Title
Consider an ordinance amending the Code of Ordinances Chapter 30, Water, Sewer, and Sewage Disposal to amend commercial water rates.
Summary
DATE: October 4, 2022
TO: Kent Cagle, City Manager
FROM: Miranda Drake, Director of Budget
SUBJECT: Ordinance amending commercial water rates
BACKGROUND AND FINDINGS:
In the recent Water & Sewer five-year rate analysis it was 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 of the adjustment is included in the proposed FY 2023 Budget which is estimated to generate an additional $158,000 in annual revenue.
On September 13, 2022, the City Council amended the commercial water rates as recommended. However, the 5/8" and 3/4" commercial meter and commercial volumetric rates were increased in error. This amendment will restore the 5/8" and 3/4" commercial meter rate to $14.02 and the commercial volumetric rate to $3.50 per 1,000 gallons over the 2,000 gallons. In addition, the outside city limit amounts listed should be 150% of the approved commercial rates inside the city limits.
These corrections will be effective retroactively October 1, 2022.
THE ALTERNATIVES CONSIDERED:
(1) Do not amend water and sewer commercial rates.
(2) Amend water rates for commercial customers to restore rates for 5/8" and 3/4" commercial meters.
Which alternative is recommended? Why?
Alternative two (2) is recommended to restore rates for 5/8" and 3/4" commercial meter customers.
CONFORMITY TO CITY POLICY:
The proposed ordinance conforms to applicable City policy.
FINANCIAL IMPACT:
What is the amount of the expenditure in the current fiscal year? For future years?
N/A
Is this a one-time or recurring expenditure?
N/A
Is this expenditure budgeted?
N/A
If not, where will the money come from?
N/A
Is there a sufficient amount in the budgeted line-ite...
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