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Water Rates Options, Explanations & Impacts

Water Rates Options, Explanations & Impacts. Presentation to the West Linn City Council October 5, 2009. Tonight’s Presentation. Current rate structure What are tiered rates? Examples of tiered rates Discussion West Linn impacts from Pioneer Consulting Group. Small Residential Customer.

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Water Rates Options, Explanations & Impacts

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  1. Water RatesOptions,Explanations & Impacts Presentation to the West Linn City Council October 5, 2009

  2. Tonight’s Presentation • Current rate structure • What are tiered rates? • Examples of tiered rates • Discussion • West Linn impacts from Pioneer Consulting Group

  3. Small Residential Customer Large Residential Customer School Small Commercial Customer Large Commercial Customer Tonight’s Presentation • Examine current and tiered rates on five sample customers • In each scenario: • Meter size and consumption is the same for each customer • Impact from different rate scenarios is shown • Goals: • “Apples to apples” comparison; show impact on West Linn citizens and businesses

  4. Small Residential Customer 5/8” meter $14.94 base 7 CCF $1.67 per CCF over 7 CCFs Total: $14.94 Large Residential Customer 3/4” meter $14.94 base 52 CCF $1.67 per CCF over 7 CCFs Total: $90.09 School 3” meter $31.71 base 612 CCF $1.67 per CCF over 7 CCFs Total: $1,042.06 Small Commercial Customer 1-1/2” meter $19.72 base 174 CCF $1.67 per CCF over 7 CCFs Total: $298.61 Large Commercial Customer 2” meter $25.26 base 230 CCF $1.67 per CCF over 7 CCFs Total: $397.67 Current Rate Structure • Base charge per user based on meter size • Any water consumption above 7 CCF is charged $1.67 per CCF • Examples:

  5. What Are Tiered Rates? • Assess a base charge based on meter size • Assess a consumption charge • One Tier • Two Tier • Three Tier • Seven Tier • Thought to promote conservation because consumption impact rates are charged • The more consumption, the higher the bill • Necessary revenue yield can result in disproportionate impact • City’s total revenue yield must be the same – the impact on various user groups is different • Rates may significantly increase or decrease based on consumption

  6. Small Residential Customer 5/8” meter $9.12 base 7 CCF $2.32 per CCF Total: $25.36 Large Residential Customer 3/4” meter $9.12 base 52 CCF $2.32 per CCF Total: $129.76 School 3” meter $145.93 base 612 CCF $2.32 per CCF Total: $1,565.77 Small Commercial Customer 1-1/2” meter $45.60 base 174 CCF $2.32 per CCF Total: $449.28 Large Commercial Customer 2” meter $72.96 base 230 CCF $2.32 per CCF Total: $606.56 One Tier Rate Structure • Base charge per user based on meter size • All water consumption is charged $2.32 per CCF • Examples:

  7. Cost Comparison

  8. Large Residential Customer 3/4” meter $9.12 base 52 CCF $1.76 for 0-20 CCF$3.39 for 21-52 CCF Total: $152.80 School 3” meter $145.93 base 612 CCF $1.76 for 0-20 CCF$3.39 for 21-612 CCF Total: $2,188.01 Small Commercial Customer 1-1/2” meter $45.60 base 174 CCF $1.76 for 0-20 CCF$3.39 for 21-174 CCF Total: $602.86 Large Commercial Customer 2” meter $72.96 base 230 CCF $1.76 for 0-20 CCF$3.39 for 21-230 CCF Total: $820.06 Small Residential Customer 5/8” meter $9.12 base 7 CCF $1.76 per CCF Total: $21.44 Two Tier Rate Structure • Base charge per user based on meter size – same as one tier rate structure • Water consumption is charged $1.76 for 0-20 CCF; $3.39 for 21+ CCF • Examples:

