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10/18/2010 1 Utility Rate Increases and Inflation +1.1 -0.6 -0.7 -0.4 -0.2 +0.7 +2.3 17.5 0 3.5 3.5 3.5 3.5 3.5 Rates Total 2010 2009 2008 2007 2006 2005 16.4 0.6 4.2 3.9 3.7 2.8 1.2 CPI% Total 2009 2008 2007 2006 2005 2004 ---PAGE BREAK--- ! 0 0 0 0 0 0 2 % * 45 0 0 7 0 0 0 0 2 % 0 0 0 ---PAGE BREAK--- ! ! 4 ! - & ! ---PAGE BREAK--- # ! % & 5 7 ( ! - & ! ---PAGE BREAK--- # ! % 6 ! - & ! 7 ( 586 ---PAGE BREAK--- 10/18/2010 Utility Rates and Winter Averaging Winter Averaging applies to Sewer bills • Averages winter consumption to reduce sewer bills for irrigation of lawns, etc. • Current code extends averaging to business Effect - business usage is understated • Volume based on increased business activity is discounted to average winter volume • Residents are subsidizing businesses ---PAGE BREAK--- 10/19/2010 Winter Averaging Recommendation Discontinue winter averaging for commercial accounts • Businesses could have the option of getting a separate “irrigation” meter if difference in volume is great enough to justify the expense on their part ---PAGE BREAK--- 10/19/2010 Winter Averaging Recommended Motion Staff recommends Council make a motion to discontinue winter averaging for commercial accounts effective January 1, 2011.