The Water Rate Advisory Committee (WRAC) was commissioned by the City Council on August 15, 2017 with the purpose of reviewing water rate options and providing recommendations in an advisory capacity. Specifically, Council requested that the WRAC review expenses and revenues, while evaluating options for funding by rate adjustments. Council also directed the WRAC to evaluate fixed versus variable revenues. Recommendations were to be provided by WRAC on potential adjustments to the ratio currently in place.
Additionally, in light of litigation outcomes, Council directed a review of the City’s tiered water rate structure. Since that time, the WRAC has met four times. Their review and recommendation compilation of each of these items is now complete. The WRAC meeting materials are available for review.
After review of current expenses and future projections, the WRAC recommended a 9.5% per year rate adjustment. They also recommended an increase in fixed revenue from 7% (current) to 20% that will be phased in over the next five years.
In general, the WRAC agrees with staff on the need to fund a small increase in operating expenses while implementing a $14M capital program over the next five years. It also supports the establishment of a new $500k drought reserve in case additional water supplies are needed in the next drought.