  9. Cost Comparison

  10. Large Residential Customer 3/4” meter $9.12 base 52 CCF $1.71 for 0-20 CCF$2.38 for 21-50 CCF$4.58 for 51-52 CCF Total: $123.88 School 3” meter $145.93 base 612 CCF $1.71 for 0-20 CCF$2.38 for 21-50 CCF$4.58 for 51-612 CCF Total: $2,825.49 Small Commercial Customer 1-1/2” meter $45.60 base 174 CCF $1.71 for 0-20 CCF$2.38 for 21-50 CCF$4.58 for 51-174 CCF Total: $719.12 Large Commercial Customer 2” meter $72.96 base 230 CCF $1.71 for 0-20 CCF$2.38 for 21-50 CCF$4.58 for 51-230 CCF Total: $1,002.96 Small Residential Customer 5/8” meter $9.12 base 7 CCF $1.71 per CCF Total: $21.09 Three Tier Rate Structure • Base charge per user based on meter size – same as one tier rate structure • Water consumption is charged $1.71 for 0-20 CCF; $2.38 for 20-50 CCF; $4.58 for 50+ CCF • Examples:

  11. Cost Comparison

  12. Large Commercial Customer 2” meter $72.96 base 230 CCF $1.28 for 0-10 CCF$1.85 for 11-20 CCF$2.24 for 21-30 CCF$2.68 for 31-50 CCF$3.18 for 51-100 CCF $3.97 for 101-230 CCFTotal: $855.36 Large Residential Customer 3/4” meter $9.12 base 52 CCF $1.28 for 0-10 CCF$1.85 for 11-20 CCF$2.24 for 21-30 CCF$2.68 for 31-50 CCF$3.18 for 51-52 CCF Total: $122.78 School3” meter $145.93 base 612 CCF $1.28 for 0-10 CCF$1.85 for 11-20 CCF$2.24 for 21-30 CCF$2.68 for 31-50 CCF$3.18 for 51-100 CCF $3.97 for 101-300 CCF$5.92 for 300-612 CCFTotal: $3,053.27 Small Commercial Customer 1-1/2” meter $45.60 base 174 CCF $1.28 for 0-10 CCF$1.85 for 11-20 CCF$2.24 for 21-30 CCF$2.68 for 31-50 CCF$3.18 for 51-100 CCF $3.97 for 101-174 CCFTotal: $605.68 Small Residential Customer 5/8” meter $9.12 base 7 CCF $1.28 per CCF Total: $18.08 Seven Tier Rate Structure • Base charge per user based on meter size – same as one tier rate structure • Water consumption is charged $1.28 for 0-10 CCF; $1.85 for 11-20 CCF; $2.24 for 21-30 CCF; $2.68 for 31-50 CCF; $3.18 for 51-100 CCF; $3.97 for 101-300 CCF; $5.92 for 300+ CCF • Examples:

  13. Cost Comparison

  14. Small Residential Customer 5/8” meter $9.12 base 7 CCF $1.71 per CCF Total: $21.09 Small Residential Customer 5/8” meter $9.12 base 7 CCF $1.28 per CCF Total: $18.08 Small Residential Customer 5/8” meter $14.94 base 7 CCF $1.67 per CCF over 7 CCFs Total: $14.94 Small Residential Customer 5/8” meter $9.12 base 7 CCF $2.32 per CCF Total: $25.36 Small Residential Customer 5/8” meter $9.12 base 7 CCF $1.76 per CCF Total: $21.44 Compare & Contrast – Small Residential Customers Current One Tier Two Tiers Three Tiers Seven Tiers

