Placement: Second Reading of Ordinances / Public Hearing
Action Requested: Motion / Vote
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Ordinance 22-86, 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 consideration to approve a 1.5% rate increase for certain Utility Systems Department ("USD") rates for water, wastewater and reclaimed water 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 direction.
Background: Pursuant to the directive given by the City Council at the 2022 Summer Workshop, the USD prepared an Ordinance increasing the utility rates provided in Chapters 61 and 62 of the City's Code of Ordinances. The USD hired longtime rate consultant Raftelis, who recommended the rate increase.
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 rates set forth in Chapters 61 and 62 of the City's code of ordinances as well as an adjustment to the meter rates. The average residential water and sewer customer uses 5,000 gallons of usage per billing cycle and is currently billed $90.45. ...
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