|
Title:
|
REPORT - 2021 DEMAND FEE UPDATE - RECOMMENDATION TO CITY COUNCIL
BACKGROUND: Demand fees are the one-time fees charged for new service connections to the City’s water and wastewater systems or for an expansion of existing use. The fees are intended to recover costs attributable to new development. Water and wastewater demand fees were last calculated in 2014 resulting in the 2014 Water and Wastewater Demand Study (2014 Study) and development of a new fee schedule that was adopted, with an annual inflationary adjustment.
The proposed update to the 2014 Study incorporates the water and wastewater systems’ updated valuation including additions of assets, depreciation, changes in debt financing, and reserves designated for capital projects; some modifications to the various customer categories; as well as updated water use and sewer flow factors based on data collected over the past four years.
These updates result in the recommended fees being higher per one thousand gallons for bo...
|