REPORT TO COUNCIL
SUBJECT
Title
Proposed Utility Rate Increases for FY 2024/25 Rates for Water, Wastewater, and Solid Waste Utilities for Service Provided to Customers Within and Outside City Boundaries; and Finding of California Environmental Quality Act (CEQA) Exemption Pursuant to Public Resource Code Section 21080(b)(8) and CEQA Guidelines Section 15273
Report
REPORT IN BRIEF
As part of the yearly process of reviewing the financial condition of the utility enterprise funds, staff recommends that the City Council adopt changes in utility rates. This report presents an analysis of the current utility policy framework, revenues, expenditures, revenue requirements and utility rates for the City's water, wastewater, and solid waste utilities.
The recommended increases are 4% for water rates, 9% for wastewater rates, and 4% for solid waste and recycling rates. While individual utility costs will vary based on actual use or subscription level, a typical monthly single-family residential water, wastewater (sewer), and solid waste (garbage) utility bill will increase by 5.7%, or $10.25, as broken down below:
Water $2.85
Wastewater $5.61
Solid Waste and Recycling $1.79
Total $10.25
Detailed single-family rate comparisons are included as Attachment 1 and commercial rate comparisons are provided as Attachment 2. It is important to note that different cities fund different suites of services with their utility fees so care must be taken in comparing average rates.
The proposed rate changes are included in the FY 2024/25 Recommended Budget. Each year, staff provides Council with not only proposed rates, but also planned changes in rates over twenty years.
The proposed increase in water rates is largely due to increases in the cost of purchased water, as well as needed infrastructure improvements. Wastewater rates are increasing to fund the Sunnyvale Cleanwater Program, which is a long-term project to replace the City's aging Water Po...
Click here for full text