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City staff brief council on Upper Trinity wholesale rate adjustments; modest bill impacts expected
Summary
City staff reported proposed adjustments to pass-through wholesale water and sewer charges from Upper Trinity Regional Water District, noting wholesale costs account for roughly half of expenditures and that proposed changes should produce only small average-bill effects for residents.
City staff presented an informational update on Dec. 10 about proposed adjustments to the city’s wholesale water pass-through rates tied to the Upper Trinity Regional Water District.
Ken told council the wholesale component represents roughly half of the city’s utility expenditures and that the city periodically adjusts pass-through charges based on Upper Trinity’s new annual rates. "It's set up to be ... it's a pure pass through intent," Ken said, explaining the approach of matching the district’s changes to avoid shifting wholesale cost volatility into the city rate structure.
He described recent increases: the wholesale water rate rose from about $1.49 to $1.56 per thousand gallons over a recent update and the city’s subscriptions for 3 MGD capacity produced an $117,000 increase tied to demand charges. On the sewer side, Ken said rates have held steadier and the fixed component slightly decreased this year.
Staff proposed increasing the wholesale water demand component (a fixed charge) and modestly adjusting volume rates while reducing one sewer component, which staff projected would largely offset on average for a typical residential bill. Ken said the city has underbilled approximately $125,000 in cumulative wholesale costs since the program began and plans to make the rate change on the December billing and revisit the exercise next year.
Council asked whether changes apply across residential and commercial customers; staff confirmed they apply across the board.
What’s next: Staff said the change will be applied to the December billing cycle and that the city will repeat the analysis next year to smooth the adjustment over time.
