Title
AN ORDINANCE AMENDING SECTION 1040.01(A) AND (B) AND SECTION 1043.03(A)(3) AND (4) OF THE CODIFIED ORDINANCES, REVISING WATER RATES FOR THE CITY.
Brief Description: This ordinance will amend the City’s water rates in accordance with the water rate study completed by CT Consultants. The Existed Service Area Rate and Expanded Service Area Rate will be blended into one rate. This blended rate will the be increased 6% per year from 2023 through 2027 and 2% per year thereafter.
Body
Legislative History
Ordinance 13-57 Revising Water Rates
Purpose & Explanation
The Water Rate Study by CT Consultants recommended creating a blended water rate and increasing that rate by 6% per year from 2023 through 2027 and 2% per year thereafter. The study also recommended increasing the monthly capital charge from $5 to $7 in 2023 and $0.50 per year from 2024 through 2027, 2% per year thereafter.
The impact of these increases on an average residential bill in the Existing Service Area would be an increase of $6.60 (16.5%) per month in 2023. The average residential bill in the Expanded Service Area would see a decrease of $15.91 (25.45%) per month in 2023.
The Water Investment Fee would also be increased from $750 to $1,000 per equivalent residential unit.
Timing Considerations
Council will need to set a public hearing with passage of the ordinance to follow. The increases would not be effective until the February 10, 2023, due date.
Fiscal Impact
Currently Budgeted
Supplemental Appropriation Required
X Appropriation Not Required. Any rate adjustments would require a public hearing
Recommendation
Suggested Action
Staff recommends Council approve the blended rate and annual rate increases.
Submitted by,
Thomas J. Sheridan, City Manager
Jeff Knoblauch, Asst City Manager/Finance Director
Brian Griffith, Director - Management & Budget