Title
Consider an ordinance amending the Code of Ordinances Chapter 30, Water, Sewers, and Sewage Disposal, to amend water and sewer rates.
Summary
DATE: September 7, 2021
TO: Kent Cagle, City Manager
FROM: Jonathan Locke, Executive Director of Finance
SUBJECT: Ordinance amending water and sewer rates
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. It also found that sewer revenues could sufficiently fund the projected five-year sewer expenses.
To offset the projected shortfall in the Water and Sewer Fund, a water rate increase and water rate structure change was recommended in Fiscal Year 2021. In September 2020, City Council decided to defer the proposed water rate and structural changes due to the Coronavirus pandemic. The proposed Fiscal Year 2022 Budget includes the recommended water rate and structural changes.
The rate increase includes adjusting the base meter charge and volumetric rate. The base meter charge varies depending upon the meter size and is the minimum amount a customer pays monthly. The base meter charge includes 2,000 gallons of water for customer use. When a customer exceeds 2,000 gallons, a volumetric rate is charged per 1,000 gallons of water used.
Commercial customers do not have a tiered water rate structure for gallons of water used over 2,000. After the first 2,000 gallons of water use, commercial customers currently pay $3.28 per 1,000 gallons. That rate is proposed to increase to $3.50 per 1,000 gallons.
Residential customers have a tiered water rate structure for gallons of water used over 2,000. The proposed water rate structural change includes adding a tier to the City’s current two-tier volumetric charge. The recommended three-tier volumetric charge is intended to encourage water conservation. The chart below depicts the...
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