HomeMy WebLinkAbout02/24/2009 Council Presentation - 2009 Water Rate Plan - Rate Recommendations'1I1=
MARANA
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2009 Water Rate Plan
Rate Recommendations
Public Hearing
' I I ~ I
February 24, 2009
Page: 1
Utilities Commission Members
Dan Jackson, Economists.com
Town of Marana Staff
t, January 20
a Overview of the need for a rate adjustment
t> January 27 -Study Session
Historical information
Current situation -rate options evaluated
a Future impacts
~~ Tonight -Public Hearing
Page 3
The Committee recommends to Mayor and
Council the adoption of the recommended
water rate increase, alternative A, and that
the subsequent rates through 2013 also be
recommended for adoption in January of
2010, 2011, 2012 and 2013 as presented on
January 27, 2009.
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MARANA
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t~ 1990 -Town began providing water service with general fund subsidy
u July 1992 -Rate increased
u 1996 -Rate increased to current base
u 1997 -Town purchased additional water companies
u 1998 - All customers' rates standardized
t~ 2006 -Implemented conservation tier
Page 5
MARANA
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v Inflation
t~ Many water system costs increasing
rapidly
t~ Need to rebuild/replace aging
systems
~~ Environmental and other regulations
Page: 6
~- ~.~~+
MARANA
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Current
3/4" & 1" Fire Meter $14.00
1 " 34.00
1 1 /2" 37.00
2" 43.00
3" 58.00
4" 102.00
5" 152.00
6" 202.00
Residential -- 1997-2006
1,001 Above
Residential -- Current
2.55
1,001 10,000 2.15
10,001 20,000 3.00
20,001 30,000 3.90
30,001 40,000 4.80
40,001 Above 6.90
Non-Residential --Current
MF/Commercial/Govt 2.65
Page: 7
MARANA
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$45.00
$40.00
$35.00
$30.00
$25.00
$20.00
$15.00
$10.00
$5.00
$-
$33.35
$1.0-$5.0 Million
Revenues
1,000-5,000
Connections
State Avg --All
Utilities
Page: 8
$39.01
$41.10
$36.32
Marana
Municipal
Average
Fund all costs of providing water service
Operating costs -Personnel, Repair,
Chemicals, etc.
a Central Arizona Groundwater Replenishment
Costs
Debt Payments
Administration and Indirect Costs
Required Operating Margins and Debt
Coverage
MARANA
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Page: 9
1~ Ensure that the Town's water utility is a
self-sufficient enterprise
Ensures that there are minimal subsidies from
the General Fund
Ensures that costs of providing service are
recovered from those who use the system
Consistent with best practice of municipal
utilities
a Provides additional future bonding capacity
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MARANA
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MARANA
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Current
Effective
Mar-09
Minimum Charge --1st 1,000 Gal
3/4" & 1"fire meter $14.00 $15.12
1 " 34.00 36.72
1 1 /2" 37.00 39.96
2" 43.00 46.44
3" 58.00 62.64
4" 102.00 110.16
5" 152.00 164.16
6" 202.00 218.16
Volume Charge: Per 1,000 Gal
Residential
1, 001 10, 000 2.15 2.32
10,001 20,000 3.00 3.24
20,001 30,000 3.90 4.21
30,001 40,000 4.80 5.18
40, 001 Above 6.90 7.45
Non-Residential
MF/Commercial/Govt 2.65 2.86
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MARANA
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Current
Effective
Mar-09
Residential Monthly Charges -- 3/4"
7,000 $26.90 $29.04
Increase 2.14
10,000 33.35 36.00
Increase 2.65
Commercial Monthly Charges -- 2"
50, 000 172.85 186.58
Increase 13.73
Page: 12
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MARANA
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45.00 ~
I
40.00 ~
35.00
30.00 ~
25.00 ~
20.00
1
15.00
10.00
I
5.00
36.00 37.41
00
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38.94
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Page: 13
36.95
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MARANA
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,~ Town's rates compare favorably to state averages and are
below 1996 levels for most ratepayers
~, Rate adjustments are necessary to fund capital improvements,
environmental regulations and increased operating expenses
,: Rate plan will ensure that there are minimal general fund
subsidies and that costs are recovered from those who use
system
U The increase tonight would be $2-$3 per month for most rate
payers
t> Additional rate adjustments will be required but will be below
state averages
Page: 14
MARANA
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Questions
Page 15