The goals and objectives for the 2020 Rate Study were to 1) achieve fiscal policy compliance, including revenue sufficiency; 2) provide an equitable cost of service structure, and 3) further promote water conservation within the rate structure.
The City’s consultant, NewGen Strategies, provided an overview of the key drivers (Growth, Capital Needs, & Operations/Maintenance) impacting the rate options to Council and the Water Board in August. The consultants also provided a follow up review of rate options in September and October.
Below is a summary of the water rate changes:
- Increases to the base rate
- Maintain 75% recovery of fixed costs in base charges
- Plan for debt impact of major capital/system improvements
- Further promotion of water conservation through modified rates/tiers
- 1st tier reduction: 10,000 kgals to 7,000 kgals
- Reduction of the # of tiers
These rates will become effective in January 2021. Water rates were last adjusted in January 2018.