Subject:
Title
8:15 p.m. - 8:30 p.m. Public Hearing on FY2024-25 Water and Sewer Rates
Body
DATE(S) OF PRIOR COUNCIL CONSIDERATION OF THIS ISSUE: Conference session on March 16, 2024, Council meeting on March 18, 2024
EXPLANATION AND SUMMARY:
During FY2023-24, the Town of Vienna contracted with an expert consultant to provide a water and sewer rate study. The study found that the following factors are responsible for driving the proposed rate increases:
* Water and sewer infrastructure and capital (maintenance and improvements)
* Increased borrowing costs (interest rates)
* Wholesale water purchase costs
* Increased operational costs (inflationary)
* Rising sewer treatment costs
Based on the findings of the consultant, rates will increase by 10.6% for FY2024-25 to maintain an adequate cash balance in the fund.
Overall, the average residential customer's bill will increase $25.25 per quarter or $101.00 per year.
Water availability fees will also rise in line with Fairfax County Water Authority's rates. Changes to the fee schedule are attached.
A public hearing on these fee changes will be held to provide water and sewer customers with an opportunity to offer comments.
Departmental Recommendation: Recommend a public hearing on water and sewer rates.
Finance Recommendation: Recommend a public hearing on water and sewer rates.
Purchasing Recommendation: N/A
Town Attorney Recommendation: In accordance with the Virginia State Code and the Town Code, the Town should conduct a public hearing on the proposed water and sewer rates for Fiscal Year 2024-25.
Town Manager's Recommendation: I recommend the Town Council close the public hearing and approve water and sewer rates and fees for Fiscal Year 2024-2025, as presented.
Cost and Financing: $13,410,950
Account Number: various
Prior Funding Approval: Annual General Budget (Year), Amendments, CIP Budget (Year), or ARPA. N/A
Decision Needed by this date: April 8, 2024
PROPOSED/SUGGESTED M...
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