Legislative Public Meetings

File #: 18-0304   
Type: Report to Council Status: Passed
Meeting Body: City Council
On agenda: 6/26/2018
Title: Proposed Utility Rate Increases for FY 2018/19 Rates for Water, Wastewater, and Solid Waste Utilities for Services Provided to Customers Within and Outside City Boundaries; Finding of CEQA Exemption Pursuant to Public Resource Code Section 21080(b)(8) and CEQA Guidelines Section 15273
Attachments: 1. Single Family Residential Comparison, 2. Commercial Comparison, 3. Recommended FY19 Water Financial Plan, 4. Water Rate Survey, 5. Recommended FY19 Wastewater Financial Plan, 6. Wastewater Rate Survey, 7. Recommended FY19 Solid Waste Financial Plan, 8. Solid Waste Rate Survey, 9. List of Parcels Outside City Limits, 10. Map of Wastewater Service Area Outside City Limits, 11. Resolution
REPORT TO COUNCIL

SUBJECT
Title
Proposed Utility Rate Increases for FY 2018/19 Rates for Water, Wastewater, and Solid Waste Utilities for Services Provided to Customers Within and Outside City Boundaries; Finding of 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.

Individual rates and monthly bills may vary. However, as a whole, the recommended overall increases are 4% for water rates and a 2% increase in solid waste and recycling rates. As a result of the completion of a cost of service wastewater rate study, wastewater rates will increase in varying amounts dependent on the customer classification. The overall increase in revenue needed by the wastewater utility is 10%. These increases will result in the average single-family monthly bill going up by:

Water $2.44
Wastewater $2.18
Solid Waste and Recycling $0.92
Total $5.54

The new total average single-family monthly bill will be $159.04, which represents an increase of approximately 3.6% over the current year. The City's commercial rates will increase by the same overall percentage as residential rates. 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 increases are included in the FY 2018/19 Recommended Budget. Each year, staff provides Council with not only proposed rates, but also plann...

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