City Council Agenda and Packet 2015 01 20

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