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TO: MAYOR AND COUNCIL MEMBERS <br />FROM: SHELLY RUECKERT, FINANCE DIRECTOR <br />SUBJECT: 2022 UTILITY RATES <br />DATE: OCTOBER 26, 2021 <br />The utility rates recommended herein for 2022 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 /> 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 />Water Rates: <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 2022 budgeted water costs <br />are comprised of $777,964 in fixed costs and $962,507 in usage driven costs, see Exhibit <br />A’s summary below: <br /> OPERATING DEPRECIATION OVERALL <br />FIXED 504,228 42% 273,735 50% 777,964 45% <br />USAGE 687,492 58% 275,015 50% 962,507 55% <br />1,191,721 100% 548,750 100% 1,740,471 100%