HomeMy WebLinkAbout4 Rate Increase 2006 S
Agenda Item #
EAMON
Memorandum
To: Board of Directors
From: Peter Holzmeister
Date: December 29, 2005
Subject: Public hearing on budget and rate increase proposals
Why this matter is before the Board: We have been discussing the draft budget for 2006 and
the related ordinances that provide the revenues to balance the budget. It has been our custom
to hold a public hearing on the budget prior to its adoption, and we are required by law to hold a
hearing prior to increasing rates and charges by ordinance. This matter is that public hearing.
The hearing covers the budget and the proposal to increase water and electric rates and
connection charges.
History: The Board and staff began working on the budget in August of 2005. A series of
workshops were held to review District operations and costs. At the conclusion of that first set
of workshops District staff and I prepared a draft budget for 2006 and recommended that water
and electric rates be increased by seven percent. Five percent was intended to cover the
increased cost of operating the District and two percent was intended to be deposited into
reserves to establish needed cash for predictable future needs. We also proposed to increase
the water and electric connection charges by five percent to cover increased costs associated
with making new water and electric connections.
The Board then conducted a second series of workshops to analyze and discuss the draft
budget for 2006. During this second set of workshops the Board asked staff to prepare a report
on what items could be removed from the 2006 budget in order to reduce the portion of the
proposed rate increase attributed District operations. We prepared that analysis, a copy of
which is attached.
New information: Notice of the public hearing was published in the Sierra Sun. I sent the
attached letter and sheet of Frequently Asked Questions to the Tahoe Donner Association,
Glenshire Devonshire Residents Assoc., Sierra Meadows Homeowners Association, Donner
Lake Property Owners Association, Tahoe Sierra Board of Realtors, Truckee Tahoe Senior
Council and the Truckee Chamber of Commerce.
This item is simply a hearing to listen to comments from the public. I will be prepared to lead off
with a brief overview of the draft budget. Then it is time to listen to the public.
Recommendation: No action on the budget or rate increases is anticipated at this meeting.