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 in September 2018. The City's most recent water and sewer rate study, conducted by NewGen Strategies & Solutions included several options for the next five years, including an annual five percent (5%) increase as has been implemented in recent years. The City adopted a five percent (5%) rate increase in fiscal years 2016, 2017 and 2019 opting to maintain rates in the 2018 fiscal year. Based on this most current rate study, the City has determined that the best option is a 10 percent (10%) increase in fiscal year 2020 followed by a five percent (5%) increase in each of the next four years. In the proposed budget for Fiscal Year 2019-2020, the City recommends a 10 percent (10%) across the board rate increase. 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. The impact of a 10 percent (10%) water and sewer rate increase on an average customer is as follows:
Minimum Residential/Commercial Usage 2,000 gallons/month $1.25/month increase
Average Residential Usage 5,102 gallons/month $5.50/month increase
Average Residential Usage (summer peak) 5,890 gallons/month $6.50/month increase
Average Commercial Usage 41,712 gallons/month $44.50/month increase
Average Commercial Usage (summer peak) 42,858 gallons/month $45.50/month increase
As stated in the attached ordinance, the new rates would be effective for all water passing through the meter after October 1, 2019. Based on the individual billing cycles, the City will begin collecting revenues based on the new rates in December 2019.
Fiscal/Budge...
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