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2.2 Monthly Rate Structure When CWD converted its billing to monthly rather than quarterly. the City ,vanted to preserve the same rate structure in the Codified Ordinance, and minimize any impacts to customer bills, such that customers would essentially pay the same amount they previously paid quarterly. except spread over individual months. 1 lowever, because tiered rates were previously based on 1.0 mcf per quarter, dividing this into monthly terms results in the Tier I cutoff being changed to 0.33 mcf;5nninnth. Given the meters can only calculate to the nearest 0.1 met*, the resulting unit is both obscure and abstract. I lowever, if the tiered rate was simplified to change at 0.3 mcf. the City would observe a change in revenue, as would customers experience a change in their overall charges, As such, the City is currently using the 0.33 mcf tired approach to preserve the original intent ofthe ordinance, until a new rate structure can be approved. resulting in the following charges: 11r ntlt!jC C_luzi-ges Fixed 13 • IYUstewales- char-,l'e for the first 0.33 ,M('F: S? 7 ON « T-tiswi,rater Chatgc fur CTVI-v tucf (cu- patYiUb crftei� the first 0.33: S86.06 3. Proposed Rate Structure In order to simplify billing and avoid the issue of abstract meter readings a new monthly rate structure was suggested. In this rate structure there is a minimum charge of'S10.51 fbr everyone that receives sewer service. If the usage charge is less than the minimum charge. the customer would be billed the minimum charge of 510.51. Ifthe usage charge is greater than `510.51. the customer would be billed based on their usage with no additional fee. The usage charge was set to minimize the impact to custonner bills, which will result in similar revenue being collected in 2019, and therefore not increase by 3.01N') as has been done in previous years. The updated rate model shows that North Olmsted is in good financial health. and their operating and coverage ratios meet or exceed goals for the next g years so the minimal impact to revenue should not be a concern. Pi -(j osccl Rclviscd .,fforrthlt�Char cs Hinirnunr chai,ge;montlr: ,'510.51 (1/You exceed this horse d' on usage ehal— e, You etre not charged this fee) [Vasleivwei• char,t�e: 580.06 "mcf The average change to monthly hills and overall revenue is shown in "fable I based on average usage. While the impact to individual customer bills will vary, the overall burden ofthe cost does not shift dramatically from one wage class to another as shown in Figure 1.