AGENDA CAPTION:
Title
Receive a Staff presentation and hold a Public Hearing to receive comments for or against Ordinance 2020-67, increasing rates established for Water, Wholesale Water, Reclaimed Water, Wastewater Treatment, and Sewer Surcharges; and including procedural provisions; and providing an effective date; consider approval of Ordinance 2020-67, on the first of two readings.
Body
Meeting date: September 1, 2020
Department: Melissa Neel, Assistant Director of Finance
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Background Information:
The City of San Marcos conducts an annual 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 3% adjustment to wastewater rates for fiscal year 2021. These adjustments will increase the average residential bill by $3.75 per month or $45.00 annually. In addition to the adjustment in fiscal year 2021, the CUAB recommends continuing the practice of implementing small increases annually over the next 2 to 4 years in order to offset a potentially much larger adjustment of 25% to 35% as the debt for the Alliance Regional Water Authority (ARWA) project is issued over several years. The ARWA project will supply San Marcos with an additional 50-year water supply once it is fully implemented.
During a work session council approved the restructure and fee adjustment to Stormwater in FY2021 at 6.5%. The average monthly bill will increase by $0.78 or $9.36 annually.
Resource Recovery rate adjustment has been proposed at 3%. This increase represents an average monthly increase of $0.78 or $9.36 annually.
Total citizen impact is $5.31 monthly, or $63.72 annually (water, wastewater, stormwater, and resource recovery).
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Recommendation:
Staff recommendation approval of rate increase ordinance.