Title
2019 Utility Rate and General Facility Charge (GFC) Recommendations
Recommended Action/UAC Deliverable:
Continue review of staff's recommended rates and GFCs for 2019.
Issue:
Forward budget and rate recommendations to City Council for review during their budget deliberations. Council's Finance Committee plans to review Utility rates on October 17, 2018.
Staff Contact:
Gary Franks, Public Works Waste ReSources Director, 360.753.8780
Andy Haub, Public Works Water Resources Director, 360.753.8475
Presenters:
Same as above
Previous Utility Rate Work Items Before the UAC:
The Utility Advisory Committee reviews City Utility finances, capital investments, and rates annually. UAC recommendations are important to subsequent City Council decision-making. The UAC reviewed proposed 2019 budgets and rates on June 7, 2018 and September 6, 2018.
Background and Analysis:
As discussed in September, the proposed budgets generate 2019 rate increases for single family residences as follows:
Drinking Water 4.3%
Wastewater 3.1%
Storm and Surface 5.1%
Waste ReSources 5.5%
LOTT 3%
Combined 3.9% or $4.96/month/single family account
Rates for non-single family accounts would be raised proportional to their current bills.
Key discretionary financial drivers for the proposed rate increase include:
* Increased municipal utility tax (All four City utilities)
* Increased funding for capital project construction (Drinking Water)
* Increased funding for sea level rise response (Storm and Surface Water)
* Decreasing commodity values for recycled material (Waste ReSources)
* One new employee (Drinking Water and Wastewater)
Additionally, general facility charges (GFCs) are proposed to increase roughly 10 percent or $131 per new single family residence.
Budget and Rate Revisions
Preliminary City Council direction on several budget components have been received since September 6th:
* Council is tentatively planning to proceed with the 0.5% municipal tax increase.
* Cou...
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