Agenda

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Item # 5.c.

City Council

Meeting Date:	09/12/2023
Department:	Finance
Pillars:	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, discuss, and consider action on an Ordinance amending Chapter 82 (Utilities), Section 82-76 and Section 82-77 of the Code of Ordinances of the Town by amending sewer rates and water rates for all customer classifications and providing that the changes to the sewer rates and water rates made herein shall be applied to monthly customer bills beginning with the November 2023 billing cycle.

BACKGROUND:

An update to the utility rate model for fiscal years 2024-2028 was adopted by Council on July 12, 2022. Staff reviews this utility rate model on an annual basis to ensure the rate adjustments are appropriate. The utility rate model anticipated a 5.5% increase for fiscal year 2024, however rhea anticipated increase was reduced to 4.5% which maintains long-term sustainability of the fund.

The Town purchases water and sewage treatment from Dallas Water Utility (DWU) as well as sewage treatment services from the Trinity River Authority (TRA). Charges from both entities are included in the financial plan and rate model. Sec. 82-78 of the Town’s code of ordinances provides that the pass-through of wholesale cost increases for water purchases and sewer treatment services be included in water and sewer rates, which shall reflect changes in the costs of water purchases, sewer treatment, and transportation services, which are paid by the Town to other governmental entities. This means that the cost increases from these two entities are directly passed to the Town of Addison customers.

Below are examples of the increase in a water and sewer bill for a single-family:

Consumption	Existing	New Rate (10/1/23)	% Increase
5,000 gallons	$64.25	$67.14	4.5%
8,000 gallons	$94.48	$98.73	4.5%
10,000 gallons	$114.63	$119.79	4.5%

The specific rates for each customer class are listed in the attached ordinance.

RECOMMENDATION:

Administration recommends approval.

Attachments
Ordinance - Utility Rates