AGENDA TITLE:
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Set Public Hearing for February 19, 2025, to Consider Adopting Resolution Setting Pre-Approved Engineering News Record Adjustment Index for Usage Based and Flat Water Rates for Residential, Commercial, and Industrial Customers (PW)
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MEETING DATE:
January 15, 2025
PREPARED BY:
Public Works Director
recommendation
RECOMMENDED ACTION:
Set Public Hearing for February 19, 2025, to consider adopting resolution setting pre-approved Engineering News Record adjustment index for usage-based and flat water rates for residential, commercial, and industrial Customers.
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BACKGROUND INFORMATION:
On January 17, 2024, the City Council approved a five-year rate plan in accordance with the Proposition 218 rate setting process. The proposed rate adjustments are needed to generate sufficient revenue to meet projected operation and maintenance costs and debt service obligations, as well as necessary current and future capital maintenance improvements.
The approved five-year rate plan allows annual rate adjustments in accordance with the change in Engineering News Record Index (ENR) but capped at a maximum increase of 5 percent. The ENR average annual change in 2024 was 1.6%.
A summary of current and proposed rates for flat-rate and usage-based rate customers is provided in Exhibit A, which reflects the recommended 1.6 percent rate increase. For a resident still on the flat rate, the monthly charge for a three-bedroom home will increase from $49.66 to $50.45, or $0.79 per month. A metered resident using an average of 1,500 cubic feet of water per month will see an increase from $39.59 to $40.26, or $0.67 per month.
Staff recommends setting public hearing for February 19, 2025, to consider adopting resolution setting pre-approved Engineering News Record adjustment index for usage-based and flat water rates for residential, commercial, and industrial customers.
STRATEGIC VISION:
3A. Fiscal Health: Promote City's transparency & fiscal fluency.
FISCAL IMPACT:
Increased revenues are required to properly fund capital maintenance, and to keep up with cost of service increases.
FUNDING AVAILABLE:
Not Applicable.
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Charles E. Swimley
Public Works Director
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Scott R. Carney
City Manager