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Regular City Council Meeting Monday, December 03, 2012 Page 22 Paul, even though ongoing negotiations will continue between the cities in 2013; the cost of wastewater treatment charged by the Metropolitan Council in- creasing by 4%; and customary inflationary impacts. Mr. Miller advised that these increases combined would have an impact on 2013 operating and re- placement costs for a typical, single-family home in Roseville at $6.07 per month. Mr. Miler provided water and sewer costs in Roseville with peer communities (first-ring suburbs with a population of 18,000 to 50,000 and having their own stand-alone system) and advised that Roseville's water rate is higher than aver- age, but lower than the average for sanitary sewer services. Mr. Miller noted that the wide range of disparities in rates among the communities was based on their local priorities and funding philosophies. Councilmember Johnson questioned if those communities with lower rates were absorbing costs through increased levies or combined with other fees or taxes, or how they compensated for operational and infrastructure needs. Mr. Miller responded that variables could indicate that Roseville's fee schedule for infrastructure needs and replacement is really ambitious or peer communi- ties with lower rates were not providing sufficient CIP funding for their sys- tems, as had been the case with Roseville over the past decade. Public Works Director Duane Schwartz suggested that the City Council also keep in mind that several peer communities (e.g. Fridley and New Brighton) re- ceived low-cost water services from the TCAAP site from the federal govern- ment. Mr. Schwartz also noted that the City of Roseville provided fully- softened water to homes in Roseville, while other communities on the low end in the rate comparison provided well water that needed to be treated at the point of use by customers who would have the additional cost for water softeners and maintenance. At the request of Councilmember Johnson, Mr. Schwartz advised that other line item costs for sewer repairs may be handled by communities through franchise fee agreements for gas and/or electric providers, as well as possibly through as- sessments. City Manager Malinen noted that in discussions with Mr. Schwartz, he had ad- vised that it is prevalent in discussions in public works circles that older, first- ring suburbs are not fully funding their replacement costs either. Generally speaking, Mr. Schwartz advised that everyone knew the need was out there, but not many communities were fully addressing CIP needs as this City Council had recently made the commitment to do.