Subject:
Title
Intent to adopt FY 2018-19 Water and Sewer Rates
Body
EXPLANATION AND SUMMARY:
A Water and Sewer Rate Study has been performed by Municipal & Financial Services Group (MFSG). The goals of the study were to maintain financial health of the fund; fairly balance consumption and revenue; ensure that rates cover full cost of operations and debt service, which finances capital projects; and underscore Council's initiative of conservation by incorporating an incentivized rate structure.
Based on recommendations from MFSG, a five-year rate plan was presented to Council at the March 5, 2018 work session; a public hearing was held April 9, 2018. Water and Sewer rates will be reviewed and adjusted as needed each year. This is a departure from the previous procedure of reviewing and/or raising rates every other year, but it is necessary to maintain the financial health of and address infrastructure improvements covered by the fund.
Consumption charges proposed for FY 2018-19 are as follows, and include a change in block limits, consumption rates, and quarterly base rates (service charges).
Residential Block Structure (Quarterly Basis)
Water Consumption Charge 0 - 9,000 gallons $5.10 per 1000 gallons
9,001 - 18,000 gal $5.55 per 1000 gallons
18,001 plus gallons $6.40 per 1000 gallons
Sewer Consumption Charge 0 -9,000 gallons $6.65 per 1000 gallons
9,001 - 18,000 gal $7.20 per 1000 gallons
18,001 plus gallons $8.35 per 1000 gallons
Residential Base Rate: $17.75/quarter
Commercial Block Structure (Quarterly Basis)
Water Consumption Charge 0 - 120,000 gallons $5.10 per 1000 gallons
120,001 - 360,000 gal $5.55 per 1000 gallons
360,001 plus gallons $6.40 per 1000 gallons
Sewer Consumption Charge 0 - 120,000 gallons $6.65 per 1000 gallons
120,001 - 360,000 gal $7.20 per 1000 gallons
360,001 plus gallons $8.35 per 1000 gallons
Commercial Base Fee: 5/8” meter $25.50/quarter
1.0” meter $63.75/quarter
1.5” meter $127.50/quarter
2.0” meter $204/quarter
3.0” meter $408/quarter
4.0” meter $637.50/quarter
Water non-consumption based charges have been increased to match fees charged by FCWA. There are no changes to sewer availability fees in FY 2018-19. All fees are attached as part of Town Code Section 1-13, Schedule of Public Works Fees.
Departmental Recommendation: Recommend approval of water and sewer rates as presented.
Finance Recommendation: Recommend approval of water and sewer rates as presented.
Purchasing Recommendation: N/A
Town Attorney Recommendation: The Town has advertised the proposed water and sewer rates, and Town Council conducted a public hearing on April 9, 2018. Town Council may approve the proposed FY 2018-19 water and sewer rates in its discretion.
Town Manager's Recommendation: I recommend the Town Council approve an ordinance setting water and sewer rates for the 2018-2019 fiscal year as presented.
Cost and Financing: $8,601,190
Account Number: various
Decision Needed by This date: May 7, 2018
PROPOSED/SUGGESTED MOTION
Recommended Action
“I move to approve an ordinance setting water and sewer rates for the 2018-19 fiscal year beginning July 1, 2018 as presented.”
And
“I further move that the Town Clerk be directed to advertise a Notice of Adoption."
Or
Other action deemed necessary by Council.