What conditions existed that made it possible to keep rates unchanged for ten years?
Primary factors:
- Change of rate structure in 2007 to provide for a Wholesale Pass-Through charge provided an avenue for sufficient ongoing revenues to match related expenditures for roughly ½ of the operational costs.
- Rates for the City portion were determined with intent to provide sufficient revenues for a four to five year window. Previous rate structure, with a graduated rate schedule for higher usage, provided a substantial portion of revenue in summer months. In dry years, increased revenues increased reserves – these used to sustain City during years with increased rainfall and corresponding lower revenues. Reserves were increased in dry years of 2011 and 2012, however it is now apparent there is a sustained change of ongoing reduced usage patterns.

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1. Why has maintenance costs increased?
2. Have maintenance costs increased only in the past year, or over the past ten years when rates were unchanged?
3. What conditions existed that made it possible to keep rates unchanged for ten years?
4. Are financial records available for public review showing projected maintenance costs, loss of revenue from decreased demand, and projected increase in revenue to be used to offset maintenance costs?
5. Citizens and leaders generally try to avoid large increases in taxes, costs and fees. What changes did the City not anticipate in order to avoid this large and unexpected increase?
6. What corrections will the City Council implement to ensure that future unexpected and large increases will not occur?
7. Has any long term planning been done on projected water costs and usage for the next five years?
8. What has the City done to be more efficient? Could cost savings come from reducing staff and expenses?