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��- i� <br /> ATTACHMENT THREE <br /> City Council Utilities Committee - Water Rate Recommendation <br /> Recommendation to Council: <br /> Increase monthiy basic service charge by 3.8% to y1�.00/mo. Focus rate increases <br /> primary on outdoor water use with minimal level of increase for lifeline users. � <br /> Establish new high water use tier for commerciai users. <br /> This Recommendation: <br /> ' • Supports the guiding principle of basic service charge equa! to fixed costs. <br /> • Residential lifeline customers and average users are less impacted. <br /> • Establish new tier for commercial users that use more than 75 units of water, this creates a more <br /> equitable rate structure between commercial and residential customers. . <br /> • The impact on bills is consistent with the cit�s conservation rate structure, in that higher use drives <br /> a higher percentage 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 /> • Consistent with the principle "The more you use, the more you pay'. <br /> Consum tion Rate /ncreases <br /> % Increase <br /> compared to FY Proposed Unit <br /> Residential Tiers unit/bill 04/05 unit rates Rate <br /> 1-10 4% $ 1.18 . <br /> 11-25 8% $ 2.16 <br /> 11-50 14% $ 2.74 <br /> 11-75 --- - 26% $ 3.53 <br /> 11-75+ - - 33°/a � 4.32 <br /> % increase <br /> compared to �Y <br /> Commercial Tiers uniUbill 04/05 unit rates Unit rate <br /> 1-15 8% $ 2.16 <br /> 1-75 - 14% $ 2.74 <br /> 1-75+ 47% $ 3.53 <br /> Esfimated Impacts on Customer Bills (see next sheei for impac.fs on apartment building) <br /> Sample Customers Units / Mo. IS incr�ase / AAo. I% ince�as� / Mo. <br /> Residential - Lif eline Customer 5 $0.69 4.0°/a <br /> Residential - City Average User 11 $1.65 5 6% <br /> Residential - Large Lot / House 35 $22.59 22.3% <br /> Irrigation Meter - HOA Commons <br /> fwith 110 sinc,�le-famil homes 762 $810.15 ' 32.7% <br /> Small Res taurant - Downtown 49 $17.10 13.2% <br /> Lar e Office Buildin 45% $527.39 38.1% <br /> TOTAL ESTIMATED REVENU�S - FISCAL YEAR 2005/06: 519,�26,381 <br /> BUDGETED REVENUES FOR FISCAL YEAR 2004/�5: s�i 7,510,340 <br /> DIFFERENCE: 52,396,041 <br /> Sheet 1 of 2 Revised 5/27/05 <br />