Water Rate Design & Public Involvement City of Water Rate
Tigard
Design and Public Involvement
A Presentation for
Samarinda,Indonesia
October 20-25,2003
International City Managers Association
Resource City Program Cltv of
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Building the Rate Analysis
� Historical Data&Utility Performance
Fiscal Policies
Revenue Requirements
Capital Planning
Financial Model Preparation
Expected Outcomes
�=-> Review the City's existing fiscal
management policies and make
recommendation for enhancement.
Perform a cost of service study to match
rate revenue to costs of future CIP and
operating expenses.The results of this
will yield a new proposed schedule of
rates and charges for water service
consideration by the Council.
Expected Outcomes
Evaluate cost of fees and services
provided by the City and make
recommendations for improvements for
cost recovery.
Compare fees charged(and not charged)
in Tigard to those in comparable
jurisdictions in the Portland Metro area.
Complete the study by date certain.
Citizens Committee Structure
12—15 people
Clear charter: roles, responsibilities,
authority
Mayor/Council appointment
Who: schools/universities,churches,
hospitals, chamber of commerce,
neighborhood assoc.,Council, business
owners, environmental interests...
Citizens Committee Structure
"People who represent their interests but
can bring a citywide perspective to the
table"
Tri-weekly for 90 minutes
Keep a summary, not minutes
Use"issue papers"to move the process
forward
Role of a Citizens Group
STEP 1 Ustot issues to be STEP 2:Research each of the
-; addressed through meetings issues and prepare a concise
!; with the board:egs,low income., summary addressing
rates;customer classes;.. background,options;
conservation rate structures; costs/benefits.and approach
capital re-investment
----.___.
STEP 4:Finalize issue papers STEP 3:present draft issue
based on board input and �_ papers to the board for input,
direction :discussion and specrfic directlonl
STEP 5:Based on Issue papers,incorporate these 1
directives into the recommended water rates and
funding structure for Council
Tigard Water Service Area Water
Rate Increase
Question:
• Shall the City Council amend the current
water rates,water meter installation charges,
and other water related service charges to
reflect increases in costs associated with
providing these services?
Tigard Water Service Area
Water Rate Increase
In 1999,the City commissioned a water rate
study
6 Completed in April 2000
• Rate model projects a multi-year rate
increase
6 IWB adopts multi-year approach
Tigard Water Service Area
Water Rate Increase
In May 2000,Council approved a 3%increase in
rates,fees,and charges for water and water
related services
• Effective July 1,2000
On Feb 27,2001,Council approved a 15%rate
increase
• Effective May 1,2001
2002 Rate Review
Major assumptions of 2000 rate model reviewed
• Purchase of water from outside entities
• 40 million dollar CIP
• ASR development costs
• Customer growth continues
• City"behind"on scheduled rate increases
New issues/program changes
• School District bond issue
• Accelerates CIP program
• Revenue bond sale anticipated
2002 Rate Proposal
Multi-year strategy
• Resolution will set rates for next 3 years
2002-10%increase
2003-6%increase
2004-6%increase
Effective date moves to October 1, 2002
• Minimizes impacts on summer usage
• Allows information campaign to take on
conservation message
T nIgh We Are Requesting Council
to Approve the Following Rates
§ eaD _.__
#2 ! ! 2 $01,3 1 104 \
Customer chi ■ . ## «66 #q \
Booster Charge: a@ #g . «2 #p
Volume Charges(per CCF):
Existing 10/01!02 10101/03 10101104
Residential: $1.56 $1.71 $1.81 $1.92
Multi-family: $1.54 $1.69 $2.04 $2.16
Commercial: $1.81 $1.99 $2.11 $2.24
Industrial: $1.50 $1.65 $1.75 $1.86
Irrigation: $1.93 $2.12 $2.25 $2.39
Recommended fee increases have been
reviewed and approved by the IWB
If approved by Council,the new fees and
charges will become effective October 1,
2002