Title
Discussion of issues relating to the Water and Wastewater Rate study performed 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 2024 study provided a rate plan for fiscal year 2025 through fiscal year 2029. The rate plan was reevaluated for fiscal year 2026 and again in 2027, extending the plan to year 2031. 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.
NewGen Strategies and Solutions completed updates to the study for fiscal year 2027 and will discuss their findings and recommended course of action regarding water and wastewater rates for the next five years.
Fiscal/Budgetary Impact:
Under proposed rates, the average Residential bill is projected to increase at an average rate of 2.75% per year, with the average Commercial bill increasing at an average rate of 5.94% per year through FY 2031.
Recommended action
Discussion only during workshop.