The ever escalating cost of municipal water

The ever escalating cost of municipal water

I recently, December 30, 2018, ran across a post on Facebook about the cost of water. Apparently, after I did some more reading, the individual was a new homeowner, and they wanted to do a compare and contrast with the water bills from other folks in the area.

The post got a great deal of attention – and actually, considering it was Facebook, many very thoughtful responses.

Many folks either posted a snapshot of their water bill or reported on the cost of a recent water bill, in a reply and then identified how many folks were in the family. I wrote, “Two adults and one imaginary friend: $119.23... We try to conserve water – but we are not frenzied about it.”

Sadly, the cost of water is only going to continue to go up. It’s off the hook. And there is little that local officials can do about it. I wrote an article about the spiraling costs not too long ago. Find it here: https://www.carrollcountytimes.com/columnists/features/cc-lt-dayhoff-090918-story.html 

https://www.facebook.com/groups/1435406516739562/permalink/2295218654091673/ 

*****

Kevin Dayhoff Soundtrack: http://kevindayhoff.blogspot.com/ = http://www.kevindayhoff.net/ Kevin Dayhoff Art: http://kevindayhoffart.blogspot.com/ or http://kevindayhoffart.com/ = http://www.kevindayhoff.com/ Kevin Dayhoff Westminster: http://kevindayhoffwestgov-net.blogspot.com/ or http://www.westgov.net/ = www.kevindayhoff.org Twitter: https://twitter.com/kevindayhoff Twitpic: http://twitpic.com/photos/kevindayhoff Kevin Dayhoff's The New Bedford Herald: http://kbetrue.livejournal.com/ = www.newbedfordherald.net Explore Carroll: www.explorecarroll.com The Tentacle: www.thetentacle.com

Residents say new rates give them a sinking feeling by K Jones

Westminster residents say new water, sewer rates give them a sinking feeling

Council, mayor urged to reconsider timing of implementing both rate structures

By Katie V. Jones Posted http://explorecarroll.com/ 3/24/09

Too much, too soon.

Westminster residents told the city’s mayor and Common Council at a public hearing Monday that they will be flooded with high bills if the proposed new water and sewer rates are in place all at once.

Water and sewer users — both in and out of city limits — said that the rates should be phased in gradually over time, even if that meant there would be a deficit down the road causing higher rates as the council warned.

[…]

Many people in attendance also argued that the average use of 18,000 gallons of water per household, per quarter was beyond reality, and that the rate structure should be based on a higher average such as 22,500 gallons.

Landlords requested that apartment dwellers be given the benefit of residential rates, too, though the main pipes to their buildings are deemed commercial, placing it in a higher rate category.

Others argued for equal rates between city and non-city residents on the water and sewer system.

[…]

Public comment will be accepted on the proposed rates until March 31.

If approved by the council, the structure would be phased in over two years starting July 1 and then again on July 1, 2010.

[…]

In addition to the hearing, written comments will be accepted until 5 p.m. on Tuesday, March 31. Call the city office at 410-848-9000 for details on how to submit comments via mail and e-mail. Upon the council's approval, the rate structure will be phased in starting July 1.

[…]

Read Ms. Jones’ entire article here: Westminster residents say new water, sewer rates give them a sinking feeling

20090324 Residents say new rates give them a sinking feeling by K Jones

Kevin Dayhoff www.kevindayhoff.net http://kevindayhoff.blogspot.com/

City of Westminster Water Rate Increase press release

City of Westminster Water Rate Increase press release

Press Release
Contact: Kelley Martin
Phone: (410) 848-4363 FOR IMMEDIATE RELEASE

Tuesday, February 24, 2009

Water Rate Increase for City

City of Westminster
56 West Main Street
Westminster, MD 21158
Phone (410) 848-9000
Fax (410) 848-7476

The City of Westminster has released the results of the Water and Sewer Rate Structure Study completed by the Municipal and Financial Services Group. The study recommends an increase in both water and sewer rates to be phased in over a two-year period with increases beginning July 1, 2009.

The last rate study performed by the City was completed in the 1970s and contained no less than 19 different categories of use, each with separate rates for water and sewer. However, even this complex rate structure was unable to produce enough revenue to cover the cost of operating the water and sewer system.

