AGENDA CAPTION:
Title
Receive a Staff presentation and hold a Public Hearing to receive comments for or against Ordinance 2023-64, amending rates for the Water, Wholesale Water, Reclaimed Water, and Wastewater Treatment Utility Services in accordance with Section 86 of the San Marcos City Code of Ordinances; including procedural provisions; and declaring an effective date; and consider approval of Ordinance 2023-64, on the first of two readings.
Body
Meeting date: September 5, 2023
Department: Utilities and Finance
Amount & Source of Funding
Funds Required: N/A
Account Number: N/A
Funds Available: N/A
Account Name: N/A
Fiscal Note:
Prior Council Action: N/A
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Background Information:
The City conducts an annual water and wastewater rate study and the results are reviewed by staff and the Citizens Utility Advisory Board (CUAB). The CUAB held a meeting on July 27, 2023, and received a presentation on the estimated revenues and major cost drivers of the water and wastewater system. During the meeting, the CUAB voted to recommend a 5% adjustment to water and wastewater rates for fiscal year 2024. The recommended increase will cost an estimated $5 per month to the average residential user.
There are several cost drivers that necessitate the rate adjustment, including the Alliance Regional Water Authority coming online and the City being responsible for its share of operating costs that are estimated to be $1.4 million, contractual cost increases for operating the surface water treatment plant, wastewater treatment plant, and the Canyon Regional Water Authority totaling $578 thousand, replacing vehicles and equipment that reached end of life will cost $1.2 million, and water and wastewater infrastructure improvements of $2.4 million.
Council Committee, Board/Commission Action:
On July 27, 2023, The Citizen Utility Advisory Board held a meeting and voted to recommend a 5% rate adjustment for water and wastewater.
Alternatives:
N/A
Recommendation:
City Council approve the ordinance amending rates as recommended by the Citizen Utility Advisory Board.