SUBJECT:
Consideration and Action regarding Ordinance No. 2019-18, Water 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 the strengths and volume that pass through the system. The City of Fort Worth will decrease water rates by 10.49% and wastewater rates by 3.44%. The fiscal year 2019-2020 budget includes a 5% decrease in water rates and no change in wastewater rates. Ordinance No. 2019-?? addresses the decrease in water rates.
FINANCIAL IMPACT:
The decrease in water rates is estimated to reduce revenue by $250,000 which will be offset by a decrease in the cost of water purchased.
RECOMMENDATION:
Staff recommends approval of Ordinance No. 2019-18 revising the water services rates. |