Study Session 1.
Fundamentals of Water Rate Structures – July 10, 2012.
The City's consultant,
HDR Engineering, will present a thorough discussion on the fundamentals of developing
cost-based water rate structures and the philosophy of rate setting, the
underlying rate setting goals and objectives, terminology, and technical
aspects of rate structure design. The presentation and interactive
dialogue with the Council members and community will guide participants through an
overview of the rate setting methodology and the correlation between
rate structure design and revenue generation which will lay the
foundation for the process.
Study Session 2.
Rate Design Goals and Objectives – August 7, 2012.
A discussion of commonly accepted rate design goals and objectives,
their meanings and implications to an overall rate structure design and
review and discuss typical rate design goals. From this dialogue, the
Council will be asked to prioritize its top six rate structure goals for
use in developing the conceptual rates structures for Council members
review and discussion at Study Session 3.
Study Session 3.
Developing Conceptual Rate Structures – September 18, 2012 (tentative).
The results of the Council weighting of recommended rate structure goals
will be presented and discussed. Based on the prioritized rate design
goals and objectives of the City, up to ten conceptual water rate
designs (rate structures only, no actual rates, meaning no dollars) will
be presented. Based on input from the meeting, HDR and staff will then
narrow the field and select the top three rate structures. These three
rate structures will be evaluated and presented to the Council in Study
Study Session 4.
Technical Review of Rate Structures – October (tentative).
A “road test” of the final selected conceptual rate structures which
will support the prioritized goals and financial policies. Actual rates
and bill comparisons will be used to review any impacts to customers.
Although there will be numbers associated with the “road test”, it is
not an exercise in setting the actual rates. A recommendation on the
rates will be presented to the Council as part of the 2013-2015
financial planning process.
Meeting 5. Selection
of the Final Rate Structure – TBD.
After completion of the study sessions, HDR will provide the Council
with a report summarizing the steps taken to review the rate structure,
an overview of the rate structures reviewed during the study,
recommendations of the analysis HDR will undertake, and a recommended
final proposed rate structure.
After each meeting,
information regarding the outcome of the discussion will be posted along
with any presentation materials that are available. If you have
questions and/or want to provide input, please email Ron Munds at