HomeMy WebLinkAbout12 - Approval of 2023 Water and Sewer Rate Studies and Setting of Public Hearing for Water and Sewer Rates - PowerPointSeptember 26, 2023
Item No. 12
2023 Water & Sewer
Rate Studies Approval
& Set Public Hearing
City Council
September 26, 2023
Presented by Mark Vukojevic, Utilities Director
Key discussion points from
May 11 and July 26t" Finance Committee &
August 22, 2023 City Council Study Session:
• The systems operate as independent/segregated Enterprise Funds
• A Rate Study is a Financial Plan; regular updates are recommended
• A review of fixed and variable costs
• Reserve amounts and their uses
• Current and future capital improvement projects
• Cost inflation of infrastructure and operations
Buying water, construction, materials, equipment, insurance,
conservation, regulatory compliance
• Rates are the only source to recover costs,
* Operations * Capital Improvements * Reserves/Emergencies
• Rate increases are needed
Rate Studies available on the City website
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Water System
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MILES OF POTABLE
WATER PIPELINE
Million gallons
storage capacity
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UTILITIES DEPARTMENT 2023 Rate Studies
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Increased capital Capital
projects: annual total:
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UTILITIES DEPARTMENT 2023 Rate Studies
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Proposed Water Rates:�� �.M.
Monthly Fixed Approved Approved Proposed Proposed Proposed Proposed
Charge 2023 2024 2025 2026 2027 2028
518"
25.22
27.09
31.59
36.59
41.59
46.59
1"
39.09
41.99
50.07
58.31
66.53
74.75
1-1/2"
73.69
79.15
96.28
112.60
128.88
145.17
2"
115.23
123.76
151.73
177.74
203.71
229.66
3"
305.61
328.23
405.88
476.34
546.65
616.92
4"
523.69
562.45
697.00
818.37
939.48
1,060.51
6"
1,112.15
1,194.45
1,482.55
1,741.30
1,999.50
2,257.50
8"
1,942.91
2,086.69
2,591.56
3,044.27
3,495.99
3,947.37
Use Charge
$3.87
$4.16
$4.26
$4.36
$4.46
$4.56
Net Increase
(most common)
$4.44
$4.77
$5.50
$6.00
$6.00
$6.00
Proposed Water Rates
Typical monthly costs:
$641month is the typical home water bill
$25.22 + $38.70
Monthly Fixed Approved Approved Proposed
Charge 2023 2024 2025
$63.92
Proposed Proposed
2026 2027
5/8" Meter * $25.22 $27.09 $ 31.59 $ 36.59
Proposed
2028
$41.59 $46.59
Use Charge $3.87 $4.16 $4.26 $4.36 $4.46
Net Increase
(most common) 4.44 $4,77 $6,00 $6,00
* 5/8" meters represent 64% of accounts
$4.56
$6,00
Wastewater/Sewer Capital needs:
200+ miles of pipelines
25,000 Laterals
21 Pump Stations
$1.1 Million Annual
Escalating Investment
Proposed Sewer Rates:
MoritliNFaed
2026 2027
1
2028
518"
8.55
10.55
12.85
15.65
18.95
22.25
1"
8.55
10.55
12.85
15.65
18.95
22.25
1-1/2"
9.41
15.82
19.27
23.48
28.42
33.38
2"
12.83
21.09
25.69
31.31
37.90
44.50
3"
14.54
26.37
32.12
39.13
47.37
55.63
4"
17.11
31.64
38.54
46.96
56.85
66.76
6"
19.25
36.91
44.96
54.79
66.32
77.88
8"
Use Charge
Net Increase
(most common)
21.39
$0.51
42.18
$0.53
$2.20
51.39
$0.55
$2.50
62.62
$0.57
$3.00
75.80
$0.59
$3.50
89.01
$0.61
$3.50
Proposed Sewer Rates
Typical monthly costs:
$141month is the typical home sewer bill
$8.55
Monthly Fixed Proposed Proposed
Charge Existing 2024 2025
Up to 1" Meter * $8.55 $10.55 $12.85
= $13.65
Proposed Proposed
2026 2027
Proposed
2028
$15.65 $18.95 $22.25
Use Charge $0.51 $0.53 $0.55 $0.57 $0.59 $0.61
(mostcommon) $2,20 2.50 $3,00
Up to 1" meters represent 92% of accounts
$3,50
$ 6
3.50
,1�1
Recommendation
Approve the Water and Sewer Rate Studies
• Direct staff to send public notices compliant with State Law
• Set the date of November 14, 2023 for the public hearing