CITY COUNCIL AGENDA ITEM
ACTION REQUESTED:
title
??Conduct the first reading of an ordinance amending Title 8 (Public Utilities) Chapter?2?(Municipal Water and Sewer) Article C (Water and Sewer Rates, Connection Charges) and Chapter 3 (Utility Service) of the Naperville Municipal Code?
body
DEPARTMENT: Water Utilities?
SUBMITTED BY: Darrell Blenniss, Director of Water Utilities
BOARD/COMMISSION REVIEW:
The Public Utilities Advisory Board (PUAB) reviewed Water's proposed service levels and capital plan at its Feb. 28, 2024, meeting and unanimously approved staff's recommendations.
The Financial Advisory Board (FAB) reviewed funding recommendations aligned with the PUAB-approved service levels at its Sept. 4 and Oct. 28 meetings. The FAB recommended exploring a scenario that leveraged existing low levels of debt to increase near-term borrowing, thereby lowering the initially proposed rate increase percentages. This amended scenario was presented at the Oct. 22 City Council budget workshop and approved by the FAB on Oct. 28.
BACKGROUND:?
Serving approximately 45,000 customers?and?a population?of more than 149,000, Naperville?Water Utilities (Utilities) provides?high-quality, reliable, and critical?services to?the?community.?Detailed financial planning, including annual budget development and periodic rate studies,?is?essential?to provide?continuity of services and?sustainable?capital investment.??
The Water Utilities' last rate study was conducted in 2021 to help plan for financial needs through 2024,?with the City Council approving rate increases?that went into effect in January 2022. With the Utilities now in the final?year of the 2024 study, staff?contracted with Carollo FMG to determine an appropriate financial plan through?2027?and a?rate schedule for the next three years.?
The?2024?rate study involved?the creation of a revenue sufficiency model, a cost-of-service evaluation, an expanded capital improvement plan,?and a review of the existing ra...
Click here for full text