Item Coversheet

City of Georgetown, Texas
City Council Workshop
September 22, 2020

SUBJECT:

Presentation, discussion and direction regarding water rates and the water cost of service study -- Glenn Dishong, Water Utilities Director and Matthew Garrett, NewGen Strategies and Solutions

ITEM SUMMARY:

The City contracted NewGen Strategies and Solutions to conduct a cost of service water rate study. The fiscal and budgetary policy requires a 3 year review of rates.  The last water rate study was conducted in 2018.  The purpose of the cost-of-service analysis is to ensure

  1. Fiscal Policy Compliance
  2. Revenue Sufficiency
  3. Conservation
  4. Equitable Cost of Service

 

Equitable cost of service refers to the distribution of the revenue requirements between the various customer classes of service served by the utility.  The first phase of the 2020 study was presented to the Water Utility Board on August 13 and then at the Council workshop on August 25.  The City staff and its rate consultant, NewGen, used the feedback from both the council and the board to develop proposed rate adjustments.   These results were presented to the Water Utility Board on September 10.  Their feedback was incorporated in this updated presentation.

 

The consultant will be presenting rate options for the Council’s feedback to prepare ordinance changes for future consideration.  The current schedule is to adopt ordinances in October, with rate changes effective January 1, 2021.

FINANCIAL IMPACT:
NA
SUBMITTED BY:
Mayra Cantu, Management Analyst on behalf of Glenn Dishong
ATTACHMENTS:
Description
Presentation