Title
Consider an ordinance amending Chapter 44, Sections 44-29 and 44-30, Code of Ordinances (2010 Edition), regarding water and sewer service to wholesale customers (Second Reading)
Body
The utility rate model is a tool used by the City of Round Rock to conduct periodic reviews of the water and wastewater rates charged to all utility customer classes. The model takes a comprehensive look to ensure the City is recovering costs needed to fund capital improvement programs, increasing system demands and operational pressures. In 2009, the wholesale customer class was placed under a three year phase-in plan for rates that would bring the class to recover its FY 2010 cost of service by FY 2012.
In spring 2013, the City updated its comprehensive water and wastewater utility rate model with the consulting firm of Black and Veatch. The results of the updated study indicated wholesale water and wastewater revenues require increases for FY 2014, FY 2015, and FY 2016. These proposed wholesale increases are necessary to bring the wholesale customer class revenues to match cost of service delivered. The City held meetings in April to discuss the results with each wholesale customer.
The proposed wholesale rate increase will be effective October 1 each year and will affect both the water and wastewater components of the utility bill.
Recommended Action
Staff recommends approval of the second reading and adoption.