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File #: 15-0302   
Type: Report to Council Status: Passed
Meeting Body: City Council
On agenda: 6/9/2015
Title: Proposed Utility Rate Increases for FY 2015/16 Rates of 20% for Water, 8% for Wastewater, and 5% for Solid Waste Utilities for Services Provided to Customers Within and Outside City Boundaries; Finding of CEQA Exemption Pursuant to CEQA Guideline 15273
Attachments: 1. Combined Monthly Utility Bill Comparisons – Single Family Residential, 2. Utility Rate Comparisons – Commercial, 3. Recommended FY 2015/16 Water Supply and Distribution Fund Long Term Financial Plan, 4. Water Rate Survey, 5. Recommended FY 2015/16 Wastewater Management Fund Long Term Financial Plan, 6. Wastewater Rate Survey, 7. Recommended FY 2015/16 Solid Waste Management Fund Long Term Financial Plan, 8. Solid Waste Rate Survey, 9. Proposed Resolution.pdf, 10. Tax Roll Detail for Wastewater Services Provided Outside the City Limits, 11. Map of Wastewater Service Area Outside the City Limits
REPORT TO COUNCIL

SUBJECT
Title
Proposed Utility Rate Increases for FY 2015/16 Rates of 20% for Water, 8% for Wastewater, and 5% for Solid Waste Utilities for Services Provided to Customers Within and Outside City Boundaries; Finding of CEQA Exemption Pursuant to CEQA Guideline 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 increases are as follows: 20% increase in water rates, an 8% increase in wastewater rates, and a 5% increase in solid waste and recycling rates. These increases will result in the average single-family residential monthly bill going up by:

Water $9.89
Wastewater $2.94
Solid Waste and Recycling $1.52
Total $14.35

The new total average monthly bill will be $143.23, an increase of approximately 11.1% 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 them.

The proposed rate increases are included in the FY 2015/16 Recommended Budget that is currently being reviewed by the City Council. 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 15% higher than previously planned. This increase is necessary to cover sharply rising ...

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