Title
Consider an ordinance amending the Code of Ordinances Chapter 30, Water, Sewers, and Sewage Disposal, to amend water and sewer rates and other changes as presented.
Summary
DATE: August 1, 2023
TO: Kent Cagle, City Manager
FROM: Jeffery Reynolds, Executive Director of Public Works
SUBJECT: Water and Sewer Ordinance Amendments
BACKGROUND AND FINDINGS:
On July 7, 2020, City Council received the results of the 2020 Water and Sewer Rate Study. The study found that the City's water revenues were insufficient to fully fund the projected expenses over the next five years. City Council deferred a rate adjustment at the time due to the pandemic.
On September 13, 2021, Council approved a water rate increase which included adjusting the base meter charge and volumetric rate. These approved changes included a three-tier volumetric charge for residential customers to encourage water conservation, a 6.6% increase in water rates for residential and commercial customers, and an amendment for customers outside the city limits from 100% above inside city rates to 50% above inside city rates.
In the recent Water & Sewer five-year rate analysis it was also recommended to implement a phased approach to adjusting the base rate paid on different meter sizes by commercial customers to be in line with the American Water Works Association (AWWA) recommendation. The first phase adjustment was included in the FY 2023 Budget. The second phase adjustment is included in the proposed FY 2024 budget and is estimated to generate an additional $320,000 in annual revenue.
Additionally, there is a proposed increase of $1.50 to the minimum base rate for Residential Water and all Sewer accounts. The most common meter size for residential is 5/8" and 3/4" and will go from a base rate of $13.54 to $15.04. Base rate for Sewer will go from $19.26 to $20.76. These proposed increases will net approximately $2M in additional revenue to assist in offsetting the purchase costs of these ...
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