1. Proposed Water and Sewer Capital Recovery Fee Revisions DFU Fees DFU Fees Water Resource Recovery Fee (WRR) Water Resource Recovery Fee (WRR) Sanitary Sewer Connection Fee (SSC) Sanitary Sewer Connection Fee (SSC) Sanitary Sewer Pumping Station Fees Sanitary Sewer Pumping Station Fees Capacity Fee ($/GPM) Capacity Fee ($/GPM) Landscaping Landscaping Portable Pump Portable Pump Radio Transmitting Unit (RTU) Radio Transmitting Unit (RTU)

2. WRR and SSC Fees  Recovers capital costs of the City to make water and sanitary sewer services available.  Capital costs allocated in proportion to anticipated demand imposed upon the system.  Allocation based upon Drainage Fixture Units (DFUs)

3.  WRR Fee –  $66 per DFU since 1986  Effective 7/1/08 - $79 per DFU  Effective 7/1/09 - $92 per DFU  SSC Fee -  $56 per DFU since 1998  Effective 7/1/08 - $59 per DFU WRR and SSC Fees

4. Proposed Revisions Sanitary Sewer Pumping Station Fees Paid by developers who: discharge to an existing SSPS based upon capacity ($/GPM) discharge to an existing SSPS based upon capacity ($/GPM) build a SSPS to offset related City expensesfor: build a SSPS to offset related City expensesfor: Landscaping Landscaping Portable Pump Portable Pump Radio Transmitting Unit (RTU) Radio Transmitting Unit (RTU)

5. Sanitary Sewer Pumping Station Fees Objectives: Fair and equitable distribution of costs Fair and equitable distribution of costs Consistency in fee policy Consistency in fee policy Annually adjusted to reflect actual costs Annually adjusted to reflect actual costs

6. Sanitary Sewer Pumping Station Fees Current SS Pump Station Capacity fees established in 1987 Current SS Pump Station Capacity fees established in 1987 DPU is not recovering capital costs DPU is not recovering capital costs Current fee $325/GPM (averages about $225 per household) Current fee $325/GPM (averages about $225 per household) Current actual average costs are $1086/GPM (average about $700 per household) Current actual average costs are $1086/GPM (average about $700 per household)

7. Sanitary Sewer Pumping Station Fees Pumping Station Capacity Fee Fiscal Year Ending 6/30/08 6/30/09 6/30/10 Actual Cost $ 1,119 $ 1,152 $ 1,187 Current Fee $ 325 $ 325 $ 325 Deficit $ 794 $ 827 $ 862 Proposed Fee $ 756 $ 1,187 Cumulative Increase $ 431 $ 431 Percent Increase 133% 57%

8. Sanitary Sewer Pumping Station Fees Related Issue Related Issue SSO Consent Agreement (EPA, HRSD and Localities) SSO Consent Agreement (EPA, HRSD and Localities) Reduction in sanitary sewer design flow requirement Reduction in sanitary sewer design flow requirement Previous – 1000 GPD/Residential unit(RU) Previous – 1000 GPD/Residential unit(RU) New – 775 GPD/RU New – 775 GPD/RU Result: 22.5% reduction Result: 22.5% reduction PSC Fee Increase Impact Lessened PSC Fee Increase Impact Lessened Fee/RU increase of $464, not $599 Fee/RU increase of $464, not $599 Resulting Fee/RU $639, not to $824 Resulting Fee/RU $639, not to $824

9. Sanitary Sewer Pumping Station Fees Portable Pump Fee (Not Required with Generator) Fiscal Year Ending 6/30/08 6/30/09 6/30/10 Actual Cost $ 1,571 $ 1,618 $ 1,666 Current Fee $ 1,000 $ 1,000 $ 1,000 Deficit $ 571 $ 618 $ 666 Proposed Fee$ 1,000 $ 1,333 $ 1,666 Increase $ 333 $ 333 Percent Increase – Accumulative 33% 25%

10. Sanitary Sewer Pumping Station Fees Landscaping Fee Fiscal Year Ending 6/30/08 6/30/09 6/30/10 Actual Cost $ 1,545 $ 1,591 $ 1,640 Current Fee $ 1,500 $ 1,500 $ 1,500 Deficit $ 45 $ 91$ 139 Proposed Fee $ 1,570 $ 1,639 Increase $ 70 $ 70 Percent Increase – Accumulative 5 % 4 %

11. Sanitary Sewer Pumping Station Fees Radio Transmitting Unit Fee Fiscal Year Ending 6/30/08 6/30/09 6/30/10 Actual Cost $ 5,356 $ 5,517 $ 5,682 Current Fee $ 5,200 $ 5,200 $ 5,200 Deficit $ 156 $ 317 $ 482 Proposed Fee $ 5,441 $ 5,682 Increase $ 241 $ 241 Percent Increase – Accumulative 5 % 4 %