SUBJECT:
Title
An Ordinance of the Town Council of the Town of Erie Adopting New Water Tap Fees, Fees in Lieu of Water Dedication and Wastewater Tap 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 fee changes are needed to provide sufficient revenue to operate and maintain the Town's existing water, wastewater, and stormwater systems and increase the tap and water dedication fees to generate sufficient revenue to expand the system to serve new development.
STAFF RECOMMENDATION:
Recommendation
Approve the updated tap and dedication fees.
End
SUMMARY AND BACKGROUND OF SUBJECT MATTER:
This ordinance was originally presented to Council for adoption on Sept. 24, following an Aug. 8 Study Session on the results of the Utility Fee and Rate Study. Council asked staff to clarify the fees related to small homes, and staff made those clarifications to the ordinance. After that, staff presented the ordinance to Council for consideration on Oct. 22. After discussion, Council tabled the Ordinance pending a community roundtable with Town staff to explore recommendations for an alternative.
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. It should be noted that any changes to the recommended rate study and the impact to long-term financial strategy are dis...
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