HomeMy WebLinkAboutpacket 2_3-6_Special Presentation - Water and Wastewater Rate Study
Commission Memorandum
REPORT TO: Honorable Mayor and City Commissioners
FROM: Anna Rosenberry, Finance Director
Chris Kukulski, City Manager
SUBJECT: Special Presentation: Water & Wastewater Rate Study
MEETING DATE: March 26, 2007
BACKGROUND: The City has three overarching goals that guide our planning processes
when we look at meeting community needs and funding our future Water & Wastewater
systems:
Anticipate future service demands and resource deficiencies and be proactive
in addressing them.
Commit to a strong financial position.
Provide excellent and equitable public services which are responsive to the
community within available resources.
We are currently reviewing and updating our Water & Wastewater Impact Fees, which fund the
costs of capacity expanding projects that are driven by the growth of our community. It is
equally important that we analyze whether our existing utility rates are adequately funding the
costs of ongoing operations, maintenance and capital replacement. It is also important to
determine whether our rates are structured properly between the different classes of rate-payers
(residential, commerical, etc.) and are having the desired effect on system utilization.
1
106
Seeking that expertise, the City contracted with HDR Engineering to perform a comprehensive
Water & Wastewater Rate Study. City staff has been working with HDR on this project for
approximately 6 months. Presenting their findings and recommendations tonight is Tom Gould,
Vice President, from HDR’s office in Bellevue, Washington.
Purpose of the Presentation:
1. Provide an overview of the rate setting process.
2. Water Rates
a. Review of revenue requirements results.
b. Review of cost of service results.
c. Review of proposed rate designs.
3. Wastewater Rates
a. Review of revenue requirements results.
b. Review of costs of service results.
c. Review of proposed rate designs.
4. Summary
RECOMMENDATION: Listen to the presentation and ask the consultant any questions.
FISCAL EFFECTS: This study and the resulting recommendations propose changes in the
water and sewer rates over the coming years. However, tonight’s presentation causes no action.
Future rate hearings and resolutions will be needed in order to implement any changes.
ALTERNATIVES: As suggested by the Commission.
Respectfully submitted,
Anna Rosenberry, Finance Director
Chris Kukulski, City Manager
Report compiled on March 21, 2007
2
107