Summary
To: Mayor Gary H. Katica, Commissioners
From: JP Murphy, Assistant Town Manager
Date: 1/10/2017
Subject:
Title
Ordinance 508-Amending Utility Rates
body
______________________________________________________________________
Summary:
As considered during the setting of the 2017 fiscal year budget, Ordinance 508 amends the fee schedule for water and solid waste charges. The increases for both water and solid waste is proposed at 5% for monthly service charges. The increases are requested to maintain revenue sufficiency with the rising costs of expenditures for operating supplies, labor, and capital expenditures.
For the near term in the Water Fund, staff expects the increases to sufficiently meet the revenue requirements. While the long term, the outlook is hopeful that the increased consumption of Belleview Biltmore development will help provide some stability to revenue requirements. The proposed increase in water is on monthly service charges for residential and commercial uses. The table below illustrates the current and proposed rates.
Charge Type
Current
Proposed
Increase Amount
Water Base
$ 12.37
$ 12.99
$ 0.62
Volumetric Per 1,000 Gallons
0-4,000
$ 1.86
$ 1.95
$ 0.09
5,000-2,500
$ 6.21
$ 6.52
$ 0.31
25,000 and up
$ 7.45
$ 7.82
$ 0.37
In addition to the increases in monthly service charges, staff is proposing a change to the amounts for disconnection, reconnection, and late fees. The proposed increase for disconnection and reconnection is $5.00 for each, from $15.00 to $20.00. The late fee charge is proposed to change from the greater of $5 or 3% of the total outstanding amount to the greater of $10 or 8% of the total outstanding amount. Managing account delinquency and water turn off takes a sizeable amount of staff time and extra resources. The increase will help recover additional costs as well as send a price message to encour...
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