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Utility Rate Study presentation 02-26-182/27/2018 1 WESTLAKE UTILITY RATE WORKSHOP February 26, 2018 2/27/2018 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: 2/27/2018 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 2/27/2018 4 WESTLAKE 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 2/27/2018 5 WESTLAKE 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 2/27/2018 6 WESTLAKE 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