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Why is the City conducting a rate study now?

Customer rates are reviewed regularly to ensure that there are sufficient revenues to cover expenses and that customers pay the correct charges for the type of service they receive. Rate studies also help to accomplish the following:


1) Estimate the residential and commercial rate adjustments required from fiscal year 21/22 through fiscal year 25/26.


2) Maintain adequate reserves. It is the City's policy to maintain at least a 50% reserve ratio, however in order to lessen the impact on rate payers, the City will use money from the reserve fund to moderate the increases in rates and cover operational costs which may impact the reserve fund below the 50% ratio.


3) Each sector (residential, commercial, and alley maintenance) stands on its own and at a minimum break even (zero net income) by fiscal year 25/26.

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