AgdaPkt 2004-07-26 - Laserfiche WebLink

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. C-2 . the following: ■ Risk Management Services . ■ Workers Compensation Insurance • Right-of-Way Compensation ■ General Government • Empioyee Costs: Increase of $95,557 or 5.7% • Transfers (Collection Services), decrease in supplies and services, and changes in capital expenses: Net increase of $32,875. In order to balance revenues and expenditures and continue to provide a high level of services, the proposed new monthly charge is $23.92, an increase of $2.47 per month to the basic rate for all customers. The impact to customer bi-monthly billing for sewer is illustrated in the attached table, "Typical Monthly Billing Impacts — FY 2004/05." Additionally, staff is recommending an increase of 4.5% to 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 4.5% 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. This additional monthly charge has not been increased in more than 8 years, and the additional revenues are required to balance the budget. User Cate ories Current Rate New Rate Retail Commercial $2.09 $2.18 Restaurants $3.48 $3.64 Su ermarkets $3.46 $3.62 Institutional and Public $2.01 $2.10 Hos itals $2.15 $2.25 Industrial $1.78 $1.86 The proposed increase in sewer bills will not change the City's position in the benchmarking study (attached) of other neighboring agencies: Redwood City remains in the top five most cost efficient sewer service providers of the all the surveyed agencies. Alternatives There is not a viable, financially sound alternative to provide for the increased cost of sewer services to the community. The City Council could decline to raise the service charge, which would result in lost revenues and a fund deficit of approximately $850,000. Fiscal Impact If the Council approves the proposed changes to the Sewer Service Charge as recommended, a Redwood City residential customer's bimonthlv sewer utility bill will increase by $4.94 or 11.52%, from $42.90 to $47.84. Increases would take effect with the bills sent beginning September 2004. 2of3