Title
Approval of an Ordinance Adopting 2020 Utility Rates and General Facilities Charges
Recommended Action
Committee Recommendation:
The proposed rates and charges reflect recommendations from the City Council, Finance Committee and the Utility Advisory Committee. City Council held a public hearing on November 19, 2019. The review considered recommendations forwarded to Council by the Utility Advisory Committee.
City Manager Recommendation:
Move to approve the ordinance adopting the 2020 utility rates and general facilities charges on second reading.
Report
Issue:
Whether to approve an ordinance adopting the 2020 utility rates and general facility charges (GFC). Increases in LOTT Clean Water Alliance rates and capacity development charges are also included in the ordinance.
Staff Contacts:
Gary Franks, Waste ReSources Director, Public Works Department, 360.753.8780
Eric Christensen, Water Resources Director, Public Works Department, 360.570.3741
Presenters:
None - Consent Calendar Item
Background and Analysis:
Background and analysis has not changed from first to second reading.
City of Olympia provides vital utility services to our community. For 2020, staff is proposing rate increases (rounded) as follows:
* Drinking Water 6.3%
* Storm and Surface Water 3.5%
* Wastewater 0.2%
* Waste ReSources 3.3%
* LOTT 3.0%
* Combined 3.4% or $8.78 bi-monthly/single family account
Key financial drivers for the proposed 2020 rate increase include:
* Increased funding for capital project construction (Drinking Water)
* One new employee, a sweeper operator (Storm and Surface Water)
* Shift funding of 1.25 FTE from Storm and Surface Water to Wastewater to correct an inequity in funding.
* Using cash reserves to buy down Waste ReSources residential rates.
* Distributing Waste ReSources rate increases amongst all rate categories.
* One percent increase in the municipal utility tax.
Additionally, utility-related development charges are proposed to increa...
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