Mayor Thomas Ferguson indicated that the new rate structure had to meet the following criteria:

simplify the current rate structure,
design a rate structure to encourage water conservation,
comply with current industry standards in the development of a utility basis method for the calculation of rates;
and recognize that the system includes both users inside and outside the City.

After a competitive bid process, the Municipal and Financial Services Group was selected to develop the rate structure model. This firm has extensive experience throughout the United States.

“The basic rate structure divides users into categories based on meter size, inside the City or outside the City, and establishes a fixed fee based on the size of the meter used. If the customer uses 18,000 gallons or less per quarter, which is the average national quarterly usage, a nominal fee is charged for each 1,000 gallons used. A premium fee is charged if the use is over 18,000 gallons.

This new system gives customers the opportunity to control their costs through the use of their water resources,” commented Dr. Robert Wack, Council Finance Committee member.

“The City of Westminster operates the water and sewer funds as enterprise funds—which must be supported by the fees and charges collected from water customers—not general tax revenues.

We follow the same Public Service Commission guidelines which apply to other utilities like the Baltimore Gas and Electric Company and Washington Suburban Sanitary Commission,” stated Marge Wolf, City Administrator.

Having a major impact on both the water and sewer systems are the mandated upgrades required to meet the more stringent health and safety standards imposed by the Maryland Department of the Environment.

Among these capital projects are the $11M new Cranberry Water Treatment Plant and the $4.5M Medford Quarry Pipeline allowing the Quarry to be used as an emergency water source under severe drought conditions.

While low interest loans are available from MDE for these capital projects, the debt service must be provided by the users of the system.

To help our customers determine how these new rates will impact on their individual water bills, the City will establish a Water and Sewer Bill calculator on our web site—www.westgov.com—effective March 1, 2009.

You will need your latest water bill and will use the information on that bill to fill in the yellow boxes on the calculator, click on return and the new rates will automatically be calculated for you. If you do not have access to a computer, you may visit the Westminster Branch of the library and they will assist you in calculating the rate.

“The Common Council and I know that this is not a welcome rate increase given the current economic situation but we are required to operate the water and sewer systems in a manner which ensures the health and safety of our system users. We are phasing in the increase over an extended period of time to cushion the impact,” Mayor Ferguson said.

“We will hold a public hearing on this rate increase on March 23rd at the John Street Headquarters of the Fire Department. Written comments will be received until 5:00 p.m. March 31, 2009. The rate structure model in its entirety is available for review at City Hall and at the City Administrative Offices at 56 West Main Street.”

-End-

Kevin Dayhoff www.kevindayhoff.net http://kevindayhoff.blogspot.com/

Westminster Mayor and Council agenda for Monday February 23, 2009

Westminster Mayor and Council agenda for Monday February 23, 2009

February 24, 2009: Last night’s Westminster mayor and common council meeting agenda

Home >> City Government

City Council

City Council Members Minutes of City Council Meetings

AGENDA

CITY OF WESTMINSTER, MARYLAND

Mayor and Common Council Meeting of February 23, 2009

1. CALL TO ORDER – 7:00 P.M.

2. MINUTES OF THE MEETING OF FEBRUARY 9, 2009

3. CONSENT CALENDAR:

January Departmental Operating Reports

4. BIDS:

Purchase of Solid Waste Containers – Thomas Beyard

Playground Equipment for King Park – Ron Schroers

5. REPORTS FROM THE MAYOR

6. REPORTS FROM STANDING COMMITTEES

7. ORDINANCES AND RESOLUTIONS:

Adoption of Ordinance No. 796 – Repeal and Re-enactment of Chapter 20 – “Fiscal Matters” – Marge Wolf

Adoption of Ordinance No. 797 – Amendment of Chapter No. 143-2 – Extension of Deadline for Tax Levy – Marge Wolf

Resolution No. R09-1 – Adoption of Amended and Restated 457(b) Governmental Plan – Roland Unger

Introduction of Ordinance No. 800 – Amendment of Water and Sewer Chapters Regarding Rates

Introduction of Ordinance No. 801 – Amendment to Utility Fee Ordinance Regarding Water and Sewer Rates

8. UNFINISHED BUSINESS:

a. None as of February 19, 2009

9. NEW BUSINESS:

a. Introduction of Revised Capital Improvement Program for F.Y. 2009 – 2014 – Thomas Beyard

