City of Sunnyvale - File #: 14-0327

• File #: 14-0327
• Type: Report to Council
• Status: Passed
• Meeting Body: City Council
• On agenda: 6/10/2014
• Title: Proposed FY 2014/15 Rates for Water, Wastewater, and Solid Waste Utilities for Services Provided to Customers Within and Outside City Boundaries

REPORT TO COUNCIL
SUBJECT
Title
Proposed FY 2014/15 Rates for Water, Wastewater, and Solid Waste Utilities for Services Provided to Customers Within and Outside City Boundaries

Report
REPORT IN BRIEF
As part of the annual process of reviewing the financial condition of the three utility enterprises, 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 increases are as follows: 5% increase in water rates, 9% increase in wastewater rates, and 6% increase in solid waste and recycling rates. These increases will result in the average single-family residential monthly bill going up by:

Water $2.33
Wastewater $3.04
Solid Waste and Recycling $2.41
Total $7.78

The new total average monthly bill will be $128.88, an increase of approximately 6.4% 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. In comparing rates from various cities, it should be remembered that each city funds and provides a different set of services, and Sunnyvale provides among the most comprehensive suite of services.

The proposed rate increases are included in the recommended FY 2014/15 Budget that is currently being reviewed by the City Council. Each year, staff provides Council with proposed rates and planned changes in rates over twenty years. The proposed increase in water rates is as previously planned and is necessary to cover rising wholesale water costs and significant rehabilitation costs for water infrastructure. The proposed increase in wastewater rates is higher than...