REQUEST FOR CITY COUNCIL ACTION
DATE: 07/03/2024
TO: Honorable Mayor and City Council Members
FROM: Utilities Department
SUBJECT:
Title
UTILITY RATE STUDY UPDATE - COST OF SERVICE & RATE DESIGN
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RECOMMENDED ACTION:
Recommended action
That the City Council provides direction on which sewer/water rate option to proceed with and confirms the proposed rate structures for recycled water and electric rates.
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ANALYSIS:
The city's hired utility rate consultant, RDN, will present proposed rate changes for sewer, water, reclaimed water, and electricity to the city council, as shown below. The options provided are proposed, not adopted, nor finalized. Based on the feedback received from the City Council, final rates will be presented at a future City Council meeting.
Sewer Rates
Option 1: Operations and Maintenance and Debt Service (No Capital Investment)
FY 2025
FY 2026
FY 2027
FY 2028
FY 2029
Revenue Adjustment
5.0%
4.0%
3.0%
3.0%
3.0%
Current
Residential
FY 2025
FY 2026
FY 2027
FY 2028
FY 2029
Fixed
$45.60
$43.40
$45.13
$46.49
$47.88
$49.32
Variable - non- residential only
N/A
$5.25
$5.46
$5.62
$5.79
$5.97
Residential Impact (Per Month)?
?
-$2.20?
$1.73?
$1.36?
$1.39?
$1.44?
Option 2: Operations and Maintenance and Debt Service, w/ Capital Investment (Recommended)
FY 2025
FY 2026
FY 2027
FY 2028
FY 2029
Revenue Adjustment
10.0%
10.0%
10.0%
10.0%
10.0%
Proposed Debt Issuance
$45,000,000
Current Residential
FY 2025
FY 2026
FY 2027
FY 2028
FY 2029
Fixed
$45.60
$45.46
$50.01
$55.01
$60.51
$66.56
Variable - non- residential only
N/A
$5.50
$6.05
$6.66
$7.32
$8.05
Residential Impact (Per Month)?
?
-$0.14?
$4.55?
$5.00?
$5.50?
$6.05?
Water Rates
Option 1: Operations and Maintenance and Debt Service (No Capital Investment)
FY 2025
FY 2026
FY 2027
FY 2028
FY 2029
Revenue Adjustment
7.0%
5.0%
4.0%
4.0%
4.0%
Proposed Fixed Rates
Meter Size
Current Rate
FY 2025
FY 2026
FY 2027
FY 2028
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