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ITEM: RESOLUTION NO. AC2023-05 (ADOPTION OF RATES AND RESOLUTION ADOPTING THE BUDGET FOR THE WATER AND WASTEWATER UTILITY BUDGET FOR FISCAL YEAR 2023/2024)
A RESOLUTION OF THE BOARD OF SUPERVISORS OF THE ACME IMPROVEMENT DISTRICT ADOPTING THE WATER AND WASTEWATER UTILITY BUDGET FOR THE FISCAL YEAR COMMENCING OCTOBER 1, 2023, AND ENDING SEPTEMBER 30, 2024; AND PROVIDING AN EFFECTIVE DATE.
REQUEST: Adoption of the Water and Wastewater Utility Rates beginning October 1, 2023 and approval of Resolution No. AC2023-05 as presented adopting the FY 2023/2024 budget for the Water and Wastewater Utility.
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EXPLANATION: Pursuant to the 2023 utility rate study recommendations presented July 10th and annual budget adoption, the water and wastewater rates effective for FY 2023/2024 are proposed to increase 10% for most rates. The utility rate schedule is provided in the resolution attachments. The average customer using 5,000 gallons per month will pay $6.74 more per month, or about $81.00 per year. All utility customers were notified of the proposed rates as well as the date of this Council meeting. The revenue generated by the higher rates will fund the increased cost of needed capital renewal and replacement (R & R) projects to keep the utility system compliant and reliable.
Resolution No. AC2023-05 sets forth the Water and Wastewater Utility budget for Fiscal Year 2023/2024. The budget for the utility totals $31.16 million, excluding depreciation, is a $497,000 decrease from the FY 2022/2023 adopted budget of $31.65 million. Higher costs of operations, including electricity, chemicals, and parts are offset by reduced capital project funding. Previously scheduled improvement, and renewal and replacement projects were evaluated for deferral due to construction and equipment price increases.
The proposed budget funds:
• 62 permanent positions, up 2 for conversions from supplemental to permanent status for a Utility Systems Mechanic and a Laboratory Analyst
• 8 supplemental positions in administration, customer service, water plant operations, and meter services
• Operating services and supplies cost increases of 10%
• Capital investment in Water Treatment Plant chemical system improvements, water meter replacements, and other renewal and replacement projects.
To balance the budget, $2.98 million in fund reserves are allocated.
BUDGET AMENDMENT REQUIRED: NO
PUBLIC HEARING: NO QUASI-JUDICIAL:
FIRST READING: SECOND READING:
LEGAL SUFFICIENCY: YES
FISCAL IMPACT: The 10% increase in Water & Wastewater utility rates as presented generates $26.67 million in utility Charges for Services, an increase of $2.73 million over the prior year. Total forecasted FY 2024 revenues for the, utility excluding the allocation of reserves, are $28.18 million.
Approval of the resolution adopts the FY 2023/2024 budget for the Water & Wastewater Utility in the amount of $31.16 million.
WELLINGTON FUNDAMENTAL: Responsive Government
RECOMMENDATION: Approval the Water and Wastewater Utility rates and Resolution No. AC2023-05 adopting the FY 2023/2024 budget for the Water and Wastewater Utility.