AGENDA TITLE:
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Public Hearing to Consider Adopting a Resolution Setting Rate Adjustment of Three Percent (3%) To Water Rates, Effective February 1, 2024 and Four Percent (4%) To Wastewater Rates, Effective July 1, 2024 and Setting Future Water and Wastewater Rate Schedules Pursuant to Proposition 218 for Residential, Commercial and Industrial Customers (PW)
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MEETING DATE:
January 17, 2024
PREPARED BY:
Public Works Director
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RECOMMENDED ACTION:
Public Hearing to Consider Adopting a Resolution Setting Rate Adjustment of Three Percent (3%) To Water Rates, Effective February 1, 2024 and Four Percent (4%) To Wastewater Rates, Effective July 1, 2024, and Setting Future Water and Wastewater Rate Schedules Pursuant to Proposition 218 for Residential, Commercial and Industrial Customers.
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BACKGROUND INFORMATION:
In 2019, the City Council approved a five-year rate program for the City's water and wastewater utilities. The Council action complied with the Proposition 218 requirements pertaining to such actions. The last pre-approved rate adjustment under the current program for the water utility reflected a 3% increase effective March 1, 2023, which was at the cap of 3%, approved in 2019 and a 3% increase for wastewater utility effective July 1, 2023, which was also at the cap of 3%, also approved in 2019. The Staff recommendation for the maximum annual rate increase of 3 percent was largely driven by the historic inflation rates over the past several years.
In the new five-year program, the cap is being requested to be set at 5% in consideration of the recent rise in inflation. A summary of the past rate adjustments is provided in the table in Exhibit A. The purpose of this table is to demonstrate that past rate increases have frequently been below the approved rate cap of 3 percent.
Proposed rate schedules and information outlining the financial plan, along with a cost of services study examining the operational costs, wat...
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