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Water Usage Rate <br />Sanitary Sewer Base Rate <br />11; :, 11' :, <br />,,� . . <br />Residential $ 13.35 $ 23.35 <br />Residential — Sr. Rate 8.30 14.55 <br />Sanitary Sewer Usage Rate <br />2008 Usage 2009 Usage <br />Category Rate Rate <br />' • � • . '� '� 1 <br />The 2009 rate structure employs two significant changes; a tiered or increasing block, water rate, and a <br />summer usage rate. The tiered water rate is designed to encourage households to take year-round measures <br />such as; installing water-saving devices, and taking shorter showers. Having a higher summer usage rate <br />should encourage households to reduce the water used for irrigation purposes. <br />POLICY OBJECTIVE <br />An annual review of the City's utility rate structure is consistent with governmental best practices to ensure <br />that each utility operation is financially sound. In addition, moving to a conservation-based rate structure is <br />consistent with the goals and strategies identified in the Imagine Roseville 2025 initiative, and complies <br />with new state laws. <br />FINANCIAL IMPACTS <br />The impacts from the 2009 rate structure will vary significantly depending on each households water usage. <br />Attachment B presents 4 different scenarios based on varying usage. For lower-volume users, the <br />percentage increase is higher than for moderate or high volume users. The reason for this is because of the <br />elimination of the implicit subsidy that was in place under the old rate structure. Eliminating this subsidy <br />(inequity) was mentioned above and is explained in greater detail in AttachmentA, which is an article that <br />was recently posted on the City's website and was delivered to individual homes via their utility bill. <br />STAFF RECOMMENDATION <br />Not applicable. <br />Page 3 of 4 <br />