AgdaPkt 2006-06-26 - Laserfiche WebLink

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7A Page 1 June 26, 2006 Subject Amendment of Sewer Service Charges Recommendation 1. Introduce Ordinance Amending Redwood City Code - Section 27.100 - Sewer Service Charges. 2. Approve, in concept, a loan of funds from the Water Enterprise Fund (rate stabilization account) to the Sewer Enterprise Fund to provide sufficient cash to make the Reserve Fund Contribution payment to SBSA by August 15, 2006. Background The Sewer Fund supports two major services components: (1) the collection system, maintained and operated Redwood City, which is comprised of sewer main lines in city streets, the public portion of lateral (or service) lines, and pump stations that transmit sewage to the (2) wastewater treatment plant, operated and maintained by South Bayside System Authority (SBSA), which treats and processes wastewater before discharging it into San Francisco Bay. The City Council typically adjusts sewer service charges annually, following the SBSA Commission's budget decisions, analysis and recommendations from the Council's Utilities Committee, and in concert with their consideration of the city's operating and capital budgets. The Council last approved an increase in the monthly sewer service charge on June 27,2005, for Fiscal Year 2005-2006. In Fiscal Year 2006-2007, revenues in the Sewer Enterprise Fund are required to support a proposed budget of $14,767,183 which constitutes an increase of $2,078,586 or 16.4% over last fiscal year. The sewer service charge to customers is calculated by applying the amount of the budget increase to the 25,743 active sewer accounts in the City's system. An additional $6.73 per month on the sewer service charge is needed for all customers to balance revenues to expenditures, and continue to provide a high level of service. The recommended new monthly charge is $33.00, which is a 26% increase to the current $26.27 per month charge per account. This recommendation is based on direction to staff from the Utilities Committee, following their consideration of the financial requirements of the Sewer Enterprise Fund, and the substantial cost increases recently approved by the SBSA Commission. Staff is also recommending an increase of 2.0% on the monthly surcharge for commercial and industrial user classifications, as established in Chapter 27, Article IX Fees and Charges of the Municipal Code. The table below reflects the proposed 2% change in charges to these user classifications for wastewater discharged based on each 100 cubic feet of wastewater discharged or deposited into the sewerage facilities in excess of the first 1.000 cubic feet covered by the fixed basic service charge. The increase to the rate is 10f4 ,.....,...... . ,.." .,......"~...._...,,'---,, ."-"~,.-.._""'.....;.....,,~"'..----"-----