FY 2025 BUDGET BOOK - Flipbook - Page 65
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Creditworthiness: Maintaining stable and self-sustaining water and wastewater
utilities enhances the City’s creditworthiness. This can lead to lower borrowing
costs for infrastructure projects and reflects positively on the City’s financial
management practices.
Customer Satisfaction: Fair and reasonable rates contribute to customer
satisfaction. When customers see that their bills reflect the true cost of service
delivery and necessary improvements, they are more likely to have confidence in
the City’s management of these essential utilities.
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Long-Term Planning: A rate study provides a foundation for long-term financial
planning. It enables the City to assess the impact of rate adjustments on future
budgets, allowing for proactive financial management and strategic decisionmaking.
3. Stormwater Rate Study: The water and sewer rate study also includes evaluating rates
for the stormwater utility. The current residential stormwater utility rate is $6 per month,
while the commercial rate is $12 per month. These rates have remained unchanged for
over a decade. The utility is unsustainable at the current rates. A rate increase is needed
for the City to meet its annual revenue requirements, support the Capital Improvements
Plan projects, and align with national utility rates and local Lake County rates. The
planning for an increase aligns with the Competent and Effective Government Priority,
specifically Goal #3 Strategic Priority 1 of the City’s Strategic Plan - Maintain the
Financial Viability of the City.
A stormwater rate study can yield numerous benefits for the City, its residents, and the
environment:
➢ Funding for Stormwater Management: A rate study ensures that the City has a
dedicated and sustainable source of funding for stormwater management. This
funding is crucial for maintaining and improving stormwater infrastructure, such as
drainage systems, culverts, and retention ponds.
➢ Flood Prevention: A properly managed stormwater system helps prevent flooding
in residential and commercial areas. By investing in stormwater infrastructure
through adequate rates, the City can reduce the risk of property damage and
enhance public safety during heavy rainfall events.
➢ Water Quality Improvement: Stormwater carries pollutants from streets, parking
lots, and other surfaces into natural water bodies. Adequate funding allows the City
to implement stormwater management practices that improve water quality by
reducing pollutants, protecting aquatic ecosystems, and ensuring compliance with
environmental regulations.
➢ Erosion Control: Stormwater rate revenue can be used to implement erosion control
measures along water bodies and construction sites. This helps prevent soil erosion,
sedimentation, and the degradation of water bodies and natural habitats.
➢ Public Health and Safety: Effective stormwater management contributes to public
health by minimizing waterborne diseases and preventing accidents associated with
flooding. A well-maintained stormwater system also reduces the risk of waterborne
illnesses.
➢ Environmental Conservation: Adequate funding supports the preservation of
natural habitats and ecosystems within the City. It allows for the restoration of
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