Placement: Second Reading of Ordinances / Public Hearing
Action Requested: Motion / Vote
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Ordinance 21-91, Public Hearing, An Ordinance Approving Utility Rate Increase for Water, Wastewater and Reclaimed Water
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Submitted By: Brad Macek, Utility Systems Director
Strategic Plan Link: The City's Goal of a high-performing city government organization.
Executive Summary (General Business): Approve a 1.5% rate increase for the Utility systems department and add a new rate for 2" Ultrasonic meter. The proposed rate adjustments represent an equitable cost recovery that helps ensure revenue sufficiency to cover the Utility's operating expenses and debt coverage as mandated by the Utility's bond covenants.
Presentation Information: N/A
Staff Recommendation: Move that the Council complete the motion in the affirmative.
Alternate Recommendations:
1. Move that the Council amend the recommendation and complete the motion in the affirmative.
2. Move that the Council not approve and provide staff with direction.
Background: Pursuant to the directive given by the Council at the Summer 2021 Retreat, the Utility Systems Department prepared an Ordinance increasing the utility rates provided in Chapter 61 and 62 of the City's code of ordinances. The Utility systems department hired a consultant who recommended the rate increase.
Issues/Analysis: The Utility Systems Department operates as an enterprise fund and does not rely on the City's general fund or other City offers to operate. The proposed increase will ensure sufficient revenue to cover operating expenses and the City's utility debt coverage.
Financial Information: The proposed rate increase reflects a 1.5% increase in many of the rates set forth in Chapters 61 and 62 of the City's code of ordinances. The average customer would see an increase of $1.35 per month with the proposed 1.5% increase. The average residential bill would increase from $89.10 to $90.45.
Special Consideration: If approved, the ...
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