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124 Mr. Culver stated they are both industrial users and he would like to see how much <br />125 they actually spend on water. <br />126 <br />127 Member Siegler commented he would want to know what the percentage of <br />128 increase their entire bill went up. If it is a small percentage and their usage is high, <br />129 it will not be a noticeable. <br />130 <br />131 Mr. Culver stated the middle meter sizes will see a larger increase from percentage <br />132 standpoint. <br />133 <br />134 Mr. Freihammer stated just because a business has a larger meter does not mean <br />135 they are using more water. <br />136 <br />137 Member Seigler commented if the majority of the cost is going to the residential, <br />138 the revenue should come from the residential. <br />139 <br />140 Member Heimerl agreed. He does not see value in pursuing nonresidential <br />141 customers to cover a change in the base rate to residential customers. <br />142 <br />143 Chair Cihacek stated it is an unfair cost shift to nonresidential custO ers without <br />144 great benefit to the residents and he would be more interested in pursuing a change <br />145 in consumption rates than changing the base rates. <br />146 <br />147 Member Misra inquired if they see much of a shift in usage from winter to summer <br />148 and the idea of having a tiered system to encourage conservation should be <br />149 considered. <br />150 <br />151 Mr. Culver responded there is a huge reduction in consumption over the winter <br />152 months due to less use of irrigation systems. The maximum daily use in the summer <br />153 time could be 12,000,000 gallons per day, but the average usage for the year is <br />154 about 6,000,000 per day. <br />155 <br />156 Member Seigler commented people may be willing to pay a little more to avoid <br />157 issues similar to what has happened in Blaine or in Flint, MI. <br />158 <br />159 Chair Cihacek commented the City needs to come up with a tiered structure or <br />160 adjust down on what is reflective of current usage. The City has changed in the <br />161 past 10 years and they need to be able to adjust rates as things change. He is willing <br />162 to look at a base rate change if people are willing to hedge costs in consumption. <br />163 <br />164 Mr. Culver stated during budget discussion at the City Council meeting, <br />165 Councilmember McGehee proposed having the base rate shifted into property <br />166 taxes. This would provide a savings of $17.00 for an average user, but it shifts the <br />167 cost to higher value residential and commercial properties. They did not approve <br />168 it last night, but did direct the Finance Commission to look further into it. <br />169 <br />Page 4 of 14 <br />