HomeMy WebLinkAboutA001 - Council Action Form dated April 12, 2011 ITEM # 54
DATE: 04-12-11
COUNCIL ACTION FORM
SUBJECT: WATER AND SEWER RATE ADJUSTMENTS
BACKGROUND:
At a work session on March 15, staff presented Council with an overview of the water
and sewer funds. At the end of the presentation, Council directed staff to prepare a rate
increase ordinance that would increase water rates by eight percent and sewer rates by
ten percent. These rate increases are needed to fund major capital improvements for
both utilities.
Both of these rate increases are effective for utility bills mailed on and after July 1, 2011.
The attached ordinance accomplishes the Council's direction and is ready for Council
approval.
ALTERNATIVES:
1. Approve the attached rate ordinance on first reading, thereby increasing water rates
by eight percent and sewer rates by ten percent effective for utility bills mailed on or
after July 1, 2011.
2. Direct staff to make modifications to the attached rate ordinance.
3. Do not take any action to adjust water and sewer rates at this time.
MANAGER'S RECOMMENDED ACTION:
The proposed rate increases are necessary to fund the on-going operations and
maintenance budget plus the scheduled capital improvement projects. While Council is
taking no action at this time on future year rate increases, it is important to note that
additional increases in future years will also be necessary to fully fund the capital
improvement plans for these two utilities.
Therefore, it is the recommendation of the City Manager that the City Council adopt
Alternative No. 1, thereby approving the attached rate ordinance, increasing water rates
by eight percent and sewer rates by ten percent effective for utility bills mailed on or
after July 1, 2011.