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<br />TO: MARK CASEY, CITY MANAGER <br />FROM: SHELLY RUECKERT, FINANCE DIRECTOR <br />SUBJECT: 2019 UTILITY RATES <br />DATE: OCTOBER 30, 2018 <br /> <br /> <br /> <br />The utility rates recommended herein for 2019 builds on the multi-year approach <br />towards rate adjustments that began in 2012. The parameters used for adjusting rates <br />are as follows: <br /> <br /> Align revenue sources with corresponding costs <br /> Provide transparency as to the basis of rates and rate adjustments <br /> Maintain a structural balanced operation <br /> Ensure that rates appropriately support the ability to: <br />o Provide safe drinking water <br />o Properly discharge sanitary sewer flows <br />o Appropriately control and treat stormwater runoff <br /> <br /> <br /> <br /> <br />Water Rates: <br /> <br />As part of the annual rate adjustment process the water production and distribution <br />costs are categorized as fixed in nature or usage driven. The 2019 budgeted water costs <br />are comprised of $628,128 in fixed costs and $666,817 in usage driven costs, see table <br />below: <br /> <br />  OPERATING   DEPRECIATION  OVERALL  <br />FIXED  452,243  45%  175,885  63%  628,128  49%  <br />USAGE   563,520  55%  103,297  37%  666,817  51%  <br /> 1,015,763  100%  279,182  100%  1,294,945  100%  <br />  <br /> <br />  <br />  <br />