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Home My WebLink AboutUAC COSA Presentation 101023 PROPOSED 2024 -2025 ELECTRIC, SOLID WASTE AND STORMWATER RATES Utility Advisory Committee October 10, 2023 3 BHFOEB Utility Rate Change Review Methodology Cost of Service Analysis (COSA) Electric Rates Solid Waste Collections and Transfer Station Rates Stormwater Rates 3135DPTUPGTFSWJDFBOBMZTJTVBDPDUPCFS21-3134 4 VUJMJUZSBUFSFWJFXTDIFEVMF 2024-2025 Rates Proposed in Fall of 2023 2-year rates Stormwater Electric Solid Waste Collections Solid Waste Transfer Station 2025-2026 Rates Proposed in Fall of 2024 2-year rates Water Wastewater 2026-2029 Rates Proposed in Fall of 2025 3-year rates Medic 1 3135DPTUPGTFSWJDFBOBMZTJTVBDPDUPCFS21-3134 5 DPTBQSJODJQMFT Financial Meet revenue requirements Provide revenue stability to the Utility Be easy to administer Customer Requirements Provide rate stability to the customer Be easy to understand Be affordable Other Conform to Generally Accepted Rate Setting techniques Be cost based Encourage economic development and conservation 3135DPTUPGTFSWJDFBOBMZTJTVBDPDUPCFS21-3134 6 31333134DPTB ELECTRIC No rate increase overall Continued the 10-year phase in to shift consumption to base per COSA SOLID WASTE COLLECTIONS AND TRANSFER STATION No change to rates STORMWATER No increase to the residential rate Increased the ERU factor from 15 to 25 3135DPTUPGTFSWJDFBOBMZTJTVBDPDUPCFS21-3134 7 DPTBGBDUPST Methodologies approved by the UAC and City Council in 2019 have been used to calculate all utility rate adjustments. Funding for capital assets are included in the COSA Set through the Capital Facilities Plan Maintenance of required fund balances has been preserved per City Financial Policies Rates have been averaged over the 2 year cycle to provide stability 3135DPTUPGTFSWJDFBOBMZTJTVBDPDUPCFS21-3134 8 DPTBGBDUPST Currently the City is seeing significant increases to the 2024 Budget for personnel costs that resulted from collective bargaining, cost for supplies and services that are attributed to inflation. State mandated requirements are also a factor in these funds. Balancing affordability with maintaining infrastructure through additional capacity is critical so that costs are not deflected to future generations. 3135DPTUPGTFSWJDFBOBMZTJTVBDPDUPCFS21-3134 9 ELECTRIC 3135DPTUPGTFSWJDFBOBMZTJT.VBDPDUPCFS21-3134 : DVSSFOUDPTBwt/QSPQPTFEDPTB Overall Total Increase: $1,777,200 Budget Increase Personnel Costs 10.5% increase Expected Includes City Electrician Supplies 5.6% increase 6.4% Includes BPA payments 3135DPTUPGTFSWJDFBOBMZTJTVBDPDUPCFS21-3134 21 FMFDUSJDSBUFT.DPTB In 2019, in order to keep rates steady a phased approach was taken to build the base rate to appropriate levels. The base rate consists of customer and distribution costs that do not vary based on usage. The City is responsible for these costs even if no services are billed or sold. The ability of the City to ensure the costs of the utility are covered in the event of an emergency is an indicator of economic health and can impact other areas such as bond ratings. This phased in approach was spread across 10 years. Though the base rate increases the corresponding consumption rate decreases. In 2024 2025 this phased in approach is demonstrated without an expected increase to overall customer charges. 