Agenda - Council - 06/26/2012 - Laserfiche WebLink

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The main goal of the City Council in updating these comprehensive utility studies was to determine whether there was an opportunity to reduce development fees. After careful analysis, and development of a budget that outlines all expenditures and revenues projected over the twenty year study period, it was concluded that development fees could indeed be reduced. The water system report proposes to hold constant on base water user rates through 2013, and then calls for increases at a rate of 2.5% per year thereafter. It also includes a decrease of $492 per connection in the Water Availability Charge (WAC) from 2012 to 2013, with 2.5% increase per year thereafter. The trunk charge is also proposed to decrease by $668 per connection from 2012 to 2013, with a 2.5% increase per year thereafter. The sanitary sewer report proposes to hold constant on base user rates through 2013, and then calls for increases at a rate of 2.5% per year thereafter. It also includes a decrease of $172 per connection for residential connection charges from 2012 to 2013, with 2.5% increase per year thereafter. The connection charge for commercial/industrial properties is also proposed to decrease by $516 per acre from 2012 to 2013, with a 2.5% increase per year thereafter. Obviously the ebb and flow of development may impact these charges over the course of this planning period, so these fees will be evaluated annually as the City reviews its annual rates and charges. Recommendation: As shown in the background section above, City staff and our consultant have developed these updated comprehensive utility plans by working closely with the City Council. We believe these plans reflect the Council's original goal of looking for opportunities to reduce development fees. In reviewing and preparing these plans a comprehensive analysis was completed to forecast future population growth, evaluate deficiencies in the existing systems, identify improvements that would be necessary to serve future populations, and develop a budget that would adequately finance the utility needs throughout the twenty year planning period. Some minor text revisions are currently being completed on the reports, which should be finished in time for adoption at the meeting. Staff recommends that the City Council adopt the 2012 comprehensive sanitary sewer and water system studies. Funding Source: Funding for these comprehensive utility plan updates are being financed through the corresponding City enterprise funds. Council Action: Motion to adopt the 2012 comprehensive sanitary sewer and water system studies, contingent upon completion of the minor text revisions (if necessary), which can be approved by the City Administrator. Attachments Draft Water System Study Draft Sanitary Sewer Study Form Review Inbox Reviewed By Date Kurt Ulrich Kurt Ulrich 06/21/2012 12:53 PM Form Started By: Tim Himmer Started On: 06/18/2012 04:13 PM Final Approval Date: 06/21/2012