Report Prepared by: Venus Rodriguez, Finance Officer
Title
SUBJECT: City of Merced Financial Forecast, CalPERS, Fiscal Year 2020-21 Quarterly and Sewer Rate Update
REPORT IN BRIEF
Presentation of the Financial Forecast, CalPERS, Fiscal Year 2020-21 Quarterly and Sewer Rate Update.
RECOMMENDATION
City Council - Adopt a motion adopting Resolution 2021-121, A Resolution of the City Council of the City of Merced, California continuing the base sewer service rates and charges unchanged for the next calendar year.
Body
CITY COUNCIL PRIORITIES
The City Council has set a policy to be financially sustainable.
DISCUSSION
Presentation to the City Council and the public of the City's Financial Five Year Forecast as well as a CalPERS and Fiscal Year 2020-21 final quarterly update. The City Council has made a policy to become and remain financially sustainable. This presentation is to provide financial information that could assist in guiding future City Council decisions.
Sewer Rate Update
The last Sewer Rate and Connection Fee study was completed and adopted by the City Council on April 5, 2010. The sewer rate study indicated a reduction to rates and fees at that time. Fiscal Year 2010-2015 included no increases to those base rates. As of 2015-16 the adopted ordinance allows the City to increase its fees per a consumer price index (CPI) annually until the next Sewer Rate Study is completed and adopted. The current sewer rate for a single-family home is $43.93, which includes a cumulative increase of $3.64 over the last 6 years. The CPI increases have averaged from 1%-3% annually. If the city increases the Sewer Rate based on the ordinance it is scheduled to increase $2.20 (5%) and would be effective 1/1/2022. Attached you will find the last 3 years of increases and what the increases would be if we implemented per the ordinance.
The City has held off on completing a new Sewer Rate Study until the City's Sewer Master Plan has been finalized. Until the Sew...
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