3135DPTUPGTFSWJDFBOBMZTJTVBDPDUPCFS21-3134 22 FMFDUSJDSBUFT.DPTB Rates have been averaged over the two-year adoption period to provide stability to customers. The Electric Utility phase in approach is continued with an increase in Base rates and a decrease in variable rates. This approach does not have an overall change in rates and is expected to be cost neutral. This was made possible by savings from an approximately $3.0M credit from the BPA in 2023. 3135DPTUPGTFSWJDFBOBMZTJTVBDPDUPCFS21-3134 23 FMFDUSJDSBUFT.DPTB RESIDENTIAL BASE PHASE-IN CALCULATION 2020 Adopted2021 COSA after 1/20 phase inbefore phase Difference1/9th Base 22.620 46.20 23.5800 2.6200 Energy 0.07102 0.05081 10,707,63310,707,63310,707,633 2020202120222023 Prior base rate 22.620 25.24 27.86 Adjust for 1/9th of difference 2.6200 2.6200 2.6200 New Base rate 22.620 25.24 27.86 30.48 3135DPTUPGTFSWJDFBOBMZTJTVBDPDUPCFS21-3134 24 FMFDUSJDSBUFT.DPTB ELECTRIC UTILITY 2022-2023 rates2024-2025 Rates BaseDemandEnergyBaseDemandEnergyBaseDemandEnergy Residential 29.17 0.06596 34.41 0.06130 5.24 - (0.00466) Residential 35% Disc 18.95 0.04288 22.35 0.03986 3.40 - (0.00302) Residential 25% Disc 21.87 0.04948 25.79 0.04599 3.92 - (0.00349) Non Profit 1 Phase 34.21 0.05486 39.59 0.05370 5.38 - (0.00116) Non Profit 3 Phase 75.99 0.05589 83.97 0.05417 7.98 - (0.00172) General Service 1 Phase 36.45 0.06095 42.51 0.05782 6.06 - (0.00313) General Service 3 Phase 83.31 0.06343 94.09 0.05934 10.78 - (0.00409) GS Municipal 1 Phase 35.02 0.06639 40.10 0.06229 5.08 - (0.00410) GS Municipal 3 Phase 80.19 0.07748 88.79 0.07055 8.60 - (0.00693) GS Demand 1 Phase 75.56 4.462 0.05257 87.94 4.462 0.05198 12.38 - (0.00059) GS Demand 3 Phase 151.93 4.462 0.05212 161.41 4.462 0.05166 9.48 - (0.00046) GS Dem Municipal 1 Phase 80.62 4.462 0.05536 95.10 4.462 0.05467 14.48 - (0.00069) GS Dem Municipal 3 Phase 151.07 4.462 0.05180 160.05 4.462 0.05137 8.98 - (0.00043) 3135DPTUPGTFSWJDFBOBMZTJTVBDPDUPCFS21-3134 25 SOLID WASTE 3135DPTUPGTFSWJDFBOBMZTJT.VBDPDUPCFS21-3134 26 CVEHFUDIBOHFT3134wt/3135 Overall Total Increase: $3,826,800 Budget Increase Personnel Costs 9.8% increase Expected Other Services 31.7% increase -$1.0M settlement payment 29.7% Debt Payments 75.0% increase Includes payments to the Water division for the Staff recommendation of a $1.5M interfund loan from the water division 3135DPTUPGTFSWJDFBOBMZTJTVBDPDUPCFS21-3134 27 DPMMFDUJPOTSBUFT.DPTB SOLID WASTE COLLECTION Accounts2020-23 Rate2024-25 RateDifference% Total Res-Weekly 2,836 39.970 43.375 3.41 Б͵Ўі 25% discount 20 30.235 32.810 2.58 Б͵Ўі 35% discount 43 26.205 28.435 2.23 Б͵Ўі Res-EOW 4,536 26.740 31.175 4.44 ЊЏ͵Џі 25% discount 35 20.050 23.390 3.34 ЊЏ͵Аі 35% discount 79 17.380 20.270 2.89 ЊЏ͵Џі Res-Yard Waste 3,590 8.875 10.165 1.29 ЊЍ͵Ўі Comm-90g 611 37.880 40.810 2.93 А͵Аі Fed 90G 1 34.370 37.029 2.66 А͵Аі Comm-300g 876 97.610 111.605 14.00 ЊЍ͵Ќі Schools/Comm-Recycle 115 15.705 40.490 24.79 