Subject:
Title
Public Hearing regarding FY 2019-20 Water and Sewer Rates
Body
EXPLANATION AND SUMMARY:
A Water and Sewer Rate Study was performed by Municipal & Financial Services Group in FY 2017-18. Goals of the study were to:
* maintain the financial health of the fund
* fairly balance consumption and revenue
* ensure that rates cover the full cost of operations and debt service, which finances capital projects
* ensure that rates are structured according to industry best practices
* fund debt service at a level that maintains the water and sewer infrastructure
* underscore Council's initiative of conservation by incorporating an incentivized rate structure.
The rate study projected revenues and expenses by tier for a five-year period, which includes rate changes every year to ensure financial objectives are achieved. During the year, we reviewed actual consumption patterns by rate tier to ensure that budgeted rates for the second year of the study period were adequate and, as a result, made slight adjustments to sewer rates. Water rates are proposed to increase 3.9 percent, and sewer rates are proposed to increase 10.5 percent based on FY 2018-19 actual billed experience by rate tier. Fixed service charges are proposed to increase from $17.75 to $23, or 29.6 percent, per quarter for residential customers; this increase is necessary to the Town's efforts to bring the total percent of fixed charges in line with industry standards. Commercial customer fixed charges also are proposed to increase by 29.6 percent based on meter size.
Overall, the average residential customer's bill is proposed to increase by $16.20 per quarter, or $64.80 annually, an increase of 10.0 percent.
Water availability and meter purchase fees are proposed to increase by 2.5 and 3.5 percent, respectively, to match fees charged by Fairfax County. Increase percentages are minimal and will have a small positive impact on revenue.
Changes to the fee schedule are attached. A public ...
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