Memorandum

City of Lawrence

Utilities Department                                            

TO:	David L. Corliss – City Manager Cynthia Wagner - Assistant City Manager Diane Stoddard - Assistant City Manager
FROM: CC:	Jeanette Klamm – Management Analyst Dave Wagner – Director of Utilities Mike Lawless – Deputy Director Ed Mullins – Finance Director Casey Toomay – Budget Manager
	Philip Ciesielski – Asst. Director of Utilities
Date:	July 11, 2013
RE:	Agenda Item - 2014 Water and Wastewater Rate Ordinance

Please include the following item on the City Commission Agenda for consideration at the July 23, 2013 meeting:

Consider Adopting on First Reading, Ordinance No. 8883, adopting the 2014 Water and Wastewater Rates

Background

At the March 12, 2013 City Commission meeting, the City Commission adopted the 2012 Master Plans, 2013-2017 CIP for Scenario 5, 2013 Water and Wastewater Rates, 2013-2017 System Development Charge Rates, and authorized staff to proceed with priority projects contained in the 2013 CIP.

Subsequently, staff has prepared and submitted the 2014 Operating and Maintenance Budget request, begun implementation of the 2013 CIP projects, and has updated the rate model in development of the 2014 water and wastewater rates. The requested 2014 water and wastewater rates will continue to fund the implementation of the 5 year CIP.

In addition, Utilities staff surveyed other area utilities to determine their rate changes anticipated in 2014. Those utilities that reported back anticipate increases to water and wastewater rates between 2% and 8% as described on the attached summary. The 2013 and proposed 2014 rates are compared to the existing rates and surrounding communities on the attached graphs.

Discussion

The Utilities Department recommends a 6% increase in water revenues and a 3% increase to wastewater revenues with a combined increase of about 5% for 2014. The Proposed 2014 Rates in the attached table compare them to the 2014 projected rates prepared at the time of the adoption of the 2013 – 2017 CIP. A comparison of water and wastewater utility bills for existing rates and the proposed 2014 rates for the different rate classes and volumes is shown on the attached table. In comparing current rates to the 2014 proposed rates, the typical monthly bill will increase by $2.44 or 4.8%.

Ordinance No. 8883 with the recommended 2014 rates is submitted for Commission consideration.

No Commission action is necessary for the 2014 System Development Charges. System Development Charges were approved for five years in Ordinance 8847. On January 1, 2014, the 2014 SDCs go into effect.

Action Request

Consider Adopting on First Reading, Ordinance No. 8883, adopting the 2014 Water and Wastewater Rates