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<br />TO: MAYOR AND COUNCIL MEMBERS <br />FROM: DEBORAH MALONEY, FINANCE DIRECTOR <br />SUBJECT: 2025 UTILITY RATES <br />DATE: OCTOBER 22, 2024 <br /> <br /> <br /> <br />The utility rates recommended herein for 2025 builds on the multi-year approach towards rate <br />adjustments that began in 2012. The parameters used for adjusting rates are as follows: <br /> <br /> Align revenue sources with corresponding costs <br /> Provide transparency as to the basis of rates and rate adjustments <br /> Maintain a structural balanced operation <br /> Ensure that rates appropriately support the ability to: <br />o Provide safe drinking water <br />o Properly discharge sanitary sewer flows <br />o Appropriately control and treat stormwater runoff <br /> <br /> <br />Water Rates: <br /> <br />As part of the annual rate adjustment process the water production and distribution costs are <br />categorized as fixed in nature or usage driven. The 2025 budgeted water costs are comprised of <br />$875,593 in fixed costs and $1,038,888 in usage driven costs, as shown on Exhibit A and as <br />summarized here: <br /> <br /> OPERATING DEPRECIATION OVERALL <br />FIXED 574,981 44% 300,612 49% 875,593 46% <br />USAGE 729,598 56% 309,290 51% 1,038,888 54% <br /> 1,304,579 100% 609,902 100% 1,914,481 100% <br /> <br /> <br />The Multiyear approach to water rates included the phase in of the flat fee which began in <br />2016. Based on estimated actual results for 2024 and 2025 budgeted costs are reflected in the <br />proposed rates for 2025 are reflected below. <br /> <br /> <br /> <br />17