2024-04-15 City Council - Full Agenda-Special Meeting

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Staff Report to the Mayor and City Council Water and Wastewater Rate Study April 15, 2024 Page 3  At the August 10, 2015, Utilities Commission meeting, commissioners made additional recommendations and requested one last review and recommendations at the September 14, 2015 meeting. Commissioners made recommendation to proceed with Option 2 of the presented options.  At the October 6, 2015, City Council meeting a Rate Study was presented and Public Hearing was set for December 1, 2015.  The City Council conducted a Public Hearing at the April 5, 2016, City Council meeting.  At the April 19, 2016, City Council meeting, Water rates were adopted effective July 1, 2016.  Rates were implemented for FY 2016/17 through 2019/20.  At the April 5, 2022, City Council meeting the City Council approved a contract with NBS to Conduct the current Water and Wastewater Rate studies. Wastewater  December 17, 2013, City Council awarded contract to NBS to conduct Wastewater Rate Study.  At the June 13, 2014, City Council meeting, City Council had a presentation of Wastewater rates with proposed Ordinance O-07-14. Rates were not Adopted.  At the July 1, 2014, City Council meeting Ordinance O-07-14 was approved, adopting new Wastewater rates effective July 1, 2014 through June 30, 2018.  At the April 5, 2022, City Council meeting, the City Council approved a contract with NBS to Conduct the current Water and Wastewater Rate studies. At the February 26, 2024 special City Council Workshop, staff and Consultant made a presentation on the Water and Wastewater Rates study, incorporating comments from the January 16, 2024 City Council meeting and providing a Water and Wastewater Rate Study report, which included the full Capital Improvement Projects (CIP) list. Through discussion by City Council members staff was directed to bring back additional options whereby, cash funding would be reduced and Debt financing would be increased. This presentation hereby fulfills that request. FISCAL IMPACTS Rate increases will provide the following: 1) Increase revenues to cover increasing operations and maintenance costs. 2) Provide coverage for bond financing to construct and properly invest in major Capital Improvement Projects necessary to operate the enterprises effectively and efficiently (i.e., reservoir construction, new wells, transmission and distribution water lines, water efficiency and water quality improvements). ALTERNATIVES Provide alternative direction to staff. 1 Packet Pg. 7