15-REPORT FROM J STOWE & CO ON RESULTS OF ANNUAL WATER AND SEWER RATE COST OF SERVICE STUDY

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Submittal Date: 5-21-12 Council Date: 5-31-12 CITY COUNCIL AGENDA ITEM BRIEFING SHEET Originating Department: Presented By: Agenda Item No.: Finance Gene Anderson 15. tcECOMMENDED MOTION: Non-action item. Report from J Stowe & Company on the results of the annual water and sewer rate cost of service study. POLICY ISSUE(S): Fiscal Management Representatives from J Stowe & Company will be present to review the 2012 Cost of Service Study and to answer any questions concerning the findings of that study. The current wastewater rates are not sufficient to meet the test year budgeted revenue requirements and the City's Rate Maintenance Policy. Therefore, it is recommended that the City increase its current retail wastewater rates by 6.3%. The following illustrates the increase in the average sewer residential and commercial monthly bills with 5/8" or 3/4" meters. Current Residential Water & Sewer Average Bill $50.81 Proposed Bill $52.57 Change $1.76 Current Commercial Water & Sewer Average Bill $57.18 Proposed Bill $59.18 Change $2.00 Maintaining the financial integrity of the System is a key factor in the City's bond rating. The last water and sewer rate increase occurred in August of 2011. Prior to that, the last rate increase was August 2008. The staff will bring an ordinance to the Council on this matter at a future agenda. BOARD/COMMISSION RECOMMENDATION: None EXHIBITS: None. A copy of the rate study will be handed out at the meeting. ACTION: ❑ Financial Report ❑ Minute Order ❑ Department Report ❑ Resolution Z Presentation ❑ Ordinance ❑ Public Hearing F~ Other FISCAL NOTES: None REVIEWED AND APPROVED BY: BUDGET INFO: ~xpense $NA Budgeted Amt. $NA YTD Actual $NA Acct. Name NA Acct. Number NA ❑ Administration ❑ City Clerk ❑ Community Development ❑ EMS IT ❑ Municipal Court ❑ Legal ❑ Libra / ry ❑ Police ❑ Eng./Public Works Z Finance ❑ Utilities ❑ Fire City of Paris 90 Revised 2/04/08