1B - 2008 Utility Rate Study - Laserfiche WebLink

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Water Utility Water Fees The City of Arden Hills currently purchases water from the City of Roseville. There are three primary components to the City's water utility revenues: J.,,feler Charges are a fixed quarterly fee based on the size of the meter in the home or business. Most residential meters are at $29.22 per quarter and the fee includes a base usage of I 0,000 gallons per quarter. The meter charge is established to recover certain fixed expenses, such as the billing system, that the City must incur for a customer regardless of the amount of water consumed. This meter charge raises approximately $296,000 per year. Additionally, there is a stand by charge of $6.60 per quarter for residential accounts which raises approximately $158,500 per year. These two charges pay for utility staff, operating costs and a general fund administration charge. Usage Fees are based on the metered use of water. Currently the billing structure is a fixed rate of $2.86 per 1 ,000 gallons for usage over the base usage of 1 0,000 gallons per quarter. The usage fees pay for the cost of purchasing water from the City of Roseville. In 2007, usage fees generated approximately 69% of total water revenues. Below is a chart which demonstrates the breakdown of types of users in the water utility. Type of Water Utility User by Number 100% 60% 40% 2007 Of the single family residential customers, approximately 60% of the usage was billed at the higher usage rate, or for usages over 10,000 gallons per quarter. The typical single family home uses 20,000 to 25,000 gallons per quarter on average and the average senior residence uses approximately 16,000 gallons per quarter. The following graph depicts the distribution of all residential water users by amount of water used in one year and incl udes all residential users. r 4