10. DEPARTMENT REPORTS

11. CITIZEN COMMENTS

12. ADJOURN

20090223 Westminster Mayor and Council agenda
Kevin Dayhoff www.kevindayhoff.net http://kevindayhoff.blogspot.com/

Alcalde de Westminster y del Consejo para la Agenda 10 de noviembre 2008

Domingo, 09 de noviembre, 2008

Westminster Mayor and Council Agenda for November 10 2008 Alcalde de Westminster y del Consejo para la Agenda 10 de noviembre 2008

Westminster Mayor and Council Agenda for November 10 2008 Alcalde de Westminster y del Consejo para la Agenda 10 de noviembre 2008

City Council Ayuntamiento

City Council Members Minutes of City Council Meetings Los miembros del Consejo de la Ciudad de las actas de las reuniones del Consejo de la Ciudad

CITY OF WESTMINSTER, MARYLAND City of Westminster, Maryland

Mayor and Common Council Meeting of November 10, 2008 Alcalde y común de la reunión del Consejo de 10 de noviembre, 2008

AGENDA PROGRAMA

1. CALL TO ORDER – 7:00 PM LLAMADA AL ORDEN - 7:00 PM

Mayoral Proclamation – National Home Care and Hospice Month Mayoral proclamación - National cuidados en el hogar y hospicio mes

Drought Status – Code Yellow Maintained Sequía estado - el código amarillo Mantenido

2. MINUTES OF THE MEETING OF OCTOBER 27, 2008 ACTA DE LA REUNIÓN DE OCTUBRE 27, 2008

3. CONSENT CALENDAR CALENDARIO DE CONSENTIMIENTO

Maryland Department of the Environment Consent Order Amendment No. 1 Maryland Departamento de Medio Ambiente de la Orden de Consentimiento Enmienda N º 1

4. REPORTS FROM THE MAYOR INFORMES DE LA MAYOR

5. REPORTS FROM STANDING COMMITTEES Los informes de las comisiones permanentes

6. ORDINANCES AND RESOLUTIONS: Ordenanzas y resoluciones:

Introduction of Ordinance No. 791 – General Revisions to City Code Introducción de la Ordenanza N º 791 - General Revisiones de Código de ciudad

Introduction of Ordinance No. 792 – Revisions to Chapter 164 Entitled “Zoning and Subdivision of Land’ Introducción de la Ordenanza N º 792 - Revisión del capítulo 164, titulado "Zonificación y la subdivisión de la tierra '

Introduction of Ordinance No. 793 – Revisions to Chapter 124 entitled “Sewers and Sewage” And Chapter 160 entitled “Water” Introducción de la Ordenanza N º 793 - Revisión del capítulo 124 titulado "Sistemas de saneamiento y aguas residuales" y el capítulo 160 titulado "Agua"

Introduction of Ordinance No. 794 – General Fee Ordinance Introducción de la Ordenanza N º 794 - Tasa Ordenanza General

Introduction of Ordinance No. 795 – Utility Fee Ordinance Introducción de la Ordenanza N º 795 - Utilidad de la Ordenanza de tasas

7. UNFINISHED BUSINESS: Asuntos pendientes:

a. None as of November 6, 2008 Ninguno de 6 de noviembre de 2008

8. NEW BUSINESS: NUEVOS NEGOCIOS:

a. None as of November 6, 2008 Ninguno de 6 de noviembre de 2008

9. DEPARTMENT REPORTS DEPARTAMENTO DE INFORMES

10. CITIZEN COMMENTS COMENTARIOS CIUDADANO

11. ADJOURN Aplazamiento

20081110 Westminster Mayor and Council Agenda for November 10 2008 20081110 Westminster Mayor y del Consejo para la Agenda 10 de noviembre 2008

