City Council Regular - Updated


Print

Return to the Search Page Return to the Agenda
  ITEM 25.       
Meeting Date: 08/10/2021  
Submitted For: Craig Johnson
Department: Water Services  

Subject
RESOLUTION NO. R21-77
 
A RESOLUTION OF THE COUNCIL OF THE CITY OF GLENDALE, MARICOPA COUNTY, ARIZONA, ADOPTING THIS NOTICE OF INTENTION TO INCREASE WATER AND SEWER USER CHARGES; SETTING A PUBLIC HEARING ON PROPOSED INCREASES; AND FILING WRITTEN REPORTS SUPPORTING THE PROPOSED INCREASES WITH THE CITY CLERK.
Presented by: Vicki Rios, Assistant City Manager 
                       Jack Friedline, Assistant City Manager
Purpose and Recommended Action
This is a request for City Council to waive reading beyond the title and adopt a resolution declaring the City’s intention to increase the water and sewer rates and setting the public hearing on the proposed increases for October 26, 2021.
 
Background
At the January 12, 2021 City Council Workshop, staff presented the Five-year Financial Forecast for the General Fund and other major operating funds. The forecast for the Water and Wastewater Enterprise Funds indicated that without taking additional financial measures, the working capital balance would fall below the minimum level established by Council policy.  
 
Infrastructure improvements for $395 million are planned over the next ten years to provide water and sewer services with a high degree of reliability.  Rate adjustments are necessary to provide the financial resources necessary to complete required system repairs and improvements; and to operate and maintain the system 24 hours a day every day. 
 
In December 2020, a rate consultant was hired to review the Five-year Financial Forecast and adopted financial metrics. From the study results, the Citizens Utility Advisory Commission (CUAC) was presented with two rate revenue increase options for consideration. On May 5, 2021, the CUAC recommended both options for Council to consider with Option 2 having preference.
 
On June 8, 2021, staff presented to Council the 5-year Financial Plan, and the proposed two rate revenue increase options for next five years. 

 
Analysis
Rate adjustments are necessary to provide the financial resources to improve the infrastructure at the water and wastewater treatment plants and the water distribution and wastewater collection systems, operate and maintain the system to remain in compliance with federal, state and local regulations.
 
The first step in the rate increase statutory process is for Council to adopt a notice of intention by motion at a regular council meeting to increase water and sewer rates or rate components and set a date for a public hearing on the proposed increase that shall be held at least sixty days after adoption of the notice of intention.
 
Previous Related Council Action
On June 8, 2021, Water and Wastewater Rate Study Update was presented to Council.
 
On March 16, 2021, Council reviewed a Ten-Year Financial Forecast for all the City’s major CIP funds to include the Water and Sewer. 
 
On June 25, 2019, Council conducted a public hearing and approved a resolution increasing water and sewer rates effective January 2020 and 2021.
 
On October 24, 2017, Council conducted a public hearing and approved a resolution increasing water and sewer rates effective January 2018 and 2019.
 
Community Benefit/Public Involvement
Providing the financial resources to operate and maintain the City’s water and sewer systems will ensure regulatory compliance, on-going services for protecting the health and safety of our citizens, and a high quality of life.
 
Public outreach will include notices in the newspaper, Glendale 11, the Glendale website homepage, the Water Services website, and other media outlets. 
 
 
Attachments
R21-77


    

Level double AA conformance,
                W3C WAI Web Content Accessibility Guidelines 2.0

AgendaQuick ©2005 - 2021 Destiny Software Inc. All Rights Reserved.