07-Ordinance establishing residential and commercial water and sewer rates

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CITY COUNCIL AGENDA ITEM BRIEFING SHEET Submittal Date: Originating Department: Presented By: Agenda Item No.: OS-30-11 Council Date: Finance Gene Anderson 7, 06-13-11 RECOMMENDED MOTION: Presentation, First reading, deliberate and possibly act on an Ordinance establishing residential and commercial water and sewer rates in accordance to the cost of service study conducted by J Stowe & Company. POLICY ISSUE(S): Fiscal Management Darrell Cline with J Stowe & Company will be present to review the 2011 Cost of Service Study and answer any questions concerning the findings of that study. The last water and sewer rate increase occurred in August of 2008. The current water and 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 Residential water rates by 2.7%, its current retail Commercial water rates by 5.4%, and its current retail wastewater rates by 13.0%. The following illustrates the increase in the average water and sewer residential and commercial monthly bills with 5/8" or 3/4" meters. Current Residential Water & Sewer Average Bill $46.98 Proposed Bill $50.79 Change $3.81 Current Commercial Water & Sewer Average Bill $55.88 Proposed Bill $61.31 Change $5.43 Maintaining the financial integrity of the System is a key factor in the City's bond rating. BOARD/COMMISSION RECOMMENDATION: None EXHIBITS: Ordinance ACTION: BUDGET INFO: ❑ Financial Report ❑ Minute Order Expense $NA ❑ Department Report ❑ Resolution Budgeted Amt. $NA ❑ Presentation ~ Ordinance ❑ P bli H i y'I'D Actual $NA u c ear ng ❑ Other Acct. Name NA Acct. Number NA FISCAL NOTES: None REVIEWED AND APPROVED BY: Z Administration Z City Clerk ❑ Community Development ❑ EMS/IT E Finance ❑ Fire ❑ Municipal Court Z Legal ❑ Library ❑ Police ❑ Eng./Public Works ❑ Utilities City of Paris 132 Revised 2/04/08