Title
Proposed 2020 Utility Budgets, Rates, and CFP
Report
UAC Deliverable:
Briefing only. Recommendations to City Council in September.
Staff Contact:
Eric Christensen, Water Resources Director, 360.570.3741
Gary Franks, Waste ReSources Director, 360.753.8780
Previous Utility Rate Items Before the UAC:
The Utility Advisory Committee reviews City Utility finances, capital investments, and rates annually. The evaluation typically begins with review of the Capital Facility Plan (CFP) and concludes with Utility rate and general facility charges (GFCs) recommendations in September or October. UAC recommendations are important to City Council decision-making.
Background and Analysis:
The City Utilities provide vital public health services for our community - safe drinking water, sanitary sewers, waste reduction and disposal, flood management, and environmental protection. Utility staff focus on effectiveness and efficiency in the delivery of these services.
The City Utilities are municipal enterprise funds. They are financially self-supporting without the input of general tax funds. Conversely, Utility revenue does not support tax-based City programs. However, the Utilities pay a fair share of various City overhead costs (e.g., building mortgage, legal and executive services). Annual savings remain in the Utilities and carry-over to the following year.
Utility rate increases over the past decade have been substantial. The combined and weighted rate increase for 2019 was 2.5 percent or approximately $6.38/bimonthly, broken down as follows:
* Drinking Water 0 percent
* Wastewater 0 percent
* Waste ReSources 5.5 percent
* Storm and Surface Water 5.1 percent
* LOTT 3 percent
Single-family residential accounts are commonly billed $238 - $255 every two months. Commercial and multifamily accounts are charged based on water and solid waste usage. For storm and surface water, charges are based on the amount of onsite impervious surface and level of o...
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