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Home My WebLink About2007-0618 Study Session Packet CITY OF ASHLAND CITY COUNCIL STUDY SESSION AGENDA Monday, June 18,2007 at 5:15 p.m. Council Chambers, 1175 East Main Street 1. Look Ahead Review 2. Discussion of Utility Rate Increases 3. Discussion of Follow up on Council Goal Setting Planning 3. Review of regular meeting agenda for June 19, 2007 In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting, please contact the City Administrator's office at (541) 488-6002 (TIY phone number 1-800-735-2900). Notification 72 hours prior to the meeting will enable the City to make reasonable arrangements to ensure accessibility to the meeting (28 CFR 35.102-35.104 ADA Title 1). ~.l' ~ III CIl CD ~ o ~ S iii' iii' III o ~ " '""l III ~ Q. CIl r::: ~ CD' C') - 0- C') ::r III ~ lQ !D N N N ili N ~ c; <0 ()) --.J <J> 01 ... '" N ~ ... '" N a <0 ()) --.J <J> 01 ... '" N ~ ~ ~~ IJ 0 :s:: :::0 9 c -l m I )> G) 0:::0 )> g 0 )> -l (f) ""Tl . 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Except for public hearings, there is no absolute right to orally address the Council on an agenda item. Time permitting, the Presiding Officer may allow oral testimony; however, public meetings law guarantees only public attendance, not public participation. If you wish to speak, please fill out the Speaker Request form located near the entrance to the Council Chambers. The chair will recognize you and inform you as to the amount of time allotted to you, if any. The time granted will be dependent to some extent on the nature of the item under discussion, the number of people who wish to be heard, and the length of the agenda. AGENDA FOR THE REGULAR MEETING ASHLAND CITY COUNCIL June 19, 2007 Civic Center Council Chambers 1175 E. Main Street 6:00 p.m. Executive Session to discuss: pending litigation pursuant to ORS 192.660(2)(h), real property transaction pursuant to ORS 192.660(2)(e), and employment of public officers, employees and agents pursuant to ORS 192.660(2)(a) 7:00 p.m. Regular Meeting I. CALL TO ORDER II. PLEDGE OF ALLEGIANCE III. ROLL CALL IV. MAYOR'S ANNOUNCEMENT OF BOARD AND COMMISSION VACANCIES V. APPROVAL OF MINUTES [5 minutes] 1. Executive Session meeting minutes of June 1, 2007 2. Executive Session meeting minutes of June 5, 2007 3. Regular Council meeting minutes of June 5, 2007 VI. SPECIAL PRESENTATIONS & AWARDS VII. CONSENT AGENDA [5 minutes] 1. Minutes of Boards, Commissions, and Committees 2. Liquor License Application - Vic's Mongolian BBQ 3. Appointment to Historic Commission 4. Intergovernmental Agreement - Oregon Building Codes Division 5. Approval of ODOT Local Agency Agreement No. 23719 Congestion Mitigation and Air Quality (CMAQ) Grant - Diesel Retrofit 6. Designation of Finance Director to Execute Documents Required to Close Sale of Lot #103, Strawberry Lane VIII. PUBLIC HEARINGS {Testimony limited to 5 minutes per speaker, unless it is the subject of a Land Use Appeal. All hearings must conclude by 9:00 p.m., be continued to a subsequent meeting, or be extended to 9:30 p.m. by a two-thirds vote of council {AMC ~2.04.040}) 1. Public Hearing to consider Utility Rate Increases 2. Public Hearing Regarding Conversion of Existing Rentals into For-Purchase Housing in Multi- Zoning IX. PUBLIC FORUM Business from the audience not included on the agenda. (Total time allowed for Public Forum is 15 minutes. Speakers are limited to 5 minutes or less, depending on the number of individuals wishing to speak.) [15 minutes maximum] e (It ii'iC 11, \:H.ETli'i(iS ARE BR(J\Dt 0\') J ! IVr. UN C1L\Ni'iFL ') Vhl r nn; UIY eH ,\SIHAND'S \\1 Ii :--'1 II: \ I W\VWASlll V0D.OIU is X. UNFINISHED BUSINESS 1. Discussion of RVTD Funding and Priorities [35 Minutes] 2. Reconsideration of Vote regarding Adoption of findings for Planning Action 2006-02354, Kistler [15 Minutes] 3. Re-Affirmation of Resolution No. 2007-17 Adopting Findings for the Nevada Street LID [45 Minutes] 4. Reading of a Resolution titled, "A Resolution Repealing Resolution 2007-18 and Adopting the Annual Budget and Making Appropriations" [15 Minutes] 5. Mt Ashland - Timber Settlement Sale Purchaser Decision and Related Items XI. NEW AND MISCELLANEOUS BUSINESS 1. Draft Ballot Measure Interim Funding for Ashland Public Library [15 Minutes] 2. AFN Retailer (ISP) Agreement [10 Minutes] XII. ORDINANCES. RESOLUTIONS AND CONTRACTS 1. Reading of a Resolution titled, "A Resolution Declaring the Canvass of the Vote of the Election Held in and for the City of Ashland, Oregon, on May 15, 2007" 2. Proclamation regarding the Special Election held in the City of Ashland, Oregon, on the 15th of May 2007 3. Second Reading of an Ordinance titled, "An Ordinance Levying Taxes for the Period of July 1, 2007 to and Including June 30, 2008, Such Taxes in the Sum of $11,314,046 Upon All the Real and Personal Property Subject to Assessment and Levy Within the Corporate Limits of the City of Ashland, Jackson County, Oregon" 4. Reading of a Resolution titled, "A Resolution revising rates for water service pursuant to Ashland Municipal Code Section 14.04.030 and repealing Resolution 2005-23" 5. Reading of a Resolution titled, "A Resolution revising rates for wastewater service pursuant to Ashland Municipal Code Section 14.08.035 and repealing Resolution 2005-24" 6. Reading of a Resolution titled, "A Resolution adopting a transportation utility rate schedule pursuant to Ashland Municipal Code Section 4.26.020 and repealing Resolution 1999-31" 7. Reading of a Resolution titled, "A Resolution adopting a storm drain utility rate schedule pursuant to Ashland Municipal Code Section 4.27.050 and repealing Resolution 1999-32" 8. First Reading by Title Only of an Ordinance titled, "An Ordinance Amending the Ashland Municipal Code, Land Use Ordinance, Regarding Conversion of Existing Rentals into For- Purchase Housing in Multi-Family Zoning Districts" 9. First Reading by title only of an Ordinance titled, "An Ordinance Amending the Ashland Municipal Code, Chapter 2.12, City Planning Commission" 10. Second Reading by title only of an Ordinance titled, "An Ordinance Amending AMC 3.08.020 To Apply Ethics Provisions to Employees, Appointed Officials and Elected Officials" Please note: this item has been postponed to the July 17'h Council Meeting XIII. OTHER BUSINESS FROM COUNCIL MEMBERSIREPORTS FROM COUNCIL LIAISONS 1. First Reading of a Resolution titled, "A Resolution Supporting the Employee Free Choice Act" XIV. ADJOURNMENT In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting, please contact the City Administrator's office at (541) 488-6002 (TTY phone number 1-800-735- 2900). Notification 72 hours prior to the meeting will enable the City to make reasonable arrangements to ensure accessibility to the meeting (28 CFR 35.102-35.104 ADA Title I). (Ill :1\( 1 \1[[ TI1\(i<'; ARt BR().