Agenda

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Item # 3.

Council Meeting

Meeting Date:	06/14/2022
Department:	Finance
Pillars:	Gold Standard in Customer Service Gold Standard in Financial Health
Milestones:	Continuously improve processes and policies to include the voice of the customer and ensure the policies are easily accessible

AGENDA CAPTION:

Present and Discuss an Update of the Financial Plan and Rate Model for Water and Sewer Utility Rates.

BACKGROUND:

The Town's current utility rate model extends through Fiscal Year 2023. The Town hired utility rate consultant, Raftelis Financial Consultants, Inc. (RFC), to update and extend the rate model through Fiscal Year 2028. The rate model update was conducted according to the policy adopted by Council in 2018 to include a mix of cash and bond funded capital projects, to maintain a fund balance of at least 25%, and provide systematic rate increases. During this presentation, Town Staff and RFC will:

Discuss the study process;
Provide an overview of the preliminary financial plan;
and Discuss next steps.

Staff seeks direction to bring back a resolution to formally adopt the rate model's financial plan for fiscal years 2024-2028. Each year as part of the budget process staff will bring an ordinance forward for Council to adopt that fiscal year's water and sewer rates.

RECOMMENDATION:

Staff seeks direction from Council.

Attachments
Presentation - Utility Rate Model Update
Resolution 18-005 Utility Rate Model