HomeMy Public PortalAboutAB 22-202 Water Rate Study-Revised Rate model
McCALL CITY COUNCIL 216 East Park Street
AGENDA BILL McCall, Idaho 83638
Number AB 22-202
Meeting Date July 28, 2022
AGENDA ITEM INFORMATION
SUBJECT:
2022 Water Rate Study: Revised Rate Structure Recommendation and Direction to Staff
Department Approvals
Initials
Originator
or
Supporter
Mayor / Council
City Manager
Clerk
Treasurer
Community Development
Police Department
Public Works
/
Originator
Golf Course
COST IMPACT:
N/A
Parks and Recreation
FUNDING SOURCE:
Water Department
Airport
Library
TIMELINE:
ASAP
Information Systems
Grant Coordinator
SUMMARY STATEMENT:
On July 7, 2022, Bowen Collins and Associates (BCA), with support from Public Works and Water staff presented their findings from the 2022 water rate study update. The study updated
the City’s rate model using FY18-22 actual revenue and expenses, and incorporated FY23 budgetary values and 10-20 year future capital project cost data. The initial recommendation
by BCA was to take a one time 5% increase for FY23 followed by annual 3% increases for FY24 and beyond to maintain sufficient revenues to fund expenses and account for inflation. No
changes to the City’s block rate structure were recommended, but the project team sought Council input. A copy of their initial presentation is included for reference.
City Council responded by requesting that the project team further evaluate ways to emphasize water conservation including:
Adding a 4th block for higher water users (well over 25,000 gallons per month)
Increasing the percent of total annual revenues from usage rates and decreasing the percent of total annual revenues from the base rate.
BCA and City staff are updating the rate model to incorporate these Council requests and will present their revised rate structure recommendation (revised base rate, new usage rate blocks,
and impact of adding of a 4th block). They will also advise on how this revised rate structure recommendation will impact forthcoming bonding values to address near term capital improvements.
RECOMMENDED ACTION:
Provide direction to staff on preparing final resolution for FY23 and beyond rate increase adoption.
RECORD OF COUNCIL ACTION
MEETING DATE
ACTION
July 7, 2022
AB-22-181: 2022 Water Rate Study Presentation and Direction to Staff