Title
Approval of an Ordinance Relating to Utility Fees and Charges and Amending Section 4.24.010 of the Olympia Municipal Code
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 the ordinance adopting the 2023 utility rates and general facilities charges on second reading.
Report
Issue:
Whether to approve an ordinance adopting the 2023 utility rates and general facility charges. Also included in the ordinance are increases to LOTT Clean Water Alliance rates and capacity development charges.
Staff Contact:
Gary Franks, Waste ReSources Director, Public Works Department, 360.753.8780
Eric Christensen, Water Resources Director, Public Works Department, 360.570.3741
Presenter(s):
None - Consent Calendar Item.
Background and Analysis:
Background and Analysis has changed from first to second reading.
There are two changes located on the bottom half of page 4 in OMC 4.24.010(B)(2)(c) and (d), changing $25.79 per ERU to $25.78 per ERU. Updated Ordinance that reflects that change has been attached.
Utility Rates
City of Olympia provides vital utility services to our community. For 2023, staff is proposing revenue increases (rounded) as follows:
* Drinking Water 6.60%
* Storm and Surface Water 9.88%
* Wastewater 9.82%
* Waste ReSources 4.00%
* LOTT 3.0%
* Combined 5.89% or $16.53 bi-monthly/single family account
Key financial drivers for the proposed 2023 rate increase include:
* A 5% to 5.5% cost of living adjustment.
* Fixed interfund transfers (administration, utility billing, financial services, rent, insurance, computer services, etc.).
* Inflationary increases (9%) in capital funding for the Wastewater, and Storm and Surface Water utilities.
* Use of cash reserves to buy down Waste ReSources rates.
General Facilities Charges
Consistent with rate consultant financial analyses, staff is proposing i...
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