SUBJECT:
Title
Utility Rate Study Session
Body
DEPARTMENT: Finance
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 has performed a utility rate and fee study every five years. This is in keeping with best practices. However, with significant inflation over the last several years, along with soaring costs in capital improvement projects, it was necessary to the review and update the fees now and perhaps shift to a more frequent review in the future. The Town completed the last study in late 2020 and the Council (then Board) implemented the new fees and rates in November of the same year.
STAFF RECOMMENDATION:
Recommendation
This is a presentation for informational purposes to gather input from Town Council.
End
SUMMARY AND BACKGROUND OF SUBJECT MATTER:
Finance and Utilities staff engaged Raftelis to perform a utility rate and fee study in late 2023, ahead of the typical five-year cycle due to inflation and noting that many local utilities were experiencing significant increases in rates and fees. The study kicked off in earnest in December 2023 and we have been meeting weekly and reviewing data since. Due to the complexity and level of detail, we are bringing the results to Council in two separate sessions this year. During the first Study Session on this topic on August 13th, we focused 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 from an offsetting perspective.
During the September 17th Study Session we will discuss the rate component of the study which, again, affects utility (water, wastewater and storm drainage) monthly billing. This side of the study looks more at operational and non-growth related costs related to operating and maintaining these systems.
COUNCIL PRIORITY(S) ADDRESSED:
ü Prosperous Economy
ü Safe and Healthy Community
ü Effective Governance
ü Environmentally Sustainable
ü Fiscally Responsible
ATTACHMENT(S):
1. Ratelis Powerpoint - Water, Wastewater and Storm Drainage Rates