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STRATEGIC OUTCOMES |
ACTION |
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Department: |
☒ Safe & Prosperous |
☐ Motion |
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Utilities |
☐ Active & Appealing |
☒ Resolution |
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☐ Respected & Responsible |
☐ Ordinance - Introduction |
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Division: |
☐ Connected & Engaged |
☐ Ordinance - Adoption |
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Administration |
☐ Unique & Creative |
☐ Public Hearing |
TITLE:
title
Water and Wastewater Utility Rates and Fees
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SUMMARY RECOMMENDATION:
Summary Recommendation
Pursuant to Arizona Revised Statutes, Section 9-511.01, adopt water and wastewater utility rates and fees adjustments by resolution. (Utilities/Administration) (Jeremy McCall)
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STRATEGIC OUTCOME:
This action item supports the City Council’s strategic outcome of Safe and Prosperous by ensuring the future reliability and quality of the City’s water and wastewater systems.
REPORT:
While a number of jurisdictions have automatic increases to water and wastewater charges, the City of Yuma City Council has held rates the same since 2019. There is a need to increase water and wastewater utility capital to fund current operations and maintenance activities, as well as Capital Improvement Program infrastructure.
At the regularly scheduled Water and Sewer Commission meeting on March 13, 2023, the City’s water and wastewater consultant, Willdan Financial Services, proposed a utility rates study and financial plan. On October 10, 2023, the results of the 2023 Water and Wastewater Rate Study and Long-Term Financial Plan was presented to the Water and Sewer Commission. On November 15, 2023, Willdan presented the same information to the City Council.
At the conclusion of the presentation, City Council adopted a Notice of Intention to adjust water and wastewater utility rates and fees based on the revenue requirements outlined by the City’s consultant. A copy of the 2023 Water and Wastewater Rate Study and Long-Term Financial Plan, along with data supporting the new rates and fees, was placed on file with the office of the City Clerk.
On January 16, 2024, the City of Yuma Water and Sewer Commission held the first of two statutory public hearings on the rates and fees increase. City Council held the second of two required public hearings on January 17, 2024.
The 2023 Water and Wastewater Rate Study and Long-Term Financial Plan recommends City Council adoption of either of two alternative water rate plans:
• Option 1, the Traditional Water Rate Schedule represents a five-year, 3% adjustment each year to both the base rate and the usage charge (which also increases incrementally through Hundred Cubic Feet (HCF) used).
• Option 2, the Conservation Water Rate Schedule represents a flat base rate at the current rate but increases the usage charge at a more progressive incremental rate that also increases at 3% per year so that substantial users pay a much higher rate for additional water use.
The recommended schedule for Wastewater Rates increases by a flat 4% per year for each of the first five years. Rate adjustments begin August 1, 2024, with subsequent adjustments annually on August 1 in years 2025, 2026, 2027 and 2028.
The Water and Sewer Commission recommended Option 2, the Conservation Water Rate Schedule, although City staff recommends Option 1. Both Option 1 and Option 2 are shown below and available for review in the City Clerk’s Office:
Traditional Water Rate Plan: Option 1
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Schedule of Water Rates |
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Effective as follows |
|
|
August 2024 |
August 2025 |
August 2026 |
August 2027 |
August 2028 |
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|
$/mo |
$/mo |
$/mo |
$/mo |
$/mo |
|
INSIDE THE CITY |
|
Base Charge |
5/8” x 3/4"meter |
$18.35 |
$18.91 |
$19.47 |
$20.06 |
$20.66 |
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Base Charge |
1” meter |
$22.21 |
$22.87 |
$23.56 |
$24.27 |
$24.99 |
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Base Charge |
1 ½ “ meter |
$28.77 |
$29.63 |
$30.52 |
$31.44 |
$32.38 |
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Base Charge |
2" meter |
$35.29 |
$36.35 |
$37.44 |
$38.56 |
$39.72 |
|
Base Charge |
3“ meter |
$63.95 |
$65.87 |
$67.85 |
$69.88 |
$71.98 |
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Base Charge |
4” meter |
$96.53 |
$99.43 |
$102.41 |
$105.48 |
$108.65 |
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Base Charge |
6” meter |
$177.97 |
$183.31 |
$188.81 |
$194.48 |
$200.31 |
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Base Charge |
8” meter |
$259.38 |
$267.17 |
$275.18 |
$283.44 |
$291.94 |
