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Memo City Council Water Rates and Meter Charge Discussion 2 Total Residential_Accounts _ _ J ___� _ ;___ 2,426 �Accounts below 5,000 � „341 _ �_. _ _ �Accounts below 10,000 __� 764( _ _ _ __ _ _?__.._Subtotal __. �� _. �._.�.___�__ _� 1,105 1 Accounts over 10, 000 � 1, 321 This shows that 46% of our accounts in this last billing period were under 10,000. When we did this analysis last summer it showed on a yearly average that 35% of our users were under 10,000. Using the December figures, giving a$2.00 discount would amount to about $8,840 a year and the actual staff cost involved in implementing this would be $2,091 a year totaling $10,931. Staff does not recommend this option as we do not feel this would solve the complaints that we are currently hearing and it would increase staff workloads and the ability to get the statements out on time. Adjustin��the Meter Cha�e and change to chargin for all water used One of the biggest complaints we have received is that "we are paying for water we do not use." A way to correct this would be to charge for all water used and to adjust the meter charge. Staff has done a number of calculations and has attached a proposal that seems to address this concern while still keeping our conservation rate system in place. This option reduces the meter charge by $4.08 which (using December numbers) would reduce revenues far fixed costs (meter charges) by $39,592 a year, but would generate $55,722 more in revenues for variable costs (water usage). Of course this variable revenue could vary from quarter-quarter depending upon the type of year we have and how many snow birds we have. It would, however, achieve the objective of everyone paying for the water they use and reasonably keep our fxed costs covered with minimal impacts to the customer. This option would not be labor intensive to our staff and would only require that we change the tiers in the system. Based on the analysis that have been run by staff, to do any further configurations will require an in- depth rate study to look at the total revenues generated, total consumption, and needs of the funds. Council Direction: Discussion on how Council would like staff to proceed.