BY COUNCILOR STOVER:
RESOLVED, effective with the water meter readings after November 1, 2006, all customers of the water utility of the city of Duluth, whose water supply is measured by meter, shall be charged for such water in accordance with the schedule of rates established by this resolution as follows:
For consumers requiring water at an elevation in excess of 290 feet above Lake Superior, the rate for all water in excess of 100,000 cubic feet per month shall be effective November 1, 2006, $1.57 per 100 cubic feet.
Water metered at or beyond the city limits, for use by individual customers located outside the corporate limits of the city of Duluth:
All water, per 100 cubic feet - $3.65, effective November 1, 2006.
Rates charged for water furnished to political subdivisions or state or federal government installments located outside the corporate limits of the city will be by individual contract, using the following schedule of rates:
RESOLVED FURTHER, any prior rate resolutions inconsistent or conflicting with this resolution are hereby rescinded.
STATEMENT OF PURPOSE: This resolution sets water rates effective with meter readings after November 1, 2006. The last rate increase to raise revenues for escalating operating expenses (16%) went into effect on January 1, 2002, over four years ago. Since that time, there were three annual rate increases (5% each year) in 2003, 2004 and 2005 to establish a special account in the water utility fund for infrastructure rehabilitation and replacement. The 20% rate increase to be authorized by this resolution will realize an estimate of $1,543,000 in new revenue to meet rising operating expenses and $669,000 for the retiree health care benefit accrued actuarial liability.