SUBJECT:
Consideration and Action regarding Ordinance No. 2022-15, Water and Wastewater (Sewer) Service Rates
BACKGROUND/DISCUSSION:
The City of Saginaw contracts with the City of Fort Worth for the purchase of water and the treatment of wastewater. The City of Fort Worth bills the City of Saginaw for water based on volume, and wastewater treatment based on strength and volume that pass through the system. The City of Fort Worth has proposed a 4.23% increase to water rates and a 10.94% increase to wastewater rates. The Fiscal Year 2022/2023 budget includes a water rate increase of 4% and a wastewater rate increase of 11%. Ordinance No. 2022-15 addresses the water and wastewater (sewer) rate changes reflected in the budget.
FINANCIAL IMPACT:
The increase in water rates is estimated to increase revenue by $214,225 and the increase in wastewater rates by $308,225. The increases are necessary to fund the increased cost of water purchase and wastewater treatment to the City of Fort Worth.
RECOMMENDATION:
Staff recommends approval of Ordinance No. 2022-15 revising the water and wastewater service rates. |