Agenda

Back to Calendar Return

City Council Regular Meeting

Meeting Date:

06/25/2019

BACKGROUND

In order for the City’s corporate partner, the Schertz/Seguin Local Government Corporation (SSLGC) to provide water at the lowest rate possible, SSLGC utilizes the services of Willdan Financial Services as a rate consultant to evaluate and advance its 5-year rate model annually. This helps to keep rate increases minimal and to keep SSLGC revenue appropriate for current and future operations.

For Fiscal Year 2019-20, the SSLGC Board is recommending and has approved with SSLGC Resolution SSLGC R19-05 a $0.02 per 1,000 gallons of water rate increase. This increase is necessary to keep up with revenue targets and to plan for the reduction of future excess water sales to SAWS.

Attached you will find SSLGC Resolution #SSLGC R19-05 and the FY2019-20 SSLGC Water Rates.

GOAL

To have the City of Schertz City Council approve the SSLGC FY2019-20 water rates.

COMMUNITY BENEFIT

The City of Schertz is a member of the Schertz/Seguin Local Government Corporation. It is through the SSLGC that the City provides water to its citizens and businesses. Approval of the water rates will ensure that the citizens and businesses of Schertz will continue to receive this vital service.

SUMMARY OF RECOMMENDED ACTION

Staff recommends approval of the Resolution adopting the SSLGC FY2019-20 water rates.

FISCAL IMPACT

This $0.02/1,000 gallons of water rate increase from SSLGC will lead to a rate increase for the citizens of Schertz in the next fiscal year. The City of Schertz will not only see the two-cent rate increase but our debt obligations to SSLGC are also increasing as we begin making bond payments on the parallel pipeline and the planned Guadalupe County well field and treatment facility currently in design totaling $2,102,634.47 for FY2019-20.

RECOMMENDATION

Staff recommends approval of the SSLGC proposed water rates for FY 2019-20.

Attachments
Resolution 19-R-78
Water rates
SSLGC R19-05