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ERMUSR MISC 07-09-2007~j Elk River Municipal Utilities 13069 Orono Parkway • PO. Box 430 Elk River, MN 55330-0430 July 5, 2007 To: Elk River Municipal Utilities Commission Jerry Takle Jerry Gumphrey Jim Tralle From: Bryan Adams Subject: Miscellaneous Issues Phone: 763.441.2020 Fax: 763.441.8099 Enclosed is the packed for Monday, July 9, 2007 commission meeting at 4:00 p.m. Please note the date change from Tuesday to Monday. Our peak demand and consumption for both the electric and water departments continue to increase. See the graphs in the financial section. For the year, consumption is up 10.5% and 15.2% in electric and water respectively. Enclosed is the following information for your review. 1) Ruler and letter are being sent to our water customers concerning lawn sprinkling. 2) Survey of Water Rates by AE2S. 3) June 29, 2007 article from Star Tribune titled "Hold that hose...Is It Your Day To Water." 4) July 3, 2007 article from Star Tribune titled, "H2-OH NO" addressing blind taste test and bottled water. 5) June 22, 2007 article from The Kiplinger Letter addressing water issues. ~/ Elk River -~ Municipal Utilities 13069 Orono Parkway • P.O. Box 430 Phone: 763.441.2020 Elk River, MN 55330-0430 Fax: 763.441.8099 Dear Customer, As Elk River grows, so does our thirst for water. Elk River Municipal Utilities continues to look for ways to encourage you to conserve and use water wisely. We have placed many newspaper ads and mailed water conservation brochures to you. We also mailed you a soil moisture probe and a rain gauge to help you avoid over-watering your lawn. This handy ruler is yet another reminder that we must get really serious about conserving this valuable natural resource. Use it to measure grass height. Taller grass shades root crowns reducing plant mortality during dry periods like we are experiencing right now! Three to four inches promotes deeper roots and helps protect them from drying winds. We use about 5 times more water during summer months than we use other months of the year. This is a direct result of lawn sprinkling. Excessive lawn sprinkling on peak use days may even jeopardize our ability to successfully fight fires. Our water rates continue to rise as we add new water facilities to meet peak use days. Some of these facilities would not be required if everyone would follow the odd/even sprinkling ban in effect. Just in case you forgot, we allow sprinkling before 10 AM and after 6 PM -odd number homes on odd numbered days, and even numbered homes on even numbered days! Incidentally, many communities are starting to issue penalties for watering during restricted times. We hope it doesn't come to that here in Elk River. You can keep your lawn healthy by applying water during non-restricted times as follows: Amount To Water De endin On Weekl Rainfall of: Less than %2" '/2" to 1" 1" to 1 '/2" 1 '/2" to 2" Heavy Soils* Apply 1" to 1 ''/2" Apply''/2" to 1" Apply %2" No Watering Once per week Once per week Once per week Required Sandy Soils* Apply %" to 3/4" Apply '/4" to ''/2" Apply '/4" No Watering Twice per week Twice per week Twice per week Required ever watenng leaches minerals out of reach of grass roots retarding growth. And, if you have a sprinkler system, be sure to adjust it to compensate for rain received. .S~/~'~ ams Manager SURVEY BACKGROUND We are pleased to present this compilation of 2007 regional water, wastewater, stormwater, and solid waste utility rates. The following pages summarize the typical residential monthly bills for each utility (excluding solid waste). The bills are based on 7,500 gallons of water usage (excluding stormwater), although we realize that some communities either round up