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HomeMy WebLinkAbout2012 09 10 Informational 101 Utility Rate Adjustment COMMISSION AGENDA     Informational X Consent ITEM101 Public Hearings Regular       September 10, 2012KLSB Regular MeetingCity ManagerDepartment         REQUEST: Finance and Administrative Services and Utilities Departments are informing the Commission of a Water, Reclaimed Water and Wastewater Consumer Price Index adjustment.   SYNOPSIS: Per Ordinance 2009-13, beginning October 2012 Water, Reclaimed and Wastewater rates are to be adjusted annually using the national pricing index “CPI”. The Utility CPI adjustment effective October 1, 2012 has been calculated to be 2.3%.      CONSIDERATIONS: The City Commission authorized a Utility Rate Study in February 2008 to review the water, wastewater, and reclaimed rates. The focus of the study was to define the rates needed to operate the Utility system and fund the additional capital needed to construct the reclaimed augmentation plant and distribution system.   thth The recommendations of the study were reviewed at meetings on May 4 and August 10, 2009. Ordinance 2009-13 implements the recommendations discussed at those meetings. This agenda item is focused on Section 6 of the ordinance and reads as follows:               (6)  Price indexing.  Beginning annually on October 1, 2012 and continuing annually thereafter every October 1, the base facility, volume and service availability charges for water, sewer and reclaimed water shall be adjusted using the CPI for the previous 12-month period.”   Informational 101 PAGE 1 OF 3 - September 10, 2012 The pending increase in rates are calculated using the broadest measure of CPI available, percent change in CPI for All Urban Consumers (CPI-U): U.S. city average. The time period used is, unadjusted 12-months ended Apr. 2012.  Due to the timing of the budget cycle, April's CPI would allow sufficient time to determine the increase in rates and capture the revenue impact in the new fiscal year planning process. Using the criteria above, the CPI increase from May 2011 thru April 2012 is 2.3%. The rate adjustment will be applied to; all base facility fees, potable water, reclaimed and wastewater charges.        The average bill in 2011 for combined Water and Wastewater for a resident in Winter Springs has been calculated to be $64.95 (9,000 gallons per month). A CPI adjustment of 2.3% would increase the same customer’s monthly bill to $66.44; an increase of $1.49 per month.   The chart below demonstrates how the City of Winter Springs Water Utility rates compare to surrounding municipalities. base facility and consumption rate for potable water, sanitary sewer, and reclaimed water            FISCAL IMPACT: A 2.3% CPI rate adjustment will increase the average Winter Springs customer's bill by approximately $1.49 per month. The aggregate increase in revenue to the utility will be approximately $160,000. COMMUNICATION EFFORTS: Informational 101 PAGE 2 OF 3 - September 10, 2012 This Agenda Item has been electronically forwarded to the Mayor and City Commission, City Manager, City Attorney/Staff, and is available on the City’s Website, LaserFiche, and the City’s Server. Additionally, portions of this Agenda Item are typed verbatim on the respective Meeting Agenda which has also been electronically forwarded to the individuals noted above, and which is also available on the City’s Website, LaserFiche, and the City’s Server; has been sent to applicable City Staff, Media/Press Representatives who have requested Agendas/Agenda Item information, Homeowner’s Associations/Representatives on file with the City, and all individuals who have requested such information. This information has also been posted outside City Hall, posted inside City Hall with additional copies available for the General Public, and posted at five (5) different locations around the City. Furthermore, this information is also available to any individual requestors. City Staff is always willing to discuss this Agenda Item or any Agenda Item with any interested individuals.   RECOMMENDATION: Staff requests the City Commission receive and review the information provided in this Agenda Item. ATTACHMENTS: [INSERT TEXT HERE] Informational 101 PAGE 3 OF 3 - September 10, 2012