HomeMy WebLinkAboutA001 - Council Action Form dated April 10, 2018 ITEM #--- J
DATE: 04-10-18
COUNCIL ACTION FORM
SUBJECT: WATER AND SEWER UTILITY RATE ADJUSTMENTS
BACKGROUND:
On March 6, Council gave staff direction to develop an ordinance increasing water rates
by 3.5% and sewer rates by 3% for charges billed on or after July 1, 2018. The attached
ordinance accomplishes that direction.
The third reading and adoption of the ordinance will be completed at.the May 8, 2018
Council meeting. This will allow the new rates to be in place before customers start
using water and sewer at the new, higher rates.
ALTERNATIVES:
1. Approve the attached ordinance modifying Chapter 28 of the Municipal Code,
increasing water rates by 3.5% and sewer rates by 3% for usage to be billed on
or after July 1, 2018.
2. Approve on first reading an ordinance adjusting .water and sewer rates by some
other amount, and/or make the changes effective on some other date.
3. Do not approve any changes to the water and sewer rate structure. Staff would
then require direction regarding future operating and capital expenditures.
CITY MANAGER'S RECOMMENDED ACTION:
The Municipal Code requires the Director of Water and Pollution Control to review and
recommend to the City Council revisions to the water and sewer rates and charges on
an interval appropriate to provide for the funding needs of the utility. A report of that
review was presented to the City Council on March 6, along with a recommendation that
water rates be increased by 3.5% and sewer rates be increased by 3%, effective for
bills on or after July 1, 2018. It should be noted that, even after making these rate
increases, water and sewer rates for the City of Ames will still be well below the
state-wide median for municipal utilities.
Therefore, it is the recommendation of the City Manager that the City Council adopt
Alternative #1 as described above.