Title
Approval of an Ordinance Relating to Utility Rates, Fees, and Charges
Recommended Action
Committee Recommendation:
The proposed rates and charges reflect recommendations from the Finance Committee and the Utility Advisory Committee.
City Manager Recommendation:
Move to approve on second reading, the ordinance adopting the 2024 utility rates, general facilities charges, and increases to LOTT Clean Water Alliance rates and capacity development charges.
Report
Issue:
Whether to approve on second reading, an ordinance adopting the 2024 utility rates, general facilities charges, and increases to LOTT Clean Water Alliance rates and capacity development charges.
Staff Contact:
Jesse Barham, Water Resources Director, Public Works Department, 360.753.8164
Mike Vessey, Drinking Water Utility Director, Public Works Department, 360.753.8318
Gary Franks, Waste ReSources Director, Public Works Department, 360.753.8780
Presenter(s):
None - Consent Calendar Item.
Background and Analysis:
There were no changes to the ordinance from first to second reading.
Utility Rates
City of Olympia provides vital utility services to our community. For 2024, staff is proposing revenue increases (rounded) as follows:
* Drinking Water 2.0%
* Storm and Surface Water 6.5%
* Wastewater 4.0%
* Waste ReSources 3.5%
* LOTT 3.0%
* Combined 3.45% or $10.26 bi-monthly/single family account.
Key financial drivers for the proposed 2024 rates include:
* Cost of living adjustment.
* Changes in how interfund transfers are determined, reducing overall costs to the utilities (administration, utility billing, financial services, rent, insurance, computer services, etc.).
* Increases in materials and contract costs.
* Waste ReSources Capital funding for Carpenter Road facility.
* Staffing needs in Stormwater and Wastewater utilities.
A new stormwater rate category for sites with advanced stormwater treatment and industrial stormwater permits from the State of Washington is also included to ac...
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