Title
2019 Utility Rate and General Facility Charge (GFC) Recommendations
Recommended Action/UAC Deliverable:
Review staff's recommended rates and GFCs for 2019.
Issue:
Review 2019 Utility rates including LOTT and GFC proposals. Forward recommendations to City Council for review during their budget deliberations. Council's Finance Committee plans to review Utility rates on October 17, 2018.
Staff Contact:
Gary Franks, Public Works Waste ReSources Director, 360.753.8780
Andy Haub, Public Works Water Resources Director, 360.753.8475
Presenter(s):
Same as above
Previous Utility Rate Work Items Before the UAC:
The Utility Advisory Committee reviews City Utility finances, capital investments, and rates annually. The evaluation begins with review of the draft Capital Facility Plan (CFP) in the spring and concludes with utility rate and GFC recommendations in September or October. UAC recommendations are important to subsequent City Council decision-making.
City staff shared the draft 2019-2024 CFP with the UAC in May. The UAC will continue the discussion in the context of overall utility finances and rates. A recommendation on the CFP is needed for the Olympia Planning Commission in October.
Background and Analysis:
City Utilities are expected to provide uninterrupted public health services for our community. Our responsibilities include ensuring that drinking water is healthy, sewer infrastructure safely conveys waste to the LOTT treatment facility, solid waste is managed for reuse or disposed of, flooding is minimized, and our urban natural resources are protected.
Given these core public health mandates, Utilities are structured as municipal enterprise funds. Enterprise funds are financially self-supporting, rather than supported by the general tax funds. In turn, utility revenue does not support tax-based City programs. The Utilities pay a fair share of various City overhead costs (e.g., building mortgage, insurance, administrative overhead). End...
Click here for full text