Title
Presentation of Financial Planning and Rate Recommendations.
Body
Key Issues:
The Utility’s staff has completed an update of the Cost of Service model to meet financial viability goals as defined in the Water Utilities Strategic Plan. This model provides a 10-year financial plan to meet the Utilities ongoing operating and capital needs. The model was developed as a component of the Strategic Plan. The objective of the model was to implement financial policies to achieve the financial stability needed to sustain bond ratings, operational expenses, and system renewal needs.
The Cost of Service model provides a financial plan to meet the ongoing operating and capital needs of the Utility.
· The Cost of Service model identifies increased revenue needs for each of the next 10 years and is consistent with findings of the Strategic Plan.
· The model addresses the infrastructure rehabilitation needs as identified and schedules the projects in accordance with a financial plan.
· The model is in compliance with financial and rate policies specified in the Strategic Plan and presented to the Water Utilities Advisory Board.
· The model generates a cost allocation between customer classes consistent with industry standards to be fair and equitable.
Proposed Committee Motion:
I move to recommend to City Council approval to amend the adopted rate scheduled for January 1, 2022 to increase the water and sewer rates from 2% to 3% and to append the rate schedule with a 4% increase to water and sewer rates effective January 1, 2023 as set forth by the cost of service model.
Background:
On December 15, 2011, the City Council adopted the Water Utilities Strategic Plan. This Strategic Plan was the result of a comprehensive assessment and strategic planning process involving many customers and stakeholders in the utility. Through the assessment and planning process, operational practices & procedures, long-term plans for infrastructure improvements, the fiscal health ...
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