\!Jt .\ <"'1 LIVE UN (! lANNL.L 9 VI\ITI j n C rlY OF ASI JL\Nli'<'; \\ F F) \11 L AI W\\\\.ASIIL.\NI)J)IU is City Of Ashland Utility Rates Water, Wastewater, Transportation & Storm Drain Study Session June 18, 2007 ... .... ..... .... .... ... .. Important Points On City's Rate Increases . Previously Staggered . Electric deferred to 2008 (1/1 /08?) . Few Rate Increases 2000-2003 . Regular Increases 2004-2006 . No Increases 2007 . Proposed increases in 2008 (8/1/07?) . Not always what was budgeted ... .... ....$ ...$ ..CHI' ..4f. ee 1 Focus Operations v. CIP . Operations Perspective . Annual Revenues . Annual Costs: Personal Services, Materials & Services, Capital Outlay (small) Debt Service . Target Ending Fund Balance (unreserved) ... .... ....$ ...$ .. * . ill . Capital Improvement Program is not directly addressed with operational rate adjustments . Financing (borrowing) does result in annual debt service Charges for Service: Rates or Fees ... .... ....@ ...>& ..o@ .* $i# . Water & Sewer Rates - Based directly or indirectly on consumption & demand: Water consumption = direct charge for water used, indirect charge for wastewater evaluated annually . Transportation Utility Fee - Allocated cost based upon impact: Equivalent residential unit, building size, required parking spaces = shared cost fee . Storm Drain Utility Fee - Allocated cost based upon impact: Impervious area & equivalent residential unit = shared cost fee 2 Water Charge . Resolution 2005-23 . August 1 J 2005 . $9.99 and $1.16 to . $10.29 and $1.20 . Proposed for FY 2008 is $10.91 and $1.27 . Typical House Average Monthly change from $33.25 to $35.25 ... .... .... ... .. . $ :{. Water Fund FY 2008 Operational Budget ... .... ....,,, ...$ ..$$ .<Il@ .$ Water Fund 2008 Budget Cortirg~, $144,000 ,3% Now Dobl Sl!nAce, $240,000 ,4% C<\:>i1<lCUI'!t'& Equpmrt, $22\000 ,4% Mal:ei~s & SenAoes, $2,668.224 ,49% 3 Key Water Issues ... .... ....'" ..... ..<$@ .$$ $$ · A significant capital improvement program to meet water quality and operational needs. · A revenue stream highly susceptible to weather changes. · A 1 % increase in rates generates $38,000 annually and will have $0.33/month impact on a typical customer. · Budget includes $177 ,000 for Conservation. · Budget includes an estimated $180,000 for base (excluding grants) Forest Interface work. · This fund paid approximately $220,000 to the General Fund in 2007 franchise fees and $88,000 to the Street Fund. I Water Fund Operational Revenue ... .... ....$ ...@ ..@@ .0% @<$ $4,500,000 $4,000,000 $3,500.000 $3.000,000 $2,500,000 $2, 000, 000 $1,500,000 $1.000,000 $500,000 $- 2004 2005 2005 = 2005 2009 2010 2011 2012 Actual Actual Actual Estim3le PrqoctEd PrqoctEd PrqoctEd PrqoctEd PrejoctEd I III (}"ages ro- SeNces . IrtB'eSl . MscellEl18CLlS I 4 Water Fund Operating Expenses ... .... .... ... .. .&0 ** $7,()()(),Q()() --------.----....--~~-.- __._.___~_...._ ___.__.._.......... _ m.... _____......__.._ $6,000,000 $5,000,000 $4,000,000 $3,000,000 $2,000,000 $1,000,000 $- 2004 2005 Pdual Pdual 2006 2007 2008 2009 2010 2011 2012 Pdual Estirrate Prqected Prqected Prqected Prqected Prqected :=-~~ ~=;:ay&EqU~1 I Ell WIges & Benefits o Cebl Service Water Fund Operational R/E Comparison ... .... ....$ ...... ..>11$ .Oll< 0'$ $7,000,000 $6,000,000 $5,000,000 $4,000,000 $3,000,000 $2,000,000 $1,000,000 $- 2004Jldua1 2005Jldua1 2006Jldua1 = 2006 2009 2010 2011 2012 Estimale Projeded Projecled Projected Projected Projected 1_ Q:aairg R9I.<n.e -+-- Q:>er.tirg Expenses I 5 Water Fund - Operational R/E Comparison - No new debt ... .... ....$ ...;)> 00$ 0$ '* 30,000,000 -- $4,000,000 $5,000,(0) -- $3,000,000 $2,000,000 $1,000,000 $- 2(X)4Actua1 2005Acb...a 2C05Actua1 2fYJl 2tXB 2(UJ 2010 2011 2012 EStirrale Rqeded Rqeded Rqeded Rqeded Rqeded 1111 Cpemting Re.enue 21 Q:eating Expenses 1 Water Summary 0.. .... .... ...$ ..$$ 0$$ $$ . "Larger" fund balance protects against both drought and rainy years . Conservation message an important tool . System demands require review and discussion each year 6 Wastewater (Sewer) Charge . Resolution 2005-24 . August 1, 2005 . $11.55 and $1.73 to . $11.90 and $1.78 . Proposed for FY 2008 is $13.09 and $1.96 . Typical House Average Monthly change from $16.94 to $18.64 A ~-- - Wastewater Fund FY 2008 Operational Budget Cart irg"'G'. $140.000 . 3'11 ... .... .... ... .. @ . * ... .... ....1l' ...~ ...w. .@$ $& 7 Key Wastewater Issues ... .... ...., ..., .. 8"" I"~ *' · Annual WWTP debt service is $1.8 million until FY 2021-22. · State loan requires one year of debt service as a reserve. · F&B tax revenue stream is $1.6 million until it sunsets in December 2010. · Shortfall between tax and debt service paid by SDCs or rates. · Rates may eventually need to increase 57% to replace the food & beverage tax proceeds. · Near future capital costs include improvements for DEQ compliance. · This fund pays approximately $150,000 to the General Fund in 2007 franchise fees and $60,000 to the Street Fund. Wastewater Fund Operational Revenue ... .... ....>> ... ..* .$$ $$ $5.000,000 $4.500,000 $4,000,000 $3,500,000 $3,000,000 $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000 $- 2004 2005 2lXl6 2007 2008 2009 2010 2011 2012 M'-'" MuaI M'-'" Estirrale Projected A-qected A-ojected Projected Projected 1111 FBBTa>es. O!arges for Seniices . Irt..