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single-family homeowners, but noted that would vary somewhat based on their water consumption. Specific to the capital improvement plan (CIP), Mr. Miller noted that costs were projected out twenty years, but reviewed and updated annually. Water Operations At the request of Member Seigler, Mr. Miller confirmed that depreciation was built into the accounting process, with approximately $1 million built into water rates annually to address CIP needs most importantly in addressing the City's aging infrastructure. Specific to the proposed Intern position, Member Seigler suggested college students as a practical part of their course work may be a good fit in forecasting data. Mr. Miller advised that this was the intent for this position, provided the City Council supports it, for a college student to either fill that role, or provide support to existing staff allowing them to perform data gathering and trending. Member Wozniak asked if staff looked at customer counts and distinctions between residential and commercial accounts on an annual basis in determining unit costs, particularly if more customers are added, perhaps there would be no need for the proposed 1.5% rate increase in 2016. Mr. Miller advised that customer counts and distinctions were part of the annual analysis and reflected accordingly, as well as use patterns over the last twelve months and before recommending any rate adjustments going forward. While that information is not available yet in real time, Mr. Miller advised that the latest available data is reviewed. At the request of Member Seigler, noting the new developments (e.g. Rosedale Center addition, new hotels) that would increase commercial customers, Mr. Miller responded that those customers would probably not impact 2016 rates until construction was completed and would not be counted until coming on line and occupancy became more certain in projecting rates for 2017 and beyond. At the further request of Member Seigler, Mr. Miller advised that rates had actually been decreased some years, which he would reflect later in this presentation when looking at comparative data. At the request of Chair Stenlund, Mr. Miller clarified "personal" services as personnel assigned to water operations and including their wages and benefit package. Mr. Miller shared that it was fortunate that the City would not be experiencing any increase in wholesale water purchases from the St. Paul Regional Water System, the single largest operating cost for the water operation. Mr. Miller stated that was Page 4 of 18