SUBJECT: GENERAL BUSINESS
Title
Utility Rate Study Follow-Up
Body
DEPARTMENT: Public Works
PRESENTER: Todd Fessenden, Director of Public Works
Stefanie Furman, Acting Finance Director
Todd Cristiano, Raftelis Financial Consultants
TIME ESTIMATE: 60 minutes
only required for non-consent items
FISCAL SUMMARY: N/A
Cost as Recommended:
Balance Available:
Budget Line Item Number:
New Appropriation Required:
STAFF RECOMMENDATION:
Recommendation
Study Session presentation and discussion
End
SUMMARY AND BACKGROUND OF SUBJECT MATTER:
The Town of Erie Financial Policies require the Town to have a formal rate study performed on utility fund (water, wastewater and storm drainage) charges at least every five years. Bond indentures also require the Town to ensure that its fees are adequate to ensure compliance with all bond covenants. The last formal rate study for these funds was conducted in 2014. In 2014, the Board reviewed and adopted the results of those rate studies, setting rates and fees for the period 2015-2019.
The Town contracted Raftelis Financial Consultants (“Raftelis”) in August 2019 to perform the formal rate study for water, wastewater and storm drainage monthly customer charges, water and wastewater tap fees, raw water dedication fees and storm drainage impact fees.
The results of this Utility Rate Study were presented to the Board in September 2020. The attached memo outlines the Utility Rate Study results and a summary of the follow-up items requested in the September 2020 session, including a comparison of Erie’s rates to those of neighboring communities, the plan to phase-in the increase in irrigation rates, and the completion of a Marketing Plan. Tonight’s presentation and discussion will be led by Todd Cristiano from Raftelis, who will also present rate comparisons with several regional municipalities.
Board Priority(s) Addressed:
ü Safe and Healthy Community
ü Effective Governance
ü Fiscally Responsible
ATTACHMENTS:
1. Staff Memo
2. Marketing Plan