-est 0 Mscellaneousj 8 Wastewater Fund Operating Expenses $7,000,000 $6,000,000 $5,000,000 $4,000,000 $3,000,000 $2, 000,000 $1,000,000 $- 2004 2005 2006 2007 2008 2009 2010 2011 2012 Pctual PctuaI Pctual Estirrate Projected Projected Projected Projected Projected 1m V\Bges & Benefits o DEQ Debt Service . M3tefia1s & Serv;ces . Now Debt Service o Capita QJtJay & EqUi4 III Contingency Wastewater Fund Operational R/E Component Comparison $4,3D,UD $4,UD,UD $3,3D,UD $3,UD,UD $2,3D,UD $2,UD,UD $1,3D,UD $1,UD,UD $3D, UD $- 2114 :rr6 :rr6 2fJJ7 2Jll am :!nO :!n1 :!n2 Mw Mt.S Mt.S Eslirmle Prqa::tej Prqa::tej Prqa::tej Prqa::tej Pn:ja::tej 1_ F&B Taxes IZZI QHajrg fem.ll-QHajrg Expn;es ..... CEO 00 Sa\ice I ... .... .... ... .. ..,., $$ ... .... ....$ ...@ ..41. ... fl. 9 Wastewater Fund R/E Comparison - No Tax or Debt ... .... .... ... ..6"i . .. $4,5CXJ,COO --- ~__ $4,CXXJ,COO --.._-~ $3,500,CXXJ -~~--___ $3,Cx:xJ,lXX) --~~ $2.500,CXXJ -~ $2. CXXJ, CXXJ $1 , 5OO,CXXJ $1, CXXJ, CXXJ $500, CXXJ $- 2004 2005 2a)3 2007 2008 2009 2010 2011 2012 Jlctw Jlctw Jlctw Estirrale Pn:jecled Pn:jecled Pn:jecled Pn:jected Pn:jected [III ~ing Re..a-..e IJ ~ing Expenses I Wastewater Summary ... .... .... ... ..1$0 .~$ '" · DEQ debt service is $1.8 million per year until FY 2022 · No F&B Tax revenue may mean a 57% increase in rates · If renewed at current levels, tax revenues exceed debt service in FY 2010-11 · Smaller CIP needs exist for effluent compliance 10 Street Fund ... .... .... ... .. .@ $$ . Street Operations . Storm Drain . Bus service subsidy . Grounds Maintenance . Debt Service . Local I mprovement Districts . Capital Projects Street Fund FY 2008 Operational Budget ... .... ....$ ...$ ..$@ .$@ 111$ Cortirgercy, $89.000 . 3% 11 Key Street Fund Issues ... .... .... ... .. " .'" . Task force is reviewing this fund, operations, capital improvement needs and financing with a report due in early FY 2007-08. · Gas tax revenue is allocated by the state based upon population and the tax is per gallon sold, not price per gallon . SDCs and gas tax revenues are restricted in use. · If a grant becomes unavailable or the project does not meet City needs, both revenue and expenditure are removed from the budget. · LIDs are treated as capital projects and the City only pays for its share of the project and debt service. . Street Fund receives franchise payments from Water, Wastewater and Telecommunications operations. . RVTD bus service to Ashland is funded here. Street Fund Operational Revenue ... .... .... ... .. . $ $3.500.000 -----------------------------------------------1 $3.000.000 $2.500.000 $2.000.000 $1.500.000 $1.000.000 $500.000 $- 2004Actua1 2OCI5Actual 2lD5Actual 2fJJ7Estirnie 2CXl5 2Cal 2010 2011 2012 flciecled flciecled A-qected A-qected A-qected III Franchises o Slate GaroIine Tax . G-Ents & Other Illl Interest o Transportalim Uility Fee 0 Slorm D-ain Uility Fee . Mscellaneous 12 Street Fund Operating Expenses ... .... .... ... .. . '@ %$ $4,500,000 ---.--..-.- ---__...._______..___m_____m ____m.m____ ...._____..__...._. $4,000,000 $3,500,000 .- -~- $3,000,000 $2,500,000 $2. 000, 000 $1,500,000 $1,000,000 $500,000 $- 2004 Actual 2005 Actual 2CXl3 Actual 2f1Jl Estirrate 2CX::B 20()3 2010 2011 2012 -... ~qeded -... ~ed ~qeded o Sroot Cps ... PersomeI . Sroot Q:>... M!l.S o Soon DBin Cps ... PersomeIIII Soon DBin Cps... M!l.S o GuJncls tv'Binl8l1Cl'Xl'! 0 Trmsfers-Dobl Service Il:.l Contingen::y . Sroot Cps ... Capital . Serm [)ajn Cps ... Capital o f'eN D3ti Selvica Street Fund Operational R/E Comparison ... .... ....0 ...$ .."'$ ..... $$ $4,500,000 $4,000,000 $3,500,000 $3,000,000 $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000 ro 2004!ldua1 2005!ldua1 2006!ldua1 = 2006 2009 2010 2011 2012 Estmate Projeded Projeded Ptqeded Projeded Projeded 1_ QJerairg -..... -+- QJerairg Exp;n;es 1 13 Street Fund - Operational R/E Comparison - No Debt ... .... ...."" ..... ..$0 .00 ,.,0 $3,50),00) - -- ~ $3,CXXl,OCX) ---- _____ $2, 500, CXXl $2, CXXl, CXXl $1,5OO,CXXl $1, CXXl, CXXl $500, CXXl $- X04J\c1u3 :axJ5ActlEl 2X6AdlEl = 2OC6 2OC6 2010 2011 2012 Estinte Ftcjected Ftcjected Ftcjected Ftcjected Ftcjected IIiII Q:a'airu R3Ien..e [) Q:a'airu ExJB1S€S I ... .... ....it ..Of! ..ill .01% 0$ Transportation Utility Fee . Resolution 99-31 . July 1,1999 . $3.27 to $5.12 . Adjusted by ENR to $6.51 · FY 2008 ENR adjustment would be $6.76 (3.8%) · Proposed for FY 2008 is $7.49 (15%) . Typical House Average Monthly change $0.98 14 Transportation Resolution Revised ... .... .... ... .. .~tl *' Transportation Fee ENR Effective Effective 3/112006 8/112007 Unit 15% rate increase 8/112007 :g, Multiple Family $ 4.97 $ 5.16 $ 5.71 Per month per unit Retail Store $ 0.89 $ 0.92 $ 1.02 Per month per 100 sq ft. jt~jilW.A~~~0P1wmiii;;:~~P~~~~,,*~~~..a~.'i;1Ji.f"fMI@'j tWi~L:::W,;U:!tl1VffW&;: ~"i:?t%mEYtn@m_J~"-~,~MWjP~HMlliiYlt.11..~tt~'lillfR#illJt\RWdt~{J"RP..,\tPWJ;.. ,f~.qtUl~~'h:,<' Office Use $ 0.60 $ 0.62 $ 0.68 Per month per 100 sq ft. Medical/Dental Use $ 0.80 $ 0.83 $ 0.92 Per month per 100 sq ft. ll[~a..J'_'~_~1IIm_!~_~JliJ; RestaurantlBar Use $ 2.33 $ 2.41 $ 2.68 Per month per 100 sq ft. r:i!~s~~ Use $ 0.52 $ 0.54 $ 0.60 Per month per 100 sq ft. 1~in\_"'.I;~t~;t-.[_"~~f5l:..,11:.1IIBfJllli~'.IT Hotel/Motel Use $ 2.33 $ 2.41 $ 2.68 Per month per guest room Institutional and all other accounts not Per month per required classified above. Including nursing parking spaces as homes and retirement homes $ 2.33 $ 2.41 $ 2.68 specified in Chapter 18.92. "C[Q~~~.~~14141~gI_iT~r~'_"~~i:'~.~!~fw[1!1 Storm Drain Utility Fee ... .... .... ... ..#-> .Q~ ill@; . Resolution 99-32 . July 1,1999 . $1.79 to $1.93 . Adjusted by ENR to $2.46 . FY 2008 ENR adjustment would be $2.55 (3.8%) . Proposed for FY 2008 is $3.68 (50%) . Typical House Average Monthly change $1.22 ..... . . "'- ..' 15 Storm Drain Resolution Revised ... .... ....0 ...\!' .. ."'$' '" ENR 50% rate Effective Effective increase Storm Drain Fee 3/1/2006 8/1/2007 8/1/2007 Unit :Si.' '6l!i11&11' ,;~~.':\'tt~~rd!llfdd!~[i!.'4\.L.:...i.[::il...:i.!i.'ii~}.;.,...:ij....'.U:.i'... .ij!III~.."y~ti8.'..'.'..:.i:i...i....I!m."'.".im.'~..m...t~;i:ir.i.r.