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HomeMy WebLinkAbout1996-05-23 City Council (12)TO: BUDGET 1996-98 City of Palo Alto City Manager’s Report HONORABLE CITY COUNCIL ATTENTION:FINANCE COMMITTEE FROM:CITY MANAGER DEPARTMENT: UTILITIES DATE:MAY 23, 1996 CMR:263:96 Utilities Bill ComparisonsSUBJECT: RECOMMENDATIONS This is an informational report and no Council action is required. This report indicates the total bill impact of the proposed rate adjustments for FY96-98 on Palo Alto residents and businesses. It also compares a typical utilities bill in Palo Alto with utility bills in surrounding cities. POLICY IMPLICATIONS This report does not represent any change to existing policies. EXECUTIVE SUMMARY The following table indicates the proposed rate adjustments for FY96-98 by fund. The adjustments are expressed as a system average percentage, but the actual percentage change in a customer’s bill may vary by usage level. UTILITY PERCENT CHANGE IN PERCENT CHANGE IN FISCAL YEAR 96-97 FISCAL YEAR 97-98 WATER +6 +7 GAS -12 0 ELECTRIC 0 0 WASTEWATER -9 0 COLLECTION REFUSE +9 +9 STORM DRAIN 0 0 CMR:263:96 Page 1 of 2 Attached to this report are Tables 1-3 showing the approximate bill impact of the proposed utility rate adjustments for the next two years, as well as current rate projections through FY2000-01. The percentages in the table reflect the staff rate proposals and are a better indication of the bill impact upon a specific size and class of customer than the system average numbers above. Table 1 indicates that the combined bill impact for the rate proposals on a residential customer is approximately 1.4% and 3.9% for FY96-97 and FY97-98 respectively. Table 2 indicates that the combined bilJ impact of the rate proposals for a commercial customer is approximately -2.5% and 1.3% for FY96-97 and FY97-98 respectively. Table 3 indicates that the combined bill impact of the rate proposals for an industrial customer is approximately -3.1% and 0.7% for FY96-97 and FY97-98 respectively. It is important to note also that utilities bills for FY 1995-1996 were below the previous year’s level for all classes of customers. Table 4 (attached) compares a residential utilities bill in Palo Alto with similar utility bills in Surrounding cities. FISCAL IMPACT The fiscal impact of the proposed rate changes proposal staff reports. is identified in the respective rate PREPARED BY:Randy Baldschun, Assistant Director of Utilities, Administrative Services DEPARTMENT HEAD REVIEW: CITY MANAGER APPROVAL: of Utilities / JU~ FLE)JI~NG // /M a er %/ CMR:263:96 Page 2 of 2 ¯ --o o o o r~ ~ o 0o 0 0 o