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<br />IV. <br /> <br />CITY OF ARDEN HILLS, MINNESOTA <br />RATE STUDY <br />SEPTEMBER 9, 2004 <br /> <br />SANITARY SEWER RATE STUDY - CONTINUED <br /> <br />Rate scenario 3 uses the following increases to arrive at the cash flow described above. 'The senior and commercial <br />usage rates would increase at the same percentage: <br /> <br /> Dollar Rate <br /> Increase Per Percent <br />Year Category Rate Quarter Increase <br />2004 Base $ 50.95 $ 0% <br />2005 Base 58.59 15.29 15% <br />2006 Base 61.52 3.31 5% <br />2007 Base 64.60 3.47 5% <br />2008 Base 67.83 3.66 5% <br />2009 Base 69.86 2.30 3% <br /> <br />J <br /> <br />. <br /> <br />This rate scenario would result in Arden Hills having the third highest sewer rate of the 1 I cities presented. Currently <br />Arden Hills has the sixth highest of I I. This scenario would allow the City to finish the projection period with a cash <br />reserve at nearly the same level as December 31,2003 while paying for $1,362,700 of projected project costs. <br /> <br />Rate scenario 4 incorporates a usage component for non-senior residential customers that use more than 15,000 gallons <br />per quarter in the winter quarter. The senior and commercial usage rates would increase only 15 percent in the fust year <br />and tben would be adjusted in subsequent years. As mentioned previously, the top 955 accounts average 24,000 gallons <br />in the winter quarter. This would result in the higher users paying $25 on average more per quarter than those that use <br />under the base. The rates and increases would be as follows: <br /> <br />Year <br /> <br />2004 <br /> <br />2005 <br /> <br />2006 <br /> <br />2007 <br /> <br />2008 <br /> <br />2009 <br /> <br /> Percent <br />Category Rate Increase <br />Senior $ 33.95 0% <br />Residential base 50.95 0% <br />Residential usage 0% <br />Commercial usage 2.63 0% <br />Senior 39.04 15% <br />Residential base 58.59 15% <br />Residential usage 2.80 0% <br />Commercial usage 3.02 15% <br />Senior 40.99 5% <br />Residential base 61.52 5% <br />Residential usage 2.94 5% <br />Commercial usage 3.18 5% <br />Senior 43.04 5% <br />Residential base 64.60 5% <br />Residential usage 3.09 5% <br />Conunercial usage 3.33 5% <br />Senior 45.20 5% <br />Residential base 67.83 5% <br />Residential usage 3.24 5% <br />Commercial usage 3.50 5% <br />Senior 46.55 3% <br />Residential base 69.86 3% <br />Residential usage 3,34 3% <br />Conunercial usage 3.61 3% <br /> <br />-7- <br /> <br />. <br /> <br />. <br />