Title
UTILITY RATE STUDY UPDATE
Staff Contact: Craig Johnson P.E., Director, Water Services
Staff Contact: Jack Friedline, Director, Public Works
Staff Presenter: Vicki Rios, Director, Budget and Finance
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Purpose and Policy Guidance
Recommendation
The purpose of this item is to provide City Council with an update on the Utility Rate Study process for water and sewer services, and residential solid waste collection services.
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Background
Water Services and Public Works have been reviewing the financial plans of two of the City's utility operations - water and sewer services and residential solid waste collection. While the two utilities serve different purposes, have separate operational and regulatory requirements, and have technical and programmatic characteristics unique to each, they also have shared similarities. As enterprise fund operations, they are both required to fully recover operating costs through planned and transparent rate adjustments and to continually evaluate the efficiency of their operations. In addition, these funds maintain infrastructure and equipment to provide uninterrupted services to the residents and businesses of Glendale.
In December 2016, the Budget and Finance Department presented to Council two comprehensive long-range financial forecasts for the two enterprise funds clearly demonstrating that neither would be able to meet their fund balance requirements over the long-term, without changes to service delivery or rates charged to customers.
Staff requested in January 2017 that Council rename the Water Services Advisory Commission to the Citizens Utility Advisory Commission (CUAC) and include Solid Waste Collection as part of that Commission's purpose. Since that time, both departments have presented to the CUAC the operational needs, five-year financial forecasts, and utility cost of service and rate models, to obtain guidance regarding proposed rate adjustments and/or service delivery modifications.
Analys...
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