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HomeMy WebLinkAboutA001 - Council Action Form dated April 26, 2005 ITEM # DATE April 26, 2005 COUNCIL ACTION FORM SUBJECT: ADOPTION OF ORDINANCE FOR SEWER RATE INCREASE BEGINNING JULY 1, 2005 BACKGROUND: During budget preparations earlier this year, City Council adopted a 10 percent increase ($340,000 annually) in sewer revenues effective FY 2005-06. At a March 29, 2005 water and sewer rate workshop, staff provided background information on the rate-setting process and outlined alternatives for City Council to consider. On April 12, 2005, Council approved the rate proposal to implement a 10 percent across-the-board increase to the minimum bill and unit rate and directed staff to prepare an ordinance revision. The proposed ordinance is attached for council consideration and passage on its first reading. This ordinance revision will increase the monthly minimum bill from $5.50/month to $6.05/month. The unit rate for water used will be increased from $1.41/100 cubic feet to $1.55/100 cubic feet. ALTERNATIVES: 1. Approve the proposed rate ordinance on its first reading. 2. Do not adopt a rate increase at this time. MANAGER'S RECOMMENDED ACTION: It is the recommendation of the City Manager that the City Council adopt Alternative No. 1. COUNCIL ACTION: