TO: Honorable Mayor and Members of the City Council
THRU: Tom Kisela, City Manager
FROM: Christopher Cash, Public Works Director
1. SUBJECT
title
Water rate pass-through notice for Calendar Year 2025.
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2. SUMMARY
City staff calculated the pass-through charge for Calendar Year 2025 using the formula approved by the City Council in March 2023. The calculation resulted in an additional $0.14 per billing unit adjustment from last year's rate to offset cost increases in water purchases necessary to supply water to the city.
3. RECOMMENDED ACTION
recommendation
Receive and file.
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4. FISCAL IMPACT
Additional pass-through revenues of $1,428,900 will offset corresponding expenditures for import water and groundwater costs.
5. STRATEGIC PLAN GOALS
Goal 1: Provide for a safe community
b: Provide and maintain infrastructure necessary to ensure the safety of the public.
Goal 2: Be a fiscally healthy community
a: Expend fiscal resources responsibly.
6. DISCUSSION AND BACKGROUND
On March 14, 2023, City Council approved Resolution No. 11437 amending and revising the Master Schedule of Fees and Charges for water rates. This Resolution approved a five-year rate structure and a pass-through formula. The pass-through charge is calculated every year and considers only increases in wholesale water costs that the City will incur. Any such adjustments will only be made to the extent such increases are not already reflected in the schedule of charges. A notice of at least 30 days will be mailed to customers before any adjustments will take effect. The pass-through rate is calculated by assessing the difference in wholesale water purchase costs using the current year's wholesale rates and the baseline year's wholesale rates. The additional expense is then divided over the calendar year's projected usage. This passes through any increase in the City's water purchase costs.
Based on the results generated by the approved pass-through formula, a pass-through charge...
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