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HomeMy WebLinkAboutUtility presentation 01-23-171/25/2017 1 WESTLAKE UTILITY RATE WORKSHOP January 23, 2017 1/25/2017 2 WESTLAKE UTILITY RATE WORKSHOP •Council Financial Policy •Revenue Requirement Projections –How much money is needed? –Capital Projects •Cost of Service Analysis –From whom should the money be collected? •Design of recommended rates –How should services be priced? Key Drivers When Evaluating Rates: 1/25/2017 3 WESTLAKE UTILITY RATE WORKSHOP •Are the existing or proposed rates fair and equitable? •Are the existing or proposed rates affordable? •Are the existing or proposed rates easy to understand? •Are they competitive with neighboring communities? Customer’s Perspective of Rates 1/25/2017 4 WESTLAKE UTILITY RATE WORKSHOP 2017 Water Rate Drivers •Current Water Revenue underperforming (revenues<expenditures) by approximately 19%. •3% rate increase from City of Fort Worth. •Phase 1 Fort Worth Waterline project $888,157 this FY. •Phase 2 Fort Worth Waterline project $4.0 MM over a four year period ($1.0 MM/year) 1/25/2017 5 WESTLAKE UTILITY RATE WORKSHOP 2017 Sewer Rate Drivers •Current Sewer Revenue underperforming (revenues<expenditures) by approximately 17%. •Southlake sewer payment increase of $410,000 for N-1 flows •The Town’s wholesale wastewater provider, Trinity River Authority, treatment cost 1/25/2017 6 WESTLAKE UTILITY RATE WORKSHOP PROPOSED RATE IMPACT •The average residential water charges will be increased by approximately 8.5%. •The average residential sewer charges will be increased by approximately 13.8%. •The average commercial water charges will be increased by approximately 8.5%. •The average commercial sewer charges will be increased by approximately 13.9%