Title
Approving an ordinance on second reading with the caption reading: AN ORDINANCE OF THE CITY OF PFLUGERVILLE, TEXAS, AMENDING RATES, CHARGES AND FEES FOR WATER, WASTEWATER AND SOLID WASTE UTILITY SERVICE; REPEALING ALL ORDINANCES TO THE EXTENT THEY ARE IN CONFLICT; PROVIDING FOR SEVERABILITY; AND PROVIDING AN EFFECTIVE DATE.
Summary
A complete water and wastewater rate study was done in 2007 with a minor update in 2010. The City of Pflugerville contracted with NewGen Strategies and Solutions to conduct a comprehensive cost of service and rate design study in March of 2014. Staff has been working with NewGen representatives to prepare the final report and rate recommendation.
The overall revenue increase to the water and wastewater utility is 2.4% as a result of the proposed rate structure. It is reflective of the increased cost of raw water from the Lower Colorado River Authority (LCRA); possible curtailment of raw water supply should the drought continue to affect the Highland Lakes levels; the proposed capital improvement project plan totalling $48.9 million over the next five years; and the implementation of best industry practices in the structure of the rates. Best practices include separation of the fixed and variable components of the rate structure; using an inclining block rate to encourage water conservation; a consistent fixed charge for all wastewater customers regardless of water meter size; a reserve representing 25% (three months) of operating expenditures; and maintaining a bond coverage ratio of at least 1.25.
Following City Council review, the section that established water curtailment rates has been removed from the proposed ordinance. Those rates will be considered if LCRA declares a drought worse than drought of record. For most residential water customers using between 5,000 and 25,000 gallons of water per month, the total utility bill will go down as a result of this rate proposal.
The City Attorney has reviewed this ordinan...
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