}.@.JI1.ii ',- """'~.w~ __d:U1!~.~.~Lriimlt:'~"m_W%Ji:L^. ,~.x<"<",_,,__.,,,ww.:"""'MO' 'f::<v, ,!fi~"~"",__",__,_,____.^_,,_.,~^^,,~., . .' "'.__ o<""""","'___'dc'/b1w<e. "..,.)UL,., ' Condominium, 1-9 Units $ 1.06 $ 1.10 $ 1.59 Per month per unit Multi-Famil , 1-9 Units $ 1.06 $ 1.10 $ 1.59 Per month per unit All other uses not classified above Per 1000 sq. ft $ 0.82 $ 0.85 $ 1.23 impervious area Summary & Options ... .... ....,. ..ew SS<&1} S $ . FY 2006-07 budget adopted with increases contingent upon more review and need . Electric Fund Increase and Surcharge decrease deferred to January 2008 . No increases done in FY 2006-2007 . Base revenues for FY 2007-2008 accepted with budget increases equal to 6.7% . Proposed increases would be less than 3.5% (approx. $5.89/month depending on water use) 16 RESOLUTION NO. 2007- A RESOLUTION ADOPTING A TRANSPORTATION UTILITY RATE SCHEDULE PURSUANT TO ASHLAND MUNICIPAL CODE SECTION 4.26.020 AND REPEALING RESOLUTION 1999-31. THE CITY OF ASHLAND RESOLVES AS FOLLOWS: SECTION 1. The "Transportation Utility Rate Schedule," marked "Exhibit A" and attached to this Resolution, is adopted as the transportation user fees incorporating a 15% rate increase effective August 1, 2007. SECTION 2. One copy of this Resolution and "Exhibit A" shall be maintained in the office of the City Recorder and shall be available for public inspection during regular business hours. SECTION 3. The rates adopted pursuant to this Resolution shall be effective July 1, 2007. SECTION 4. Resolution 1999-31 is repealed on the effective date of this Resolution. SECTION 5. The fees imposed by this Resolution are classified as not subject to the limits of Section 11 b of Article XI of the Oregon Constitution (Ballot Measure No.5). This resolution was read by title only in accordance with Ashland Municipal Code 92.04.090 duly PASSED and ADOPTED this 19th day of June, 2007. Barbara Christensen, City Recorder SIGNED and APPROVED this _ day of June, 2007. John W. Morrison, Mayor Reviewed as to form: Richard Appicello, Assistant City Attorney Exhibit A City of Ashland TRANSPORTATION UTILITY FEES WITHIN THE CITY LIMITS Transportation Fee A. Single Family $ B. Multiple Family $ C. Retail Store $ D. Wholesale Use $ E. Office Use $ F. Medical/Dental Use $ G. Service Use $ H. Restaurant/Bar Use $ I. Manufacturing Use $ J. Warehousing Use $ K. Hotel/Motel Use $ L. Institutional and all other accounts not $ classified above. Including nursing homes and retirement homes M. Churches and places of Worship RESOLUTION 2007- Effective Date, August 1, 2007 June 2007 ENR @ 7939 Effective 3/1/2006 6.51 4.97 0.89 0.52 0.60 0.80 0.80 2.33 0.52 0.29 2.33 2.33 Exempt ENR Effective 8/1/2007 $ 6.76 $ 5.16 $ 0.92 $ 0.54 $ 0.62 $ 0.83 $ 0.83 $ 2.41 $ 0.54 $ 0.30 $ 2.41 $ 2.41 15% rate increase effective 8/1/2007 $ 7.49 $ 5.71 $ 102 $ 0.60 $ 0.68 $ 0.92 $ 0.92 $ 2.68 $ 0.60 $ 0.34 $ 2.68 $ 2.68 Unit Per month Per month per unit Per month per 100 sq ft. Per month per 100 sq ft. Per month per 100 sq ft. Per month per 100 sq ft. Per month per 100 sq ft. Per month per 100 sq ft. Per month per 100 sq ft. Per month per 100 sq ft. Per month per guest room Per month per required parking spaces as specified in Chapter 1892. NOTE: Users with in the Downtown Overlay District shall be charged on the same basis as elsewhere within the city. The minimum fee per month for any commercial account is: $ 6.51 $ 6.76 $ 7.49 RESOLUTION NO. 2007- A RESOLUTION ADOPTING A STORM DRAIN UTILITY RATE SCHEDULE PURSUANT TO ASHLAND MUNICIPAL CODE SECTION 4.27.050 AND REPEALING RESOLUTION 1999-32. THE CITY OF ASHLAND RESOLVES AS FOllOWS: SECTION 1. The "Storm Drain Utility Rate Schedule," marked "Exhibit A" and attached to this Resolution, is adopted as the Storm Drain Utility fee incorporating a 50% rate increase effective August 1, 2007. SECTION 2. One copy of this Resolution and "Exhibit A" shall be maintained in the office of the City Recorder and shall be available for public inspection during regular business hours. SECTION 3. The rates adopted pursuant to this Resolution shall be effective July 1, 2007. SECTION 4. Resolution 1999-32 is repealed on the effective date of this Resolution. SECTION 5. The fees imposed by this Resolution are classified as not subject to the limits of Section 11 b of Article XI of the Oregon Constitution (Ballot Measure No.5). This resolution was read by title only in accordance with Ashland Municipal Code S2.04.090 duly PASSED and ADOPTED this 19th day of June, 2007. Barbara Christensen, City Recorder SIGNED and APPROVED this _ day of June, 2007. John W. Morrison, Mayor Reviewed as to form: Richard Appicello, Assistant City Attorney Exhibit A City of Ashland STORM DRAIN UTILITY FEES WITHIN THE CITY LIMITS RESOLUTION 2007- Effective Date, August 1, 2007 June 2007 ENR @ 7939 Storm Drain Fee A. Single Family B. Condominium, 1-9 Units C. Multi-Family, 1-9 Units D. Mobile Home & Trailer, 1-9 Unites E. All other uses not classified above F. Minimum charge per account Effective 3/1/2006 $ 2.46 $ 1.06 $ 1.06 $ 1.06 $ 0.82 $ 2.46 ENR Effective 8/1/2007 $ 2.55 $ 1.10 $ 1.10 $ 1.10 $ 0.85 $ 2.55 50% rate increase effective 8/1 /2007 $ 3.68 $ 1.59 $ 1.59 $ 1.59 $ 1.23 $ 3.68 Unit Per month Per month per unit Per month per unit Per month per unit Per 1000 square feet impervious area Per month NOTE: Users with in the Downtown Overlay District shall be charged on the same basis as elsewhere within the city. The minimum fee per month for any commercial account is: $ 2.46 $ 2.55 $ 3.68 CITY OF ASHLAND Council Communication Public Hearing to Consider Utility Rate Increases Meeting Date: June 19, 2007 Department: Administrative Services Contributing Departments: NA Approval: Martha Bennett Primary Staff Contact: E-mail: Secondary Staff Contact: E-mail: Estimated Time: Lee Tuneberg tuneberl@ashland.or.us Paula Brown brownp@ashland.or.us 60 Minutes Statement: This public hearing is for Council to consider Water, Wastewater, Transportation and Storm Drain utility rate increases. Background: Costs of providing services continue to rise for both operations and capital improvements. Utility operations are heavily dependent upon petroleum products and personnel to provide the existing levels of service and current revenues are not sufficient to keep pace with these costs. Staff has reviewed and projected operational and capital costs for all utilities and anticipates cash flow and fund balance problems in the near future if adjustments are not made to the charges for service. Historically, the city has tried to stagger increases between the different services for several reasons: 1. It allowed staff to concentrate on a specific, in depth review each year. 2. The cost of outside assistance was minimized by a focused approach. 