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#15 - Utility Rates and Fee Changes for 2025
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#15 - Utility Rates and Fee Changes for 2025
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<br />STAFF REPORT <br />DATE: March 18, 2025 <br />Regular Agenda <br /> <br />TO: Mayor and Council <br />FROM: Clarissa Hadler, Finance Director <br />Department Heads <br />AGENDA ITEM: 2025 Revised Fee Schedule <br /> <br />CORE STRATEGIES: <br /> <br />☐ Vibrant, inclusive, connected community ☐ Efficient, reliable, innovative services <br />☐ Responsive, transparent, adaptive governance ☒ Balanced Finances now and future <br />☐ Managed Growth ☒ Resilient Infrastructure <br /> <br />BACKGROUND: <br />The current changes of the 2025 Fee Schedule (highlighted sections) reflect utility rate changes as <br />recommended at the March 11, 2025, City Council Workshop. Complete details on the updated <br />Utility Financial Management Plan showing the need for these increased rates can be found in that <br />Council Workshop packet. <br /> <br />In addition, the Building Dept has submitted new fees to clarify solar permitting. <br /> <br />ISSUE BEFORE THE CITY COUNCIL: <br />Should the City Council adopt the revised fee schedule as proposed? <br /> <br />DISCUSSION: <br />The City Council and staff discussed the proposed utility rates for 2025 at last week’s workshop. <br />The rate increases are due to two main factors; 1) the addition of two water treatment facilities, <br />which will approximately double operational expenses in the next 3 years, and 2) moving toward <br />a pricing structure that funds depreciation, to more appropriately support future capital needs and <br />move toward positive net income in all funds. The proposed rate changes for 2025 are a 20% <br />increase over 2024 for water and sewer. It is estimated that it will take 5 years of 20% increases <br />to reach the goals set in the Utility Financial Plan. <br /> <br />No changes to Stormwater rates are proposed at this time, except to add a separate Multi-Family <br />Stormwater category. This revision takes place in Section 5.16 of the City Code and is referenced <br />in the Fee Schedule. <br /> <br />The three new Solar Fees are intended to solve complaints/issues and be more inline with the time <br />and inspections involved with solar installations. <br /> <br />FISCAL IMPACT: <br />The proposed rate changes for 2025 are a 20% increase over 2024 for water and sewer. It <br />is estimated that it will take 5 years of 20% increases to reach the goals set in the Utility <br />Financial Plan. The impact on a Residential property using 6000 gallons per quarter is <br />estimated at $6.12 per month.
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