HomeMy WebLinkAbout06-12-2013 PH4 Mattingly 06-13"". council mEmoaan
June 12, 2013
TO: City Council
VIA: Katie Lichtig, City Manager rq
FROM: Carrie Mattingly, Utilities Director
RECEIVED
JUN 122013
U 7Y C:f.ERK
AGENDA
CORRESPONDENCE
Date % 12-11 � Item# L
Response to citizen inquiry regarding information related to tiered water rate structure, conservation of
water resources, and clarification of who recommended water rate structure.
In 2012, the City Council had six meetings on the water rate structure (five study sessions).
During the study sessions Council decided upon these five goals for a rate structure:
1. Revenue stability and predictability
2. Stability and predictability of the rates
3. Easy to understand and administer
4. Fair allocation of costs
5. Discourage wasteful use
With the knowledge that there were inherent conflicts between some of the goals, Council performed an
in -depth examination of five different rate structures in order to best balance those conflicts. There was
productive debate and examination of the impacts of various rate structures on the community. Council,
in support of their agreed upon goals and based on data presented during the study sessions, approved the
rate structure that is now before the community for its consideration. Unless a majority plus one (7,451)
protest the rate structure, prior Council action is affirmed.
Rate structure clarification: While adopting the water rate structure (unless there is a majority protest) is
part of the staff recommendation in the June 12, 2013 Council Agenda Report, the rate structure that is
before the community was approved by the City Council at its December 4, 2012 meeting. The latest
Utilities Department Resource stated staff was recommending the rate structure which understandably
gave the impression it was not Council approved. Please forgive me for any confusion this statement may
have caused.
Tiered water rate structure: Three billing tiers were created for residential in 2007. Prior to that time, there
were two tiers for all water users.
A tiered water rate is meant solely to encourage conservation. Two tiers worked well in the past to
discourage wasteful water use and is expected to continue to do so in the future.