Westminster Mayor and Council Agenda for November 10 2008

Westminster Mayor and Council Agenda for November 10 2008

City Council

City Council Members Minutes of City Council Meetings

CITY OF WESTMINSTER, MARYLAND

Mayor and Common Council Meeting of November 10, 2008

AGENDA

1. CALL TO ORDER – 7:00 P.M.

Mayoral Proclamation – National Home Care and Hospice Month

Drought Status – Code Yellow Maintained

2. MINUTES OF THE MEETING OF OCTOBER 27, 2008

3. CONSENT CALENDAR

Maryland Department of the Environment Consent Order Amendment No. 1

4. REPORTS FROM THE MAYOR

5. REPORTS FROM STANDING COMMITTEES

6. ORDINANCES AND RESOLUTIONS:

Introduction of Ordinance No. 791 – General Revisions to City Code

Introduction of Ordinance No. 792 – Revisions to Chapter 164 Entitled “Zoning and Subdivision of Land’

Introduction of Ordinance No. 793 – Revisions to Chapter 124 entitled “Sewers and Sewage” And Chapter 160 entitled “Water”

Introduction of Ordinance No. 794 – General Fee Ordinance

Introduction of Ordinance No. 795 – Utility Fee Ordinance

7. UNFINISHED BUSINESS:

a. None as of November 6, 2008

8. NEW BUSINESS:

a. None as of November 6, 2008

9. DEPARTMENT REPORTS

10. CITIZEN COMMENTS

11. ADJOURN

20081110 Westminster Mayor and Council Agenda for November 10 2008

Westminster MD Water Bill Payment Options

Westminster MD Water Bill Payment Options

City of Westminster Press Release:

November 4, 2008

“Today the City of Westminster initiated the new water and sewer billing system. This accomplishment tops nine months of data conversion and programs from the antiquated RPG System to our automated financial management information system (EDEN). With this automation and the installation of many new water meters this year, our water system will be computerized from the reading of the meter to the payment of the bill,” announced Mayor Thomas K. Ferguson.

Mayor Ferguson further commented that while the majority of the bills will be converted without incident, there may be some bills that will require individual attention: “We ask your indulgence during this conversion—we have a whole team of staffers assigned to work with our customers to explain any differences or to resolve any problems.” If you have questions about your bill, we ask that you call 410-848-3255, fax your questions to 410-848-5345 or email to water@westgov.com. It may take a day or so to research the problem and get back to you with a response.

The new water and sewer bill provides valuable information to the customer
Most notable is the chart of your water usage over several quarters. This will alert you to changes in your water consumption, possible water leaks or allow you to track the results of your conservation measures.

There is also a new message box where you will find important information about the water system, conservation measures, changes in billing, drought conditions, etc.

The number of gallons used during the quarter is more clearly identified and is located in the meter information area along with your average daily use.

The date your meter was read last quarter and the current read date are also contained on the bill.

Even though the format of the bill has been changed, the following payment options remain the same. Please note our expanded hours of service.

In Person—Payment can be made by mail, credit card or in person at the City Administrative Offices, 56 West Main Street, Westminster, MD 21157. Our hours are 7:30 a.m. to 5:30 p.m. Monday through Friday. For information, call 410-848-3255.

Bills paid after the “Amount Due After” date is subject to penalty. A return check charge of $50 will be assessed on each bill paid with a check that is returned unpaid by the financial institution on which it is drawn. If you have had a returned check in the past, you will need to pay by cash, money order or credit card.

By Mail—The lower part of the statement is to be returned with your check (or credit card payment.) Please do not staple, tape or use paper clips. Remember to sign your check and write your account number on it. This will expedite the accurate processing of your payment. Please allow time for mail delivery. Do Not Send Cash In The Mail.

Drop Box —You also have the option of placing your payment in the drop box located at the City Administrative Offices at 56 West Main Street.

Inquiries concerning the Bay Restoration Fee should be directed to the Maryland Department of the Environment by calling 410-537-3567 or by Internet at www.mde.state.md.us.

To request a change to the mailing address on your account, you must do so in writing, and send it to the above address or fax your request to 410-848-5345.

We invite you to visit the City’s web site at www.westgov.com for general information on our water and sewer system and on water conservation measures.

In addition to the automated payment system, the City has invested $11M in a state-of-the-art water treatment plant is scheduled to go on line in early spring 2009 and a $4.5M seven mile pipeline to Medford Quarry to provide water in emergency drought conditions will be completed in November 2008. These improvements will enable the City of Westminster to meet the new Maryland Department of the Environment quality standards for drinking water. Always searching for new water sources, the City is currently building a well treatment facility and testing two more possible well locations to add to our current 10 production wells.

