City Council Minutes 2015 03 10 SP

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City Council Special Meeting Minutes March 10, 2015 Page 2 of 5 • Implement Cost of Service Adjustments for Residential &Non - Residential for Water & Wastewater Rates. • Increase Wastewater (27 %) rates. • Implement Residential Average Winter Consumption (AWC) Sewer Rate Structure. 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: Rate increases from the 2013 Utility Rate Study compared with the current update: Utility Proposed Rate Revenue Increase 2015 2016 2017 2018 2019 Water 0% 11% 11% 0% 0% Wastewater 0% 20% 4% 0% 0% Stormwater 0% 12% 1% 0% 0% Recommended Rate Increases: Average Monthly Bill and Rate Increase Impact for Residential Customers: 2014 2015 2016 2017 2018 2019 Water $12.32 $16.31 $18.10 $20.10 $20.10 $20.10 Sewer $20.69 $22.00 $26.40 $27.45 $27.45 $27.45 Storm $4.23 $4.23 $4.74 $4.78 $4.78 $4.78 Total Bill $37.24 $42.54 $49.24 $52.33 $52.33 $52.42 $ Change - $5.30 $6.70 $3.09 $0.00 $0.09 Change - 14.2% 15.7% 6.3% 0.0% 0.2% COUNCIL QUESTIONS AND COMMENTS Council member Stolzmann stated there are a lot of ways to charge rates, such as fixed costs and water budget, but the question is what would be fair and equitable. Council member Keany stated his understanding the increases would be spread out over the next three years. Council member Lipton commented on Table 1 with respect to aligning utility rates with cost of service recommendations.