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Attachment C <br />1 <br />2 <br />3 Review 2021 Utility Rates <br />4 <br />5 Finance Director Pietrick reviewed the 2021 Utility Rates with the Finance Commission. <br />6 <br />7 Ms. Jeanne Vogt, Ehlers, presented the Utility Rate Study. <br />8 <br />9 Vice Chair Davies indicated she was confused by the Option 2 annual revenues brought in and <br />10 had a hard time understanding this because the City would be taking in $900,000 less. She asked <br />11 if that money would be made up in usage charges based on the gallons or how are the capital <br />12 costs covered if there is that much less money coming in. <br />13 <br />14 Ms. Vogt explained both options presented to Council are revenue neutral. The City knows <br />15 exactly how much revenue needs to be generated to keep the fund healthy for 2021 and going <br />16 forward. There are two ways to do that, both options will generate the same amount of revenue <br />17 but is just a matter of where and how that revenue is being generated. <br />18 <br />19 Chair Murray thought that rather than charging per meter, the City would be charging usage for <br />20 the fixed costs. <br />21 <br />22 Ms. Vogt explained it is just a matter of where the City is allocating those costs. Whether it is <br />23 going to be in the meter charge or in the consumption charge. <br />24 <br />25 Ms. Vogt continue with her presentation. <br />26 <br />27 Vice Chair Davies asked what the reaction was of the Council regarding the options. <br />28 <br />29 Ms. Vogt indicated the City Council had positive feedback when the study was presented to <br />30 them. The Council liked both options but were leaning more towards Option Two. <br />31 <br />32 Ms. Pietrick explained the Council did not really indicate one way or the other and wanted to <br />33 hear from the Finance Commission and PWETC with regard to the two options before making a <br />34 decision. The Council was receptive to making a change in the model. She noted this will be <br />th <br />35 going back to the City Council on November 30. <br />36 <br />37 Commissioner Reif asked how many businesses were in the very high commercial category. <br />38 <br />39 Ms. Vogt indicated she could talk about who some of the high commercial users are with the <br />40 Commission. She explained the largest user by far is Agropur. She reviewed the use and cost. <br />41 She noted other large use commercial users are Old Dutch, Bimbo Bakeries and CWP Corporate <br />42 West, the car wash over by Har Mar Mall. <br />43 <br />44 Commissioner Bester explained for him the question seemed to revolve around making sure the <br />45 City includes all of the fixed costs and he wondered on Option One if the City has included <br /> <br />