3. The impact of a larger, single increase every few years was as good as annual small increases and supported 1 and 2 above. Theoretically, over time, the effects of this approach would be the same with a different increase each year. Even though it probably would be larger due to less frequency, the impact on the customer would be minimized with no other increases occurring at the same time. The down-side is that studies and reviews can slide due to work load or other issues causing reviews and adjustments to "pile up" or not get done, possibly compromising the fund's financial condition. The annual budget review helps protect against this by keeping the fund integrity in front of staff, Council and the community. The increases in each utility made between 1991 and 2001 were three to five years apart. As costs increased with more rapidity the need for changes in charges for services came more frequently and the historical approach of staggering increases became more difficult. In the budget for this fiscal year there were many reviews and potential increases anticipated during FY 2006-2007. When the budget was adopted in June 2006 staff explained that there were significant variables and issues not resolved and suggested the increases be delayed until cash balances and trending could be done to better support any rate change needed. The single largest utility resource is the Electric Fund charges and staff recommended to Council that the proposed increase and change in surcharge would be best served if delayed to FY 2007-2008 for consideration. The two most significant impacts of doing this was the customer did not have to pay approximately 2% more 1 ~~, for the surcharge and user tax associated with the budgeted change and the General Fund did not receive those resultant revenues, if the change was done as originally configured (offsetting the surcharge with regular rates subject to taxes and franchise fees). In March, staff asked Council for permission to create the proposed FY 2007-2008 budget with a basic assumption that revenue levels budgeted for FY 2006-2007 would be the basis for the ensuing years, adjusted by routine growth in consumer use of the service. Staff also identified that the existing projects and those approved in coming years could impact total utility rates by 1 % per year on average. The long-term budget was constructed with these concepts, knowing that rate changes must come before Council for approval regardless of what was modeled in the annual budget document. Past practice has been to identify potential increases in the Budget Message yet the amounts estimated have not always occurred at that percentage, or at all, in the budget year. A delay in an increase can cause increases to be more in a following year. Below is a table of recent increases compared to what was projected: Utility Rate Increase History Residential Charges Proposed Proposed Proposed Proposed Proposed Budget Actual Budget Actual Budget Actual Budget Actual Budget Recommended FY 2003 FY 2003 FY 2004 FY 2004 FY 2005 FY 2005 FY 2006 FY 2006 FY 2007 1-Aug-07 Transportation Fee 0.0% 000% 6.0% 10.5% 10.0% 603% 5.0% 801% 15.0% 15.0% Storm Drain Fee 0.0% 0.0% 6.0% 10.3% 10.0% 606% 5.0% 8A% 100.0% 50.0% Water Rate 5.0% 5.0% 5.0% 4.8% 5.0% 505% 3.0% 15% 6.0% 6.0% Wastewater Rate 0.0% 0.0% 0.0% 0.0% 5.0% 500% 3.0% 10% 10.0% 10.0% Electric Rate 6.0% 600% 7.5% 7.5% 6.0% 600% 5.0% 0.0% 10.0% 0.0% Electric Surcharge 60.0% 6000% 30.0% 30.0% 0.0% -11.3% .10.0% -10.0% -100.0% 0.0% For comparative purposes this report will reference a "typical" residential account however we must remember that utility fees are consumption based and the amount of the bill can be impacted by customer use habits. The "typical" account used is a late 1980's Good Sense home, 1500 square feet, with three bedrooms, two baths and a two car garage. If all but the electric and surcharge adjustments were made as included in FY 2006-2007 the impact would be $6.01 or 6.4% per month. That equates to a compound rate of 3.15% per year for FY 2006-2007 and FY 2007-2008. The impact of the staff recommendations included in this report is 3.47% to the total utility bill for the example residence described above. Please note that this is less than 2% per year since no other adjustments have been made since 2006. Also remember that deferring the electric rate adjustment contributes to this low percentage. In general, the information presented below has an "operational perspective" in that most projections assume ongoing services and service levels. Some of the assumptions employed for this report are: A. Minor capital outlay and projects are included in operations and presumed to be paid from rates and fees. 2 r~' B. Impacts from major capital projects are excluded except when estimating borrowing and annual debt service. C. Estimates for capital projects, borrowing and potential related debt service may vary from the adopted budget dependent upon staff projections. Water Fund Charaes for Service The Water Fund is an enterprise with a FY 2008 annual budget of approximately $7.6 million including $2.2 million in capital expenditures. As of June 30, 2006, the proprietary statements showed $30 million in assets with $10.7 million in depreciation and $5.5 million in related debt. That leaves a net investment of about $14 million. The primary revenue sources are charges for services and system development charges (SDCs