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HomeMy WebLinkAbout8 Public Hearing Standby ChargesAgenda Item #8 To: From: Date: Subject: Board of Directors Mike Salmon May 06, 2020 Consideration of Scheduling a Public Hearing Related to Adoption of the Annual Electric and Water Standby Charges CONSENT Mike Salmon Michael D. Holley Chief Financial Officer General Manager 1. WHY THIS MATTER IS BEFORE THE BOARD Board action is required annually to adopt electric and water standby charges for the 2020-2021 property tax year. Tonight's item is the beginning of the process by scheduling a public hearing to renew the existing electric and water standby charges. 2. HISTORY Standby charges have been assessed on vacant parcels in the District since 1975. These annual charges recoup the District's operating and maintenance costs of the electric and water distribution facilities from parcel owners who benefit from their vacant lot being in close proximity to the distribution facilities. Standby rates have not been modified in many years, and there are no proposed changes at this time. The current Electric Standby Charge is $20.00 per year for each parcel one acre or larger, or $10.00 per year for each parcel less than one acre. The current Water Standby Charge is $80.00 per parcel per year. The Board must formally adopt the standby charges each year. 3. NEW INFORMATION Staff proposes a Public Hearing be held to consider renewing the existing Electric and Water Standby Charges on vacant parcels in the District. 4. FISCAL IMPACT The estimated standby revenue for 2020-2021 is $18K for Electric and $114K for Water; consistent with the budgeted revenue in the approved FY20 Budget. 5. RECOMMENDATION Schedule a public hearing at the regularly scheduled District Board Meeting on May 20, 2020 at 6:00 PM, or as soon thereafter, for the purpose of receiving input on the adoption of annual Electric and Water Standby Charges.