ЊЎА͵Бі Muni/City-90g 51 34.780 38.205 3.43 В͵Бі Muni/City-300g 134 92.775 105.630 12.86 ЊЌ͵Ві Comm Yard Waste 14 8.875 10.165 1.29 ЊЍ͵Ўі Fed-300g 17 91.690 107.595 15.91 ЊА͵Ќі 12,958 3135DPTUPGTFSWJDFBOBMZTJTVBDPDUPCFS21-3134 28 USBOTGFSTUBUJPOSBUFT.DPTB SOLID WASTE TRANSFER STATION Tons2020-23 Rate2024-25 RateDifference% Total Commercial/City HaulersRateSurchargeTotalRateSurchargeTotal MSW 24,202 119.48 25.51 144.99 169.91 25.51 195.42 50.43 ЌЍ͵Бі MSW COPA 12,496 119.48 25.51 144.99 154.28 25.51 179.79 34.80 ЋЍ͵Љі YW 1,483 31.55 - 31.55 196.06 - 196.06 164.51 ЎЋЊ͵Ѝі Self Haul MSW 15,764 162.99 30.99 193.98 213.04 30.99 244.03 50.05 ЋЎ͵Бі MSW-Charity 83 77.26 15.50 92.76 101.40 15.50 116.90 24.14 ЋЏ͵Љі Tires 39 184.48 184.48 244.03 - 244.03 59.55 ЌЋ͵Ќі Asbestos 1 411.02 411.02 449.89 - 449.89 38.87 В͵Ўі Contaminated Soils 0 218.52 218.52 492.93 - 492.93 274.41 ЊЋЎ͵Џі Yard Waste 1,063 51.19 - 51.19 253.52 - 253.52 202.33 ЌВЎ͵Ћі Metals and White Goods 439 78.40 78.40 117.40 - 117.40 39.00 ЍВ͵Аі Environmental fee 968 25.82 25.82 39.41 - 39.41 13.59 ЎЋ͵Џі Blue Mountain 1,128 225.90 30.99 256.89 291.91 30.99 322.90 66.01 ЋЎ͵Аі 57,665 3135DPTUPGTFSWJDFBOBMZTJTVBDPDUPCFS21-3134 29 STORMWATER 3135DPTUPGTFSWJDFBOBMZTJTVBDPDUPCFS21-3134 2: CVEHFUDIBOHFT3134wt/3135 Overall Total Increase: $261,700 Budget Increase Personnel Costs 6.8% increase Includes Expected additional Utility Worker per State Mandates for NPDES permit requirements. 8.2% Capital Transfers 9.1% increase 3135DPTUPGTFSWJDFBOBMZTJTVBDPDUPCFS21-3134 31 TUPSNXBUFSSBUFT.DPTB STORMWATER UTILITY 2022/23 COSA2024/25 COSA Equivalent ERU's$Change% Change 3,000 sq/ft w disc3,000 sq/ft w disc Rate Revenue 2,672,234 3,272,790 600,55622.5% Max ERU's 25 50 25 Equivalent ERU 13,165 14,329 1,1648.8% Rates/year 202.98 228.40 25.4212.5% Residential 7,129.00 204.06 229.59 25.5312.5% 25%Disc 57.00 132.64 149.23 16.5912.5% 35% Disc 35.00 153.05 172.19 19.1412.5% Commercial 6,927.45 203.03 228.67 25.6412.6% Fed Non Taxable 180.61 193.55 224.10 30.5515.8% 14,329.06 3135DPTUPGTFSWJDFBOBMZTJTVBDPDUPCFS21-3134 32 DPODMVTJPO Low Consumption - Lowest 20%2022-232024-25 Total Total Base/TieredConsumptionBase/TieredConsumptionDifferenceDifference Approx. 1,700 customerConsumptionMonthlyMonthly RateChargesRateCharges$% ChargesCharges Electric382 29.17 25.20 54.37 34.41 23.42 57.83 3.466.4% Water 141 40.86 3.55 44.41 40.86 3.55 44.41 -0.0% Wastewater141 34.96 6.92 41.88 34.96 6.92 41.88 -0.0% CSO141 13.92 2.17 16.09 13.92 2.17 16.09 -0.0% Solid Waste CollectionsEOW 26.74 - 26.74 31.175 - 31.18 4.4416.6% Yard Waste ContainerBi-Weekly 8.875 - 8.88 10.165 - 10.17 1.2914.5% Medic I 12.37 - 12.37 12.37 - 12.37 -0.0% 204.74 213.93 9.184.5% 3135DPTUPGTFSWJDFBOBMZTJTVBDPDUPCFS21-3134 33 DPODMVTJPO Medium Consumption2022-232024-25 Total Total Base/TieredConsumptionBase/TieredConsumptionDifferenceDifference aprox 5,200 customerConsumptionMonthlyMonthly RateChargesRateCharges$% ChargesCharges Electric1277 29.17 84.23 113.40 34.41 78.28 112.69 (0.71)-0.6% Water 730 40.86 18.40 59.26 40.86 18.40 59.26 -0.0% Wastewater730 34.96 35.84 70.80 34.96 35.84 70.80 -0.0% CSO730 13.92 