Agenda - Council - 12/12/2017 - Laserfiche WebLink

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SECTION 6 - WATER UTLITY FUND EVALUATION A. GENERAL This section provides an evaluation of the City's current rate system, and provides analysis of the impact the proposed water supply, treatment, distribution and storage improvements may have on the City's Water Utility Fund. B. CURRENT RATE STRUCTURE The City currently collects revenue from three sources: 1. Water Use Rates 2. Water Availability Charge (WAC) 3. Trunk Charges 2012 Water Use Rates are $2.38 per 1,000 gallons for the first 15,000 gallons used per quarter. Water use rates include an increasing block rate, with higher rates charged for higher water usage in order to encourage conservation of water by users. Water Availability Charge (WAC) is set at $1,640 per connection. This charge is applied to new customers when they connect to the system. Trunk Charges are set at $2,226 per connection, and are collected when new developments are platted. The City entered into a watermain and sanitary sewer cost contribution/reimbursement agreement with Oakwood Land Developments, Inc. in 2006. This agreement established the procedures for reimbursing $6,000,000 to Oakwood for its contribution to funding the sanitary sewer and watermain extensions in 2006. This agreement was subsequently assigned to 21 St Century Bank. Based on the agreement, Oakwood would be credited with the total water connection charges on the lots that it develops. C. EVALUATION OF UTILITY FUND The water utility fund was evaluated using the following parameters: ■ 260 new customers will be added to the system every year during the planning period from the Comprehensive Plan development areas City of Ramsey, Minnesota — R13.104504 Page 29 Comprehensive Water System Study Prepared by Bolton & Menk, Inc.