Title
An Ordinance amending the Schedule of Fees and Charges for the City of Lee’s Summit to take effect July 1, 2022, regarding sewer charges.
(Note: First read by Council on May 24, 2022. Passed by unanimous vote.)
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 objective of the model is to update financial policies to achieve the financial stability needed to sustain bond ratings, operational expenses, and system renewal needs as defined by the Water Utilities Department Strategic Plan.
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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 water and sewer revenue needs for each of the next 10 years.
• 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 the financial and rate policies specified in the Strategic Plan and approved by the City Council.
• The model generates a cost allocation between customer classes consistent with industry standards to be fair and equitable.
• On March 2, 2022, the Water Utilities Advisory Board reviewed and unanimously recommended approval of amending the adopted rate schedule for January 1, 2025 to increase the water and sewer rates from 3% to 4% and to append the rate schedule with a 4%increase to water and sewer rates effective January 1, 2026.
• The amended water rate and connection fee charges were approved by the City Council on April 26th, 2022.
• Changes to the sewer rate schedule are being presented separate from the water rates due to the specific requirement for a public hearing.
Background:
On December 15, 2011, the City Council adopted the Water Ut...
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