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• Review utility rates and user charges to determine if the rates and charges are sufficient <br /> to pay for operations and capital improvements. <br /> • Review connection charges and review the policy for SAC and WAC charges as they <br /> relate to the City's redevelopment efforts, as necessary and appropriate. <br /> • Identify future capital projects and utility funding requirements for the relevant time <br /> period,to be provided by City staff. <br /> • Identify any additional issues. <br /> ✓ The use of debt vs. cash to pay for capital improvements. <br /> ✓ Minimum cash balance for the utility fund. <br /> ✓ To ensure the fees are sufficient to operate the utilities and not require a future <br /> tax levy. <br /> ✓ Establish a financing plan for funding current and future capital improvements <br /> and operational expenses. <br /> Step 2. Provide a comparison of utility rates and connection fees in comparable communities. <br /> The survey will compare water, sanitary sewer fees charged for a single family home in <br /> Pequot Lakes with fees charged by comparable communities. <br /> Materials/Services to be Provided by the City <br /> • City population projections and estimated new connections per year <br /> • Historic water usage for 2004 through 2006, including number of residential, <br /> commercial, and industrial connections;water pumping records; gallons billed; <br /> • Historic sewer usage for 2004 through 2006, including usage billed <br /> • Current water connection information, including residential and commercial/industrial <br /> information <br /> • Current 2007 operating budget and 2004-2005 financial statements, actual operating <br /> results for 2006. <br /> • Current billing system information, including rates and billing schedule <br /> • Current connection charges and basis for calculating <br /> • Existing water, sanitary sewer cash and investment balances <br /> • Capital improvements for 2007-2012 (estimated)for each utility <br /> • Operations and management expenses(estimated)by utility <br /> • General information as necessary <br /> Project Cost and Completion Date <br /> Estimated Time for Completion: <br /> Step One: Draft for management review three weeks after Council approves work plan. <br /> Step Two: Draft for management review two weeks after Step One completed. <br /> Final product for Council review and comment nine weeks after Council approves work plan. <br /> City of Pequot Lakes, Utility Rate Study Proposal February 22,2007 <br /> Page 3 <br />