.25 49.05 80.78 123.60 193.88 2017 Billing 17.61 26.60 52.40 84.13 126.95 197.23 2016 Billing 23.25 23.25 49.05 80.78 123.60 193.88 DIFFERENCE (5.64) 3.35 3.35 3.35 3.35 3.35 % of Accounts within Tier 46% 16% 3%2%32% COLLECTION COSTS 366,519 35% 104,755 70% 471,274 40% TREATMENT COSTS 668,218 65% 44,895 30% 713,113 60% 1,034,737 100% 149,650 100% 1,184,387 100% OVERALLDEPRECIATION OPERATING 25