Title
Review and Provide Recommendations for the 2021 Utility Rates, Operating Budgets, General Facility Charges and Capital Facilities Plan
Recommended Action/UAC Deliverable:
Continue review of staff's recommendations for 2021 Capital Facilities Plan (CFP), rates and General Facilities Charges (GFCs).
Recommend Chair Buffo write a letter with budget and rate recommendations and concerns to the City Council on behalf of the Utility Advisory Committee. Council's Finance Committee reviewed Utility rates on September 16, 2020 without comment. City Council will review rate and GFC recommendations and hold a public hearing on the CFP on October 13th.
Issue:
Review 2021 preliminary utility rates and operating budget, including CFP and GFCs. UAC will draft a recommendation letter to City Council.
Staff Contact:
Gary Franks, Public Works Waste ReSources Director, 360.753.8780
Eric Christensen, Public Works Water Resources Director, 360.570.3741
Presenters:
Same as above
Background and Analysis:
The Utility Advisory Committee reviews City utility finances, capital investments, and rates annually. Staff presented the draft CFP and reviewed proposed 2021 budgets and rates on September 3rd. City staff will continue the briefing on the 2021 budget and rate analysis at the UAC meeting on October 1, 2020.
As discussed in September, the proposed 2021 budgets generate rate changes for single family residences as follows:
Drinking Water 0.0%
Wastewater 0.0%
Storm and Surface 7.5%
Waste ReSources 0.0%
LOTT 3.0%
Combined 1.85% or $4.64/month/single family account
Rates for non-single-family accounts would be raised proportional to their current bills. These proposed rate changes are preliminary and could be changed by the City Council.
Key financial drivers for the Utilities:
Common to all utilities' budgets:
* Assumed 1% COLA
* 0.5% growth in accounts
* No increase to Municipal Utility Tax rate (currently at 11.5%)
* Benefits based on actual historical...
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