Placement: Second Reading of Ordinances
Action Requested: Motion / Vote
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Ordinance 24-47, an Ordinance Adopting Rate 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 Mission to be financially responsible.
Executive Summary (General Business): Pursuant to the directive given by the City Council at their July 24, 2024, City Council Workshop, the Utility Systems Department ("USD") prepared an Ordinance adjusting various utility rates provided in Chapters 61 and 62 of the City's code of ordinances. This Ordinance adopts a 5.5% rate increase for water use rates and adjusts various rates, fees, and charges. The adjustments represent an equitable cost recovery to ensure sufficient revenue covers the USD's operating expenses and debt coverage as recommended by the USD's financial consultant and mandated by the USD's bond covenants.
Presentation Information: N/A
Staff Recommendation: Move that the Council adopt the Ordinance which codifies adjustments to various USD fees, rates, and charges.
Alternate Recommendations:
1. Move that the Council amend the recommendation and adopt the Ordinance which codifies adjustments to various USD fees, rates, and charges.
2. Move that the Council not approve the Ordinance and provide staff with directive.
Background: The USD operates an enterprise fund, which is a fund that operates solely from the services provided by the USD to its customers. This enterprise fund is not supplemented by the general fund. Last year, the USD hired a rate consultant (Raftelis Financial Consultants, Inc.) to perform a detailed analysis of the USD's rates, fees, and charges. As a result of the rate studies, to ensure the USD has the funding available to maintain operations, provide maintenance to current systems as well as plan for continued growth, the USD proposes adjustments to certain rates, fees, and charges a...
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