Item 44 - Public Hearing – Adopt a Resolution Adjusting Sanitation Services Users Charge

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Some units were not charged for the full twelve months. After reviewing historical data and discussing with City staff, we were able to identify new occupancies that have not been there for a full year yet. We recommend the City tracks new units added to the system to improve the accuracy of its billing and revenue projections. After we understood the way each account was currently being billed, we worked closely with City staff to account for or adjust any discrepancies (e.g., units that were not billed for an entire year) and provided these anomalies to the City for review and/or billing system updates. The adjusted billing data could now be used to develop the new user charge. USER CHARGE DEVELOPMENT The results of the billing data analysis and the apportioned costs from the COSA represent the Net Revenue Requirement (NRR) for the updated user charge. Sanitation Services User Charge Calculation The user charge was calculated by dividing the net revenue requirement (NRR) by the projected number of City units in FY 2025. The calculation is shown below: User Charge Calculation Revenue Requirement Less: Offsetting Revenues $13,195,523 $74,984 Net Revenue Requirement $13,120,539 Projected FY 2025 Units 93,265 Annual Revenue Requirement/Unit $140.68 Monthly Users Charge Annual Revenue Requirement/Unit Monthly Users Charge $140.68 $11.72 Bi-monthly Billed Amount $23.44 RECOMMENDATIONS & NEXT STEPS Based upon the results of the study described herein, we recommend the following: •The City’s current Sanitation Services Users Charge revenues are not sufficient to fund all of its ongoing operations, capital, and reserve requirements throughout the projection period. Therefore, a long-term financial management plan was developed for the City. The five-year plan of recommended revenue adjustments is shown in the table below. 14