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Mr. Culver noted that a complication with that rationale was that a pedestrian ramp would need to be installed and the sidewalk therefore moved out to make the pedestrian ramp work; and include all pedestrian amenities. Chair Stenlund arrived at this time, approximately 6:50 p.m. 5. 2015 Utility Rate Proposal Mr. Schwartz welcomed Finance Director Chris Miller to provide staff's annual utility rate analysis and proposed 2015 rates for PWETC review and information; and as detailed in the staff report dated October 16, 2014 (Attachment A). Mr. Miller noted that the annual analysis considered current water sewer rates for any potential adjustments for the projected 2015 budget year, including long-term capital improvement program (CIP) needs for long-term operations. Mr. Miller reviewed the recommendations in detail and near-term financial needs to support operating and CIP budget needs. For the most part, Mr. Miller advised that the majority of single-family homeowners would see a reduction in their 2015 utility bills (as indicated in the chart on page 1 of Attachment A). With few exceptions, Mr. Miller advised that general day-to-day operations and CIP needs were fairly in check. Mr. Miller noted that the decrease in rates was primarily due to the elimination by the City Council of the current senior discount rate, moving to a financial needs based discount program for the benefit of all residents, no matter their age. Mr. Miller noted that this was based on a financial threshold eligibility requirement at 165% of the federal poverty threshold guidelines. Mr. Miller advised that this would result in approximately 25% of the current single-family households, currently receiving the senior discount rate, seeing their utility bills increase on average of$30 per quarter; while the remainder of the residents currently subsidizing that program no longing having to do so, eliminating the approximate $250,000 to $260,000 they currently pay annually to subsidize the senior discount program. Because of that change in policy, Mr. Miller advised that most homes in Roseville would now revert to paying full rate water and sewer rates, based on the 2015 proposed budget and twenty-year CIP needs. Mr. Miller noted that the City Council had been having ongoing discussions for a few years about the equity in continuing the senior discount rate program, and advised that he anticipated another discussion by the City Council at their November 17, 2014 meeting. While there may be additional changes and directives to staff following that discussion, Mr. Miller advised that the 2015 rates and assumptions were built into the proposed budget at this time. Mr. Miller referenced rate comparisons done annually with peer communities (chart on page 6 of Attachment A), with those comparisons among other first-ring suburbs and water systems, usage and populations roughly mirroring those of the City of Roseville, including the age of the infrastructure and community, which Page 4 of 17