On the sewer side, the City is currently in the engineering and design phase of an upgrade to our waste water treatment plant. Again, more stringent requirements by MDE make this upgrade necessary.

20081104 Westminster MD Water Bill Payment Options

Westminster Eagle: “City water rates likely to increase” by Jim Joyner

Westminster Eagle: “City water rates likely to increase” by Jim Joyner

Study proposes rate increase for higher users, those outside city limits

By Jim Joyner jjoyner AT patuxent.com

Posted 7/30/08

City of Westminster water and sewer revenues will fall about $1 million short of breaking even this year, and needs "restructuring" to pay for current and future repairs, maintenance and expansion.

That's the word from a consultant's study released Monday evening at a meeting of the Mayor and Common Council.

"The obvious thing is that (the city) needs to raise more money," said Edward Donahue, president of Municipal and Financial Services Group, an Annapolis consultant hired to study the city's rate structure.

"The question," he added, "is how, and who's going to pay it?"

Donahue said the city has some $80 million in capital projects in its horizon related to water and sewer service -- including a $5.6 million water connection to the Medford Quarry and $36 million project to expand the city's wastewater treatment facility. A new structure is needed, he said, to pay those bills and future obligations.

The study recommends a higher rate for users who use more water, rewarding those who use less and setting up a system to charge out-of-city users more than in-city users.

The council did not take action on the study Monday, but Council President Roy Chiavacci said it sets the stage for a discussion that will extend into the fall before a decision is made.

According to the study, Westminster's current rates are fragmented somewhat, reflecting a long list of factors that determine what people pay.

Donahue said one of the flaws of the current system is that it allows a lower rate per gallon for users who consume more water, essentially a bulk discount, when it should charge a higher rate as a means of promoting conservation.

Under the consultant's plan, the city would charge a set fee per quarter -- suggested at $20.36 for fiscal year 2009 -- then a rate per 1,000 gallons up to 18,000 gallons quarterly, suggested at $2.34.

But if users cross over that 18,000 mark, the rate would more than double, to $5.86 per thousand gallons under the proposed scenario for FY 2009.

Lisa Zitomer, a consultant with of Municipal and Financial Services, acknowledged the boost in rates is drastic, but said is tough to curb bigger users "unless you take an aggressive step."

Councilman Dr. Robert Wack said there's no way to sugarcoat the fact that rates will increase, but attaching separate rates for higher users versus low users may be a good move.

"People who use the most will pay the most," he said, "and people who save the most will pay the least."

Inside outside

The other key factor in the rate structure calls for charging users outside the city more.

Donahue said the city already charges some additional amount to many of those users, but it varies -- from 12 to 25 percent more for water and 34 to 100 percent more for sewer service.

He suggested the city switch to a "utility rate" structure for out-of-city customers -- essentially setting up the city as a utility for those clients.

If the city adopted the proposal, it would charge those users 43 percent more on water rates compared to in-city customers; and 63 percent more on sewer service.

Officials said the city will host additional discussions, and public sessions, before a decision on any new structure made.

http://www.explorecarroll.com/news/404/city-water-rates-likely-increase/

20080730 Westminster Eagle: “City water rates likely to increase” by Jim Joyner

Westminster Eagle: Water, sewage rates will be subject of upcoming Westminster city meeting

Westminster Eagle: Water, sewage rates will be subject of upcoming Westminster city meeting

Labels and related: Water and Sewer Westminster, Water and Sewer Westminster Rates and Fees, Westminster Dept Public Works Water and Sewer

Wednesday, December 12, 2007: 20071126 Municipal and Financial Services Group Westminster Water and Wastewater Rate and Fee Study presentation

20080728 Westminster Mayor and Common Council Agenda for July 28 2008

Water, sewage rates will be subject of city meeting

Officials say new structure is needed for more accurate billing

Posted on the Westminster Eagle web site 7/23/08

A new structure for water and sewer rates for the City of Westminster will be unveiled and discussed at the Monday, July 28, meeting of the mayor and Common Council.

The meeting will be held at 7 p.m. at the John Street Quarters of the Westminster Fire Department. Council meetings are usually held in city hall, but are often moved to the John Street building to accommodate larger crowds.

Since the fall of last year, the city has been conducting a study to revise its water and sewer rates.

