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SECTION 6 - WATER UTLITY FUND EVALUATION <br />A. GENERAL <br />This section provides an evaluation of the City's current rate system, and provides <br />analysis of the impact the proposed water supply, treatment, distribution and storage <br />improvements may have on the City's Water Utility Fund. <br />B. CURRENT RATE STRUCTURE <br />The City currently collects revenue from three sources: <br />1. Water Use Rates <br />2. Water Availability Charge (WAC) <br />3. Trunk Charges <br />2012 Water Use Rates are $2.38 per 1,000 gallons for the first 15,000 gallons used per <br />quarter. Water use rates include an increasing block rate, with higher rates charged for <br />higher water usage in order to encourage conservation of water by users. <br />Water Availability Charge (WAC) is set at $1,640 per connection. This charge is applied <br />to new customers when they connect to the system. <br />Trunk Charges are set at $2,226 per connection, and are collected when new <br />developments are platted. <br />C. EVALUATION OF UTILITY FUND <br />The water utility fund was evaluated using the following parameters: <br />• 260 new customers will be added to the system every year during the planning <br />period from the Comprehensive Plan development areas <br />• 567 new customers will be added from the special area between 2013 to 2021. <br />• Implementation of the Surface Water Treatment Facility phased construction <br />approach as outlined in Chapter 4. <br />• Capital water supply and treatment projects will be financed at a 4% interest <br />rate over a 20-year term. <br />City of Ramsey, Minnesota — R13.104504 Page 6-1 <br />Comprehensive Water System Study Prepared by Bolton & Menk, Inc. <br />