8-1-10: WATER RATES:
   A.   Monthly Rate: The monthly water rate for each meter shall be calculated using the following:
Monthly fee = (# ERUs) x (base rate) + (usage rate) x (monthly water usage) (Eq. 11.1)
   B.   Monthly Base Rate: The monthly base rate shall be calculated as follows:
Base rate = (annual fixed costs) / [12 * (total # of ERUs)] (Eq. 11.2)
   C.   Monthly Water Usage Rate: The monthly water usage rate shall be calculated as follows:
Water usage rate = (annual variable costs) / (total annual metered water consumption) (Eq. 11.3)
   D.   Tiered Water Usage Fee Rate: The city council may specify a tiered water usage rate where the first block of water used is charged at one water usage rate, and subsequent blocks of water are charged at different water usage rates. An example of a tiered water fee schedule is shown in table 10.1 of this section:
   TABLE 10.1
Water Usage Fee
Per 1,000 Gallons
0 to 7,000 gallons
7,000 gallons to 10,000 gallons
Over 10,000 gallons
If a tiered water usage fee is used, the monthly base rate (Equation 11.2) shall be increased so that the estimated annual income for the water department is equal to the sum of the budgeted annual fixed costs and the annual variable costs so the water department revenue is neutral for the year.
   E.   Water Rate For Inactive Accounts: The city council may set a monthly rate for inactive water accounts as either the monthly water base rate (Equation 11.2) or as a rate specified by the city council.
   F.   Updating Water Rate Schedule: Within sixty (60) days of approving the annual water department budget, the monthly fees and rates (base rate, usage rate and inactive account fee) shall be reviewed and will be set by resolution of the city council. The rate schedule may be revised by the city council without invalidating the remainder of these rules, rates and regulations. (Ord. 131, 6-4-2014)