SUBJECT:
Title
Utility Fee Study Session
Body
DEPARTMENT: Finance Department
Utilities Department
Department
PRESENTER(S): Sara Hancock, Finance Director
Todd Fessenden, Utilities Director
Todd Cristiano, Raftelis
First Name Last Name, Title
TIME ESTIMATE: 120 minutes
only required for non-consent items
POLICY ISSUES:
Historically, the Town performed a utility rate and fee study every five years. The five-year cadence is considered a best practice. However, with significant inflation over the last several years, along with soaring costs in capital improvement projects, the Town is shifting to more frequent rate and fee studies. The last study was completed in late 2020, and new fees and rates were implemented in November of the same year.
STAFF RECOMMENDATION:
Recommendation
This presentation is for informational purposes and to gather input from Town Council. No specific recommendations are being made by staff at this time.
End
SUMMARY AND BACKGROUND OF SUBJECT MATTER:
Finance and Utilities department staff reached out to Raftelis to perform a utility rate and fee study in late 2023. This process is ahead of the typical five-year cycle due to inflation and noting that many nearby local utilities were experiencing significant increases in rates and fees. The study kicked off in earnest in December 2023 and staff have been meeting weekly since that time to review data. Due to the complexity and level of detail, staff are presenting the results in two separate council sessions this year.
In this first meeting, staff will focus on the fee component of the study which specifically relates to tap fees and water dedication fees. These are development and growth related, but also influence the rate (residential utility bill) component, which staff will cover at a subsequent meeting currently planned for Sept. 17.
COUNCIL PRIORITY(S) ADDRESSED:
? Prosperous Economy
? Safe and Healthy Community
? Effective Governance
? Environmentally ...
Click here for full text