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Attachment B lei Memo To: Roseville City Council From: Chris Miller, Finance Director Date: November 18, 2013 Re: Water Conservation Rates Background In January, 2009 the City instituted a new water conservation -based rate structure designed to encourage water conservation in conjunction with the goals and strategies outlined in the City's Imagine Roseville 2025 initiative, as well as a new State Law that required water service providers to encourage water conservation through education, awareness, and a conservation - based rate structure. The conservation rates primarily applied to single - family homes given that the water usage in multi - family or commercial properties was too varied to apply a uniform policy. In response, the City created a 2- tiered rate structure that was designed to target excessive water usage as opposed to the water used for everyday household needs. The first tier carried the standard usage rate which is set at the amount necessary to pay for the purchase of water from the City of St. Paul. This tier applied to all household water usage up to 30,000 gallons per quarter. The second tier was set at a higher rate that would not only provide sufficient monies to pay for the water used, but also provide a financial incentive or penalty for all water used in excess of 30,000 gallons per quarter. The 30,000 gallons threshold was selected because it is not unusual to see a 4 or 5 person household use 30,000 gallons or more per quarter for general use such as personal hygiene, washing clothes and dishes, cooking, etc. The rate structure was designed to encourage conservation without unduly penalizing larger households for `normal' water use. The current water rate structure is as follows: