Laserfiche WebLink
13 <br /> THE CITY OF <br /> """` '" �' "` CITY COUNCIL AGENDA REPORT <br /> PLEASANTON <br /> September 19, 2023 <br /> Public Works <br /> TITLE: HOLD A PUBLIC HEARING ON PROPOSED WATER AND SEWER RATE <br /> INCREASES AND ADOPT RESOLUTIONS TO AMEND THE MASTER FEE <br /> SCHEDULE FOR WATER AND SEWER RATES EFFECTIVE NOVEMBER 1, <br /> 2023 AND JANUARY 1, 2024 FOR SEWER AND WATER RATES, <br /> RESPECTIVELY <br /> SUMMARY <br /> The City's water and sewer utilities are operated as enterprise funds for the purpose of <br /> delivering potable water and sewer collections. An enterprise fund is a self-supporting <br /> government fund that provides services to the public for a fee to be paid by the users of <br /> the system; as such, enterprise funds are held and managed separately from the City's <br /> operations that are funded by the General Fund. Enterprise funds do not generate a <br /> profit; instead, the revenues remain in the fund to be applied to current and future <br /> needs. To maintain a financially sustainable enterprise fund, the periodic review and <br /> adjustment of water and sewer rates is a City priority and is consistent with the City's <br /> water and sewer policies. <br /> On July 18, 2023, the City Council set a public hearing date of September 19, 2023, to <br /> consider proposed water and sewer rate increases. Water rate revenues are proposed <br /> to have an average increase of 30 percent effective November 1, 2023, then an <br /> additional 20 percent increase effective January 1 , 2025, and then an additional 12 <br /> percent for the third year effective January 1 , 2026. The bimonthly (every two <br /> months/billing cycle) increase the average single-family residence using 10 CcF per <br /> month (20 CcF per two-month billing cycle) can expect to see is $33 in the first year, <br /> $25 in the second year, and $17 in the third year of the proposed rate increases. <br /> Proposed rates for water customers in different usage tiers are provided later in the <br /> report. Also proposed are sewer rate increases based on inflation as defined by the <br /> Consumer Price Index (CPI), effective November 1 , 2023. <br /> The proposed water rate increase is intended to accomplish several critical outcomes: <br /> • Immediate/near-term essential system upgrades, including pipe expansion <br /> projects and a temporary booster pump <br /> • Funding to plan for the water supply alternative project design work <br /> • Funding to pay for the additional purchase of water from Zone 7 over the next 2-3 <br /> years <br /> • Augmented staffing with three positions to manage, plan and implement solutions <br /> for the water distribution system <br /> Page 1 of 19 <br />