The City contracted NewGen Strategies and Solutions in the Summer to conduct a cost of service water rate study. The purpose of the cost-of-service analysis is to equitably distribute the revenue requirements between the various customer classes of service served by the utility. The cost-of-service analysis determines what cost differences, if any, exist between serving the various customer classes.
Staff will review the Fiscal and Budgetary Policy as it applies to the Water Utility and rates, as well as briefly review the 2018 rate study recommendations and implementations.
NewGen will be presenting their results from the study and seek policy feedback to guide the creation of proposed rates for Council and the Water Utility Advisory Board to review. The last study was in 2018, and per our Fiscal and Budgetary Policy we are required to conduct a rate study at least every three years.