Title
Utility Budget and Rates
Report
UAC Deliverable:
Briefing only. Recommendations to City Council in September.
Staff Contact:
Andy Haub, Water Resources Director, 360.753.8475
Dan Daniels, 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 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 subsequent City Council decision-making.
The draft 2018-2023 CFP was shared with the UAC on May 4. The UAC will continue the CFP discussion in August within the context of overall utility finances and rates.
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 emphasizes 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. In 2017, the combined and weighted rate increase was 3.2 percent, broken down as follows:
* Drinking Water 5.7 percent
* Wastewater 4 percent
* Waste ReSources 0 percent
* Storm and Surface Water 6.3 percent
* LOTT 2 percent
The overall increase in a single family residential account was approximately $6.83 - $7.46 every two months. Typical single family utility bills are roughly $...
Click here for full text