|
|
STRATEGIC OUTCOMES |
ACTION |
|
Department: |
☒ Safe & Prosperous |
☐ Motion |
|
Utilities |
☐ Active & Appealing |
☐ Resolution |
|
|
☐ Respected & Responsible |
☐ Ordinance - Introduction |
|
Division: |
☐ Connected & Engaged |
☐ Ordinance - Adoption |
|
Administration |
☐ Unique & Creative |
☒ Public Hearing |
TITLE:
title
Public Hearing: Proposed Increases to Water and Wastewater Utility Rate Charges and Fees and Reinstatement of the Water Resource Trust Fund Surcharge
end
SUMMARY RECOMMENDATION:
Summary Recommendation
Following a public hearing, staff is seeking City Council’s recommendation for the preferred water and wastewater rate charge and fee schedule including reinstatement of the Water Resource Trust Fund Surcharge, which will be presented as separate resolutions at a future City Council meeting. (Utilities/Administration) (Jeremy McCall)
end
STRATEGIC OUTCOME:
This Public Hearing supports the City Councils strategic outcome of Safe and Prosperous by ensuring the future reliability and quality of the City’s water and wastewater systems and supply through a transparent public process.
REPORT:
Clerk Note: During this public hearing Jeremy McCall corrected the date of the public hearing, mentioned on page two of this City Council Report, from Tuesday, January 16, 2023, to Tuesday, January 16, 2024.
The City is proposing an increase in water and wastewater utility rates to meet the needs of our growing community, including increased water demands and infrastructure needs.
The City of Yuma’s last evaluation of water and wastewater rates occurred in 2014. The 2014 rate study recommended implementing a five-year rate plan, which began in 2015 and ended in 2019. In January 2015, City Council adopted Resolution R2015-02, which established water and wastewater rates.
The City has not adjusted water and wastewater rates since January of 2019. In 2023, the Utilities Department completed an Integrated Master Plan evaluation, which assessed the utilities operational and capital infrastructure needs. The master plan identified the need to revise and increase utility rates to meet future requirements. The Utilities Department contracted with Willdan Financial Services to independently evaluate the financials of each utility and make recommendations if needed. The 2023 Water and Wastewater Rate Study and Long-term Financial Plan recommended the adoption of a new rate plan that incorporates annual adjustments over the next five years.
The Utilities Department proposes establishing new water and wastewater rate charges as identified by both the 2023 Utility Rate Study and the 2023 Integrated Master Plan.
City staff also recommends reinstatement of the Water Resource Trust Fund Surcharge. Several Federal reservoir and water management decisional documents and agreements which govern the operation of the Colorado River facilities and management of the Colorado River expire in 2026. These include the U.S. Bureau of Reclamation 2007 Interim Guidelines, which establish water shortage policy for the Colorado River and coordinating criteria for operating Lake Powell and Lake Mead (2007 Interim Guidelines), the 2019 Drought Contingency Plans (DCP), as well as international agreements between the U.S. and Mexico entered into through the 1944 Water Treaty. The post-2026 process has already begun and the City of Yuma needs to engage, educate, and possibly litigate, to protect current water rights. The Yuma City Council created the Water Resources Trust Fund Surcharge in 1988 through Resolution R2558. Reinstating the modest surcharge will generate revenues for a restricted fund used to protect Yuma’s water supply assets.
During the November 15, 2023 City Council Meeting, Council approved a Notice of Intention to adjust water and wastewater utility rates and fees as required by A.R.S. § 9-511.01. In addition to tonight’s (January 17th, 2023) public hearing with City Council and in accordance with statute, the City hosted a public hearing on Tuesday January 16, 2023 with the City of Yuma Water and Sewer Commission at the Thomas F. Allt Utilities Complex Training Room regarding the proposed utility rate and fee increases. Both public hearings were advertised in the Yuma Sun, once on Sunday November 19th, 2023, and again on Saturday December 9th, 2023. A copy of the 2023 Utility Rate Study and the 2023 Integrated Master Plan has been on file with the City Clerk and available to the public via the City’s website in addition to a Report on Reinstating the Water Resources Trust Fund. The reports are also available for review at the Utilities Department, 270 W. 13th Street, Yuma, Arizona 85364.
Following the presentation for the proposed utility rate schedules and input from the public hearing, staff seeks City Council’s recommendation for the preferred water and wastewater rate charge and fees and reinstatement of the Water Resource Trust Fund Surcharge, which will be presented as separate Resolutions at a future City Council meeting.
FISCAL REQUIREMENTS:
|
CITY FUNDS: |
$ 0.00 |
BUDGETED: |
$ 0.00 |
|
STATE FUNDS: |
$ 0.00 |
AVAILABLE TO TRANSFER: |
$ 0.00 |
|
FEDERAL FUNDS: |
$ 0.00 |
IN CONTINGENCY: |
$ 0.00 |
|
OTHER SOURCES: |
$ 0.00 |
FUNDING: ACCOUNT/FUND #/CIP |
TOTAL $ 0.00
|
- |
|
|
To total; right click number & choose “Update Field” |
|
FISCAL IMPACT STATEMENT:
NONE
ADDITIONAL INFORMATION:
NONE
IF CITY COUNCIL ACTION INCLUDES A CONTRACT, LEASE OR AGREEMENT, WHO WILL BE RESPONSIBLE FOR ROUTING THE DOCUMENT FOR SIGNATURE AFTER CITY COUNCIL APPROVAL?
☐ Department
☒ City Clerk’s Office
☐ Document to be recorded
☐ Document to be codified
|
Acting City Administrator: |
Date: |
|
John D. Simonton |
01/09/2024 |
|
Reviewed by City Attorney: |
Date: |
|
Richard W. Files |
01/08/2024 |