or impact fees). SDCs are restricted for capital improvements or debt service related to such projects. Grants for forest interface work are proposed in 2008. Primary operational expenditures are for staff, materials, external services and debt service segregated by major activities including Conservation, Supply, Treatment, Distribution and Forest Interface divisions. Actual 2006 to projected 2007 personnel costs increased 14.7% while materials and services rose 20% during the same time. The Operational Budget between 2007 and 2008 increased $642,840 or13.5% (including $240,000 for potential new debt service and $78,200 for technology debt). Water Fund Operational Revenue Sources $4,500,000 $4,000,000 $3,500,000 $3,000,000 $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000 $- -"-y- "~_Y'-"~"l ,\,' 2004 Actual 2005 Actual 2006 2007 2008 2009 2010 2011 2012 Actual Estimate Projected Projected Projected Projected Projected [J Charges for Services . Interest . Miscellaneous -- -- Rate increases for the Water Fund were done in fiscal years 2000, 2003, 2004, 2005 and 2006 averaging 4.6% each time or 3.3% per year. The last rate adjustment approved by Council was a 3.5% increase effective August 1, 2005. The FY 2007 budget included a 6% increase in charges for services but no increase has been done to date. 3 r~' Water Fund 2008 Budget Contingency, $144,000,3% New Debt Service, $240,000 , 4% DEQ Debt Service. $545,704,10% Capital Outlay & Equipment, $221,000 ,4% Materials & Services, $2,668,224 , 49% Important points for this fund's finances are: 1, A significant capital improvement program to meet water quality and operational needs, 2, A revenue stream highly susceptible to weather changes. 3. A 1 % increase in rates generates approximately $38,000 annually and will have $0,33/month impact on a typical customer, 4. Budget includes $177,000 for Conservation Interface work. 5. Budget includes an estimated $180,000 for base (excluding grants) Forest Interface work. 6. This fund pays approximately $235,000 to the General Fund in franchise fees and $94,000 to the Street Fund. Water Fund Operating Expenses $7,000,000 $6,000,000 $5,000,000 $4,000,000 $3,000,000 $2,000,000 $1,000,000 $- 2004 Actual 2005 Actual 2006 2007 2008 2009 2010 2011 2012 Actual Estimate Projected Projected Projected Projected Projected EiII Wages & Benefits o Debt Service . Materials & Services . New Debt Service o Capital Outlay & Equipment EiII Contingency Key issues in next 3 years include meeting water quality standards and financing needed capital projects. A $6,000,000 bond issue was budgeted in FY 2007 to reimburse the City for approved project costs but the financing has lagged and may be more appropriately issued at a lesser amount. 4 rA' $7,000,000 I $6,000,000 $5,000,000 $4,000,000 · $3,000,000 $2,000,000 $1,000,000 $- $6,000,000 $5,000,000 $4,000,000 $3,000,000 $2,000,000 $1,000,000 Water Fund Operational Revenue/Expense Comparison 2004 Actual 2005 Actual 2006 2007 2008 2009 2010 2011 2012 Actual Estimate Projected Projected Projected Projected Projected c:::::::J Operating Revenue -+- Operating Expenses Water Fund Revenue/Expense Comparison - No New Debt $- 2004 Actual 2005 Actual 2006 2007 2008 2009 2010 2011 2012 Actual Estimate Projected Projected Projected Projected Projected II Operating Revenue p:jj Operating Expenses The 6% increase budgeted in FY 2007 was intended to help meet the anticipated rising costs of all divisions and to maintain an appropriate operating fund balance recognizing the susceptibility of the fund to revenue swings. The current projection for the Water operational ending fund balance is projected to be $740,000 below requirements by June 30,2008, if no increase is implemented. The no-rate-change scenario calculates an operational revenue-to-expense shortfall of $1 million in FY 2008 including added debt service from project borrowing and operational costs. 5 ~~, Council Options: The projected operational ending fund balance is adequate for FY 2006-2007 but below operational necessity at the end of next year. Variables that could impact that projection are: · Water sales remaining consistent, · Grants are received to fund Forest Interface costs, · Operating expenses conforming to budget projections, and . Contingency is unused, Even with the above terms and a 6% increase the $740,000 ending fund balance shortfall will still be approximately $400,000 less than target however a larger increase cannot be recommended at this time. This requires the fund's revenue streams and operating expenses be evaluated each of the following years to ensure sufficient cash flow. With that said, there is some room to evaluate the recent operational cost trends and adjust accordingly in FY 2008 and FY 2009. Staff recommends an increase in all water rates of 6%. The impact on the "sample" residential account would be an additional charge of $2.00 per month, increasing from $33.25 to $35.25. Wastewater Fund Charges for Service The Wastewater Fund is an enterprise with a FY 2008 annual budget of approximately $6.7 million including $1.5 million in capital expenditures. As of June 30, 2006, the proprietary statements showed $49 million in assets with $7.3 million in depreciation and $20.6 million in related debt. That leaves a net investment of about $21 million. The primary revenue sources are charges for services, food & beverage tax proceeds and system development charges (SDCs or impact fees). SDCs are restricted for capital improvements or debt service related to such projects. Primary operational expenditures are for staff, materials, external services and debt service grouped by division for Collection and Treatment. Actual 2006 to projected 2007 personnel costs increased 4.7% while materials and services rose 5.8% during the same time. Operational Budget 2007 to 2008 increased 7.0% (including $98,500 for technology debt). Wastewater Fund Operational Revenue Sources $5,000,000 $4,500,000 $4,000,000 $3,500,000 $3,000,000 $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000 $- 2004 2005 2006 2007 2008 2009 2010 2011 2012 Actual Actual Actual Estimate Projected Projected Projected Projected Projected El F&B Taxes II Charges for Services II Interest 0 Miscellaneous 6 r~' No rate increases were done during construction and initial operation of the new treatment plant. Rate adjustments were done in FY 2005 and FY 2006 as proposed for an average 4% for each of those two years. The last increase was effective August 1, 2005. Wastewater Fund FY 2008 Contingency, $140,000,3% DEQ Debt Service, $1,788,160,34% Capital Outlay & Equipment, $120,500 ,2% The FY 2007 budget included a 10% increase in charges for services but no increase has been done to date. The last rate adjustment approved by Council was a 3% increase in FY 2006 Important points for this fund's finances are: 1. Annual debt service on the treatment plant is $1.8 million until FY 2021-22. 