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<br /> <br />The overall annual impact of the recommended rates for a residential customer at <br />each of the five tier level ranges from $28.77 to $31.78 as detailed below: <br /> <br />The Water/Sewer Utility fund summary budget is attached as Exhibit A. <br /> <br />Lastly a long range Utility revenues plan is attached as Exhibit B. The plan addresses a <br />2018 strategic plan goal to develop long term revenue planning. The rates are being <br />managed to begin supporting capital needs of the water and sewer operations. The <br />current plan projects that support to begin in 2022 with a transfer to Utilities <br />Infrastructure fund. <br />The plan includes assumptions regarding future City costs and MCES treatment costs. It <br />also factors in the retirement of water /sewer bonds occurring in 2024. A minimum cash <br />balance was established to recognize that the quarterly billing and collection process is <br />recovering 90-120 days of prior cash outlays. No growth in accounts or usage was <br />factored in the projection. Real growth will be noted annually through the process of <br />updating the base year results. With these factors in place the phase-in of the flat fee <br />and usage rate adjustments were determined. Staff believes the model will help guide <br />year to year rate increases while being flexible enough to keep the annual increases <br />reasonable for utility customers. <br /> <br />Staff is recommending the approval of the rate adjustments as proposed. <br /> <br /> <br /> <br />Tier Level 1st ‐7,500 2nd ‐15,000 3rd ‐22,000 4th ‐30,000 5th‐ 37,500 <br />Distribution                <br />(1st Qrt. 2017)29% 48% 18% 3% 3% <br />2018 Proposed 86.74               146.20            208.03            273.79            347.36             <br />2017 Actual 79.55               138.73            200.30            265.85            339.48             <br />Quarterly Increase 7.19                 7.47                 7.73                 7.94                 7.88                  <br />Annual Increase 28.77               29.89               30.91               31.78               31.52                <br />20