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<br />GOAL <br />WATER RATES <br /> <br />Water rates should be designed based on cost-of-service and an incentive element to use water <br />wisely. <br /> <br />BEST MANAGEMENT PRACTICES <br /> <br />1. Increasi"l! block rate for residential metered customers <br /> <br />Status: The single family increasing two-block rate structure is designed to encourage, <br />the prudent use of water. About 88% of single family annual usage is estimated to be <br />billed in the first rate block (fIrst 20,000 gallons) and 12% in the second block (all over <br />20,000 gallons). The rate differential between the fIrst and second rate blocks is 25%. <br /> <br />Implementation: On-going. Consider moving to an increasing three-block rate structure. <br /> <br />2. Set un metered rates hil!her than metered rates <br /> <br />Status: Unmetered flat rate for single family customers is based on number of rooms and <br />plumbing fixtures in a home. A comparison of average flat rate and metered water bills <br />1993-1995 is shown in the table below. Fluctuations in metered usage reflect annual <br />precipitation patterns. <br /> <br /> Average Annual Residential Water Bill <br />Year Customer Account _Annual Annual <br /> Savings Precipitation <br /> Metered Flat Rate MeteredlFlat (Inches) <br />1995 $342.15 $594.96 $252.81 20.45 <br />1994 $392.56 $578.39 $186.83 11.30 <br />1<)93 $345.2X $555.16 $209.88 14.10 <br /> <br />Implementation: On-going. Consider increasing flat rate charges. <br /> <br />3. Commercial/industrial rates based on cost-of-service <br /> <br />Status: The commercial customer class decreasing block structure is designed to attract <br />large commercial customers to the City. Approximately 53% of the commercial class <br />usage is captured in the first block (first 75.000 gallons), 21 % in the second block (next <br /> <br />17 <br />