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 and wastewater utility service; repealing all ordinances to the extent they are in conflict; providing for severability; and providing an effective date.
Summary
Staff has been working with NewGen Strategies and Solutions (NewGen) on an analysis of the City of Pflugerville's water and wastewater rates. Historical data and future projections were considered in the cost of service and rate design study as were assumptions related to customer growth, cost inflation, and interest rates on proposed debt. The 5 year capital improvement program, which includes infrastructure projects necessary to maintain the existing systems and add capacity for growth, is a large portion of the anticipated future spending on both the water and wastewater utility systems.
Grant Rabon of NewGen presented the results of this study during the Council's worksession on September 8, 2020. This information was also presented to the Finance and Budget Committee on July 23, 2020. The Committee recommended the proposal to the City Council.
The annualized increase over the next five years to the revenue of the water and wastewater system through the rates that are being recommended is estimated to be over $5.2 million.
Attached is an analysis of the proposed change in an average monthly residential customer bill for the next five years. This average bill assumes 8,000 gallons of water usage and 5,000 gallons of wastewater usage (due to winter averaging).
The wastewater bills shown are for customers inside the city limits. Customers outside the city limits are charged an additional $5 per month.
Based on the study findings, staff concurs with the recommendation of a $5 a month increase for FY 21 for the average residential water customer. This breaks down to a monthly increase of $1.30 on the fixed charge and $3.70 on...
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