Title
Discussion of issues relating to redesigning water user rates presented by NewGen Strategies and Solutions.
Body
Summary:
On June 4, 2024, the City Council authorized an agreement with NewGen Strategies and Solutions for a water and wastewater rate study. The original study provided a rate plan beginning fiscal year 2025 through fiscal year 2030, with the understanding the plan would be revaluated for fiscal year 2026 and again in 2027 to make adjustments if needed. The purpose of the study is for the company to independently assess and evaluate the City’s existing water and sewer rates using financial and consumption information and provide recommendations for water and sewer rates for all customer classes. The objective of the study is to adequately fund water and sewer utility operations, capital costs, and debt service while minimizing rates to the greatest degree possible.
For the fiscal year 2026 study, NewGen is suggesting redesigning the City’s water rate structure to include meter equivalency base rates and price changes to volumetric tiers. Matthew Garrett with NewGen Strategies and Solutions will be discussing the proposed new rate design for water users during the City Council Workshop.
Fiscal/Budgetary Impact:
Discussion Only.
Recommended action
Discussion only during workshop.