No formal action is expected at this work session, but staff is seeking feedback from the Council on the proposed rates.

Public works engaged AE2S Nexus to conduct a cost of service rate study to review and recommend appropriate water and wastewater user rates, the resale rate for the County Water District of Billings Heights, and wholesale rates for Lockwood Water and Sewer District, Philips 66 Billings Refinery and ExxonMobil Refinery, as well as the System Development Fees (SDFs) for water and wastewater.  Additionally, an SDF Advisory Committee was formed to review the methodology of SDFs. Staff will present the primary drivers of the rate increases, the recommended rates for each class of user, and the proposed revisions to the SDF methodology.  Staff will also report on important water and wastewater pipe extensions that are not currently funded and the associated impacts to rates if Council desires that Public Works construct the extensions. The rate study reports are attached. 

This is a work session, so no formal action may be taken at this time.  However, staff is asking the City Council to provide direction on the proposed rates.  Council will be asked to approve water and wastewater rates for fiscal years 2024 and 2025 at the May 22, 2023, business meeting.

There are no direct fiscal effects for the discussion.