HomeMy WebLinkAbout13 PUBLIC WORKSHOP TO DISCUSS WATER RATES AND TO SET PUBLIC HEARING RE PROPOSITION 218MEETING DATE: SEPTEMBER 17, 2019
TO: MATTHEW S. WEST, CITY MANAGER
FROM: JOHN A. BUCHANAN, DIRECTOR OF FINANCE
DOUGLAS S. STACK, DIRECTOR OF PUBLIC WORKS/CITY ENGINEER
SUBJECT: PUBLIC WORKSHOP TO DISCUSS CHANGES IN WATER RATES AND
TO SET A PUBLIC HEARING PURSUANT TO THE REQUIREMENTS OF
PROPOSITION 218
SUMMARY:
The City's consultant, Raftelis Financial Consultants, completed a cost of service analysis
and developed proposed water rates that will meet ongoing operational, maintenance, and
capital needs and the requirements of existing bond covenants. City staff requests the City
Council hold a public workshop to discuss the cost of service analysis and proposed rates
and set a public hearing for January 21, 2020 at 7:00 p.m. to consider the adoption of the
proposed water rates.
RECOMMENDATION:
It is recommended that the City Council:
1. Conduct a public workshop to discuss the cost of service analysis and proposed
changes in water rates; and
2. Set a public hearing for January 21, 2020 at 7:00 p.m. to consider adoption of the
proposed new water rates; and
3. Direct staff to prepare and mail the required public hearing notices.
FISCAL IMPACT:
Adequate funds are budgeted in the Water Enterprise Fund to mail the public notices. The
proposed rates are intended to generate the necessary revenue for operational,
maintenance, capital, and Bond Covenant requirements.
CORRELATION TO THE STRATEGIC PLAN:
The new water rates implement strategy number five (5) of Goal C: Financial Strength.
BACKGROUND:
The City of Tustin's water rates were last approved by the City Council on June 15, 2010,
which established the water rates for five years. The first water rate change went into effect
Set Public Hearing — Proposed Water Rates
September 17, 2019
Page 2
on July 1, 2010 and the last change went into effect on July 1, 2014. The current water
rate will not generate sufficient revenues to meet operational, maintenance, capital, and
Bond Covenant requirements beginning FY 2020/21. Therefore, the City's consultant
completed a cost of service analysis and developed a proposed water rate that will meet
ongoing operational, maintenance, capital, and Bond Covenant requirements.
Proposition 218 requires that the City conduct a public protest hearing to consider the new
water rates and provide a notice to all property owners at least 45 days prior to the hearing
date. Staff will prepare a notice that includes the proposed rates, reasons for the rate
increase, information on the public hearing and instructions for those who wish to protest
the proposed water rates.
I�f,U.L-"
John .Buchanan
Djr ctor of Finance
Dou s $. Stack
Djc o of Public Works/City Engineer