Placement: Second Reading of Ordinances / Public Hearing
Action Requested: Motion / Vote
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Ordinance 23-59, 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 Mission to be financially responsible.
Executive Summary (General Business): Request the Council's consideration to approve a 1.5% rate increase for the Utility Systems Department ("USD") rates. The proposed rate adjustments represent an 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 rate increase.
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 directive.
Background: Pursuant to the directive given by the City Council at their July 24, 2023, Special City Council Meeting, the USD prepared an Ordinance increasing the utility rates provided in Chapters 61 and 62 of the City's Code of Ordinances by 1.5%. The 1.5% increase is consistent with recommendations in the 2018-19 Water and Wastewater Rate Study and Long-Term Financial Overview performed by the USD's consultant, Raftelis Financial Consultants, Inc.
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 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 1.5% increase in many of the fees, rates and charges set forth in Chapters 61 and 62 of the City's code of ordinances. The average customer would see an increase of $1.38 per month wi...
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