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67 In an effort to gain a broad perspective on citywide household use, the following chart depicts the <br />68 percentage of single - family homes that fall into the current water rate categories based on usage over the <br />69 last 12 months and the 2- tiered rate structure. <br />70 <br />CURRENT <br />Water Rate Tier <br />% of SF Homes: <br />Winter <br />% of SF Homes: <br />Winter <br />% of SF Home <br />Summer <br />70v 0 000 allons er uarter <br />60% <br />90 % 85 % <br />30,000 per quarter <br />20% <br />10 % 15% <br />15% <br />Total <br />100% 100% <br />71 <br />72 As this table indicates, under the current water rate structure, l0- 15 %of single-family homes are impacted <br />73 by the higher rates. <br />74 <br />75 The Public Works, Environment, and Transportation Commission recently discussed the City's water rate <br />76 structure and conservation rates. The Commission is recommending that the City move to a 3 -tier system <br />77 to incorporate the following breakpoints: <br />78 <br />Description <br />1 0 — 16,000 gallons per quarter <br />2 16,000- 24,000 gallons per quarter <br />3 Over 24,000 gallons per quarter <br />79 <br />80 The threshold of 16,000 gallons between tiers 1 and 2 is based on the current average usage in a single - <br />81 family home. The Commission further recommends that the rate structure be revenue neutral so that usage <br />82 rates at tiers 2 and 3 are sufficient to partially offset usage rates at the first tier. City Staff is comfortable in <br />83 moving to a 3- tiered system, however the aggregate data continues to suggest that single - family <br />84 homeowners are already successfully employing a variety of water conservation approaches. <br />85 <br />86 The following chart depicts the percentage of single - family homes that fall into each water rate category <br />87 based on current usage and the proposed 3- tiered rate structure. <br />88 <br />PROPOSED <br />Water Rate Tier 1W <br />% of SF Homes: <br />Winter <br />% of SF Homes: <br />Summer <br />0 — 16,000 gallons per quarter <br />70% <br />60% <br />16,000 — 24,000 gallons per quarter or more <br />15% <br />20% <br />Over 24,000 gallons p er quarter <br />15% <br />20% <br />Total <br />100% <br />100% <br />89 <br />90 Underthe proposed 3- tiered rate structure, approximately 30 -40% of single - family homes will be impacted <br />91 by the higher tier rates, compared to 10 -15 %today. Under this scenario, approximately 2,100 homes will <br />92 pay more for water services than they currently do as a direct result of the change in rate structure. <br />93 <br />94 As noted above, the PWET Commission has advocated that the new 3- tiered rate structure be revenue <br />95 neutral. Under the current 2- tiered structure the lowest tier is set at an amount that is commensurate with <br />96 the cost to purchase water from the City of St. Paul. This ensures that in the event ALL homes fell into the <br />97 lowest tier, the City would not be financially jeopardized. Therefore, any incremental revenue derived from <br />98 the higher tier is set aside for contingency purposes and to promote long -term stability of the rates. <br />99 <br />100 <br />Page 3 of 12 <br />