CC MEETING: November 19, 2024
DATE: November 14, 2024
TO: Erin Rinehart, City Manager
FROM: Melissa Everett, Finance Director
Diana Vaughn, Chief Financial Officer
Chrystal Davis, Assistant City Manager
Title
Consider An Ordinance Amending Chapter 31, The Comprehensive Fee Schedule
Body
BACKGROUND:
The City’s Utility Fund has the financial goal of generating sufficient revenue to pay all expenses (including capital, fleet, and debt) and to maintain cash reserve balances equal or greater than the City’s adopted financial policy of 90 days of expenditures. Due to the seasonality of significant water sales occurring in the final (July-September) quarter of the fiscal year, the City waits until early November to determine the rate increase required to run the program for the next fiscal year.
Staff provided an overview to the Audit, Finance, and Governance Committee on November 12, 2024. This Fee Ordinance is proposed with increases to water and wastewater rates which will generate 7.25% in additional revenue for the Utility Operating Fund. This additional revenue will provide funding for water and sewer capital projects necessary to maintain the condition of the utility infrastructure and additional operating costs increases passed to the City by DWU and TRA. The Audit, Finance and Governance Committee was provided with the opportunity to discuss any potential increases to utility rates prior to City Council deliberations. The Committee supports the proposed recommendation understanding that it would be brought to Council on November 19, 2024, for adoption.
Additionally, Parks & Recreation staff is recommending an update to section (G) Parks and Recreation of the pool rental fees to include the name of the facilities.
Finally, the City’s Emergency Management Division has made an effort to purchase barricades with grant funding over the last few years. These barricades are used for special events across the city and is now part of the evaluation related to special event permitting. Deployment of the barricades ensures the safety of its participants at events and is conducted by the Public Works Department. The Emergency Management Division is proposing to set a rate related to the deployment and removal of the barricades and is included in Section (J) Public Works Department of Chapter 31.
FINANCIAL IMPLICATIONS:
The increases in water and wastewater rates ensure proper financial planning for upcoming operating and capital expenditures. The total rate change will generate approximately 7.25%in additional revenue for the Utility Fund.
STAFF RECOMMENDATION/ACTION DESIRED:
Staff recommends Council approve the Ordinance amending Chapter 31, the Comprehensive Fee Schedule, relating to utility rates, an update to Parks and Recreation’s facility names, and the addition of a fee related to the deployment and removal of barricades.