During the budget review process, city officials warned that a new structure is needed to accurately bill for water usage and update the city's water service rates.

At the July 28 meeting, officials are expected to unveil a study on the matter, and also accept comments on the proposed rates. For more information call 410-848-9000.

http://www.explorecarroll.com/news/343/water-rates-will-be-subject-city-meeting/

20080723 Westminster Eagle: Water, sewage rates will be subject of upcoming Westminster city meeting

Westminster Mayor and Common Council Agenda for July 28 2008

Westminster Mayor and Common Council Agenda for July 28 2008

City Council; City Council Members Minutes of City Council Meetings

CITY OF WESTMINSTER, MARYLAND

Mayor and Common Council Meeting of July 28, 2008

AGENDA

1. CALL TO ORDER – 7:00 P.M.

Mayor’s Proclamation - National Night Out 2008

2. SPECIAL PRESENTATION:

Water and Sewer Rate Structure Study – Municipal and Financial Services Group

3. MINUTES OF THE MEETING OF JULY 14, 2008

4. CONSENT CALENDAR:
June Departmental Operating Reports
Intergovernmental Agreement – Comcast Cable – Dr. Wack

5. REPORTS FROM THE MAYOR

6. REPORTS FROM STANDING COMMITTEES

7. UNFINISHED BUSINESS:
a. None as of July 24, 2008

8. NEW BUSINESS:
a. Walking Trail at King Park – Thomas Beyard

9. DEPARTMENT REPORTS

10. CITIZEN COMMENTS

11. ADJOURN

PLEASE NOTE: BOTH THE JULY 28, 2008 AND AUGUST 11 MEETINGS OF THE MAYOR AND COMMON COUNCIL WILL BE HELD AT THE JOHN STREET QUARTERS OF THE WESTMINSTER FIRE COMPANY. FREE PARKING IS AVAILABLE. THE WATER AND SEWER RATE STRUCTURE STUDY WILL BE DISCUSSED AT THE JULY 28 MEETING.

20080728 Westminster Mayor and Common Council Agenda for July 28 2008

Meeting to address water and sewage rate structure by Bryan Schutt for the Carroll County Times

Meeting to address water and sewage rate structure by Bryan Schutt for the Carroll County Times

Meeting to address water and sewage rate structure

By Bryan Schutt, Times Staff Writer

Monday, July 21, 2008

A water and sewage rate structure study will likely show the need for Westminster to raise its water rates and correct deficiencies in the current billing structure, according to several city officials.

The study, which was started last winter by Municipal and Financial Services Group, will be unveiled during the July 28 meeting of the mayor and Common Council. The meeting will not be a public hearing and the rate structure will not be set then, but residents will have the chance to voice their concerns or thoughts on the study.

Although the city has not made the study available to the public, Mayor Thomas Ferguson said the current rate structure is essentially upside down and the city is generating insufficient reserves from the current billing system.

He said the rate structure, which has been in place for decades, basically has a quantity discount, which is one point the study examines.

Another area that he believes the study will address is the rate structure and financial risks involved for residents in and outside of city limits. Currently, people out of the city limits pay slightly higher water rates, the mayor said.

[…]

Reach staff writer Bryan Schutt at 410-857-7886 or bryan.schutt@carrollcountytimes.com.

If you go

What: Second monthly meeting of the mayor and Common Council

Why: To discuss the water and sewer rate structure study

Where: John Street Quarters of the Westminster Fire Hall, 28 John St.

When: 7 p.m. July 28

Information: City Hall, 410-848-9000

Read the rest here: Meeting to address water and sewage rate structure

20080721 Meeting to address water and sewage rate structure by Bryan Schutt for the Carroll County Times

Westminster Common Council Meeting agenda for July 9, 2008

Westminster Common Council Meeting agenda for July 9, 2008

City Council

City Council Members Minutes of City Council Meetings

Water and Sewer Westminster Rates and Fees, Westminster Dept Finance Budget 2008 – 2009 FY, Westminster Council Meeting Agenda,

CITY OF WESTMINSTER, MARYLAND

Mayor and Common Council Special Meeting

July 9, 2008 Westminster City Hall

Agenda

Ordinances and Resolutions

Suspend the rules of order and procedure in order to introduce and adopt Ordinannce[sic] No. 786- Authorizing Issuance and Sale of a General Obligation Installment Bond in the maximum principal amount not to exceed $3.5 million pursuant tot he authority of sections 31 to 37, inclusive, of article 23A of the Annotated Code of Maryland.

