AGENDA CAPTION:
Title
Consider approval of Ordinance 2016-36, on the second of two readings, increasing rates established for Water, Wholesale Water, Reclaimed Water, Wastewater Treatment, and Sewer Surcharges; and including procedural provisions.
Body
Meeting date: September 6, 2016 - 1st Public Hearing
September 20, 2016 - 2nd Hearing
Department: Finance Department, Heather Hurlbert, Director of Finance
Funds Required: N/A
Account Number: N/A
Funds Available: N/A
Account Name: N/A
CITY COUNCIL GOAL: Goal #7 Maintain Fiscal Responsibility
BACKGROUND:
The City of San Marcos has recently conducted a water/wastewater rate study which was reviewed by the Citizen’s Utility Advisory Board (CUAB) and staff. The CUAB recommends a 5% adjustment to water rates and a 2% adjustment to wastewater rates for fiscal year 2017. This adjustment will increase the average residential bill by $2.75 per month. In addition to the adjustment in fiscal year 2017, the CUAB recommends that small increases be implemented annually over the next 3 to 5 years in order to offset a potentially much larger adjustment of 25% to 35% once the Hays Caldwell Public Utility Agency project starts in fiscal year 2019. The HCPUA project will supply San Marcos with an additional 50 year water supply once it is fully implemented.