Title
Hudson Water Rate Study
Brief Description: CT Consultants completed a water rate study for the City of Hudson Water System. There are two chapters to the study. The first chapter focuses on creating a blended water rate for all customers and rate increases necessary for the continued operation of the water system. The second chapter focuses on the water system expansions Council requested be reviewed by the consultant and the estimated costs for the various expansions. The purpose of tonight’s discussion is Chapter 1, the blended rate model. We will come back to City Council at a later date to discuss Chapter 2 and the proposed expansions.
Body
Legislative History
Ordinance 99-120 established the two-tiered water rate structure. There have been multiple Ordinances adjusting the water rates, but this discussion focuses on the two-tier structure that has remained in place since 1999.
Purpose & Explanation
The purpose of tonight’s discussion is to review Chapter 1 of the Water Rate Study completed CT Consultants. Chapter 1 focuses on creating a blended rate for all City of Hudson Water customers as well as recommended annual rate increases to ongoing expenses and system maintenance.
Timing Considerations
While there are currently no water rate adjustments built into the Five-Year Plan, Council can consider adopting the blended rate and annual increases to be effective with the bills due 1/10/23.
Fiscal Impact
Currently Budgeted (Account #, $)
Supplemental Appropriation Required (Account #, $)
X Appropriation Not Required. Any rate adjustments would require a public hearing
Recommendation
Suggested Action
Staff recommends Council consider implementing the blended rate and annual rate increases.
Submitted by,
Thomas Sheridan, City Manager
Jeff Knoblauch, Asst City Manager/Finance Director
Brian Griffith, Director - Management & Budget