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<br />TO: MAYOR AND COUNCIL MEMBERS <br />FROM: SHELLY RUECKERT, FINANCE DIRECTOR <br />SUBJECT: 2021 UTILITY RATES <br />DATE: OCTOBER 22, 2020 <br /> <br /> <br /> <br />The utility rates recommended herein for 2021 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 2021 budgeted water costs <br />are comprised of $739,182 in fixed costs and $928,066 in usage driven costs, see table A <br />summary below: <br /> <br /> OPERATING DEPRECIATION OVERALL <br />FIXED 487,088 42% 252,094 50% 739,182 44% <br />USAGE 674,794 58% 253,272 50% 928,066 56% <br /> 1,161,883 100% 505,366 100% 1,667,249 100% <br /> <br /> <br /> <br /> <br />