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— $3,500 fee to Joint Utility per WAC <br /> — Total WAC of$70,350,000 <br /> • Bonding at 3% interest rate over 20 years, $61,650,000 amortized <br /> • Grant—assume a grant provided to fund trunk watermain and booster stations (approximately $90 <br /> million) <br /> • Capital and O&M costs as summarized in Chapter 8 of this report <br /> The concept level cost of service estimate assuming a grant of$80M are presented in Table 9-1. <br /> Table 9-1.Concept Level Cost of Service Estimate. <br /> 2040 Cost of Service - Preliminary <br /> it <br /> V(gallons) <br /> ater Used <br /> Item nnual Costthousand Cost per 1,000 gallons <br /> d7 <br /> Annualized Paymentj 1 $2,250,000 2,847,000 $0.79 <br /> Joint Utility O&M $6,000,000 2,8477000 $2.10 <br /> Repair and <br /> Re lacement $3,5007000 2,8477000 $1.22 <br /> p <br /> Cities Existing O&M $1.00/1,000 gal 2,847,000 $1.00 <br /> 01 Total: $5.13 <br /> The impact of the up-front grant funding on cost of service was evaluated. The cost of service would be <br /> $6.13 per 1,000 gallons without any grant funding. To achieve a cost of service in line with water <br /> systems treating a Mississippi River supply ($4 per 1,000 gallons), grant funding of approximately <br /> $200M would be required. <br /> Existing water rates in the Northwest Metro range from $2.08 to $4.58 per 1,000 gallons based on <br /> 8,000 gallons of water used per month. <br /> Page—40 1 METROPOLITAN COUNCIL <br />