Finance Committee Agenda and Packet 2024 02 22

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City Council Finance Committee Meeting Minutes .January 18, 2024 Page 2 of 3 Councilmember Kern asked why the Pinnacle rates increased so much. The Risk manager noted that there is a possible discrepancy with wages reported from 2023 to 2024 and finance is reviewing the possible issue. Councilmember Kern asked for an update on this once a determination has been made. Review of Utility Rates: The Director of Public Works and Utilities and the Deputy Director of Utilities gave a presentation on the 2024 Recommended City Utility Rates and requested Committee approval to bring this recommendation to Council for final approval. Committee Comments: Councilmember Kern asked how waterwise landscaping programs will decrease water revenues and if there's a plan in the model to reflect this. There was a discussion around water conservation and its effects on future fees. Councilmember Kern expressed concern with a 30% increase in wastewater and there was a discussion around all the factors that drive the wastewater fees. She requested communication to the community on the reasons for rate increases as well as how the CIP projects benefit the community. Councilmember Hamlington commented that we need to also consider portions of the community on fixed income as well as DEI. How did we decide on a turnback versus a higher reserve as our method. The City of Louisville is the cheapest in the front range and we work with Sister Carmen on utility bill subsidies for fixed income families. There was a discussion around what a turnback is and how we can budget to the business reality. Councilmember Hoefner asked about the cost -of -service study results for service classes in how we are covering the fixed costs. The Director of Public Works confirmed that this is part of the model and noted that no rate increases during the COVID pandemic affected the amount of rate increases this year as we catch up to the increased costs in running the utility systems. There was a discussion on the fixed cost charges and whether they cover expenses. He asked that this information be provided in the presentation to Council. Councilmember Hoefner suggested that the Council may want to discuss the A+B+E option and whether we should be requiring a 10% turnback. He also suggested that Staff consider how to spread the increase over 2024 and 2025 to ease the rate increase. Councilmember Kern asked to see tables showing the residential versus commercial rates on all three utilities — water, wastewater, and stormwater. Staff will provide this information to the committee. 2025/2026 Draft Budget Calendar: The Director of Finance presented a draft budget calendar for the 2026/2026 City budget. Update on Establishing New Open Space & Parks Funds: The Director of Finance presented an update on establishing the new open space and parks funds as a result of the approval of the ballot measure that was approved in 2023. 4/ 132