or down, based on the volume of water used and wastewater generated. The 7,500 gallons was used to establish a benchmark for comparison purposes. Individual comparisons of the water, wastewater, stormwater, and solid waste utilities are presented, along with a typical total utility bill comparison based on the combined monthly cost of these services (excluding solid waste). Communities surveyed included primarily those serving greater than 5,000 people throughout Minnesota (including the Minneapolis / St. Paul Metro area), North Dakota, South Dakota, Montana, and Wyoming. You will readily note that the monthly utility costs among communities are highly variable. This can be attributed to a number of factors such as water source, community size, presence/absence of a mechanical wastewater treatment plant, topography, and local policies relative to depreciation and capital improvement funding. The information presented can be used to determine where a community would rank based on a typical monthly residential utility bill with consumption of 7,500 gallons, bearing in mind this variability. This survey was conducted both as support for ongoing revenue adequacy, cost of service, and rate planning analyses underway by AE2S and as a planning resource for communities in the region. On a regional and national scale, utilities are responding to economic challenges through increased operational efficiencies, comprehensive capital improvement planning, and judicious rate planning. Forecasting required rate increases in conjunction with capital improvement planning enables utilities to meet annual operation and maintenance cash flow requirements, as well as provide sufficient funds for needed capital improvements. In terms of rate planning and design, knowledge of the cost of service associated with serving individual customer classes assists in making equitable and justifiable rate planning decisions. Annual review of capital improvement planning, revenue adequacy, and rate planning is a critical step toward achieving and maintaining financial health for your utility. If there is anything we can do to improve the quality of this survey in the future, please let us know. If you have questions about this survey, or if you would like more information about our financiaUasset management services, please contact Sheryl Smith at 701-746-8087 or Sheryl.Smith(a~,ae2s.com. t ~~;,~ a _ .. -~ = .WATER ~~ ..w ~ 4.:. f~~~..-r r~ ~.~` ~~ ~~ Y The graphs depict typical monthly residential water utility bills for those municipalities who responded to the survey. The bills are based on 7,500 gallons per month. It should be noted that some communities include a monthly infrastructure replacement charge as part of the monthly utility billing fee, and some do not. This summary reflects the billing structure as reported by the communities surveyed. SURFACE WATER SYSTEMS Great Falls, MT $16.07 ~ Evanston, WY ' $18.04 ~ Water Fixed Charge Sioux Falls, SD $19.14 Watertown, SD' $19.14 ~ Water Volume Charge Fergus Falls, MN' $19.73 Mandan, ND ~ $20.55 (Excluding Minneapolis / Billings, MT $21.49 St. Paul Metro) Bismarck, ND $21.85 Rapid City, SD' $22.11 ~ Casper, WY' $22,32 Yankton, SD $24.53 Helena, MT $25.15 Grand Forks, ND $25.58 Cheyenne, WY' $26.71 Aberdeen, SD' $26.88 ~ St. Cloud, MN $27,47 U Grafton, ND $27.50 Duluth, MN $27,68 Williston, ND $27.71 Valley City, ND' ~ $28.47 Mitchell, SD =.. $28,57 Butte-Silver Bow, MT - - $30.37 Fargo, ND - -- ~=- $30.38 Mankato, MN* Y- $31.15 Huron, SD - ,r.,° $31.50 Thief River Falls, MN $31.58 i Moorhead, MN' - $32.52 Laramie, WY' $33.80 ~ Bozeman, MT ~~~° ~ - _t, ,n. $35.34 International Falls, MN -~ .,, ,, ~~_= ~ ~- •a- --->-. $36.30 Dickinson, ND , .. .