AGENDA ITEM REPORT
TITLE:
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AN ORDINANCE AMENDING CHAPTER 20, CODE OF ORDINANCES, ENTITLED "UTILITIES," BY AMENDING ARTICLE V THEREOF ENTITLED "RATES AND CHARGES," BY AMENDING SECTION 20-82 THEREOF ENTITLED "SCHEDULE OF RATES, FEES AND CHARGES" IN ORDER TO PROVIDE FOR AN ADJUSTMENT IN THE WATER AND WASTEWATER RATES FOR SINGLE-FAMILY, MULTI-FAMILY AND MOBILE HOME, COMMERCIAL, INDUSTRIAL, AND SECONDARY IRRIGATION; AMENDING SUBSECTION 20-82(5), "OTHER USES" TO UPDATE SECTION REFERENCES; AMENDING SUBSECTION 20-82(8), "OUTSIDE CITY CUSTOMERS" TO UPDATE SAME; AND AMENDING SUBSECTION 20-82(9), "AUTOMATIC ANNUAL RATE ADJUSTMENT" TO PROVIDE FOR A REDUCTION IN THE AUTOMATIC ANNUAL RATE INCREASE. (SECOND READING)(PUBLIC HEARING)
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BACKGROUND:
This item was approved on First Reading at the February 23, 2017, Commission Meeting.
In 2016, the City engaged Burton & Associates, now known as Stantec, to perform an update to the Comprehensive Utility Rate Study they completed in 2008.
DISCUSSION:
The purpose of the update was to:
* Ensure revenue sufficiency based upon current data and assumptions;
* Balance having enough water flow through the system to maintain water quality levels while still promoting conservation; and
* Enhance affordability for average users.
The results of the update concluded:
* We can continue to satisfy projected operating and capital expenditure requirements with a reduced annual rate revenue adjustment (2.5% instead of 5%) beginning April 2017.
* A modification of the sewer base charge is necessary to recover more of the fixed costs of the system incurred to maintain a state of readiness, and the modification will also make our fixed charges more comparable to other local utilities.
* An adjustment in the current block/tier structure is recommended to enhance affordability for low and average volume users to the greatest extent possible while continuing to promote water conservation.
* The rate design conforms to accepted national and loca...
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