Report Prepared by: Stephanie R. Dietz, City Manager and Venus Rodriguez, Finance Officer
Title
SUBJECT: Review, Discussion and Direction Regarding Community Funding Requests, Water Rates, Parks and Community Services Program Fees, and of the City of Merced Fiscal Year 2023/24 Budget
REPORT IN BRIEF
Review of the Community Funding Requests, Discussion and Direction on Water Rates and Parks and Community Services Program Fees, and the City Manager's proposed FY 2023/24 Budget.
RECOMMENDATION
For information and discussion only.
Body
AUTHORITY
Charter of the City of Merced, Section 1104.
CITY COUNCIL PRIORITIES
As provided for by the City Council during priority setting session.
DISCUSSION
The City Council and the Public to be presented the proposals for Community Funding and City Manager's proposed FY 2023/24 budget.
Water Rate Update
The last Water Rate and Connection Fee study was completed and adopted by the City Council on November 5, 2018. The water rate study indicated 2% increase annually to rates and fees over 3 years. As of 2022-23 the adopted ordinance requires the City to increase its fees per a consumer price index (CPI) annually until the next Water Rate Study is completed and adopted. In May 2022, staff recommended to the City Council to not increase the water rates since there was a plan to complete a water rate study and the operating fund was healthy. Unfortunately, due to some delays in finalizing the sewer master plan Public Works was unable to complete a water rate study. The city will be working on completing a new Water Rate Study in this coming fiscal year.
The current water rate for a single-family home is $32.25, which includes a cumulative increase of $1.86 over the last 4 years. If the city increases the Water Rate based on the ordinance it is scheduled to increase $1.94 (6%) and would be effective 7/1/2023. Attached you will find the last 4 years of increases and what the increases would be if we implemented p...
Click here for full text