• . , .: ,~~ ,,,. .: $37.78 Havre, MT - ~ r. $39.45 East Grand Forks, MN n~ ~:,.. ,,•:..: .,: ...~_ ..~.,~.:..~.:< $42.63 0 5 10 15 20 25 30 35 40 ~ Typical Monthly Residential Water Utility Bill ($) *Both Surface Water and Ground ~;~~ ~g.:~' ~ ~ WA ER ~~~ a.= GROUND WATER SYSTEMS Sidney, MT Rochester, MN Monticello, MN Cloquet, MN Lake City, MN Belgrade, MT Faribault, MN Albert Lea, MN Willmar, MN Elk River, MN Austin, MN Buffalo, MN Detroit Lakes, MN Owatonna, MN Northfield, MN Livingston, MT Kalispell, MT Brainerd, MN Minot, ND Stewartville, MN Brookings, SD Pierre, SD ~ Waite Park, MN Alexandria, MN U Jamestown, ND Spearfish, SD North Mankato, MN Litchfield, MN Zimmerman, MN Brandon, SD Hibbing, MN Devils Lake, ND Worthington, MN West Fargo, ND Marshall, MN Bemidji, MN Wahpeton, ND Baxter, MN Grand Rapids, MN Hutchinson, MN Winona, MN Vermillion, SD Crookston, MN Missoula, MT Red Wing, MN New Ulm, MN St. Francis, MN 0 5 10 15 20 25 30 35 40 45, Typical Monthly Residential Water Utility Bill ($) 4 WATER ~~~~~~~ Y . ~. ~~ ~~ ~ SST BY ., .~Ia y. ~ f ..Xii i ~ The graphs depict typical monthly residential water utility bills for those municipalities who responded to the survey separated by Minneapolis / St. Paul Metro Area and State. The bills are based on 7,500 gallons per month. MINN EAPOLIS / ST. PAUL METRO AREA Maple Grove, MN $8,38 Fridley, MN $8.85 Vadnais Heights, MN $9,70 ^ Water Fixed Charge White Bear Lake, MNI $9.72 ^ Water Volume Charge Plymouth, MN $10.95 Mounds View, MN $11.25 Eagan, MN $11.49 New Brighton, MN $11.52 Farmington, MN $11.63 Chaska, MN $11.67 Cottage Grove, MN $12.38 Dayton, MN -Area 1 $12.59 Dayton, MN -Area 2 $12.59 St. Louis Park, MN $12,70 Brooklyn Park, MN $12,78 Minnetonka, MN $13.53 Apple Valley, MN $13.61 Edina, MN $13.61 Hastings, MN $14.32 Spring Lake Park, MN $14.72 Andover, MN ~ $14.83 Eden Prairie, MN $15.79 Champlin, MN $15.85 Circle Pines, MN $16.03 Ramsey, MN ~ $16.07 Forest Lake, MN ~ $16.54 Falcon Heights, MN* ~ $17.55 Bloomington, MN* ~ $17.56 Mahtomedi, MN $18.38 West St. Paul, MN* $18.58 Richfield, MN $19.21 Mound, MN $19.82 Robbinsdale, MN $20.33 Saint Paul, MN $20.48 Waconia. MN $20.90 Mendota Heights, MN* $21.06 Belle Plaine, MN $21.93 Savage, MN* $24.80 Prior Lake, MN $24.88 Minneapolis, MN $26.77 ~ Golden Valley, MN* 27 Typical Monthly Residential Water Utility Bill ($) *All or Partial Purchase -- ~-~-~~-~~-.-~~..~.n<nmax.a.wa+e..n.wv.wli1d16FPSIILi~f ,:, ~.. wA~E~iR~~~STATE MINNESOTA Rochester, MN Monticello, MN Cloquet, MN Lake City, MN Faribault, MN Albert Lea, MN Willmar, MN Elk River, MN Austin, MN Buffalo, MN Detroit Lakes, MN Owatonna, MN Northfield, MN Fergus Falls, MN Brainerd, MN Stewartville, MN Waite Park, MN Alexandria, MN North Mankato, MN Litchfield, MN V Zimmerman, MN Hibbing, MN Worthington, MN Marshall, MN Bemidji, MN St. Cloud, MN Duluth, MN Baxter, MN* Grand Rapids, MN Hutchinson, MN Winona, MN Crookston, MN Mankato, MN Thief River Falls, MN Moorhead, MN Red Wing, MN New Ulm, MN International Falls, MN St. Francis, MN East Grand Forks, MN $13.38 .......: ~ $4.63 0 5 10 15 20 25 30 35 40 45 Typical Monthly Residential Water Bill ($) "All or Partial Purchase NORTH DAKOTA Mandan, ND Minot, ND Bismarck, ND Jamestown, ND Grand Forks, ND ~ Devils Lake, ND U West Fargo, ND Wahpeton, ND Grafton, ND Williston, ND Valley City, ND Fargo, ND Dickinson, ND 0 5 10 15 20 25 30 35 40 Typical Monthly Residential Water Bill ($) SOUTH DAKOTA Sioux Falls, SD Watertown, SD Brookings, SD Pierre, SD Rapid City, SD ~. Spearfish, SD V Yankton, SD Brandon, SD Aberdeen, SD Mitchell, SD Vermillion, SD Huron, SD 0 5 10 15 20 25 30 35 40 45 Typical Monthly Residential Water Bill ($) WAMETR~~~TATE MONTANA Sidney, MT Belgrade, MT Great Falls, MT Livingston, MT Kalispell, MT