Water Rates Options, Explanations

1
Water Rates Options, Explanations Impacts

• Presentation to the West Linn City Council
• October 5, 2009

2
Tonights Presentation

• Current rate structure
• What are tiered rates?
• Examples of tiered rates
• Discussion
• West Linn impacts from Pioneer Consulting Group

3
Tonights 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
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
• Citys 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
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
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
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
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
Compare Contrast Small Residential Customers
Current
Two Tiers
One Tier
Seven Tiers
Three Tiers
15
Compare Contrast Large Residential Customers
Current
Two Tiers
One Tier
Seven Tiers
Three Tiers
16
Compare Contrast Schools
Current
Two Tiers
One Tier
Seven Tiers
Three Tiers
17
Compare Contrast Small Commercial Customers
Current
Two Tiers
One Tier
Seven Tiers
Three Tiers
18
Compare Contrast Large Commercial Customers
Current
Two Tiers
One Tier
Seven Tiers
Three 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_at_westlinnoregon.gov
• Pioneer Consulting Group
• Doug Gardner
• Pioneer Consulting Group, Inc.
• dgardner_at_municipalconsultants.net