15-REPORT FROM J STOWE & CO ON RESULTS OF ANNUAL WATER AND SEWER RATE COST OF SERVICE STUDYSubmittal 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
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Acct. Number
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