SUBJECT/RECOMMENDATION:
Title
Increase domestic water, lawn water, wastewater collection, and reclaimed water rates annually by 8.00% effective October 1, 2025 - October 1, 2029 and pass Ordinance 9841-25 on first reading.
Body
SUMMARY:
This utility rate increase is needed to provide adequate funding to operate our water and wastewater systems and maintain compliance with debt service coverage requirements. Additionally, these rate increases will support continuation of the capital improvement projects needed to sustain the City's utility infrastructure.
Public Utilities regularly evaluates the sufficiency of the revenues provided by the City’s water, sewer, and reclaimed water rates to meet both the current and future requirements of the Utility. In June of 2025, Stantec Consulting Services Inc. completed a Water and Sewer Revenue Sufficiency Analysis to cover five years of operations. The Consultant is recommending a rate increase to provide adequate revenue to fund utility cost requirements while recognizing the effects of demand growth, increased purchased water costs, increased cost of operations, and renewal and replacement requirements.
The study covers the period FY2025 through FY2029 and recommends 8.00% increase annually for the entire period to be effective 10/1/25, 10/1/26, 10/1/27, 10/1/28 and 10/1/29. The increases are applicable to domestic water, lawn water, wastewater collection, and reclaimed water.
STRATEGIC PRIORITY:
In furtherance of the Council’s Strategic Plan to achieve High Performing Government - 1.2 properly maintaining City infrastructure.
