SUBJECT:
Title
An Ordinance of the Town Council of the Town of Erie Updating the Town's Water Service Charges and Storm Drainage Fees
Body
DEPARTMENT: Utilities Department
Finance Department
Department
PRESENTER(S): Todd Fessenden, Utilities Director
Sara Hancock, Finance Director
First Name Last Name, Title
TIME ESTIMATE: 15 minutes
only required for non-consent items
POLICY ISSUES:
Based on detailed study, the proposed rates are needed to provide sufficient revenue to operate and maintain the Town's existing water, wastewater, and stormwater systems.
STAFF RECOMMENDATION:
Recommendation
Approve the updated water rates.
End
SUMMARY AND BACKGROUND OF SUBJECT MATTER:
The Town of Erie Financial Policies require the Town to have a formal rate study performed on the 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. Staff conducted the last formal rate study for these funds in 2020. In 2020, the Council reviewed and adopted the results of those rate studies, setting rates and fees for the period 2020-2024.
Staff began the current rate study process in late 2023. The Town contracted with Raftelis Financial Consultants (Raftelis) in August 2023 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.
Summary of Rate Study
The goals of the rate study are to determine the revenue needed to cover annual operations and maintenance costs and capital improvement projects, meet debt service requirements, provide for sufficient operating reserves, and maintain the utility's self-sufficiency over a 5-year period. Moving forward for as long as construction costs continue to escalate rapidly, staff recommend evaluating fees every two years, with a more in-d...
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