Departments of Finance & Utilities
Reference: Utility Rates & Construction GMP Presentation
To: Mayor Gregory Mills and Members of City Council
Through: Michael P. Martinez, City Manager
Prepared By: Catrina Asher, Director of Finance
Scott Olsen, Director of Utilities
Date Prepared: February 6, 2024
PURPOSE
To provide Council with proposals for water and wastewater rate and fee changes.
BACKGROUND
At a City Council Study Session on Tuesday, January 23rd, staff presented information to City Council that included proposed residential water tier structure updates, and proposed water and wastewater rate changes for fixed, volume-based and impact fees.
The proposal and included ordinance reflect the changes presented at that study session. Those changes are summarized below. For further details on the proposed changes and discussion, refer to the January 23rd Study Session packet and meeting.
Water Rate Proposals
Residential Tier Structure Proposal
Staff is proposing the following changes to the residential tier structure, which increases Tier 1 and compresses the other tiers:
Water Rate Adjustment Proposal
Staff is proposing the following increases, which would be applied to the volume-based water fee and the fixed water fee. These increases would not be applied to the Contract Water Surcharge or Water Treatment Plant Fee.
Effective for billing cycles after April 1, 2024 7%
Effective for billing cycles after January 1, 2025 6%
Wastewater Rate Proposals
Staff is proposing indexing wastewater rates to changes approved by underlying processors. The effect of this proposal, effective April 1, 2024, would be as follows:
Customers serviced by the Town of Lochbuie 3.0%
Customers serviced by Metro Water Recovery
2024 increase 7.0%
Catch up increase 3.5%
Total increase 10.5%
Sample Bills
Staff presented Council with the following sample utility bills which represent winter and summer usage for a single family residentia...
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