Title
Consideration of and action on an ordinance amending Section 106-25(b)(c) of the Code of Ordinances pertaining to water and sewer rates.
Body
Summary:
The City's water and sewer rates were last updated on September 19, 2023. The City recently entered into an agreement with NewGen Strategies and Solutions to conduct a new water and sewer rate study as the last study, conducted in 2019 with a five year projection, ended in fiscal year 2024. The 2019 study recommended five percent (5%) annual rate increases. The new study recommended the same course of action, a five percent (5%) annual rate increase beginning in fiscal year 2025 through fiscal year 2030. Pursuant to this recommendation, the proposed budget for Fiscal Year 2024-2025 includes a five percent (5%) across the board rate increase. Per our agreement with NewGen Strategies and Solutions, the study will be reviewed in fiscal year 2026 and 2027 to assess if additional modifications need to be made to our rates or rate structure. The new rates are expected to generate sufficient revenues for the operational and capital needs of the Water and Sewer Fund in the upcoming budget year.
As stated in the attached ordinance, the new rates would be effective for all water passing through the meter after October 1, 2024. Based on the individual billing cycles, the City will begin collecting revenues based on the new rates in December 2024.
Fiscal/Budgetary Impact:
The water and sewer rates in the Fiscal Year 2024-2025 budget include a 5 percent (5%) rate increase.
Recommended action
Review and adopt the ordinance changing the City's Code of Ordinances for water and sewer rates.