The IVGID Board of Trustees was asked 1) to approve proposed rate increases and fee schedules for sewer and water, based, in large part, on a the draft HDR Utility Rate study which included a detailed cost of service study (proportional distribution of expenses) for each customer class and 2) set a date for the public hearing on these proposed changes.
HDR Associate Vice President Shawn Koorn gave a presentation summarizing the objectives, methodology and conclusions of the rate study. A preliminary draft of the rate study is included in the board packet beginning on page 91.
Some key points of the rate study include:
- A 20% proposed overall increase is needed in water revenues; sewer revenues require a 15% increase overall.
- For water rates, the following table shows the increased costs of service by customer classification:
- Residential +14.8%
- Multi-Family +15.0%
- Commercial +17.7%
- Irrigation +74.4% (newly created customer classification)
- Snowmaking +26.7%
- Resulting in a distributed total rate increase of 20%
- For sewer rates, the following table shows the increased costs of service by customer classification:
- Residential +9.4%
- Multi-Family +15.2%
- Commercial +37.3%
- Resulting in a distributed total rate increase of 15%
- Borrowing (possibly short-term loans, as well as bonds) are expected to be needed to cover capital projects including the effluent pipeline now estimated to cost $43 million.
- Utility fund reserves are expected to drop below the level required by Board policy, requiring continued rate increases.
The Board requested staff to continue to explore ways to address, and possibly reduce, the identified funding needs. Trustees have been asking for information about bonding requirements. Finance Director Navazio will bring materials to the March 30th meeting.
The Trustees approved the date and time for the public hearing for April 27, 2022 at 6 p.m.