To keep up with the cost of inflation, to maintain appropriate reserve fund levels, as well as to properly plan for significant infrastructure projects such as the Water Treatment Plant Intake Improvements and the Aquifer Storage and Recovery Project, Water rates must periodically be adjusted to cover the cost of service. Having a sound infrastructure ensures that the Water Division treats and delivers potable water of sufficient quantity and quality to meet the domestic, commercial, industrial, irrigation and fire suppression needs within the system’s retail service area.
The City contracted with HDR Engineering to conduct a rate study of the Water Division. This effort corresponded with the City Council adopted 2017 Water System Plan. HDR Engineering recommended a rate increase of 5% per year for four years (2019-2022). The last rate adjustment for the Water Division was conducted in 2018. The revenue received is collected into the Water Operating Fund 474 and Water Capital Fund 477.
Attached for review is the revised Yakima Municipal Code Chapter 7.68 based on the recommendations from HDR Engineering and as directed by the City Council at the October 18, 2018 Budget Session. This rate increase provides the Water Division with proper funding levels for the next four years.
Future fee increases will be presented to Council in an annual fee schedule rather than individually throughout the year on a case-by-case basis. |