Title
Presentation of the FY23 Utility Cost of Service Study and Rate Recommendation.
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 28, 2022. The Committee voted 2 - for, and 2 - against the recommended proposal to 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 will be included on the agenda for budget adoption with first reading August 23rd, and second reading and final adoption on September 13th.
Included in the attached presentation is an analysis of the proposed change in an average monthly residential customer bill for the next five years. The average residential customer has been determined to have a 5/8” meter, use 8,000 gallons of water per month and has a winter wastewater average of 5,000 gallons.
The proposed wastewater rate changes shown in the presentation are for customers inside the city limits. The FY22 fee ordinance to adjust wastewater rates for district customers was rescinded with the intentions of renegotiating contracts and fees. The district negotiations have not yet concluded and, as a result, the rate recommendations presented will not impact district customers.
Based on the...
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