Billings, MT V Helena, MT Missoula, MT Butte-Silver Bow. MT Bozeman, MT Havre, MT 0 5 10 15 20 25 30 35 40 45 Typical Monthly Residential Water Bill ($) WYOMING Evanston, WY ~ Casper, WY* U Cheyenne, WY Laramie, WY $18.04 ^ Water Fixed Charge ^ Water Volume $22.32 $26.71 $33.80 0 5 10 15 20 25 30 35 40 45 Typical Monthly Residential Water Bill ($) *All or Partial Purchase IS IT YOUR DAY TO WATER?" By 1.AiJI2IE BLAKE Iblake@startribune.com is hot, dry and raining tick- ets for sprinkling violations in 'Eden Prairie, where more than 800 residents have been fined since Tune 1 for watering their lawns whE ey shouldn't. T'i,~ city is taking a hard line - regularly patrolling for violators at 3 a.m. -because lawn watering is drawing down reserves the city needs to fight fires. Already this sea- son, one of the city's four water tow- ers,has been drained nearly dry. "It's been so dry and people are watering a lot more than they should at times when they shouldn't be and it's deleting .our water system alarmingly so," said Leslie Stovring, the city's environmental coordinator. "More and more people are putting in irrigation systems and watering at night, so we are cracking down." Watering bans. are in full force around the metro area as communi- ties try to keep lawns green without draining water towers and without exceeding water-use limits s~ t by the Department of Natural Resources. The restrictions are not triggered by a lack of water, said DNR hydrolo- gist Dale Homuth. "We are not out ofwater -there is plenty ofwater," I~omuth said. Sprinkling continues on A10 - Inside: 20 cities rules. A30 - JOIN THE DISCUSSION Have you seen your neighbor go to great lengths to skirt a watering ban? Or have you paid the price of a green lawn? Please share your story at startribune.com/ a3014. CARLOS GONZALEZ • cgonzalez@staztribune.com Jason Punton used a spotlight to check the addresses of homes at about 4:30 a.m: Wednesday. Punton was looking for violators of Eden Prairie's lawn.-watering restrictions. In atwo-hour span, he cited about ?0 homeowners for violating the city's odd-even. rule. 0 0 N N W z 5 a Q a w .~ a a N ~r F 0 a ~ ~ ~ ~5 0~ ~~ ~ ~ ~ ~ ~ cgs„~r of ~: " a~ v .s p a, ~ `~ o x v ~ ~ ~ ~ O ~ g ~. ~g~s+~ ~ ~ 8 .-. 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'?. +-~ 'y ~ •b cd a+ v~ y U .b O D+.b "~ Dp cd y aa~.d,bb~~aR'"~ ~~y ~~; q~a~~~~' v '~~gzaoN°~N3"o•~'•o~ • ~ ~3 ~ o',.'b.v °..'~ .~.~$ ~ ~~A $'oev~', ,~v'o o ~ qA v ~ a"i.n 1.'':? ~.~ o.~ °u ~• a O Q a O 1~1 H • ,~ ~+ -:~~~ 0 0 ~,.~ ~ ° ~ ~ ~ ~~ a a v as ~ v X ~ `; ,c •~ ~ ~ Fo t#~~' ~j '• N ~+ GJ f~ N O d/ V O W Vi 60 C " .L.Tpji1 o O a~opW ~ ~ ~ ~~ ~~~ ctl~~+~i ~~ °~ " C7 ~ ~ Vl ~ H V611 ~ ~ ~ ~ ~ ~ O ~ ~ ° ~ ~ 8 ~ O ~ H ~ ~Q} e+... dl ~+ ~~~yyy ~ OBI ~ ~ ny 0. ~ ~C~ ~ ~ H ~ M y ~ 0 ~ ~ Y ~ ~ ~ ~ ~ O .a~C ~ YY! N .G of w w I^ ~ [d~ ~'+" Ki ~ v3 `~..E1 ~7rX7 ~ .~ " Yr M.aW 00•a " yb ~~ ~. ~yy fb W ~,,, ~ W ~• ~ o ~w~, :~ ~ ~ N ~ ~ ~ 4r b ° ~ ~ ~ ~ W ~ 1-~ v v ~ -•~ I11 ~ ~ ~ ~ v°i ~ ~ O N ~ S S ~. 41 .y,. Gl „yy ~i ~ ~~ pyy ~ OL) y ,O Q1 `~" ~ ~ ~ ~~ a~ ~~ ~ y o w~~w • • ~ ~'~' ~/+ ~ F O ~ N N O to N +' ~~ .. y"~ ~ av ~'~+~-' N ~ ~ +' ~. m b G v `~ y yxy.. ~ ~ ei .--i N O p O ~ O~ O Vl ~ O P1 'n ~'. fi W I/~li ~ M r.~ ~' N rl g o~ ww o a.