TO: Honorable Mayor and Members of the City Council
THRU: Thomas R. Hatch, Interim City Manager
FROM: Christopher Cash, Public Works Director
1. SUBJECT
title
Water rate pass-through notice for Calendar Year 2022.
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2. SUMMARY
City staff calculated the pass-through charge for Calendar Year 2022 using the formula approved by the City Council in December 2017. The calculation resulted in an additional $0.06 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 $712,800 will offset corresponding expenditures for import water and ground water costs.
5. STRATEGIC PLAN GOALS
Goal 2: Be a fiscally healthy community
b: Analyze future fiscal needs and potential revenue opportunities.
Goal 4: Provide outstanding public service
b: Provide facilities and services to meet customer expectations.
6. DISCUSSION AND BACKGROUND
On December 12, 2017, City Council approved Resolution No. 11046 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 takes into account only increases in purchases of water required to supply water to the City. 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 such adjustments will take effect. The pass-through rate is calculated by assessing the difference in wholesale water purchase costs using the previous year's wholesale rates and the current year's wholesale rates. The additional expense is then divided over the next calendar year's projected usage. This passes through any increase in the City's water purchase costs.
Based on the results gene...
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