Subject:
Title
Intent to adopt FY 2019-20 Water and Sewer Rates
Body
EXPLANATION AND SUMMARY:
A Water and Sewer Rate Study was performed in FY 2017-18 and adopted by Council. The study proposes rate changes over a five-year period to ensure that financial objectives of the fund are achieved.
During the past fiscal year, we reviewed actual water and sewer consumption patterns by rate tier to ensure that budgeted rates for the second year of the study period were adequate; as a result, we 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.
Consumption charges proposed for FY 2019-20 are as follows:
Residential Block Structure (Quarterly Basis)
Water Consumption Charge 0 - 9,000 gallons $5.30 per 1000 gallons
9,001 - 18,000 gal $5.75 per 1000 gallons
18,001 plus gallons $6.65 per 1000 gallons
Sewer Consumption Charge 0 -9,000 gallons $7.35 per 1000 gallons
9,001 - 18,000 gal $7.95 per 1000 gallons
18,001 plus gallons $9.20 per 1000 gallons
Residential Base Rate: $23.00/quarter
Commercial Block Structure (Quarterly Basis)
Water Consumption Charge 0 - 9,000 gallons $5.30 per 1000 gallons
9,001 - 18,000 gal $5.75 per 1000 gallons
18,001 plus gallons $6.65 per 1000 gallons
Sewer Consumption Charge 0 -9,000 gallons $7.35 per 1000 gallons
9,001 - 18,000 gal $7.95 per 1000 gallons
18,001 plus gallons $9.20 per 1000 gallons
Commercial Base Fee: 5/8” meter $33.05/quarter
1.0” meter $82.63/quarter
1.5” meter $165.25/quarter
2.0” meter $264.40/quarter
3.0” meter $408/quarter
4.0” meter $826.25/quarter
Non-consumption water charges have been increased to match fees charged by FCWA. There are no changes to sewer availability fees in FY 2019-20. 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: Town Council may adopt the proposed water/sewer rates in its discretion.
Town Manager's Recommendation: I recommend Town Council approve an ordinance setting the water and sewer rates as proposed for fiscal year 2019-20 and direct the Town Clerk to advertise a Notice of Adoption.
Cost and Financing: $9,233,080
Account Number: various
Decision Needed by This date: May 13, 2019
PROPOSED/SUGGESTED MOTION
Recommended Action
“I move to approve an ordinance setting water and sewer rates for fiscal year 2019-20, beginning July 1, 2019 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.