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<br />TO: MARK CASEY, CITY MANAGER <br />FROM: SHELLY RUECKERT, FINANCE DIRECTOR <br />SUBJECT: 2020 UTILITY RATES <br />DATE: OCTOBER 1, 2019 <br /> <br /> <br /> <br />The utility rates recommended herein for 2020 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 2020 budgeted water costs <br />are comprised of $652,178 in fixed costs and $776,963 in usage driven costs, see table <br />below: <br /> <br /> OPERATING DEPRECIATION OVERALL <br />FIXED 459,773 41% 192,405 63% 652,178 46% <br />USAGE 663,963 59% 113,000 37% 776,963 54% <br /> 1,123,736 100% 279,182 100% 1,294,945 100% <br /> <br /> <br /> <br /> <br /> <br />33