2023.03.20 Packet - Laserfiche WebLink

Home

2023 Water and Sewer Rates Memo Page 2 of 4 WATER RATES AVERAGE QUARTERLY USAGE LEVELS AND PRICE POINTS Water rates have been crafted around the quarterly residential usage levels from 2020 and 2021. Staff recommends that usage levels remain the same as previous and that the only tiered usage rate that is adjusted are for those customers using over 29,000 gallons. The proposed usage levels and usage rates are as follows: Average Winter Usage: 10,631 gallons First 11,000 gallons billed at $1.00 per thousand gallons Average Spring Usage: 20,964 gallons Next 9,000 gallons billed at $2.00 per thousand gallons Average Summer Usage: 25,396 gallons Next 9,000 gallons billed at $3.00 per thousand gallons Average Fall Usage: 13,521 gallons Over 29,000 gallons billed at $5.61 per thousand gallons In order to meet our water budget needs staff is recommending a water base charge increase of 6% for all customers. The base charge will increase from $34.00 per quarter to $36.00 per quarter. This revenue will offset annual depreciation and a portion of operating expenses to help allow us to keep lower usage rates for low‐end water users. TRUE CONSERVATION RATES A true conservation rate schedule seeks to reward low‐end users with the lowest rate while encouraging everyone to use water efficiently. Using that philosophy, staff is recommending a 15% increase to the highest residential water rate tier and also to all separately metered irrigation. All other tiers will remain the same. Water usage over 29,000 gallons and all separately metered irrigation will be charged $5.61 per thousand gallons, up from $4.88 per thousand gallons. The recommended water rate schedule will allow for the recapture of operating and depreciation expenses. With the recommended rate schedule, all 3,766 residential accounts will experience an annual increase of $8.00 in their water bills due to the increase in the quarterly base charge. Of course, their quarterly bills will fluctuate based on water usage. For an average single‐family residential water user that means the proposed water rates would result in a yearly water bill of $248.00, versus $240.00 at the pervious rates. MULTI‐FAMILY RESIDENTIAL RATES The City has 195 Multi‐Family accounts that contain 1,433 dwelling units. Prior to 2018 these accounts were billed the same as single‐family residential accounts. Analysis showed that these accounts used 45% less water since their irrigation is metered separately (and billed at the highest rate). Staff is recommending retaining just one rate level ‐ $2.00 per thousand gallons. With the recommended rate schedule, multi‐family accounts will see an annual increase of $8.00 in their water bills due to the increase in the quarterly base charge. COMMERCIAL AND INDUSTRIAL RATES The only change for Commercial and Industrial water users is the higher base charge. The 108 accounts in this category will see an annual increase of $8.00 in their water bills due to the increase in the quarterly base charge.