
The City desires rates and fees that fully fund operations, maintenance, and present and future capital costs for plant expansions, as well as distribution systems and collection system capacity, infrastructure rehabilitation, enhancements, and expansion. The City is facing several challenges to continuing its high-quality operations. Utility revenues are not keeping pace with increasing operational and capital costs. Customer account growth has slowed to less than a 0.5 percent annual rate. A prolonged drought has necessitated the need to procure additional water supply through drilling of new wells. Utility infrastructure is aging and must be replaced soon. In fact, during the course of this financial study, eight water mains ruptured, resulting in large losses of water and other costs. Therefore, the purpose of the rate and fee financial study is to provide recommendations on changes to the current utility rate and fee structures to meet these challenges.
The City Council will be considering these utility rate changes in August and the proposed rates are scheduled to go into effect in January of 2011. The Mayor and Council wish to express their appreciation for all who had input in the presentations and especially the Water Commission, which spent months and many hours refining the rate study. No one likes to raise rates for city services and the City Council raises rates only when dependability is threatened and the need is justified. FBN