HomeMy WebLinkAbout13-Consideration of an Ordinance to Adopt Water RatesAgenda Item #13
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From:
Date:
Subject:
Board of Directors
Robert Mescher
January 15, 2014
Consideration of an Ordinance to Adopt Water Rates
ACTION
1. WHY THIS MATTER IS BEFORE THE BOARD
The matter involves the consideration of adopting an ordinance to increase water rates
for FY14 and FY15. Only the Board can adopt ordinances.
2. HISTORY
Proposition 218 was adopted in 1996 and became effective in 1997. It is also known
as the "Right to Vote on Taxes Act."
The adoption of new water rates is subject to the requirements of Proposition 218. The
main requirements are:
Rates must be based on actual cost of service;
District must mail a notice to all rate payers and may mail a notice to property
owners of the proposed change in rates;
District must hold a public hearing at least 45 days after the mailing of the
notices;
Rates can be set up to five years in advance;
Proposed change in rates is considered rejected if written protests are received
from a majority of the affected property owners; or
Rates can become effective 30 days after the public hearing and adoption of an
ordinance.
The District's water rates have not been increased since FY11.
The District hired HDR to conduct a water rate study and HDR completed that study.
At the November 6, 2013 Board Meeting, Shawn Koorn presented the study
(Attachment 1) and discussed several rate structure options to achieve the revenue
requirements of the approved FY14 and FY15 Budget. The Board approved a rate
structure (subject to a public hearing scheduled on January 15, 2014) that spread the
increases evenly across both fixed and variable charges, and a draft ordinance was
accepted by the Board (Attachment 2).
Robert Mescher Michael D. Holley
Administrative Services Manager General Manager
Notices of the public hearing were mailed to all water customers and property owners
on November 26, 2013 (Attachment 3).
A legal notice of the public hearing was published in Sierra Sun on January 1, 2014
and January 8, 2014 (Attachment 4).
3. NEW INFORMATION
The FY14 rates will become effective for bills printed after March 15, 2014.
The FY15 rates will become effective for bills printed after January 1, 2015.
As of January 7, 2014, five written protests were received.
4. FISCAL IMPACT
Adopting an ordinance to raise the water rates will increase revenue annually by 3% to
achieve the District's short-term and long-term goals.
5. RECOMMENDATION
Adopt the water rate Ordinance 2014-01.