Title
Proposed 2019 Utility Budgets and Rates
Report
UAC Deliverable:
Briefing only. Recommendations to City Council in September.
Staff Contact:
Andy Haub, Water Resources Director, 360.753.8475
Ron Jones, Senior Program Specialist, Waste ReSources, 360.753.8342
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.
Staff briefed the UAC on the draft 2018-2023 CFP on May 3. The UAC will continue the CFP discussion in September 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 2018, the combined and weighted rate increase was 2.7 percent or approximately $6.55/bimonthly, broken down as follows:
* Drinking Water 4.4 percent
* Wastewater 0 percent
* Waste ReSources 6 percent
* Storm and Surface Water 0 percent
* LOTT 2 percent
Single family residential accounts are commonly billed $232 - $249 every two months. Commerc...
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