Title
2014 Utility Rate Recommendations
Recommended Action
UAC Deliverable:
Recommended rate proposal for City Council consideration.
Body
Issue:
Review 2014 utility rate proposal and forward recommendations to City Council for final review during budget deliberations.
Staff Contact:
Clark Halvorson, Public Works Water Resources Director, 360.753.8426
Dan Daniels, Public Works Waste ReSources Director, 360.753.8780
Andy Haub, Public Works Water Resources Engineering and Planning Manager, 360.753.8475
Presenter(s):
Same as above
Background and Analysis
This year the City of Olympia is facing another challenging budget. As a result, we have been directed by the City Manager to take a "hold the line" approach to utility budgets and to develop rates that are focused on maintaining existing service levels and enhancing revenue stability.
Rate recommendations for 2014 reflect this direction. Where feasible, we have also sought to reduce expenditures and absorb inflationary increases in costs in order to lessen the need for rate increases in 2014.
2014 Rate Proposals
Storm & Surface Water Utility: 2% rate increase
The proposed Storm and Surface Water Utility 2014 budget is based on recently completed planning efforts and regulatory requirements under the NPDES (National Pollution Discharge Elimination System) Phase II permit. The proposed 2014 budget incorporates various inflationary increases, but no major new initiatives or costs.
Stormwater rates are based on a flat-rate monthly charge for single family and duplex residential accounts. Other accounts including commercial, multifamily and institutional developments are charged based on the quantity of impervious surface on the site and the year of development. Older developments consistently provide less onsite stormwater treatment and storage infrastructure than newer developments. Therefore, these accounts incorporate a three-tiered rate structure with older developmen...
Click here for full text