On May 8, 2018, the City Council approved a water rate study with a new rate structure and a financial plan to cover ongoing water costs, debt service funding, operating and maintenance funding, and capital replacement and expansion costs for the next five years. These new rates were established in compliance with the results of the ballot protest proceedings. The estimated annual increase is 8%; and was based on actual costs and charges for water, electricity, projects, and operation and maintenance of the water system. Under this approval, water rates are scheduled to increase every July 1 from 2018 to 2022.
The COVID-19 pandemic has significantly impacted the economy at the national, state, and local levels. While the full extent of the economic impact is not yet known, this crisis has created uncertainty within our community. In an effort to mitigate the financial impact to the City’s residential and commercial water customers, staff recommends the City Council consider the following FY 2020/21 water rate increase options and provide direction to staff:
Option 1: 4% increase July 1, 2020 and an additional 4% increase January 1, 2021
Option 2: Six month deferral with an 8% increase January 1, 2021.
Option 3: No deferral. 8% increase July 1, 2020.