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400 program for the CIP, Mr. Miller admitted Roseville water rates were high, a fact 401 that had not been hidden from its customers. 402 403 However, in reviewing sanitary sewer comparisons, Mr. Miller noted that the City 404 of Roseville trended lower than many peer communities; which again could be due 405 to different funding philosophies as well as personnel costs. 406 407 By combining water and sewer fees for comparison, Mr. Miller noted that the City 408 of Roseville was again at the top of the peer group, which he didn't find surprising. 409 However, to put that in more context, Mr. Miller vise that the current City 410 Council's philosophy was to capture direct cos ervices, as well as indirect 411 costs incorporated to get a true utility cost, whi ny other cities didn't do. 412 413 At the request of Member Wozniak, Mr. iller ified "indirect costs" as 414 including administrative overhead, such as his service to customers not considered 415 direct but indirect. With all of his time paid for by the General Fund, Mr. Miller 416 advised that each utility fund was indirectly charged for some of his time — and 417 other employees as applicable — for the time spent and those costs captured. Mr. 418 Miller noted other examples of indirect costs included a proportirs al cost of 419 worker's compensation and other insurance. Mr. Miller noted this w"'part of the 420 different philosophies at play among communities and how Roseville chose to 421 allocate administration of various funds, services and programs. 422 423 In his final comparison chart with peer communities, ��OI iller provided the total 424 impact of property taxes and utility rates for a typical single-family home over a 425 broader spectrum of needs and funding philosophies. With that comparison, Mr. 426 Miller noted that Roseville had one of the lowest financial impacts for residents of 427Ct�axes mparison group, approximately 13% below the peer average. As a caveat, 428 iller again noted the other factors and local preferences defining property 429 and utility rates. 430 431 request of Membe Wozniak as to how to explain that comparison, Mr. 432 Miller responded that it involved a number of things. First and foremost, Mr. Miller 433 opined the City should be proud of its tax base that the community had worked hard 434 to achieve, which helped with property taxes, with many communities with a larger 435 tax base having the ability to shoulder their tax burden and stave off any impact for 436 residents. Mr. Miller noted that funding philosophy again makes a difference, and 437 clarified that his comparisons were showing residential not commercial rates; with 438 many communities choosing to shove costs onto commercial customers to make 439 rate structures look better. However, Mr. Miller noted it was obvious from these 440 charts those different funding philosophies, and Roseville choosing to be more 441 upfront about it, even though commercial/retail customers of Roseville's water and 442 sewer utilities still pay double residential customers. 443 444 With Member Lenz referencing the comparisons rates for Edina, Mr. Miller 445 responded that they probably had less balance in residential and commercial Page 10 of 18