City Council Minutes 2014 03 11 SP

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City Council Special Meeting Minutes March 11, 2014 Page 2 of 11 undertook the process of evaluating rates for the water, wastewater, and stormwater funds. The overall goals of the study were to ensure rates and fees are understandable, equitably distribute costs to system users, generate sufficient revenue to sustain utility operations, and facilitate effective planning and budgeting. The team completed the Utility Rate Study and presented the results to the City Council Water Committee and the same presentation will be made at a public open house meeting on March 17th. He requested Council feedback on the recommendations of the Task Force. He noted Task Force member Ned Williams, Drew Beckwith, and Rick Brew were present to respond to Council's questions: He introduced Mr. Rick Giardina, representing Raftelis Financial Consultants, who would make the presentation on the Task Force recommendations. Rick Giardina, Raftelis Financial Consultants, presented the study findings to the City Council for information and discussion as the first in a series of meetings on this issue. He presented an overview of what would be discussed as follows: Rate Study Overview, Utility Rates Task Force Recommendations, including the Financial Plan; the Cost of Service Rate Design, and System Development Charges (SDCs). Power Point 'Presentation Starts Rate Study Overview: The Rate Study began with Raftelis Financial Consultants reviewing data provided by staff, then proceeded to review of financial plans, and concluded with the cost of service and rate design. The Task Force conducted several meetings from May of 2013 through February of 2014, with the following agendas: 05/16/13 Task Force process, Utility systems overview, Rate making 101 06/06/13 Utility budget, Utility capital program, Pricing objectives 08/29/13 Financial plan findings, System development charge (SDC) methods 10/21/13 Financial plan alternatives, Cost of service analysis, Rate structure alternatives 11/07/13 System development charges; Rate structures — added water budgets; Preliminary 2014 rates and bill impacts 2/19/14 System Development Charges Task Force Recommendations: Financial Planning Pursue "Smoothing" scenario — phase -in impacts of rate increases. Explore assistance to low income households. Move each utility toward financial self- sufficiency. Cost of Service Implement rates to equitably recover customer class cost of service. Water Rate Structure