REPORT TO COUNCIL
SUBJECT
Title
Proposed Utility Rate Increases for FY 2016/17 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 as follows: 8% increase in wastewater rates, a 3.5% increase in solid waste and recycling rates. As a result of the completion of a cost of service water rate study, water rates will increase in varying amounts dependent on the customer classification. The overall increase in revenue needed by the water utility is 25%. These increases will result in the average single-family monthly bill going up by:
Water $3.42
Wastewater $3.18
Solid Waste and Recycling $1.54
Total $8.14
The new total average single-family monthly bill will be $151.37 from $143.23, an increase of approximately 5.7% 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 increases.
The proposed rate increases are included in the FY 2016/17 Recommended Budget that is currently being reviewed by the C...
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