TO:
Honorable Mayor and Members of the City Council
THROUGH:
Bruce Moe, City Manager
FROM:
Erick Lee, Public Works Director
Katherine Doherty, City Engineer
Tim Birthisel, Senior Civil Engineer
Anna Luke-Jones, Senior Management Analyst
SUBJECT:Title
Conduct Public Hearing and Consideration of a Resolution Adopting New Water Rates and Charges Effective November 1, 2022, Through November 1, 2026, and All Protests to the Proposed Water Rates (Public Works Director Lee).
(Estimated Time: 1 Hr.)
A) CONDUCT PUBLIC HEARING
B) ADOPT RESOLUTION NO. 22-0079
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Recommended Action
RECOMMENDATION:
Staff recommends that the City Council:
A. Conduct a public hearing to consider adopting new water rates and charges ("rates"), commencing November 1, 2022;
B. Consider the Proposition 218 written protests submitted to the City Clerk (and not withdrawn) by the close of the public hearing to determine whether a majority protest exists; and
C. In the absence of a majority protest, consider adopting the attached Resolution No. 22-0079 adopting the annual proposed rate increases effective November 1, 2022 through November 1, 2026.
FISCAL IMPLICATIONS:
The City has adopted Financial Policies that provide guidance on the setting of user fees for each enterprise fund at a rate that fully covers direct and indirect costs of providing the service, as well as planned capital improvements. As an enterprise fund, the City's Water Fund should therefore operate as a self-sustaining fund and provide full cost recovery for the water services provided to residential and commercial customers. However, the current rates have remained unchanged since 2014, and therefore, new water rates are being proposed to align the rates with current operational and capital costs necessary to maintain the City's water system and provide water services. If adopted, the new water rates will include a rate structure transition from tiered rates t...
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