Meeting Summary
The city council held a study session to discuss proposed utility rate changes for electric, water, wastewater, and waste management services. Staff presented the impact of these recommendations on various customer types, emphasizing a shift towards cost-of-service based rates. While electric rates are not proposed to increase overall, water and wastewater rates would see a 3% increase, and waste management rates would increase by 11.5% in year two and 4% in year four, partly to fund a recycling staging facility.
Financial Matters
Electric Rate Recommendations
Increase customer and demand charges, decrease energy use charges, and reduce transfer to the general fund to offset inflation. Residential customers would see a $1.36 decrease annually, small commercial a $9.11 decrease, large commercial a $4.29 increase, and industrial a $1,985.69 increase.
Water/Wastewater Rate Recommendations
A 3% rate increase with reduced capital expenditures. This would reduce water capital from $13.9 million to $12.6 million and wastewater capital from $8.4 million to $7.9 million. Residential customers would see a $1.48 increase, small commercial a $7.23 increase, large commercial a $1.19 increase, and industrial a $10.75 increase.
Waste Management Rate Recommendations
Scenario five includes $1.6 million for a recycling staging facility. Residential and commercial rates would increase by 11.5% in year two and 4% in year four. Street sweeping rates would increase by 70 cents. Residential customers would see a $0.72 average increase, small commercial a $4.87 increase, and large commercial a $7.24 increase.
Combined Impact of Rate Changes (Year 5)
Residential customers would see a $4.19 increase, small commercial a $14.89 increase, large commercial a $113.13 increase, and industrial a $9,618.91 increase on their overall monthly bill.
Reduction in Electric Fund Transfer to General Fund
Over five years, the proposed electric rate changes would result in a $1.5 million reduction in the transfer from the electric utility to the general fund.
Coming Up
Tabled
- Non-rate revenue fees and charges (e.g., return check fees, late penalties)
- Distributed generation rates
- OSU sewer flow data study
- Water and wastewater capital expenditure needs (potential 8% and 6% increases needed to meet full capital needs)
- Rural water systems study session
Deadlines
- Waste management rate resolution for recycling staging facility: December 7th meeting for January 1st implementation.
Watch For
- Supplemental water rate study to determine cost of service for rural system and wholesale customers.
- Stormwater master plan recommendations for fee changes.
Announcements
- Inclement weather expected, urging caution.
- Staff recognized for their work on the utility rate study.
Agenda Summary
Utility Rates and Charges Study Session
Presentation and discussion of proposed rate changes for electric, water, wastewater, and waste management services, including their impact on various customer types and related issues for future consideration.