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OUTSIDE THE CITY |
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Base Charge |
5/8” x 3/4"meter |
$24.41 |
$25.14 |
$25.90 |
$26.68 |
$27.48 |
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Base Charge |
1” meter |
$29.54 |
$30.42 |
$31.33 |
$32.27 |
$33.24 |
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Base Charge |
1 ½” meter |
$38.26 |
$39.41 |
$40.59 |
$41.81 |
$43.06 |
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Base Charge |
2” meter |
$46.93 |
$48.34 |
$49.79 |
$51.28 |
$52.82 |
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Base Charge |
3” meter |
$82.58 |
$85.06 |
$87.61 |
$90.24 |
$92.94 |
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Base Charge |
4” meter |
$124.65 |
$128.39 |
$132.24 |
$136.21 |
$140.29 |
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Base Charge |
6" meter |
$229.81 |
$236.71 |
$243.81 |
$251.12 |
$258.65 |
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Base Charge |
8" meter |
$334.93 |
$344.98 |
$355.33 |
$365.99 |
$376.97 |
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RESIDENTIAL INSIDE THE CITY ($ per hundred cubic feet) |
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Usage Charge |
0 - l0 hcf |
$1.61 |
$1.66 |
$1.70 |
$1.76 |
$1.81 |
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11 - 30 hcf |
$1.88 |
$1.94 |
$2.00 |
$2.06 |
$2.12 |
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31 hcf and above |
$2.16 |
$2.23 |
$2.29 |
$2.36 |
$2.43 |
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RESIDENTIAL OUTSIDE THE CITY ($ per hundred cubic feet) |
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Usage Charge |
0 - 10 hcf |
$2.14 |
$2.20 |
$2.27 |
$2.34 |
$2.41 |
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11 - 30 hcf |
$2.51 |
$2.58 |
$2.66 |
$2.74 |
$2.82 |
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31 hcf and above |
$2.88 |
$2.96 |
$3.05 |
$3.14 |
$3.24 |
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MULTI FAMILY INSIDE THE CITY ($ per hundred cubic feet) |
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Usage Charge |
0 - 5 hcf |
$1.61 |
$1.66 |
$1.70 |
$1.76 |
$1.81 |
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6 - 13 hcf |
$1.88 |
$1.94 |
$2.00 |
$2.06 |
$2.12 |
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14 hcf and above |
$2.16 |
$2.23 |
$2.29 |
$2.36 |
$2.43 |
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MULTIFAMILY OUTSIDE THE CITY ($ per hundred cubic feet) |
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Usage Charge |
0 - 5 hcf |
$2.14 |
$2.20 |
$2.27 |
$2.34 |
$2.41 |
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6 - 13 hcf |
$2.51 |
$2.58 |
$2.66 |
$2.74 |
$2.82 |
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14 hcf and above |
$2.88 |
$2.96 |
$3.05 |
$3.14 |
$3.24 |
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COMMERCIAL AND IRRIGATION INSIDE THE CITY ($ per hundred cubic feet) |
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Usage Charge |
hcf |
$1.80 |
$1.86 |
$1.91 |
$1.97 |
$2.03 |
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COMMERCIAL AND IRRIGATION OUTSIDE THE CITY ($ per hundred cubic feet) |
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Usage Charge |
hcf |
$2.36 |
$2.43 |
$2.50 |
$2.58 |
$2.65 |
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AUTOMATED METERING INFRASTRUCTURE FEE ($ per meter) |
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AMI Charge |
Per AMI Meter |
$1.00 |
$1.00 |
$1.00 |
$1.00 |
$1.00 |
Conservation Water Rate Plan: Option 2
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Schedule of Water Rates |
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Effective as follows |
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|
August 2024 |
August 2025 |
August 2026 |
August 2027 |
August 2028 |
|
|
$/mo |
$/mo |
$/mo |
$/mo |
$/mo |
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INSIDE THE CITY |
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Base Charge |
5/8” x 3/4"meter |
$17.82 |
$17.82 |
$17.82 |
$17.82 |
$17.82 |
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Base Charge |
1” meter |
$21.56 |
$21.56 |
$21.56 |
$21.56 |
$21.56 |
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Base Charge |
1 ½ “ meter |
$27.93 |
$27.93 |
$27.93 |
$27.93 |
$27.93 |
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Base Charge |
2" meter |
$34.26 |
$34.26 |
$34.26 |
$34.26 |
$34.26 |
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Base Charge |
3“ meter |
$62.09 |
$62.09 |
$62.09 |
$62.09 |
$62.09 |
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Base Charge |
4” meter |
$93.72 |
$93.72 |
$93.72 |
$93.72 |
$93.72 |
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Base Charge |
6” meter |
$172.79 |
$172.79 |
$172.79 |
$172.79 |
$172.79 |
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Base Charge |
8” meter |
$259.38 |
$259.38 |
