HomeMy WebLinkAboutUtility presentation 01-23-171/25/2017 1
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UTILITY RATE WORKSHOP
January 23, 2017
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•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:
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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
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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)
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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
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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%