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Tier One-Usage to 15,000 gallons per quarter charged at $2.15 per thousand gallons <br /> Tier Two-Usage between 15,000 and 25,000 gallons charged at$2.69 per thousand gallons <br /> Tier Three-Usage over 25,000 gallons charged at$4.03 per thousand gallons. <br /> This tier option produces $21,700 in usage revenues for single family users in the Chevy Chase <br /> area. This represents 6.55%of overall usage revenues and this user class uses 6.71% of all water <br /> usage for the time period under study. This option captures the following usage for single family <br /> users <br /> %of Use for <br /> Sin le Famil User Class Usa e-Units Revenues <br /> Tier One 39.2% 2,760 $5,934 <br /> Tier Two 15.4% 1,087 2,922 <br /> Tier Three 45.4% 3,195 12,881 <br /> $21,736 <br /> The cost of purchasing water from the City of Wayzata is currently at$1.12 per thousand gallons <br /> for usage, by account, to 10,200 gallons. Usage over 10,200 is charged at $2.41 per thousand <br /> gallons. The City of Wayzata also charges a base rate of �16.05 per quarter per account. The <br /> overall charges paid by the City of Orono are approximately $18,600 per year. Total revenues <br /> generated by the Chevy Chase area cover the usage and fixed costs and a small amount of <br /> internal administration. The tiering analysis shows an inflation of 5.5% on this cost over time. <br /> Revenues generated from the Chevy Chase area, usage and fixed, would be approximately <br /> $25,200, usage and fixed, for a slight net gain of�6,600. <br /> And finally, water is sold to the City of Minnetonka Beach at a rate of $2.54 per thousand <br /> gallons plus a base rate of $30.11 per quarter for the 15 homes served. These rates would <br /> increase by 5%. <br /> These rate tier options would provide an incentive for water conservation and would likely <br /> provide a buffer to the City for lower usages which would occur during wet weather summers <br /> because it provides a constant revenue stream that's available to pay fixed costs. <br /> The following table, then, shows the impact of the rate and tier structure changes on residential <br /> customers in different areas of the City. The amounts shown in the 2009 column would the total <br /> usage and fixed charge that is paid by the resident, which is dependent on where the property is <br /> located. <br /> Utilin�Rarc S�udv �'��5�: !3 <br /> Crn olOrono. .4finn�sv�u December _'009 <br />