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3. Rates: We propose offering them two options for rates <br />a. Option 1: We would implement our tiered rate structure x number of households the <br />same as Orono users but at a wholesale calculation. 2020 Rates are expected to need <br />an increase. <br />2019 Rates are for presentation purposes only proposed rates subiect to 2020 Rate increase <br />MTKA Beach <br />per quarter <br />Proposed <br />From(Gal) <br />To (Gal) <br />Rate per 1000gal <br />Tier 1 Bulk (per residential <br />connection) <br />0 <br />15000 <br />$ 5.24 <br />Tier 2 Bulk (per residential <br />connection) <br />15001 <br />25000 <br />$ 7.33 <br />Tier 3 Bulk (per residential <br />connection) <br />25001 <br />$ 11.00 <br /># of Connections <br />234 <br />From(Gal) <br />To (Gal) <br />Rate per 1000gal <br />Tier 1 Bulk <br />- <br />3,510,000 <br />$ 5.24 <br />Based on # <br />connections x tier <br />Tier 2 Bulk <br />3,510,234 <br />5,850,000 <br />$ 7.33 <br />Based on # <br />connections x tier <br />Tier 3 Bulk <br />5,850,234 <br />- <br />$ 11.00 <br />Based on # <br />connections x tier <br />b. Option 2: We would sell water at a flat bulk rate per 1000 gallons used. Proposed rate <br />of $6.25 per 1000 gallons for 2020 and $6.50 in 2021, with a 5% increase for each <br />year after. <br />Rates Option 1: <br />PROS <br />1. City would gain more in revenue <br />2. Pricing would be equal to Residents <br />3. User rate increase would be lower due to extra revenue. <br />06�y <br />1. Minnetonka Beach may not consider this to be politically viable as a reseller, thus no <br />