Laserfiche WebLink
Aqk I EHLERS <br /> & ASSOCIATES INC <br /> OTo: Honorable Mayor and Council members <br /> From: Jessica Cook and Dave Callister <br /> W Subject: Updated Hamel Water Rate Study <br /> Date: November 1, 2006 <br /> The City has requested that Ehlers & Associates update the water rate study prior to <br /> establishing user charges in the Hamel Area for 2007. The update incorporates the City <br /> engineer's estimate of future capital improvements for the water utility system through <br /> 2016 and estimates about the pace of development. <br /> The initial water rate study was completed in the fall of 2004 in anticipation of financing <br /> and constructing the water treatment plant. The study has been updated each year to <br /> account for changes in development patterns and capital costs. Last year the <br /> methodology in the study was refined to allow the City to measure the financial impact of <br /> conservation water rates -higher per gallon fees for consumption over 30,000 gallons per <br /> quarter. <br /> Assumptions <br /> Following is a chart that summarizes the significant assumptions in the update. <br /> Assum tions in 2006 Update <br /> Growth Over the next ten years,the City expects to add approximately 790 residential <br /> units and 220 commercial "residential equivalency units" in the Hamel Area. <br /> Annual growth is expected to peak in 2008. <br /> Water The new development is expected to necessitate an expansion to the water <br /> Treatment treatment plant in 2015. Thirty-five percent of the expansion cost(estimated at <br /> Plant $1,000,000 in today's dollars but $1,423,000 in 2015) is expected to be paid <br /> with cash from the operating fund. The remaining 65%will be financed over <br /> 15 years and paid from connection fees. <br /> 3060 Centre Pointe Drive (651)697-8546 Fax:(651)697-8555 <br /> Roseville,MN 55113-1105 jcook@ehlers-inc.com <br /> http://www.ehlers-inc.com <br /> 1 <br />