We’re coming up on our annual review of utility rate increases, and I wanted to call out what’s being proposed and why it’s being proposed. For FY 2014-15, the proposed rate increases are
- Water – 5%
- Wastewater – 9%
- Solid Waste and Recycling – 6%
Staff projects that for the typical household, which previously paid $121.10/month on average for all three bills combined, will now pay $128.88/month, or a $7.78 more per month, an overall 6.4% increase. This is obviously larger than usual, so it bears some discussion. The causes are obvious in some cases, not so much in others.
All three of these fees are part of what we call “enterprise funds”, and they have no effect on the General Fund or other city services. We create “enterprise funds” whenever a service needs to operate like an isolated, standalone business. So for solid waste, we have what’s effectively its own budget, and we run the services as a non-profit, and whatever it costs, that’s what we charge. Ditto water and wastewater. We don’t supplement the enterprise funds with tax money or other revenue, and we don’t take any utility revenue out to do other stuff.
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