Title
Rates and Affordability Metrics
Recommended Action
Information only. No action requested.
Report
Issue:
Briefing and discussion affordability metrics, utility rates, and assistance programs.
Staff Contact:
Jesse Barham, Public Works Water Resources Director, 360.753.8164
Gary Franks, Public Works Waste ReSources Director, 360.753.8780
Mike Vessey, Public Works Drinking Water Director, 360.753.8318
Presenters:
Same as above.
Background and Analysis:
Rates are the primary revenue source for all four utilities and fund all operational costs as well as contribute to the capital fund to offset the cost to replace existing aging infrastructure (depreciation). Rates across the four utilities are heavily influenced by many factors such as:
* Community level of service expectations
* Differing and increasing regulatory environments
* Age of infrastructure
* Increasing cost of infrastructure upgrades
* Source of water supply
* Level of rainfall
* Climate impacts and goals
* Growth and development pressures
* Community economic development goals
* Customer base and how proactively system improvements and deferred maintenance are being addressed.
The influence of these varies by community, geographic and utility specific factors, and complicates rate affordability comparisons across local, regional, and national scales.
Affordability can be viewed as the ability of a customer to pay their utility bill in full and on time without impacting their ability to pay for other essential expenses. Financial analyses are conducted during the development of the various utility master plans including rate affordability assessments. These traditionally include looking at the utility bill as a percentage of the community median income. Newer methods were also included in the most recent Water System Plan including the income percentage of a low-income household (20% percentile of the median income) and number of hours worked to cover a monthly bill at minimum...
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