Title
Presentation of the 2021 Utility Rate Study.
Summary
Staff has worked with NewGen Strategies and Solutions (NewGen) on a cost of service and rate study analysis for the City of Pflugerville's water and wastewater rates. Historical data and future projections were considered 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 will be presenting the results of this study. This information was also presented to the Finance and Budget Committee on July 29, 2021. The Committee unanimously recommended the proposal to the City Council.
This item has been included as a presentation item on the agenda to allow for presentation and discussion, in which consideration of the recommended increases are included in the Master Fee Schedule Ordinance that is included on the same agenda for first reading.
Included in the attached presentation 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 $5.70 a month increase for FY22 for the average residential water customer. This breaks down to a monthly increase of $2.00 on the fixed charge and $3.70 on the volumetric charge. For wastewater, staff is recommending a $0.50 increase per month for the average residential wastewater customer. This breaks down to a monthly increase of $0.50 on the fixed charge and $0...
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