Laserfiche WebLink
of$216,000.00 and somewhat higher. According to a memo from Chris Miller, attached, <br /> bonding over a 20 year period would cost this average homeowner$1,050.38 and the levy <br /> increase over that same period would cost $949.65. In either case, if we reduced the base rate <br /> to $20.00 and supplied the additional financing through either a levy increase or bonding, <br /> residents would be saving $31.60 per quarter or$126.40 per year, or$2,528 over the 20 year <br /> period of need. Assuming an average of$1,000 for either bonding or levy increase, residents <br /> would still save 152.8% percent or about $1,500.00 over the 20 year period—and the City <br /> would have had stable funds for repair and replacement of its infrastructure. <br /> If one further assumed that 10,000 gallons per quarter is enough for household use for 55%of <br /> our residents, we could attempt to set up a tiered system consistent with the documentation <br /> included in the attached materials regarding water conservation. In addition we could attempt <br /> to actually offer incentives in pricing to encourage conservation—as is shown in the attached <br /> information on utility pricing in Shoreview. <br /> As a brief"back of the envelope" attempt, here might be a proposal: <br /> Gallons/Quarter Price/1,000 Resident/1000 Cost <br /> Tier 1 0-10 $2.00 $4.00/1000 gallons <br /> Tier 2 10-20 $3.20 $4.20/1,000 gallons <br /> Tier 3 20-40 $3.80 $4.30/1,000 gallons <br /> Tier 4 40-60 $4.50 $4.80/1,000 gallons <br /> This pricing structure provides some incentive for conservation while still supplying water for <br /> household use to at least 55% of residents at a fair rate, and a substantial savings over what <br /> they were paying. <br /> This discussion attempts to: <br /> ✓ Provide more simplicity and transparency in pricing by avoiding "summer" and <br /> "winter rates" <br /> ✓ Provide stable funding for infrastructure with cost spread evenly across the tax base <br /> ✓ Provide an incentive structure to encourage for water conservation <br /> ✓ Provide tax/fee relief to those paying less tax and/or conserving more water <br /> Reference Documents: <br /> http://www.citvofroseville.com/documentcenter/view/5091 <br /> http://www.citvofroseville.com/documentcenter/view/11519 <br /> Page 2 of 2 <br />