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f Page 34 <br /> 4 <br /> � <br /> � McCOMC3�S-KNUTSON /�SSOCIATES, INC. <br /> � ! �� ����� CO":SULTING ENGINEERS II LAND SU"nVEYORS Ij SITE PLA'cNERS � <br /> � : � <br /> ,,� �_ �: _. � <br /> � <br /> Novc��;�bcr ] 0, 19'17 <br /> � <br /> i��,Sr. John Gerhardson <br /> City of Orono <br /> P. O. Box GG Crystal F3ay, Aiinnesota <br /> � � <br /> Subject : �Sater Rate Charges <br /> Dear John: <br /> The purpose of this corres�ond�nce is to clarify our meeting <br /> of this morning regarding our preliminary engineering report on <br /> water rate char�es for the I�avarre area. <br /> `I'he foremost objective in establishing a rate structure is <br /> to insure that revenues from the sale of «�ater is adequate to � <br /> operate the «�ater department . A secondary objective is to <br /> � i_nsure that the rate system is equitable to all users. <br /> � Our report had proposed several rate structures, some that <br /> could be classified as step rate systems and others that «�ere <br /> flat ra�.e systems. Both types of systems have advanta�;es and <br /> � these �;ere discussed in the report as well as at our meeting <br /> of today. The result of the mee`�ing was a combination of both <br /> s5�stems using the following� pricing policy. - <br /> � Cost of �tiater �0. 90/1000 gallons <br /> hiinimum Quarterly Bill $7. 20 <br /> The advantages of this pol-icy are : <br /> 1 . Revenues are e�pected to be adequate for operations. <br /> Based on information contained in the report, the <br /> S following revenue/expense data is estimated for the <br /> proposed rate structure. <br /> Year 1978 1979 1980 <br /> Expenses Estimated �48, 000 �52, 000 �56, 000 <br /> Revenues Estimated �49, 750 �55, 310 �61 ,450 <br /> � <br /> � <br /> 12805 OLSON MEh10RiAL HIGHWAY, MINNEAPOLIS, MINNESOTA 55441 TELEPHONE (612) 5593700 ' <br /> 22 NORTH MAIN STREET, HUTCHItVSON, MINNESOTA 55350 TELEPHONE (612) 897-8029 <br /> SOUTHWEST ENGINEERING DIVISION, MARSHALL, MINNESOTA 56258 TELEPHONE (507) 532-5820 <br />