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
- Fiscal Policy Compliance
- Revenue Sufficiency
- Conservation
- 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.