|
|
|
 |
RESOLUTION: 2007-22
SUBJECT: Update water utility rates.
RECOMMENDATION: Approval
SUMMARY AND BACKGROUND OF SUBJECT MATTER:
The City purchases water from the Denver Water Department and distributes it to approximately 725 customers in an area generally east of Pierce Street and north of 12th Avenue. Sixteen other entities serve the remainder of the City.
The rates charged the City's water customers are changed from time to time to address increases in costs of purchasing water, maintenance and operations. The City water utility is an enterprise fund for which rates must be sufficient to cover all costs of service attributable to the City's water customers. No general fund revenue is used by the water utility and water utility revenue is not available for purposes other than providing water service to the utility's customers.
Lakewood's utility rates are currently inadequate to cover costs due to Denver Water rate increases. The cost of purchasing water from Denver Water accounts for approximately 75% percent of the costs incurred to operate the water utility.
Public Works recommends rates be modified effective May 2007 to those shown in the attached resolution. The bill for a typical single-family home in the Lakewood service area would increase from $58.72 to $67.46 per two-month billing cycle under the proposed rates.
Lakewood rates last increased in January 2006. Denver increased rates effective in January 2006 and increased them another 8% effective January 2007. It is anticipated that future Denver Water rate increases will be in the 8 to 10 percent range annually.
Staff anticipates that Lakewood rates in effect from this recommended mid-year increase would remain unchanged through the remainder of 2007 and all of 2008. Staff is recommending that future annual Denver Water rate increases be passed on to Lakewood customers on an annual basis rather than every two years. It is anticipated the staff will bring a resolution before City Council in 2008 to again adjust rates.
During May 2007, a mailing will be sent to the City's water customers notifying them of the 2007 rate change and the reason for the change. The first bills using the new rate would be due approximately July 31, 2007 if Council approves.
RESOLUTION ADOPTION DATE: April 23, 2007
ORIGINATED BY: Department of Public Works
STAFF PERSON RESPONSIBLE: Jay N. Hutchison, City Engineer, 303-987-7916
DOCUMENTS ATTACHED: Resolution 2007-22
SUBMITTED BY:
Richard J. Plastino, Director of Public Works
REVIEWED BY:
Joni Inman, Director Mayor and City Manager's Office
Michael J. Rock, City Manager
 |
||
Americans with Disability Act (ADA) Notice |
||
