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The plan includes assumptions regarding future City costs and MCES treatment costs. It also <br />factors in the retirement of water /sewer bonds occurring in 2024. No growth in number of <br />accounts or usage was factored in the projection. Real growth will be noted annually through <br />the process of updating the base year results. Using these factors annual adjustments to the flat <br />fees and usage rates adjustments were determined. Staff believes the model will help guide <br />year to year rate increases while being flexible enough to keep the annual increases reasonable <br />for utility customers. <br /> <br />Council Action requested: <br />Approval of proposed rates. <br />21