File #: 17-0909    Version: 1
Type: recommendation Status: Passed
File created: 8/30/2017 In control: Utility Advisory Committee
Agenda date: 10/5/2017 Final action: 10/5/2017
Title: 2018 Utility Rate and General Facility Charges (GFC) Recommendations
Attachments: 1. Proposed 2018 Sample Bi-Monthly Utility Bill and GFC-CDCs, 2. Comparison of Local Utility Charges and 2018 Rate Increases, 3. Utility GFC and Unanticpated Capital Costs, 4. Utility Operating Expense Reports, 5. Utility Year End Balances, 6. Year-to-date Revenues, 7. 17-0532_MC Feasibility Study Finance Cmte_June2017, 8. 17-0771_MC Feasibility Study Finance Cmte_Aug2017, 9. Staff Presentation - UAC Water Resources Utility Finances, 10. Staff Presentation - 2018 Utility Waste ReSources Rates, 11. Staff Presentation - Maint Center Presentation, 12. UAC Utility Rates Presentation from 10-05-17
Title
2018 Utility Rate and General Facility Charges (GFC) Recommendations

Recommended Action
Review staff's recommended rates and GFCs for 2018.

Report
Issue:
Review 2018 Utility rates, including LOTT, and GFC proposals. Forward recommendations to City Council for review during their budget deliberations. Council's Finance Committee plans to review Utility rates on October 11, 2017.

Staff Contact:
Dan Daniels, Public Works Waste ReSources Director, 360.753.8780
Andy Haub, Public Works Water Resources Director, 360.753.8475

Presenter(s):
Same as above

Previous Utility Rate Work 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) in the spring and concludes with Utility rate and GFC recommendations in September or October. UAC recommendations are important to subsequent City Council decision-making.

City staff shared the 2017-2022 CFP with the UAC in May. The UAC decided to continue the discussion in the context of overall utility finances and rates. A recommendation on the CFP is needed for the Planning Commission in September or October.

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 stay in the Utilities.

We are well aware of the financial burden of City Utilities on some members of our community. Utility rate i...

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