$~ 0 33 ~ vo - R i~ ~." ee w° ~." ~ vii ~ ~ ~ !3, ~ vas ~ersoti per day; according..: he DNR. Pnt another way, thy„", entire city of Woodbury uses 4~'° iiillion to S million'gallons on ~ typical winter`day;:last`sum- ner, peak use hit 23 million gal- ons'onone day. :(Officials say lawns need nore.than one-half to 1 inch !eater per week to stay; gr ;they recommend a pla Slaced in the path.. of the sp, , :ter to measure depth) and people are often overdoing it. ' More and:more: homeown='~ ors are. putting in':automatic rrigation systems:andsetting.. hem to.water every other, day, ;aid ~ Klayton Eckles; Wood-' fury's .deputy public works lirector. "You don't need to eater every .other. day... Grass: loesn't need that much irriga- ion." He rernmmends:operat- ng the systenns manually. The `irrigation. business is ;ood and steadily ..growing,, aid Chris Swanson, owner of ~dvanceii Irrigation Inc. in .AJ- ~erEville. Many of his custom- ~rs; are older-people tired of -auling hoses around, he. said: ' All the modern contrtillers lave built-in calendars that ac- :ommoSiate the odd-and-even btering bans: ' Vatering's'a part-time job!' ;:; Ed~~ Prairie resident Brian :owesend installed an aut~J- dat~i~ •sp~i~i~cting :system. after.' vetting a X25 ticket last ssm- ner. "If yr~u don't feel like watex- ng at night after a long"day ai he office, well you better get. i~~ early enough on the week- ~nd to get the =lawn watered ~y noon," `Townsend said. "If 'watered-during the week, I tir , moving sprinklers from 6 01030: at night- no jokel It Nas a part-time job!" Now, Townsend said,'"I can . relax and enjoy the summer.° Stovring got more than 200 galls last week from Eden Prai- rie residents who were unhap- py about tickets. But officials say; many homeowners take he-restrictions. in .stride, ap=, Maud the."conservation efforts! ind even'turn in their neigh- Fors for violating them. ' Across l3wy.169 from-Eden Prairie,- water is not an issue n Bloomington. With .both a ;yell-supply;and a20=year con- :ract to buy'river water. treat- ;d :by the city of Minneapolis, 3loomington has more than it leads and imposes no watering ;estri~tions. "We.are the. only iual-supply `: system ` in the Mate," aid utilities superin- :endent Bob Cocla~iel. `'' Evenao, Bloomington regu- arly asks residents to use wa- ver wisely, Cockriel said. "Just Because you can use it, you shouldn't: ' ~;,e :.~ ~~~.. "u~r ~~ *' ,;' , a „ ~. '~ ~_ d {- ~ ~. __ f - - 4 'fie ~~ _ ~s ~~ -~ ~.,,, '~~: ° ~.~ _ p aw, '~ ~v ~ ~ , ,, .r , §,,g °_ ~ .a.~ " .~ ~.~; d,~ ~ ~ ~~~ ~1 ~ _, ~~ ~ , 1 ~ ~ ,- ~ r ~ ~ ~ r ,~ '~~ ~'' !- • In blind taste tests, many prefer the ~E ~ sorrLEn taste of tap water to bottled, yet too ~ ~- wA~R PRICE COMPARISON many of us still buy the bottle, despite ~ sometimes, there's no alternative to bottled the cost andthe im act on the Janet. ~~'• p p y ~ water.Parties,for t -' ~•, ~~ example. To save 3 ~` it money, buy larger DOLLARS & SENSE JOHN EWOLDT ,~ - t y R~ quantities.Inthe °* samples below, prices gu• ~, ~ ~~ e., q h'g A wave of Il bemusement washed over ~ : ~~ ~ guantas thoes down. a. yM Tom Chochrek of Edina as he pulled a IZ-pack '' ~'r ~ LEAS T ~~~' `- of Ice Mountain off the shelf at Tar et. "It alls t ~~ ~" ~ E x p E N s I v E: g g ~~ ~ Kirkland Signature: ,, t ~~ . , ~ Costco's private label me that I bu rt," he said. "I could et it chea er from the to , ~ ~ ~'" " ,~ , y ~ g p p ~,~:~ , (13 cents per 16.9-oz. ~- bottle, 35 bottles for but that's not so practical in tl:e car with the kids." •` ~ 54.s9.The same amount "~-' q„ ' r ~ ¢ f ^` of Ice Mountain is 54.63). Why do so many Americans choose bottled "':'~°~.~~,, _, Camelot: Aldi s private i :.. t 't ,$,,, ~ ~ ~ label (15 cents per water? Certainly convenience, but better taste and ~ '° ,~, ` 16.9-oz. bottle, . 