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Roseville Finance Commission Agenda Item Utility Rate Peer Comparisons The graphs below depict a number of water and sewer rate comparisons with other peer communities for single-family homes. For this analysis, peer communities include first -ring suburbs that serve a population between 18,000 and 50,000, and which are not simply an extension of a larger entity's system. Maplewood for example, is excluded because they're part of St. Paul's system. This group was selected to try and approximate stand-alone cities with similar age of infrastructure which can have a significant influence on the cost of services. It should be noted that broad comparisons only give a cursory look at how one community's rates compares to another. A more precise comparison would also incorporate each City's individual philosophy in funding programs and services. For example, Roseville does NOT utilize assessments to pay for water or sewer infrastructure replacements like many other cities do. Instead we fund infrastructure replacements 100% through the rates. As a result, Roseville's utility rates are inherently higher when compared to a City that uses assessments to pay for improvements. Other influences on the rates include whether or not a community softens its water before sending it on to customers, and the extent in which communities charge higher rates to non -single family residential customers. The following chart depicts the peer group comparison for combined water base and usage fees for a typical single-family home on a quarterly basis. $100 $80 $60 $40 $20 2018 Water Fee Comparison: SF Residential eroxro� cPv As is shown in the graph, Roseville's total water charge (base + usage) is the highest in the comparison group. One of the primary reasons why Roseville's water rates are higher is due to the significant increase in infrastructure replacements in recent years, which unlike many other cities, are funded solely by the rates. The following chart depicts the peer group comparison for combined sewer base and usage fees for a typical single-family home on a quarterly basis. Page 8 of 10