Laserfiche WebLink
CITY COUNCIL COMMUNICATION <br />GENDA ITEM 3A <br />A <br />SUBJECT: UTILITY RATE STUDY DISCUSSION <br />DATE:MARCH 11, 2014 <br />PRESENTED BY: KURT KOWAR, PUBLIC WORKS DEPARTMENT <br />SUMMARY: <br />In 2013 City staff, Raeftalis Financial Consultants, and a Utility Rate Task Force <br />comprised of 7 members of the community undertook the process of evaluating rates for <br />the water, wastewater, and stormwater funds. The overall goals of the study were to <br />ensure rates and fees are understandable, equitably distribute costs to system users, <br />generate sufficient revenue to sustain utility operations, and facilitate effective planning <br />and budgeting. The team has now completed the Utility Rate Study and presented the <br />results to the City Council Water Committee. The team now wants to present the Study <br />findings to the full City Council for information and discussion as the first in a series of <br />meetings on this issue. Future scheduled meetings will include: <br />th <br /> March 17 - Public Open House <br />th <br /> March 18 – City Council consideration of proposed 2014 utility rate increases <br />th <br /> May 6 – City Council consideration of proposed rate structure changes <br />FISCAL IMPACT: <br />The adopted 5-year utility system capital improvements plan (CIP) cannot be fully <br />funded without increasing water, sewer, and stormwater rates. If the projects in the CIP <br />are not constructed, the City will not be able to maintain compliance with EPA regulatory <br />requirements, will have to delay planned floodplain mitigation for downtown, and will not <br />be able to replace and/or repair aging infrastructure elements in a timely, efficient and <br />cost effective manner. <br />RECOMMENDATION: <br />This presentation is for information and discussion purposes. However, staff asked and <br />Council approved scheduling this as a special meeting so Council may provide <br />preliminary policy direction—and public comment on such direction—if Council deems <br />that appropriate. Staff will use comments, questions, suggestions and requests for <br />additional information to prepare for the March 17 Public Open House, March 18 <br />Council consideration of proposed rate increases (to raise sufficient revenue for the CIP <br />and to sustain utility operations), and the May 6 Council consideration of proposed rate <br />structures (to appropriately allocate costs among each of the different customer groups <br />and to implement the desired pricing objectives). <br />ATTACHMENT(S): <br />1. Presentation <br />CITY COUNCIL COMMUNICATION <br />