Subject:
Title
Intent to Adopt FY2015-2016 Water and Sewer Rates
Body
EXPLANATION AND SUMMARY:
Last year a Water and Sewer Rate Study was conducted in-house. One goal was to provide financial stability to the TOV Water and Sewer System by maintaining a positive cash flow for operations and debt service. The Rate study was based upon three years of actual expenditures and three years of actual usage and billings from the Turchetta Software System. The Rate study evaluated the fixed costs and variable costs system wide.
The Water and Sewer Rate Study was based on best practices from American Water Works Association. In order to tie to Town Council initiatives, resource conservation was incentivized in the model. The Finance department began the Rate study in July 2013 and it was completed in February 2014. The intent of the Rate Study was to implement rate adjustments every two years as long as the forecasted revenue was trending in actuals. Therefore, the next possible rate adjustment would occur in FY2016-2017.
After following and trending the actual revenues from the July 2014 implemented rates, the Town is on track. No changes to the rates are needed for FY 2015-2016.
The recommended rates for next fiscal year are the same as the current rates:
Residential Block Structure (Quarterly Basis)
Water Consumption Charge 0 - 16,000 gallons $4.66 per 1000 gallons
16,001 - 32,000 gal $5.10 per 1000 gallons
32,001 plus gallons $6.00 per 1000 gallons
Sewer Consumption Charge 0 - 16,000 gallons $5.75 per 1000 gallons
16,001 - 32,000 gal $6.25 per 1000 gallons
32,001 plus gallons $7.30 per 1000 gallons
Residential Base Fee: $15/quarter
Commercial Block Structure (Quarterly Basis)
Water Consumption Charge 0 - 90,000 gallons $4.66 per 1000 gallons
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