$259.38 |
$259.38 |
$259.38 |
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OUTSIDE THE CITY |
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Base Charge |
5/8” x 3/4"meter |
$23.70 |
$23.70 |
$23.70 |
$23.70 |
$23.70 |
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Base Charge |
1” meter |
$28.67 |
$28.67 |
$28.67 |
$28.67 |
$28.67 |
|
Base Charge |
1 ½” meter |
$37.15 |
$37.15 |
$37.15 |
$37.15 |
$37.15 |
|
Base Charge |
2” meter |
$45.57 |
$45.57 |
$45.57 |
$45.57 |
$45.57 |
|
Base Charge |
3” meter |
$82.58 |
$82.58 |
$82.58 |
$82.58 |
$82.58 |
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Base Charge |
4” meter |
$124.65 |
$124.65 |
$124.65 |
$124.65 |
$124.65 |
|
Base Charge |
6" meter |
$229.81 |
$229.81 |
$229.81 |
$229.81 |
$229.81 |
|
Base Charge |
8" meter |
$334.93 |
$334.93 |
$334.93 |
$334.93 |
$334.93 |
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RESIDENTIAL INSIDE THE CITY ($ per hundred cubic feet) |
|
Usage Charge |
0 - 10 hcf |
$1.61 |
$1.66 |
$1.70 |
$1.76 |
$1.81 |
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11 - 20 hcf |
$1.93 |
$1.99 |
$2.05 |
$2.11 |
$2.17 |
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21 - 30 hcf |
$2.31 |
$2.38 |
$2.45 |
$2.53 |
$2.60 |
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31 hcf and above |
$2.78 |
$2.86 |
$2.95 |
$3.03 |
$3.13 |
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RESIDENTIAL OUTSIDE THE CITY ($ per hundred cubic feet) |
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Usage Charge |
0 - 10 hcf |
$2.14 |
$2.20 |
$2.27 |
$2.34 |
$2.41 |
|
|
11 - 20 hcf |
$2.56 |
$2.64 |
$2.72 |
$2.80 |
$2.89 |
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|
21 - 30 hcf |
$3.08 |
$3.17 |
$3.26 |
$3.36 |
$3.46 |
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31 hcf and above |
$3.69 |
$3.80 |
$3.92 |
$4.04 |
$4.16 |
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MULTI FAMILY INSIDE THE CITY ($ per hundred cubic feet) |
|
Usage Charge |
0 - 5 hcf |
$1.61 |
$1.66 |
$1.70 |
$1.76 |
$1.81 |
|
|
6 - 10 hcf |
$1.93 |
$1.99 |
$2.05 |
$2.11 |
$2.17 |
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11 - 15 hcf |
$2.31 |
$2.38 |
$2.45 |
$2.53 |
$2.60 |
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|
16 hcf and above |
$2.78 |
$2.86 |
$2.95 |
$3.03 |
$3.13 |
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MULTIFAMILY OUTSIDE THE CITY ($ per hundred cubic feet) |
|
Usage Charge |
0 - 5 hcf |
$2.14 |
$2.20 |
$2.27 |
$2.34 |
$2.41 |
|
|
6 - 10 hcf |
$2.56 |
$2.64 |
$2.72 |
$2.80 |
$2.89 |
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|
11 - 15 hcf |
$3.08 |
$3.17 |
$3.26 |
$3.36 |
$3.46 |
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|
16 hcf and above |
$3.69 |
$3.80 |
$3.92 |
$4.04 |
$4.16 |
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COMMERCIAL AND IRRIGATION INSIDE THE CITY ($ per hundred cubic feet) |
|
Usage Charge |
hcf |
$1.80 |
$1.86 |
$1.91 |
$1.97 |
$2.03 |
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COMMERCIAL AND IRRIGATION OUTSIDE THE CITY ($ per hundred cubic feet) |
|
Usage Charge |
hcf |
$2.36 |
$2.43 |
$2.50 |
$2.58 |
$2.65 |
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AUTOMATED METERING INFRASTRUCTURE FEE ($ per meter) |
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AMI Charge |
Per AMI Meter |
$1.00 |
$1.00 |
$1.00 |
$1.00 |
$1.00 |
In addition, both Option 1 and Option 2 include a $1 per month advanced metering infrastructure charge.
The attached proposed resolution of adoption incorporates Option 1, the Traditional 3% per year increase for both base charges and usage charges for water rates and a 4% per year increase for wastewater charges. Should City Council choose to substitute Option 2, the Conservation Water Rate Plan, an appropriate motion may be made prior to adoption.
FISCAL REQUIREMENTS:
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CITY FUNDS: |
$ 0.00 |
BUDGETED: |
$ 0.00 |
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STATE FUNDS: |
$ 0.00 |
AVAILABLE TO TRANSFER: |
$ 0.00 |
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FEDERAL FUNDS: |
$ 0.00 |
IN CONTINGENCY: |
$ 0.00 |
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OTHER SOURCES: |
$ 0.00 |
FUNDING: ACCOUNT/FUND #/CIP |
TOTAL $ 0.00
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To total; right click number & choose “Update Field” |
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FISCAL IMPACT STATEMENT:
NONE
ADDITIONAL INFORMATION:
SUPPORTING DOCUMENTS NOT ATTACHED TO THE CITY COUNCIL ACTION FORM THAT ARE ON FILE IN THE OFFICE OF THE CITY CLERK:
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
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Acting City Administrator: |
Date: |
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John D. Simonton |
02/12/2023 |
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Reviewed by City Attorney: |
Date: |
|
Richard W. Files |
02/09/2023 |