11.24 25.16 13.92 11.24 25.16 -0.0% Solid Waste CollectionsWeekly 39.97 - 39.97 43.375 - 43.38 3.418.5% Yard Waste ContainerBi-Weekly 8.875 - 8.88 10.165 - 10.17 1.2914.5% Medic I 12.37 - 12.37 12.37 - 12.37 -0.0% 329.84 333.83 3.981.2% 3135DPTUPGTFSWJDFBOBMZTJTVBDPDUPCFS21-3134 34 DPODMVTJPO High Consumption - top 20%2022-232024-25 Total Total Base/TieredConsumptionBase/TieredConsumptionDifferenceDifference aprox 1800 customerConsumptionMonthly Monthly RateChargesRateCharges$% ChargesCharges Electric2664 29.17 175.72 204.89 34.41 163.30 197.71 (7.17)-3.5% Water 4420 40.86 296.67 337.53 40.86 296.67 337.53 -0.0% Wastewater4420 34.96 217.02 251.98 34.96 217.02 251.98 -0.0% CSO4420 13.92 68.07 81.99 13.92 68.07 81.99 -0.0% Solid Waste CollectionsWeekly 39.97 - 39.97 43.375 - 43.38 3.418.5% Yard Waste ContainerBi-Weekly 8.875 - 8.88 10.165 - 10.17 1.2914.5% Medic I 12.37 - 12.37 12.37 - 12.37 -0.0% 937.60 935.12 (2.48)-0.3% 3135DPTUPGTFSWJDFBOBMZTJTVBDPDUPCFS21-3134 35 DPODMVTJPO 35% Med - middle 65%2022-232024-25 Elec range 178/mo to Total Total Base/TieredConsumptionBase/TieredConsumptionDifferenceDifference 3529/mo. Water range ConsumptionMonthlyMonthly RateChargesRateCharges$% 144/mo to 1704/moChargesCharges Electric845 18.95 36.23 55.18 22.35 33.68 56.03 0.851.5% Water 875 26.56 14.72 41.28 26.56 14.72 41.28 -0.0% Wastewater875 22.72 27.96 50.68 22.72 27.96 50.68 -0.0% CSO875 8.89 8.66 17.55 8.89 8.66 17.55 -0.0% Solid Waste CollectionsEOW 17.38 - 17.38 20.270 - 20.27 2.8916.6% Yard Waste ContainerBi-Weekly 8.875 - 8.88 10.165 - 10.17 1.2914.5% Medic I 12.37 - 12.37 12.37 - 12.37 -0.0% 203.31 208.34 5.032.5% 3135DPTUPGTFSWJDFBOBMZTJTVBDPDUPCFS21-3134 36 DPODMVTJPO 25% Med - middle 75%2022-232024-25 Elec range 166/mo to Total Total Base/TieredConsumptionBase/TieredConsumptionDifferenceDifference 2383/mo. Water range ConsumptionMonthlyMonthly RateChargesRateCharges$% 165/mo to 3335/moChargesCharges Electric1101 21.87 54.48 76.35 25.79 50.63 76.42 0.080.1% Water 756 30.64 14.67 45.31 30.64 14.67 45.31 -0.0% Wastewater756 26.22 27.86 54.08 26.22 27.86 54.08 -0.0% CSO756 10.26 8.62 18.88 10.26 8.62 18.88 -0.0% Solid Waste CollectionsEOW 20.05 - 20.05 23.390 - 23.39 3.3416.7% Yard Waste ContainerBi-Weekly 8.875 - 8.88 10.165 - 10.17 1.2914.5% Medic I 12.37 - 12.37 12.37 - 12.37 -0.0% 235.91 240.62 4.712.0% 3135DPTUPGTFSWJDFBOBMZTJTVBDPDUPCFS21-3134 37 DPODMVTJPO Staff is committed to ensuring utility rates remain affordable to our community. This is particularly important as we consider the effects of high inflation and current economic trends. Though rate increases are projected in some utilities in the coming year Staff have worked to ensure the impact is as minimal as possible while balancing the needs of the utilities including infrastructure and capacity. 3135DPTUPGTFSWJDFBOBMZTJTVBDPDUPCFS21-3134 38 VUJMJUZBEWJTPSZDPNNJUUFF Forward a favorable recommendation for the Staff Recommended 2024 -2025 Electric, Solid Waste and Stormwater rates to City Council. 3135DPTUPGTFSWJDFBOBMZTJTVBDPDUPCFS21-3134 39 VUJMJUZBEWJTPSZDPNNJUUFF QUESTIONS AND DISCUSSION 3135DPTUPGTFSWJDFBOBMZTJTVBDPDUPCFS21-3134