SUBJECT:
Consideration and Action regarding Ordinance No. 2020-20, 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 the strengths and volume that pass through the system. The City of Fort Worth will increase water rates by 2.33% and decrease wastewater rates by 8.08%. The Fiscal Year 2020-2021 budget includes a water rate increase of 2.5% and a wastewater (sewer) decrease of 5%. Ordinance No. 2020-20 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 $118,750 and the decrease in wastewater (sewer) service rates is estimated to decrease revenue by $139,400. The changes in revenue will be offset in the cost of water purchased and wastewater treatment by the City of Fort Worth.
RECOMMENDATION:
Staff recommends approval of Ordinance No. 2020-20 revising the water and wastewater (sewer) service rates. |