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Sanitary Sewer Operations The City maintains a sanitary sewer collection system to ensure the general public's health and general welfare. For 2021, the operational costs are expected to decrease by 2.84% mainly as a result of a decrease in the costs charged by the Metropolitan Council Environmental Services Division (MCES). While they have increased costs of treatment, the City's share of flow has decreased the overall cost to the City of Roseville. The capital outlay that is factored into the rates is based on a 5 year average and that number has increased from $958,000 to $1,349,000 based on a correction in that formula linkage. The Base rates require a 3.5% increase to cover the fixed costs which are operational and capital only. The usage rates require a modest 1.92% increase to cover the MCES total costs. See Attachment B for the rate analysis. Recvcling Operations The recycling operation provides for the contracted curbside recycling pickup throughout the City and related administrative costs. The primary operating cost is the amount paid to a contractor to pick up recycling materials. 2020 had significant increases as a result of higher contractor costs. The market for recycled materials is a global one, and it had declined significantly during the prior year. For 2021, which is the last year of our current contract, the City has budgeted a 3.74% increase in the contract costs. A customer rate increase from $9 per quarter to $9.36 (4%) has been proposed to accommodate the higher costs. See Attachment B for the rate analysis. Recommended Rates for 2021 The following table provides a detailed breakdown of the proposed rates including the rate structure which depicts how the operating cost burden is distributed to various customer types. The table also shows the Water rate options from the Ehlers Utility Rate Study. 2020 2021 Water Base Rate Cates Rate Rate Single -Family Resid e Sin le -Family Resid e Non -SF Residential Non -SF Residential Non -SF Residential Non -SF Residential Non -SF Residential Non -SF Residential Non -SF Residential Non -SF Residential Non -SF Residential ** Low Income Disc ntial $ 62.10 $ 63.34 S ntial: Low -Income Discount 40.35 41.17 S 5/8" Meter 62.10 63.34 S 1.0" Meter 77.65 79.20 S (1.5" Meter 124.00 126.48 S (2.0" Meter 233.00 237.66 S (3.0" Meter 465.80 475.12 S (3.0" Compound Meter 4.0" Meter 931.65 950.28 S 4.0" Compound Meter 6.0" Meter 1,758.00 1,900.62 S ount on sewer only Ehlers UtilityRate Studyl Comments Option 1 O lion 2 tandard SF rate 18.88 34.57 tandard SF rate x 0.65 18.88 34.57 ** tandard SF rate 18.88 34.57 tandard SF rate x 1.25 47.20 86.43 tandard SF rate x2.00 94.40 172.85 tandard SF rate x3.75 151.04 276.56 tandard SF rate x7.50 302.08 553.12 330.40 604.98 tandard SF rate x 15.00 472.00 864.25 566.40 1,037.10 tandard SF rate x30.00 L510.40 1765.60 Page 2 of 4 Ehlers UtilityRate Studyl Comments Option 1 O lion 2 tandard SF rate 18.88 34.57 tandard SF rate x 0.65 18.88 34.57 ** tandard SF rate 18.88 34.57 tandard SF rate x 1.25 47.20 86.43 tandard SF rate x2.00 94.40 172.85 tandard SF rate x3.75 151.04 276.56 tandard SF rate x7.50 302.08 553.12 330.40 604.98 tandard SF rate x 15.00 472.00 864.25 566.40 1,037.10 tandard SF rate x30.00 L510.40 1765.60 Page 2 of 4 Page 2 of 4