Title
Ordinance - Third and Final Reading of an Ordinance of the City of Mansfield, Texas Amending Chapter 51, Section 51.052 of the Code of Ordinances, City of Mansfield, Texas; so as to Revise and Change the Rates Charged for Water Services Furnished by the City of Mansfield, Texas; Repealing Ordinance 1735 and other Ordinances in Conflict Herewith; Providing a Severability Clause; Providing for Publication and for an Effective Date
Description/History
In January of 2006 staff recommended a change to the water and sewer rate structure. The rates had not changed in the previous thirteen years, prior to the rates that were adopted in early 2006. During the discussion of the proposed water and sewer rates staff informed city council that based on the Water and Sewer Master Plans, as well as, the Strategic Plan and the new utility rate model that additional rate increases where on the horizon. In February of 2009, staff recommended, and council approved, new water rates. It was explained at that time that the rate structure would continue to change in the years to come.
Justification
In order to provide the required funding necessary to meet debt service requirements, operational funding, and protect our current Utility Revenue Bond Rating (by meeting our established covenants), it is necessary that the rates charged for water service be changed to meet the revenue requirements as projected in the utility rate model.
Funding Source
All associated costs for implementation are direct operating cost of the Utility Fund and will be funded by the 2010 operating budget.
Prepared By
Bud Ervin, Director of Utility Operations