AgdaPkt 2013-06-24 Closed and Joint Amended 06-21_2013

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6.4.B. - Page 2 costs is $200 million. Additionally, the proposed rate increase will continue to support the ongoing repairs and replacement of the City's sewer collection infrastructure, which is projected to cost over $100 million over the next 10 years. The City's proposed rate increase is based on revenue required to meet the increasing costs of service and SBSA infrastructure projects, and is contained in the updated Sewer Enterprise 10-Year Financial Plan and Rate Study prepared by the independent public finance advisory firm Bartle Wells Associate (copy of this study is on file in the City Clerk's Office). Based on direction given by the Utilities Committee, staff recommends increasing the basic monthly sewer service charge as follows: Residential Sewer Customers Current Proposed Proposed Proposed Proposed Monthly Rate Monthly Rate Monthly Rate Monthly Rate Percentage as of August as of July 1, as of July 1, Increase 1, 2013 2014 2015 $57.88 $63.09 $68.77 $74.95 9% per year Commercial Sewer Customers The Commercial sewer charge consists of two parts. A minimum monthly charge and a metered usage charge. The minimum monthly charge equals the residential Basic Service Charge. The proposed minimum monthly rate increases are as follows: Current Proposed Proposed Proposed Proposed Monthly Rate Monthly Rate Monthly Rate Monthly Rate Percentage as of August as of July 1, as of July 1, Increase 1, 2013 2014 2015 $57.88 $63.09 $68.77 $74.95 9% per year The metered sewer charges vary by customer class, or type of business, as shown below. Charges are calculated by multiplying each customer's rate by their metered water use during the billing period. The metered rate is based on wastewater discharge into the sewer system after the first one thousand (1,000) cubic feet for a billing cycle - each unit of ineasure equals one hundred (100) cubic feet. The following table shows the sewer rate proposed for commercial customers based on the rate applicable to each customer class multiplied by the amount of inetered water use per billing period.