Placement: First Reading of Ordinances / Public Hearing
Action Requested: Motion / Vote
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Ordinance 25-51, Public Hearing, an Ordinance Approving Utility Rate Increases for Water, Wastewater and Reclaimed Water Rates
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Submitted By: Kevin R. Matyjaszek, Utility Systems Director.
Strategic Plan Link: The City's Goal of a high-performing city government organization.
Executive Summary (General Business): Request the Council's consideration to approve a 3.5% increase to certain related rates, fees and charges that appear in the Utility Systems Department's (USD) rate schedule. Wastewater consumption rates are not proposed to increase. The proposed rate adjustments represent a fair and equitable cost recovery that helps ensure revenue sufficiency to cover the USD's operating expenses and debt coverage as mandated by the USD's bond covenants.
Presentation Information: N/A.
Staff Recommendation: Move that the Council approve the ordinance.
Alternate Recommendations:
1. Move that the Council amend the recommendation and approve the rate increase.
2. Move that the Council not approve the rate increase and provide staff with direction.
Background: Pursuant to discussions by the City Council during their July 23-24, 2025, Workshop, the USD prepared an Ordinance to increase certain related utility rates, fees and charges provided in Chapters 61 and 62 of the City's Code of Ordinances by 3.5%. The Ordinance also includes language amending Section 63.17, governing lift station generators.
Issues/Analysis: The USD operates as an enterprise fund and does not rely on the City's general fund or other City coffers to operate. The proposed increase will help ensure sufficient revenue to cover the USD's operating expenses and the City's utility debt coverage.
Financial Information: The proposed rate increase reflects a 3.5% increase in certain fees, rates and charges set forth in Chapters 61 and 62 of the City's code of ordinances. The average customer uses ...
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