Regional Water System
title
Resolution Establishing a New Customer Rate and Premium Methodology for the Regional Water System; Resolution 24-52
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SUBJECT
recommendation
Adopt Resolution 24-52 establishing a new customer rate and premium methodology for the Regional Water System
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PURPOSE
Following the findings of the 2021 Independent Financial Report and subsequent rate study, the Board supported NTMWD staff to engage with Members and Customers to develop a new methodology to calculate the Customer Premium for the Regional Water System. After months of engagement, a consensus was achieved around a methodology as referenced in the accompanying resolution.
RECOMMENDATION
The Executive Director, NTMWD staff, Carollo Engineers, Inc. and Lloyd, Gosselink, Rochelle & Townsend, P. C., recommend the Board of Directors adopt Resolution 24-52 that includes the customer rate methodology.
DRIVER(S) FOR THIS PROJECT
Strategic Objective:
2.3 Rigorous Financial Management
3.2 Engaged Members, Customers and Stakeholders
? Regulatory Compliance
? Asset Condition
? Capacity
? Redundancy/Resiliency
? Relocation or External Requests
? Operational Efficiency
? Safety
? Administrative
? Policy
? Other _____________
BACKGROUND
PURPOSE
* NTMWD adopted a water rate in 1970, applicable to non-member customers of the Regional Water System (Customers) in the amount of 5 cents plus the Member City Rate per 1,000 gallons of water. The Customer Rate has not been revised or changed since its adoption and the value of the differential between the Customer Rate as a percentage of the Member City Rate has declined since 1970;
* NTMWD executed a 2020 Settlement Agreement to resolve a dispute and related litigation among the Member Cities over the Member City Contract that includes a requirement for NTMWD to engage a third party to perform a financial management review every t...
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