15 - 2020 Water & Wastewater Cost of Service Study

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encouraged that the City Council consider the recommended rate increase in the attached Study for 2020/2021 as it will allow for the first stages of stepping in to the ultimate rate needed to support this vital project. It must be noted that the rate study does not take in to account the potential project as we are still too early to know enough to factor that in, but nevertheless it is clearly known that the project will require an increase in rates to fund the financing. I: 81-110 The rate study cost is $28,500. This is a similar cost to previous years. The funds are budgeted for this project in the Water Billing Office budget. Pursuant to our Policy, we strive to maintain a 1.1:1 ratio of revenue to expense in order to adequately maintain the Water and Wastewater system via operations and reserve for unexpected issues and replacement as needed. OPTIONS: 1. Receive the report tonight, study it, and consider it in preparation for the June 22"d council meeting. 2. Request additional information to be brought back at the June 22"d council meeting. 3. Provide direction on how to write the ordinance differently than what is recommended in the study presented tonight. RECOMMENDATION: The staff recommends that the Council receive the report tonight, study it, and consider it in preparation for the June 22"d council meeting. At that time, an ordinance based on the recommendations in the study will be available for adoption unless recommendations by the Council are made for edits to what is proposed.