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<br />CITY OF ARDEN HILLS, MINNESOTA <br />RATE STUDY <br />SEPTEMBER 9, 2004 <br /> <br />. <br /> <br />VI. <br /> <br />RECOMMENDATIONS <br /> <br />In order to cover the costs of operations with no bondingl the following rates are recommended. <br /> <br />. Water - Rate scenario 3 which results in a 15 percent increase in usage rates beginning 1 SI quarter 2005. <br /> <br />. Sanitary sewer - Rate scenario 4 which adds a usage component for higher residential users beginning 1 st <br />quarter 2005. The base would be set in winter quarter. The resideutial customer would incur a usage fee per <br />1.000 gallous when they exceed 15,000. 1ms structure would result in a 15 percent increase over current rates <br />for all categories and would incorporate the usage fee of $2.80 per 1,000 gallons for residential usage above <br />15,000. <br /> <br />. Surface water - Rate scenario 3 which results in a 100 percent increase in the current rates and adjusts the rates <br />by 3 percent annually beginning I" quarter 2005. <br /> <br />The effect on the bill of a residential customer that uses 15,000 in the winter quarter would be as follows. <br /> <br /> New Rate Old Rate Increase <br />Residential <br />Water $ 37.59 $ 32.25 $ 5.34 <br />Standby 6.00 5.00 1.00 <br />Sanitary sewer 58.59 50.95 7.64 <br />Surface water 8.16 4.08 4.08 <br />Total $ 110.34 $ 92.28 $ 18.06 . <br />The effect on the bill of a commercial customer that uses 120,000 gallons of water per month and has 6 aeres would be <br />as follows: <br /> New Rate Old Rate Increase <br />Connnercial <br />Water $ 296.40 $ 258.00 $ 38.40 <br />Standby 54.00 45.00 9.00 <br />Sanitary sewer 362.40 315.60 46.80 <br />Surface water 104.00 52.00 52.00 <br />Total $ 816.80 $ 670.60 $ 146.20 <br /> <br />In addition we recommend the City implement the annual increases in order to keep pace with inflation. <br /> <br />. <br /> <br />-9- <br />