HomeMy WebLinkAbout#18 cc 12 15 15 Water rates
MAYOR & COUNCIL COMMUNICATION
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DATE: December 15, 2015
CONSENT
ITEM #18 MOTION
AGENDA ITEM: Proposal to Reduce Water Rates effective 1/1/2016
SUBMITTED BY: Cathy Bendel, Finance Director
THROUGH: Cathy Bendel, Finance Director
REVIEWED BY: Finance Committee
SUGGESTED ORDER OF BUSINESS:
- Introduction of Item .............................................................. City Administrator
- Report/Presentation…………………………………………City Administrator
- Questions from Council to Staff ............................................. Mayor Facilitates
- Call for Motion ............................................................... Mayor & City Council
- Discussion ....................................................................... Mayor & City Council
- Action on Motion .................................................................... Mayor Facilitates POLICY RECOMMENDER: Finance Committee, Interim City Administrator and Finance
Director
FISCAL IMPACT: Estimated impact to the Water fund of $75,000 - $85,000 SUMMARY AND ACTION REQUESTED: A recommendation is being brought forward to
reduce the residential water rates effective 1/1/2016. The commercial water rates will be
reviewed at the Finance Committee meeting in January and any proposed changes will be made effective 1/1/2016.
BACKGROUND INFORMATION: At the October 20, 2015 City Council meeting, direction
was given that the Finance Committee was to review the existing water rates for potential
modifications and make a recommendation for the timing of implementation for the proposed changes.
City Council Meeting [Consent Agenda Item #18]
December 15, 2015
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STAFF REPORT:
After review of the current position of the existing operational water fund balance, and future funding requirements of the fund, the Finance Committee recommends a reduction in the residential water rates effective 1/1/16. The specific modifications to the tiered rates being
recommended for the residential water rates are listed below.
The Finance Committee is recommending the following changes for residential water rates effective 1/1/2016: Current Proposed
Base fee $25.00 $20.00
0 – 15,000 gallons $2.14 per 1,000 $2.00 per 1,000 15,001-30,000 gallons $2.86 per 1,000 $2.60 per 1,000 30,001-50,000 gallons $3.77 per 1,000 $3.38 per 1,000
50,001-80,000 gallons $5.00 per 1,000 $4.39 per 1,000
80,001 + $6.63 per 1,000 $5.71 per 1,000
The Finance Committee plans to bring a recommendation related to the Commercial water rates in January after review by the Finance Committee at the next meeting in January. Those
recommendations will then be brought to Council to be effective 1/1/16 on the first quarter 2016
water bills.
RECOMMENDATION: Based on the aforementioned, the Finance Committee and staff
recommend the City Council approve the tier modifications presented above related to the
residential water rates for adoption with the 2016 fee sheet.
ATTACHMENT: None