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City of Topeka
Council Action Form
Council Chambers
214 SE 8th Street
Topeka, Kansas 66603
www.topeka.org |
| | | November 19, 2019 |
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| | | | | | | | | DATE: | November 19, 2019 | | | | CONTACT PERSON: | Braxton Copley, Deputy Utilities Director | DOCUMENT #: | | | SECOND PARTY/SUBJECT: | Proposed Utility Rate Increases | PROJECT #: | | | CATEGORY/SUBCATEGORY | 006 Communication / 005 Other | | CIP PROJECT: | No | | | | ACTION OF COUNCIL: | | JOURNAL #: | | | | PAGE #: | |
| DOCUMENT DESCRIPTION: |
DISCUSSION of proposed utility rate increases.
(Potential rate changes for infrastructure maintenance include a 9% increase for water, 2% wastewater and 9% stormwater in 2021, 2022 and 2023, and an 8% increase for water, 2% wastewater and 8% stormwater in 2024 and 2025.) | | VOTING REQUIREMENTS: | | Discussion only. No action required by the Governing Body. | | POLICY ISSUE: | Potential rate changes for infrastructure maintenance and investment. The proposed rate increases are as follows:
2021 – 9% increase for water, 2% for wastewater, 9% for stormwater
2022 – 9% increase for water, 2% for wastewater, 9% for stormwater
2023 – 9% increase for water, 2% for wastewater, 9% for stormwater
2024 – 8% increase for water, 2% for wastewater, 8% for stormwater
2025 – 8% increase for water, 2% for wastewater, 8% for stormwater | | STAFF RECOMMENDATION: | | Staff recommends approval of proposed rate changes. | | BACKGROUND: | The City has been working with Black and Veatch over the past year to develop and evaluate a comprehensive Utility Rate Study. Much work has gone into determining the condition and replacement cycle of all Utility assets. Throughout the process the City has worked diligently with Black and Veatch to come to a responsible and manageable solution to its Utility infrastructure crisis.
After the presentation and discussion with the Governing Body, the potential rate changes will be presented to various use class groups in the city including industrial, commercial and residential. Staff will continue to take input, evaluate and make adjustments as necessary.
| | BUDGETARY IMPACT: | 2021 - $3,072,400 additional water revenue; $601,700 additional wastewater revenue; $721,000 additional stormwater revenue
2022 - $3,353,200 additional water revenue; $613,700 additional wastewater revenue; $716,000 additional stormwater revenue
2023 - $3,659,500 additional water revenue; $626,000 additional wastewater revenue; $780,800 additional stormwater revenue
2024 - $3,550,100 additional water revenue; $638,500 additional wastewater revenue; $757,000 additional stormwater revenue
2025 - $3,838,900 additional water revenue; $651,300 additional wastewater revenue; $818,700 additional stormwater revenue | | SOURCE OF FUNDING: | | User fees collected for services provided. |
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