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File #: 17-123    Version: 1 Name:
Type: Report of the City Manager Status: Agenda Ready
File created: 1/9/2017 In control: City Council
On agenda: 1/17/2017 Final action: 1/17/2017
Title: SUBJECT: 2016 Water Rate Study and Set Public Hearing Recommendation for Action: Staff recommends that the City Council: 1) Receive the 2016 Water Rate Study; and 2) Set March 7, 2017 as the Public Hearing date for the proposed water revenue increases; and 3) Adopt Resolution No. _____, Adopting Procedures for Providing Notice and Receiving and Tabulating Written Protests to Property-Related Fees and Charges
Attachments: 1. SUMMARY OF 2016 WATER RATE STUDY for staff report.pdf, 2. WOODLAND_ Reso Adopting Procedures for Prop 218 Water Protest Proceedings-c1
TO: THE HONORABLE MAYOR AND CITY COUNCIL

DATE: January 17, 2017

title
SUBJECT: 2016 Water Rate Study and Set Public Hearing

Recommendation for Action: Staff recommends that the City Council:
1) Receive the 2016 Water Rate Study; and
2) Set March 7, 2017 as the Public Hearing date for the proposed water revenue increases; and
3) Adopt Resolution No. _____, Adopting Procedures for Providing Notice and Receiving and Tabulating Written Protests to Property-Related Fees and Charges
body

Staff Contact

Lynn Johnson, Senior Management Analyst - lynn.johnson@cityofwoodland.org

Fiscal Impact

Adoption of the proposed water revenue increases of 5.5%/year for five (5) years will generate sufficient revenue to meet our operational and capital needs through FY 2021 as well as meet our current debt service and debt coverage ratio requirements. Capital projects will be funded through reserves and rate revenue. No additional bond issuances are assumed in the proposed rate structure.

A drought surcharge has been included in case severe water shortages necessitate reduced water consumption and the associated water revenue loss. This surcharge would only be implemented upon City Council direction and under severe drought conditions where the conservation target is greater than 25%.

Background

In May 2012, the City Council approved a series of water revenue increases to fund deferred maintenance of our water infrastructure and to fund the debt service relating to the Surface Water Supply Project and the required local projects that support the transition to surface water. At the time the rates were adopted, we did not have final project costs, details on the cost of debt issuance, or final answers on available grant funding. Based on the information we had available and cost projections, the Council approved a series of four, 17% water revenue adjustments with the goal of implementing a lower increase in January 2016, the last approved increase.

Staff worked with HDR...

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