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To provide options to the city on how to generate more in Fees or how to spread the percent of revenue more evenly or more weighted to commercial, we kept residential at the median metro Fee but changed commercial rates as follows: 1. Option 2 - All commercial accounts are double the median Fee; and 2. Option 3 - Small commercial are at the high end of the metro Fee and Large commercial is $10 more than double the metro median Fee in option 2 As shown in the table, Option 2 results in approximately $218,000 more in annual revenue (total of $845,000) and shifts the burden to be approximately a 50/50 split between residential and commercial (can be modified to show actual 50/50). Option 3 results in approximately $389,000 more in annual revenue (total of $1.015M) and shifts the burden to be approximately a 40/60 split between residential and commercial. We understand the city may be making improvements to facilities for both police and fire to accommodate current needs of those departments. The estimated cost is approximately $21 million and will be refined as the City Council and staff move further along in the process of determining options and scope for the project. To pay for the proposed project, the city will need to issue bonds due to the cost. We prepared a preliminary bond run and assumed that payments would be made over a 20-year period, which is a typical term for city facilities. Based upon today’s borrowing rates, it is estimated that 100% of annual debt service would be approximately $1.5 million. The city could implement the Fee to offset a tax levy requirement to pay for the improvements. There is no guidebook and thus no right or wrong way to determine a Fee, it is up to each city based upon their needs. Overall, the Fees shown in the three (3) scenarios fall within the median or within the max range of Fees charged by other cities in the metro area. The City can choose whatever percent of revenue (more or less than shown in the tables) it deems appropriate for the Fee based upon user type and we can update our analysis accordingly. Monthly Flat Fee X 2 Utilities (Xcel / Center Pt.)Annual Payment Annual Revenue Difference From Option 1 % of Revenue Residential 4.00$ 8.00$ 96.00$ 408,768.00$ -$ 40% Small C&I – Non-Demand 28.00$ 56.00$ 672.00$ 140,448.00$ 110,352.00$ Small C&I – Demand 80.00$ 160.00$ 1,920.00$ 278,400.00$ 180,960.00$ Large C&I 280.00$ 560.00$ 6,720.00$ 188,160.00$ 97,440.00$ TOTAL 1,015,776.00$ 388,752.00$ 100% User Type 60% Option 3 - Residential at $4 Small C/I at Metro High and Large C/I at double Metro Median + $10 to get to 60%