REPORT TO COUNCIL
SUBJECT
Title
Proposed Utility Rate Increases for FY 2020/21 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.
The recommended increase is 4% for wastewater rates. No water or solid waste and recycling rate increases are proposed for FY 2020/21. Individual utility costs will vary based on actual use or subscription level; however, a typical monthly single-family residential water, wastewater (sewer), and solid waste (garbage) utility bill will increase by 1.31%. The proposed monthly rate changes for FY 2020/21 are:
Water $0.00
Wastewater $2.05
Solid Waste and Recycling $0.00
Total $2.05
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 2020/21 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 3% lower than previously planned, leaving rates unchanged for FY 2020/21. Solid waste rates are also unchanged for FY 2020/21, which is 1% lower than projected last year. At the April 7, 2020 Council meeting, direction was given to defer rate adju...
Click here for full text