HomeMy WebLinkAboutUtility Rate Study presentation 02-26-182/27/2018 1
WESTLAKE
UTILITY RATE WORKSHOP
February 26, 2018
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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:
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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
2018 Water Rate Drivers
•Current Water Revenue underperforming
(revenues<expenditures) by approximately 5%.
•3% rate increase from City of Fort Worth.
•Phase 2 Fort Worth Waterline project cash payment
$899,000 this FY with remaining balance to be paid
when TWDB funding is received in November.
•Phase 2 Fort Worth Waterline project cost is estimated
to be $2.1 M
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UTILITY RATE WORKSHOP
2018 Sewer Rate Drivers
•Current Sewer Revenue overperforming
(revenues>expenditures) by approximately 10%.
•The Town’s wholesale wastewater provider, Trinity River
Authority, did not increase rates
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UTILITY RATE WORKSHOP
PROPOSED RATE IMPACT
•Staff recommends maintaining existing
rates for the remainder of CY 2018.
•Current rate study will be updated during
FY 18/19 budget preparation to
determine rate recommendations to be
implemented January 2019