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Department of Utilities
Reference: AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF BRIGHTON, COLORADO, ACTING BY AND THROUGH ITS WATER ACTIVITY ENTERPRISE, AMENDING TITLE 13 AND TITLE 14 OF THE BRIGHTON MUNICIPAL CODE PERTAINING TO WATER, WASTEWATER AND STORM DRAINAGE FEES AND CHARGES ASSESSED BY THE CITY OF BRIGHTON; SETTING FORTH EFFECTIVE DATES FOR SAID RATES, FEES AND CHARGES; AND OTHER DETAILS RELATED THERETO.
To: Mayor Richard N. McLean and Members of City Council
Through: Philip Rodriguez, City Manager
Prepared By: Curtis Bauers, Director of Utilities
Date Prepared: November 20, 2017
PURPOSE:
To modify the current Utilities rates and fees based on Willdan Financial Services rate study analysis, in conjunction with the Utilities Cash Flow Model, to meet 2018 Utilities revenue requirements.
BACKGROUND/HISTORY:
Rates
Willdan Financial Services and the Utilities Department staff has completed a rate study analysis on the City's utility rates and fees. The analysis included a thorough review of current and future operational and capital expenditures required to operate City utilities in a conscientious and sustainable manner over the next 30 years.
Willdan reviewed the Department's updated information and analyzed the model for consistency and validity. The result of this study showed the need for a 2018 revenue increase of 2% in the water fund, 4% in the wastewater fund, and 15% in the stormwater fund, over the average revenues that were generated from 2016-2017. Not merely meeting future expenditure needs, rates are also required by Colorado statute to be based on "cost of service". This means that each customer class (such as residential, commercial, or irrigation users) should be charged fairly and equitably based on how much it costs to provide those services to those particular customer classes. While a full cost of service rate analysis has not been performed this year, it is anticipated that this more detailed analysis will ...
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