2. The loan from the state requires one year of debt service to be held in reserve. 3. Annual F&B tax revenue stream is $1.6 million until it sunsets in December 2010. 4. The shortfall between the tax and debt service is paid by SDCs or rates. 5. Rates may eventually need to increase 57% to replace the food & beverage tax proceeds. 6. Near future capital costs include improvements for DEQ compliance. 7. This fund pays approximately $235,000 to the General Fund in franchise fees and $94,000 to the Street Fund. Wastewater Fund Operating Expenses $7,000,000 $6,000,000 $5,000,000 $4,000,000 $3,000,000 $2,000,000 $1,000,000 $- 2004 2005 2006 2007 2008 2009 2010 2011 2012 Actual Actual Actual Estimate Projected Projected Projected Projected Projected C Wages & Benefits o DEQ Debt Service . Materials & Services . New Debt Service o Capital Outlay & Equipment [] Contingency Key issues in the next 3 years include renewing the food & beverage tax or identifying an alternate revenue stream, $2.8 million in needed capital improvements, anticipated borrowing may result in added annual debt service of $240,000. A potential bond issue of $3,000,000 in FY 2008 would fund 7 r~' required capital improvement projects for three years with little need for additional borrowing projected through FY 2013. Wastewater Fund Operational Revenue/Expense Component Comparison $5,000,000 $4,000,000 . $3,000,000 $2,000,000 $1,000,000 $- 2004 2005 2006 2007 2008 2009 2010 2011 2012 Actual Actual Actual Estimate Projected Projected Projected Projected Projected c::::::J F&B Taxes IIhl!JhliffiilOperating Revenue -Operating Expenses -DEQ Debt Service The 10% increase budgeted in FY 2007 was intended to help meet ending fund balance requirements per the loan, adjust for cost increases including potential new debt service and begin to prepare for sticker shock if the F&B tax was to end. The current projection for the Wastewater operational ending fund balance is projected to be $523,000 below requirements by June 30,2008, if no increase is implemented. The no-rate-change scenario calculates an operational revenue-to-expense shortfall of $976,672 in FY 2008 and climbing as costs rise and the F&B tax sunsets. Council Options: The projected operational ending fund balance is adequate for FY 2006-2007 but below target and loan requirements at the end of next year. The $523,000 ending fund balance shortfall could be nearly eliminated if: . Other revenue streams remain consistent, . Operational costs can be held to the budget, . Contingency is unused, and . a 10% increase is implemented This improvement would only occur if all steps identified occurred. This approach will necessitate a close review the next year to assure operational and loan requirements are met. A smaller increase will only defer the problems and a larger increase may be premature until F&B tax proceeds are ruled out as a resource. Staff recommends an increase in all sewer rates of 10%. The impact on the "sample" residential account would be an additional charge $1.55 per month, increasing from $15.46 to $17.11. Street Fund - Transportation and Storm Drain fees The Street Fund is a Special Revenue fund because of the state revenue sharing resource and it accounts for two systems, Transportation Utility and the Storm Drain Utility. The FY 2008 annual budget is approximately $5.9 million including $2.7 million in capital expenditures for Street, Storm 8 ~.l' Drain and Local Improvement District (LID) projects. As of June 30, 2006, the governmental statements showed $33.8 million in assets with an estimated 60% depreciated. The primary revenue sources are Transportation and Storm Drain Utility fees, State Revenue Sharing (gasoline tax), franchise fees, assessments and miscellaneous grants and intergovernmental revenue. Primary operational expenditures are for staff, materials, external services and debt service grouped by division for Street Operations and Strom Drain Operations. The fund also includes Grounds Maintenance activity for the plaza and boulevards, debt service and Contingency. Actual 2006 to projected 2007 personnel costs remained flat at $740,000 while materials and services dropped 2% from $1.48 to $1.45 million. Operational Budget 2007 to 2008 also remained flat at $2.5 million when debt service and Contingency are excluded from the calculation. This is primarily due to staff and materials being directed to other activities as the City prepared to study Street Fund projects and priorities more closely. Street Fund Operational Revenue Sources $3,500,000 $3,000,000 $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000 $- ~~ ~x~ ~ X~,;lnt.l1 ~~ ~ 2004 Actual 2005 Actual 2006 2007 2008 2009 2010 2011 2012 Actual Estimate Projected Projected Projected Projected Projected [;J Franchises o State Gasoline Tax . Grants & Other [;J Interest o Transportation Utility Fee 0 Storm Drain Utility Fee . Miscellaneous Transportation and Storm Drain Utility Fees are not consumption based which is why they are deemed a fee. They are calculated and charged based upon the characteristics of the property and remain constant throughout time until adjusted by Council action. Three rate adjustments were done in FY 2004, FY 2005 and FY 2006 per the terms of the resolutions approved in 1999. The budgets identified the need for a minimum of 21% (6%, 10% and 5%) during this time but the total adopted for each utility averaged 25% since the rates are tied to the Engineering News Record Construction Cost Index (ENR). The impact of the increases for each utility is: Dollar Impact of ENR Adjustments Done for Three Years (2004 - 2006) Residential Fee Transportation Storm Drain Total Per Month $5.12 $1.93 $7.05 Per Month $6.51 $2.46 $8.97 Monthly Change $1.39 $0.53 $1.92 The last increase prior to this time was effective 1999 when the resolution was adopted. 