Placement: New Business
Action Requested: Discussion
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Discuss Adjustments to Certain Utility Systems Department Rates, Fees, and Charges
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Submitted By: Kevin R. Matyjaszek, Utility Systems Director
Strategic Plan Link: The City's Goal of high-quality infrastructure and facilities.
Executive Summary (General Business): The purpose of this presentation is to discuss proposed adjustments to certain Utility Systems Department ("USD") rates, fees, and charges based upon a comprehensive study performed by the City's rate consultant, Raftelis Financial Consultants, Inc. ("Raftelis).
Presentation Information: 30 minutes for PowerPoint presentation and discussion.
Staff Recommendation: Request that the Council approve the proposed adjustments to rates, fees and charges.
Background: The USD has an enterprise fund, which is a fund that operates solely from the services provided by the USD to its customers. This fund is not supplemented by the general fund. In 2024, Raftelis Financial Consultants, Inc. performed a detailed analysis of the USD's rates, fees, and charges which resulted in recommendations to adjust several rates, fees, and charges as follows:
1. Utility Rate Study. In accordance with the Utility Rate Study, a 3.5% increase is proposed for water use rates (sewer rates are currently not slated to increase until FY27-28). This proposed FY25-26 adjustment results in an increase of $1.98 per month to the average water/sewer customer (using 5,000 gallons per month) to bring the average residential bill from $95.05 to $97.03.
2. Capital Charge Study. The purpose of Capital Charges is to finance capital expenditures and ensure payment of City indebtedness associated with the City's water supply, water treatment, wastewater treatment and effluent disposal systems. Adjustments to Capital Charges are based on projected Capital Improvement projects required to support the community's ongoing growth. These fees are only charged to developers and n...
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