Please note: The July 28, 2008 meeting of the Mayor and Common Council will be held at the John Street Quarters of the Westminster Fire Company. The water and sewer rate structure study will be discussed.

####

20080709 Westminster Common Council Meeting agenda

20071126 Municipal and Financial Services Group Westminster Water and Wastewater Rate and Fee Study presentation

Municipal and Financial Services Group Westminster Water and Wastewater Rate and Fee Study presentation

November 26, 2007 - Municipal and Financial Services Group Westminster Water and Wastewater Rate and Fee Study presentation

Presentation to the Westminster mayor and common council on November 26, 2007 by Edward J. Donahue III, CMC

http://www.youtube.com/watch?v=y2pX2lmraZI

City of Westminster

Water and Wastewater Rate and Fee Study

Agenda

Project Team

Project Understanding and Approach

Policy Issues

Firm Profile

Specialized Financial and Management Consulting Practice
Focus on Municipal and Environmental Infrastructure
Efficient Delivery of Public Sector Services
National Practice Since 1976
Part of National CPA/Engineering Firms for 25 Years
Maryland-Based
Established as an Independent, Women-Owned Firm in 2002
Previous Clients Range from Very Large (Boston, New York, Washington, DC, Chicago, San Francisco) to Very Small (Marydel, Queen Anne’s County, Bramble Hills, North Slope Borough)
Clients Serve 45% of Nation’s Population

Project Team Synergy
Complementary Blend of Functional Skills
Broad Industry Experience
Seamless Service Delivery for Clients

Project Organization
Project Team Skills
Agenda

Project Team

Project Understanding and Approach

Policy Issues

Project Fundamentals

OBJECTIVES
Long-Term Financial Security and Stability
Lowest Rates Over Time (Optimal Management of Assets)
Equitable Rate Design
Rational and Defensible Basis for all Rates and Fees

Custom Tailored Financial Model
Model tied to official documents
Operating Budgets
Capital Improvement Plan

Can produce cost of service on multiple bases
Cash
Utility
Hybrid(s)

Easy/quick updates and iterations

Inexpensive feasibility studies for revenue bond issues

Project Work Plan/Schedule/Deliverables
Agenda
Preliminary Policy Issues

Lowest Lifecycle Cost

Paying for Growth

Existence / Adequacy of Reserves

Rate Design

Policy Issue: Lifecycle Cost

Assumption – City wants lowest total capital and operating costs for its utilities over their useful lives

Requirement: Adequate funding of maintenance to make facilities last as long as practicable – use of Asset Management approach to maintenance

Impact: Possibility of slightly higher rates now to assure lower rates in the long run

Policy Issue: Paying for Growth

Assumption - City does not want rates for existing customers to be impacted by growth

Requirement - Segregation of capital costs into growth / non-growth categories, then determination of capital cost recovery fees based on growth-related capital costs

Impact - Possible adjustment of capacity fees / connection fees; increase in user fees if growth does not occur as planned

Policy Issue: Financial Reserves
Purposes for Reserves
Insurance against unexpected events
Reduce borrowings
Smooth out rate increases
Designation of formal restriction on fund balance

Operating Reserve
Typically 90 days of operating cash (PSC provision for investor-owned utilities)

Repair / Renewal / Rehabilitation Reserve
Regular contribution towards cost of renewing long-lived assets
Annual contribution on formulaic basis

Policies on spending approvals

Policy Issue: Rate Design
Rate Structure
Fixed vs. Variable
Discounts for selected customer classes

Drought Rates

Inside-City / Outside-City Differential

Fund Balance

Transfers to / from General Fund
Reimbursement for services provided
Payment in Lieu of Taxes

Frequency of Rate Adjustments

####

Water and Sewer Westminster, Westminster Council Meeting Agenda, Westminster Dept Public Works, Westminster Dept Public Works Water and Sewer, Water and Sewer Westminster Rates and Fees

20071126 Municipal and Financial Services Group Westminster Water and Wastewater Rate and Fee Study presentation