9 r~' Street Fund FY 2008 Budget Contingency, $89,000 ,3% Debt Service, $220,000 , 8% Capital Outlay & Equipment, $30,000, 1% Materials & Services, $1.625.985.58% The FY 2007 budget included a 15% increase in utility fee for Transportation and a 100% increase in the Storm Drain operations but no increase has been done to date. The combined impact of these increases would be a total of $3.44 per month. Important points for this fund's finances are: 1. A Council appointed task force is reviewing this fund, operations, capital improvement needs and financing with a report due in early FY 2008. 2. Gas tax revenue is allocated by the state based upon population and the tax is per gallon sold not price per gallon so there is a negative impact when prices increase. 3. This fund has SDCs and gas tax revenues that are restricted in use. 4. Grants for capital projects are not accepted which means if a grant becomes unavailable or the project does not meet City needs, both revenue and expenditure impact are removed from the budget. S. Local Improvement Districts are treated as capital projects and the City only pays for its share of the project and debt service. 6. The shortfall between the tax and debt service is paid by SDCs or rates. 7. This fund receives franchise payments from Water, Wastewater and Telecommunications operations. 8. The Rogue Valley Transit District service to Ashland is funded here. 10 r4.' $4,500,000 $4,000,000 $3,500,000 $3,000,000 $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000 $- Street Fund Operating Expenses 2004 Actual 2005 Actual 2006 2007 2008 2009 2010 2011 2012 Actual Estimate Projected Projected Projected Projected Projected CI Street Ops - Personnel II Street Op - M&S CI Storm Drain Ops - Personnel 1:1 Storm Drain Ops - M&S CI Grounds Maintenance CI Transfers-Debt Service CI Contingency II Street Ops - Capital II Storm Drain Ops - Capital CI New Debt Service Key issues in next 3 years include prioritizing capital projects and developing an acceptable financing plan and continued support to provide local transit. A series of capital improvements and related borrowing significantly impact the long-term budget. Current fees and charges do not generate enough revenue to meet calculated debt service requirements. $4,500,000 $4,000,000 $3,500,000 $3,000,000 $2,500,000 ,$2,000,000 $1,500,000 $1,000,000 $500,000 $0 Street Fund Operational Revenue/Expense Comparison 2004 Actual 2005 Actual 2006 2007 2008 2009 2010 2011 2012 Actual Estimate Projected Projected Projected Projected Projected c::J Operating Revenue -+- Operating Expenses 11 r~' Street Fund Revenue/Expense Comparison - No Debt $3,500,000 $3,000,000 $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000 $- 2004 Actual 2005 Actual 2006 2007 2008 2009 2010 2011 2012 Actual Estimate Projected Projected Projected Projected Projected lEI Operating Revenue r.a Operating Expenses The increases budgeted in FY 2007 were intended to help meet ongoing operational commitments. Staff managed to hold operational costs relatively flat but this may include not doing things that needed to be done as the Task Force works on priorities. This has reduced the immediate need for increases to meet cash flow requirements but this need will soon return. Street Operations is budgeted at $1.7 million for staff and materials & services with the Transportation fee only generating $1 million without the 15% increase. Storm Drain Operations is budgeted at $600,000 with the utility fee generating only $350,000 in revenue. Currently franchises, gas taxes and miscellaneous revenue narrowly cover the shortfall for these two divisions. The current projection for the Street Fund shows a shortfall between revenue and expenses of $232,000 per year beginning in FY 2008 and growing to $933,000 a year by FY 2010 to meet operational needs and debt service for improvements. Council Options: The Task Force is working toward a report to Council within the first three months of the coming fiscal year. This added information will help in the long run but may not affect the short -term budget. This allows the Council to: . Defer increases until the Task Force work is done. . Do small, annual increases to reduce the magnitude of next year's increase. . Implement the budget increases, possibly reducing the need of increases next year. Staff recommends an increase of 15% on Transportation fees and 50% on Storm Drain fees. The impact on the "sample" residential account would be an additional charge $0.98 per month for street costs and $1.23 for storm drainage, increasing their monthly total from approximately $8.97 to $11.18. This would generate approximately $155,000 more for the Transportation Utility and $175,000 for the Storm Drain Utility. 12 rA' Recommendation: Staff recommends approval of the accompanying four resolutions as presented or amended through Council discussion. Attachments: A Resolution revising rates for water service pursuant to Ashland Municipal Code Section 14.04.030 and repealing Resolution 2005-23 Resolution 2005-23 A Resolution revising rates for wastewater service pursuant to Ashland Municipal Code Section 14.08.035 and repealing Resolution 2005-24 Resolution 2005-24 A Resolution adopting a transportation utility rate schedule pursuant to Ashland Municipal Code Section 4.26.020 and repealing Resolution 1999-31 Resolution 1999-31 A Resolution adopting a storm drain utility rate schedule pursuant to Ashland Municipal Code Section 4.27.050 and repealing Resolution 1999-32 Resolution 1999-32 13 rA'