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City Council <br />Meeting Minutes <br />January 6, 2015 <br />Page 5 of 15 <br />Staff and Raftelis Financial Consultants (RFC) conducted a utility rate study to calculate <br />tap fees and utility rates the City's enterprise fund should be charging to fund <br />operations, maintenance and capital improvements. <br />2013 -2015 Impacts: Increase in project construction costs; better loan interest rate and <br />issuance cost; timing of project cash flow requirements; 2013 Flood related impacts; <br />updated Tap Fee revenues and projections and the 2015 approved budget. <br />2013 Task Force Study Recommendations - 2014 Activity Review: <br />• Updated Water and Sewer Tap Fees in 2014. <br />• Increased Water (2 %), Sewer (27 %), and Stormwater (30 %) rates in 2014 <br />• Began billing Parks for water usage (25% of actual cost) <br />• Adopted Reuse Water Rate <br />• Began Implementation of Wastewater Rate Structure from Flat Fee to Volume <br />Based Fee. <br />• Discussed Water Budgets with City Council and Water Committee. <br />• Discussed implementation of Stormwater Tap Fee with City Council and Water <br />Committee. <br />2013 Study Recommendations — Proposed 2015 Activities: <br />• Implement Cost of Service Adjustments for Residential and Non - Residential for <br />Water and Wastewater Rates. <br />• Increased Water (27 %) rates in 2014. <br />• Continue billing increase for Parks water usage (50% of actual costs). <br />• Continue staff analysis of Water Budgets. <br />• Continue analysis of Superior integration opportunities. (Not part of 2013 Study, <br />but may benefit customer rates.) <br />2013 Study Recommendations — Cost of Service Adjustment: <br />• Residential Water increases by 32 %. <br />• Non - Residential Water decreases by 27 %. <br />• Residential Wastewater decreases by 13% <br />• Non - Residential Wastewater increases by 57 %. <br />2013 Study vs 2014 Update — Utility Rate Increase Review: <br />Utility Proposed Rate Revenue Increase <br />2015 2016 2017 2018 2019 <br />Water 0% 11% 11% 0% 0% <br />Wastewater 27.0% 20% 4% 0% 0% <br />Stormwater 0% 12% 1% 0% 0% <br />