24 for $ 3.59). y ~~~, smell are reasons, too. Man Americans believe ~ ~, ° . ~ - AVERAGE PRICES: that bottled water not only tastes better, but contains ` ~ i ; _ ` ~ Ice Mountain at Target `°~~~ ~ (25 cents per 8-oz. bottle, fewer impurities. The labels soothe us with words such ~`~ ' ) i2 bottles for 53.04). " ,, -~ Fiji at Target (99 cents as "purified," "natural springs;' "artesian" and even (. ~'' per 16.9-oz.bottle, 1~ '*, ' ~~" six-pack for S5.99). "wellness water." Who wouldn't want to drink liquid `~~- refreshment that comes from an aquifer deep within the ` Earth on a remote island? That sounds better than "from the river so murky you're afraid to swim or fish in it: ' a ~ t ~~ Still, in a blind, informal taste test in the newsroom, sev- Related: Tips for consum- .L~~r ers wanting to ban the en of eight tasters thought that Minneapolis tap water was ,N disposable bottle. Ei0 equal to or better than Dasani, Ice Mountain or Fiji. Only , ~,. ° ~, ., ,x ! one taster preferred the most expensive water from the. is- • ~, land. Others said it was "so so," "flat" or "had an aftertaste: ' ,, ~j Une reviewer was convinced that all four were the same. ~~' '` a. In 2000, Lynne Rossetto Kasper of the Splendid Table ra- i, ' dio show did a taste test comparing Dasani, Evian, Chippe ~ ° ~} ,c r,, wa and Minneapolis tap water. Not only. did Minneapolis ~~' tap win, but Kasper was sure that Evian was tap water. , r~ What many buyers of bottled water may not `know is that Coca-Cola (Dasani), Pepsi (Aquafina) or Nestle a (Ice Mountain) don't have to release their water testing results to the public like municipalities do. Nor do they ;j add fluoride to deter tooth decay, as most municipal ~ ,:;, ,~ water operations do. r , , ~.~ ~ ._ 1 ~ WATER FROM EI Minneapolis, for example, tests its water for more than 100 contaminants. A new fil- tration system in Columbia Heights removes more impu- ritiesthan are required for fed- eral water quality standards. More than 500,000 residents, including Minneapolis, Gold- en Valley, Crystal, New Hope and Columbia Heights get wa- ter from its plant. Buying a bottle of water at a convenience store for 79 cents may seem cheap, but a consumer can fill the same bottle 2,850 times at the price of Minneapolis water, ac- cording to the city's website. While many Americans moan about the price of gasoline, few seem to groan about the price of bottled water, which, if you're choosing Fiji's rect- angular bottle, costs about $8.50 a gallon ($2.25 fora 1- liter bottle). In total, Amer- icans spend about $11 billion yearly on bottled water'. Oil and water do mix Carrying around liquid re- freshment on a hot summer day may be refreshing, but not "green." More than 1.5 million barrels of oil are needed each year to produce plastic water bottles for Americans, accord- ing to the Earth Policy Institute in Washington D.C., enough to fuel 100,000 U.S. cars for one year. Unfortunately, only 20 percent of those containers are being recycled, according to the National Association for PET Container Resourc- eS']n (:harlottP. N_C: Manv arr~ thrown away by consumers on the go who can't fmd a recy- cling option in parks or shop- ping malls, said Angie Tim- mons, asenior planning an- alyst with Hennepin County Environmental Services. The impact isn't just the mountains of plastic water bottles trashed, but also the amount of fuel necessary to ship water from the source to the point of consumption. Con- sumers may feel a little sheep- ish paying big bucks to have water shipped from Fiji or France only to find they can't taste a big difference between H2O from the hinterlands and their own tap. Some leaders are beginning to see it as a political and mor- al issue. A documentary called "Troubled Waters" looked at the rationale that bottling water takes water resources away from the poor in devel- oping countries. The film was co-sponsored by the National Coalition of Amerir_an Nuns and Presbyterians for Restor- ing Creation and the United Church of Christ. Last month, Minneapolis Mayor R.T. Rybak cospon- sored aresolution at the U.S. Conference of Mayors in Los Angeles calling for a study on the impact of bottled water on cities' budgets and waste dis- posal. Rybak wants to com- bat the belief that bottled wa- ter is safer and healthier than tap water. John Ewoldt • 612-673-7633 or jewoldt aCstartribune.com. His articles are online at www:startribune.com/ .