4.1. ERMUSR 12-14-2010Elk River ~.
Municipal Utilities
UTILITIES COMMISSION MEETING
TO:
Elk River Municipal Utilities Commission
John Dietz, Chair
Jerry Gumphrey, Vice Chair
NG DATE:
ber 14, 2010
David Berg -Water Superintendent
AGENDA ITEM
4.1
DISCUSSION:
With help from SUSA (Suburban Utilities Superintendent Association) we were able to identify
which cities implemented watering restrictions. The data on the topic was collected from 71 cities.
Forty-six of the cities surveyed have restrictions on "time of day with anodd -even rule", while
iwo others only have "time of day" restraints. Twenty-three of the cities have no restrictions. 'I'bis
shows that the majority have the same watering code that ERMI J has. The stagrecommends that
we leave the now standing restriction details as is. The only difference we would see with a change
is a higher peak day, which costs the company more for the larger range of water consumption.
MEMORANDUM
TO: Elk River Municipal Utilities Commission
FROM: Tim Simon, Finance Director
DATE: December 14, 2010
SUBJECT: Rate impacts
The utilities commission had asked to review the impact on the water rates if the top 20
accounts which equates to the top I S customers no longer paid usage charges.
The assumptions used in the analysis are the following:
1) Based on ?010 usage for the top 15 customers, approximate revenue loss would be
$240,000.
2) This will significantly reduce the revenue in the Commercial der 2 and almost all the
revenue in Commercial der 3.
3) The percentage of usage revenue lost would be applied over all existing customers.
Conclusion:
Rates among all remaining tiers
consu
ti
l would have to increase 16 to 17 percent depending on future
mp
on
evels. See table below to see the rate c i
o mpar
son.
16.6% change
2010 Rates Estimated Rates
Residential
Tier 1 $ 1.50 $ 1
75
Tier 2 $ 3.50 $ .
4
08
Tier 3 $ 4.00 $ .
4.66
Irrigation
Tier 2 $ 3.50 $ 4
08
Tier 3 $ 4.00 $ .
4.66
Commercial
Tier 1 $ 1.50 $ 1
75
Tier 2 $ 3.50 $ .
4
08
Tier 3 $ 4.00 $ .
4.66
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