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RESOLUTION: 2008-83
SUBJECT: Update water utility rates
ADDRESS: N/A
RECOMMENDATION: Approval
FUNDING SOURCE: N/A
SUMMARY AND BACKGROUND OF SUBJECT MATTER: Public Works staff annually reviews fees for the Lakewood water utility, sewer utility and stormwater management utility. No increases in fees are recommended for 2009 for the sewer utility or the stormwater management utility. An increase is recommended for the water utility.
The Lakewood water utility 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 West 12th Avenue. Sixteen other entities serve the remainder of the City.
The water utility is operated through an enterprise fund for which rates must be sufficient to cover all costs of service, including maintenance, system improvements, and cost of water. The cost of purchasing water from the Denver Water Department accounts for approximately 80% of the costs incurred to operate the utility.
Lakewood last increased water rates in May 2007. Since then, the Denver Water Department has increased the rates charged to the utility by approximately 18%.
The bimonthly bill to customers is the sum of a fixed service charge plus a volume charge, plus, in a few instances, a fire protection charge. Staff recommends increasing the volume charge by 18%, commensurate with the increase from the Denver Water Department. No increases to the service and fire protection charges are proposed. The bimonthly bill for a typical single-family home served by the utility would increase from approximately $55 to $62 under the recommended rates.
If the City Council approves the recommended rates, a notification of the rate increase will be sent to customers in December 2008. The new rates will not apply to water use until after the next meter reading, which will occur on January 15, 2009. The first bills reflecting the new rates will be sent after the March 15, 2009 meter reading and will be due in April 2009.
Public Works recommends modifying the rates, effective January 15, 2009, to
those shown in the attached resolution. All rates are included in the resolution;
however, only the volume charge section shows an increase over current rates.
RESOLUTION ADOPTION DATE: December 8, 2008
ORIGINATED BY: Department of Public Works
STAFF PERSONS RESPONSIBLE: Anne Heine, City Engineer, 303-987-7931
DOCUMENTS ATTACHED: Resolution 2008-83
SUBMITTED BY:
Jay N. Hutchison, Director, Public Works Department
REVIEWED BY:
Joni Inman, Director, Mayor and City Manager's Office
Michael J. Rock, City Manager
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