Title
Approval of an Ordinance Relating to Utility Fees and Charges and Amending Sections 4.24.010, 13.16.010 and 13.16.090 of the Olympia Municipal Code
Recommended Action
Committee Recommendation:
The proposed rates and charges reflect recommendations from the Finance Committee and the Utility Advisory Committee.
City Manager Recommendation:
Move to approve the ordinance adopting the 2022 utility rates, revised Storm and Surface Water rate structure and general facilities charges on second reading.
Report
Issue:
Whether to approve an ordinance adopting the 2022 utility rates, general facility charges (GFC), and a revised Storm and Surface Water rate structure. Also included in the ordinance are increases to LOTT Clean Water Alliance rates and capacity development charges.
Staff Contacts:
Gary Franks, Waste ReSources Director, Public Works Department, 360.753.8780
Eric Christensen, Water Resources Director, Public Works Department, 360.570.3741
Presenter(s):
None - Consent Calendar Item.
Background and Analysis:
Background and Analysis did not change from first to second readings.
City of Olympia provides vital utility services to our community. For 2022, staff is proposing revenue increases (rounded) as follows:
* Drinking Water 2.0%
* Storm and Surface Water 6.0%
* Wastewater 9.1%
* Waste ReSources 1.0%
* LOTT 3.0%
* Combined 2.97% or $8.10 bi-monthly/single family account
Key financial drivers for the proposed 2022 rate increase include:
* A 1.0% increase in the Municipal Utility Tax.
* A 10% inflationary increase in materials and services.
* A 6% increase in Puget Sound Energy Green Energy rates.
* A 4% cost of living adjustment.
* Fixed interfund transfers (administration, rent, insurance, computers, etc.).
* Use of cash reserves to buy down Wastewater rates.
Storm and Surface Water (SSW) revised rate structure
Restructuring of the SSW rate structure was guided by recommendations made in the 2018 SSW Plan. The rate structure has bee...
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