~,.u ~ ~~ ^ ^ e ~ ~n er etter FORECASTS FOR MANAGEMENT DECISIONMAKING 1729 H St. NW, Washington, DC 20006-3938 • kiplingerbiz.com • Vol. 84, No. 25 Dear Client: Get used to living with less water. Severe droughts are here to stay. Worst off: The South and West. But other areas also must learn to cope with less rainfall. The shortage is not yet a crisis, and with planning, it won't ever become one. But it still means lots of big changes. ® Conservation will be the new norm. Higher prices will help make it happen. Consumers, both business and residential, will pay more...in some places, a lot more, with rates that'll escalate as use increases. Limits on use. Some will be mandatory, as is the case in a few Calif. counties now. But most communities will rely on pleading, cajoling or tax incentives to cut water use. More ways to save. Some businesses will add roofs that can catch rainwater, get rid of fountains, replace thirsty lawns with less-demanding plants or install faucets that shut off automatically after a set time. Washington, June 22, 2007 ~ ~ ~• ~ GDP .......... 2% for the year ...................................... .. . . ... M .. .. . ........... . Interest rates .......... Prime ending '07 at 8.25% ............................................................. N .. I Inflation ~ About 2.5% for the year Employment 1.5 million more jobs • I Trade deficit Narrowing to $761 billion, 5.6% of GDP Crude oil I .......... I Averaging $60 a barrel .............................................................. HOUSInq Sales NEW FORECAST Down 9 6% in '07 u 17% in 'OS ~ ~ . , p Retail sales Slowing to 3% growth Complete economic outlook at k iplingerbiz.com/outlooks Purchases of appliances that use less water... better washing machines, air conditioners, toilets, etc...will spike. Recycling. Las Vegas leans heavily on a capture, collect, treat and redistribute system, offering incentives to consumers and companies. Firms can earn rebates...up to a lifetime limit of $150,000 per property. It's a success story that other cities can learn from: In five years, water use in Las Vegas fell by 18 billion gallons as population surged. Stocking up. To help smooth out dips in supply, Fla. communities plan to skim millions of gallons from rivers, such as the St. Johns. The water w'l1 be d 1 d ,`~.~ U.S. Drought Monitor 3 " ~' i ti , ,~ _ :. f Intensity oI Drought , ~ - ~ Extreme ^ Severe ~ Moderate ADnofmdlly Dry Sources: Climate Pre Diction Center, Ki Dl~nger i pumpe c eane and stored. Other communities are adding reservoir capacity and putting up new water towers to prepare for future droughts. Desalination. San Diego, for one, is pinning hopes on a new plant. The catch: It's a drain on power. Bucks from Congress will help, but the main burden will fall on local leaders, individuals and firms. (More on page 2.) For those involved in water technology, there's money to be made. Demand for water recycling plants will grow sharply. Sales of equipment for filtration, ultraviolet oxidation and vapor compression will rise 15% annually for five years from today's $1.8-billion level. Among the leading manufacturers: CH2M Hill, Separation Dynamics, Mi-T-M Corp., Siemens, Arbortech Corp. and EZ Environmental Solutions. Also: Sun Frost, Applied Energy Recovery Systems, SETS Systems and other makers of water efficient appliances, for both consumer and industrial applications, as the water conservation market grows. Other winners: Firms that dredge reservoirs or make water towers.