HomeMy WebLinkAbout20. 15-535DECEMBER 8, 2015 15-535 RESOLUTION
(CARRIED___7-0____LOST________LAID OVER________WITHDRAWN________)
PURPOSE: AUTHORIZE STAFF TO COMPLETE AND FILE A WATER RATE
INCREASE APPLICATION WITH THE PUBLIC SERVICE
COMMISSION OF WISCONSIN
INITIATED BY: CITY ADMINISTRATION
BE IT RESOLVED that the proper City Officials are authorized and directed to
complete a water rate increase application, as prescribed by the Public Service
Commission of Wisconsin, and submit such application to the same.
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city ot Osnkosn
Finance Department
215 Church Ave., PO Box 1130
Os�kosh, WI 54903-0130
19201 236-5005 �9201 236-5039 FAX
MEMORANDUM
Honorable Mayor and Members of the Common Council
Trena Larson, Finance Director
December 3, 2015
RE: File water rate increase with Public Service Commission (PSC) of Wisconsin
BACKGROUND
As discussed during the 20t6 Budget Workshops, and included in the approved 2016 Budget, water rates will
need to be increased in 2016 to keep the Utility in a productive capacity, operating at a prudent level.
Staff requests authorization to complete and file a water rate increase application with the Public Service
Commission of Wisconsin (PSC). The PSC regulales all water utilities in Wisconsin, including analyzing and
approving all rate adjustments.
ANALYSIS
The cash Flow analysis which was presented at the Budget Workshop showed a need for an increase of
approximately 15%. This rate increase was included in the 2016 Budget.
The increase is needed due to the following reasons:
. Large Capital Improvement Programs in 2016 and beyond with regard to water infrastructure
projects,
. Funds needed to cover debt payments (i.e. Debt Coverage),
. Decrease in usage from 2013 to the present, and
• Increase in expenses from 2013 to the present.
FISCAL IMPACT
In the 2016 Budget, Utility operating revenues are projected to increase by approximately $1,200,000. The
2016 budget anticipated an implementation of March 1, 2016.
Staff recommends that Council pass this resolution.
Respectfully Submitted,
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Trena Larson
Finance Director
Approved:
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Mark Rohloff
City Manager