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Ji <br />Elk River -~ <br />Municipal Utilities <br />13069 Orono Parkway • P.O. Box 430 5 ~ Phone: 763.441.2020 <br />Elk River, MN 55330-0430 Fax: 763.441.8099 <br />November 4, 2008 <br />To: Elk River Municipal Utilities commission <br />Jerry Takle <br />Jerry Gumphrey <br />John Dietz <br />From: Theresa Slominski <br />Re: Proposed water rate changes 2009 <br />At the last commission meeting staff was asked to review the possibility of changing the <br />fixed monthly charge instead of the 1 sr step rate for the 2009 budget. It was noted that a <br />10¢ increase of the base rate results in approximately $50,000 additional revenue. Based <br />on the number of meters, a $1.00 increase in the fixed monthly charge results in $47,500 <br />additional revenue (and a $2.00 increase results in $95,000 additional revenue.) Currently <br />the base rate is $6.50 and so this would increase the base rate to $7.50 or $8.50. At the <br />December 2007 commission meeting, a comparison was presented of some surrounding <br />areas typical monthly water bill from the AE2S North. Central Utility Rate Study (a copy <br />is attached) and the fixed rates ranged from $2.00 to $15.00, with the average being <br />$7.88. Changing the fixed rate seems reasonable given the above information. If it is the <br />commissions desire to change the fixed rate, some scenarios are also provided to compare <br />and review. <br />