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HomeMy WebLinkAboutStaff Report 253-05CMR:253:05 Page 1 of 2 TO: HONORABLE CITY COUNCIL FROM: CITY MANAGER DEPARTMENT: UTILITIES ATTENTION: FINANCE COMMITTEE DATE: MAY 19, 2005 CMR: 253:05 SUBJECT: UTILITIES ADVISORY COMMISSION RECOMMENDATION FOR NO WATER RATE INCREASE DURING FY 2005-06 RECOMMENDATION The Utilities Advisory Commission (UAC) and staff recommend that the City Council not adopt any water rate increases for FY 2005-06. BOARD/COMMISSION REVIEW AND RECOMMENDATIONS Staff had originally recommended an average system rate increase of 5 percent to the UAC at the May 4, 2005 meeting. After discussion, the UAC unanimously recommended no rate increase at this time (4-0, Dahlen absent). Although staff continues to caution that future water rate increases are inevitable, and will be significant, due to the Hetch Hetchy CIP, staff supports the current UAC recommendation, due to the proposed rate increases in electricity, natural gas and wastewater. RESOURCE IMPACT There will be no Resource Impact for FY 05-06. PREPARED BY: Lucie Hirmina , Utilities Rates Manager ______ REVIEWED BY: Tom Auzenne , Asst. Director of Utilities, Administrative Services_____ DEPARTMENT HEAD: _________________________________ JOHN ULRICH Director of Utilities BUDGET ‘05 – CMR:253:05 Page 2 of 2 CITY MANAGER APPROVAL: _________________________________ EMILY HARRISON Assistant City Manager