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<br /> <br />EHLERS <br /> <br />LEADERS IN PUBLIC FINANCE <br /> <br />0 To: Sue Iverson <br /> Mark Ruff, Liz Diaz, Jon North <br />~ From: <br />W Date: 11/15/07 <br />~ Subject: Policy considerations for utilities <br /> <br />It is our understanding that the Council will be discussing the City's water and sewer enterprise <br />funds. In advance of those discussions, Ehlers has highlighted several policy options for the <br />Council's consideration. <br /> <br />Policy Considerations <br />. Institute tiered water and sewer rates to keep low users' rates low and require higher per <br />gallon payments from higher volume users <br /> <br />. Eliminate senior discount with rate tiering <br /> <br />. Institute a "payment in lieu oftaxes" (PILOT) payment from the enterprise funds, which <br />would be directed to the general fund. A PILOT is utilized by some cities to offset property <br />tax payments that would have been received if the enterprise were operated by a private <br />entity. <br /> <br />. Eliminate projected deficit balances in the storm water funds with higher user fees <br /> <br />. Review commercial and non-profit rates to determine stresses upon system and equity of <br />payments vis-a-vis home owners <br /> <br />. Review rates for townhome associations, specifically related to water sprinkling meters <br /> <br />. Review flat fee charges and institute more volume based for sewer as well as water <br /> <br />. Institute connection fees for new development <br /> <br />. Given age of current meters, review meter replacement policy to maximize efficiency and <br />minimize inaccurate reporting <br /> <br />Weare available to discuss these policy options in greater detail at the Council's discretion. <br /> <br />Ehlers & AssDciates <br />3060 Centre PDinte Drive <br />Roseville, MN 55113-1105 <br /> <br />PhDne: 651-697-8545 Fax: 651-697-8555 <br />jnDrth@ehlers-inc.cDm <br />