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��3 <br /> This Recommendation: <br /> • Supports the guiding principle of basic service charge equal to fixed costs <br /> • Provides for a lesser impact on residential lifeline customers and average users <br /> • Establishes a new tier for commercial users that use more than 75 units of water <br /> per billing period, thus creating a more equitable rate structure balance between . <br /> commercial and residential customers <br /> • Ensures that the rate increase impact on bills is consistent with the city's <br /> conservation rate structure, in that higher use drives a higher percentage <br /> ' increase in bills <br /> • Reinforces the need for more outdoor conservation practices among large users <br /> • Continues to allow individual users to conserve and save money <br /> • Is consistent with the principle "The more you use, the more you pay". � <br /> Alternative <br /> The Council could reject or modify the Utilities Committee recommendation. <br /> Fiscal Impact <br /> The recommended package of rates and charges will increase revenues for Fiscal Year <br /> 2005/06 by $2,021,400 over the budgeted revenues for Fiscal Year 2004/05. Additional <br /> anticipated revenues from interest and facility fees bring the total estimated revenue <br /> increase to $2.3 million. The targeted �mount delineated in the Water Financing Plan — <br /> 2004 Update is $2.1 million. Given the uncontrolled fluc�uations in revenues from year to <br /> year, a 9.5% safety margin is wise, and will help to preserve or eniianc�; the integrity of the <br /> Water Enterprise Fund and the city's water revenue bond ratings. <br /> �,- �, r � <br /> 1�' <br /> ,. /� r ,� l �, `V �' <br /> Peter Ingram z�.�' Ed �vere� <br /> Director, Public Works Services City Manager <br /> Attachments <br /> 1. April 21, 2005 Community Roundtable on Water Rates — Meeting Notes / Record <br /> 2. Redwood City Water Enterprise Guiding Principles, dated May 2005 <br /> 3. Utilities Committee — Water Rate Recommendation with billing impacts <br /> 4. Balancing Water Revenues and Expenditures — Fiscal Year 2005-06 <br /> 5. Benchmarking of Residen#'ral Water�Bills at 15 Units of Average Use <br /> 6. Ordinance — water service charges <br /> 7. Resolution — water rates <br /> 8. Resoluti�n — guiding principles <br /> Page 3 of 3 <br /> I <br />