Title
Consider an ordinance amending Chapter 44, Sections 44-29 and 44-30, Code of Ordinances (2010 Edition), regarding water and sewer rates. (Second Reading)
Body
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 rate increases for retail customers starting in FY2015 and FY2016, however no increases were needed for FY2014. The City has not had a rate increase in water or wastewater rates since 2010. Increased operating costs and anticipated debt issuances associated with a $76 million utility capital improvement program continue to be the primary factors for the rate considerations.
The rate model is a tool used by the City to conduct periodic reviews of the rates charged to customers. 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.
The proposed rate increase for January 2015 and January 2016 will affect both the water and wastewater components of the utility bill and is estimated to increase the average residential bill by approximately 2.6% and 3% respectively.
Recommended Action
Staff recommends approval.