  15. Large Residential Customer 3/4” meter $9.12 base 52 CCF $1.71 for 0-20 CCF$2.38 for 21-50 CCF$4.58 for 51-52 CCF Total: $123.88 Large Residential Customer 3/4” meter $9.12 base 52 CCF $1.28 for 0-10 CCF$1.85 for 11-20 CCF$2.24 for 21-30 CCF$2.68 for 31-50 CCF$3.18 for 51-52 CCF Total: $122.78 Large Residential Customer 3/4” meter $9.12 base 52 CCF $1.76 for 0-20 CCF$3.39 for 21-52 CCF Total: $152.80 Large Residential Customer 3/4” meter $14.94 base 52 CCF $1.67 per CCF over 7 CCFs Total: $90.09 Large Residential Customer 3/4” meter $9.12 base 52 CCF $2.32 per CCF Total: $129.76 Compare & Contrast – Large Residential Customers Current One Tier Two Tiers Three Tiers Seven Tiers

  16. School 3” meter $145.93 base 612 CCF $1.76 for 0-20 CCF$3.39 for 21-612 CCF Total: $2,188.01 School 3” meter $145.93 base 612 CCF $1.71 for 0-20 CCF$2.38 for 21-50 CCF$4.58 for 51-612 CCF Total: $2,825.49 School 3” meter $145.93 base 612 CCF $1.28 for 0-10 CCF$1.85 for 11-20 CCF$2.24 for 21-30 CCF$2.68 for 31-50 CCF$3.18 for 51-100 CCF $3.97 for 101-300 CCF$5.92 for 300-612 CCFTotal: $3,053.27 School 3” meter $31.71 base 612 CCF $1.67 per CCF over 7 CCFs Total: $1,042.06 School 3” meter $145.93 base 612 CCF $2.32 per CCF Total: $1,565.77 Compare & Contrast – Schools Current One Tier Two Tiers Three Tiers Seven Tiers

  17. Small Commercial Customer 1-1/2” meter $45.60 base 174 CCF $1.76 for 0-20 CCF$3.39 for 21-174 CCF Total: $602.86 Small Commercial Customer 1-1/2” meter $45.60 base 174 CCF $1.71 for 0-20 CCF$2.38 for 21-50 CCF$4.58 for 51-174 CCF Total: $719.12 Small Commercial Customer 1-1/2” meter $45.60 base 174 CCF $1.28 for 0-10 CCF$1.85 for 11-20 CCF$2.24 for 21-30 CCF$2.68 for 31-50 CCF$3.18 for 51-100 CCF $3.97 for 101-174 CCFTotal: $605.68 Small Commercial Customer 1-1/2” meter $19.72 base 174 CCF $1.67 per CCF over 7 CCFs Total: $298.61 Small Commercial Customer 1-1/2” meter $45.60 base 174 CCF $2.32 per CCF Total: $449.28 Compare & Contrast – Small Commercial Customers Current One Tier Two Tiers Three Tiers Seven Tiers

  18. Large Commercial Customer 2” meter $72.96 base 230 CCF $1.28 for 0-10 CCF$1.85 for 11-20 CCF$2.24 for 21-30 CCF$2.68 for 31-50 CCF$3.18 for 51-100 CCF $3.97 for 101-230 CCFTotal: $855.36 Large Commercial Customer 2” meter $72.96 base 230 CCF $1.76 for 0-20 CCF$3.39 for 21-230 CCF Total: $820.06 Large Commercial Customer 2” meter $72.96 base 230 CCF $1.71 for 0-20 CCF$2.38 for 21-50 CCF$4.58 for 51-230 CCF Total: $1,002.96 Large Commercial Customer 2” meter $25.26 base 230 CCF $1.67 per CCF over 7 CCFs Total: $397.67 Large Commercial Customer 2” meter $72.96 base 230 CCF $2.32 per CCF Total: $606.56 Compare & Contrast – Large Commercial Customers Current One Tier Two Tiers Three Tiers Seven Tiers

  19. Discussion

  20. West Linn Impacts from Pioneer Consulting Group

  21. Questions? • City of West Linn • Richard W. Seals, CPA CMA CFM • Finance Director, City of West Linn, Oregon • rseals@westlinnoregon.gov • Pioneer Consulting Group • Doug Gardner • Pioneer Consulting Group, Inc. • dgardner@municipalconsultants.net

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