DEPARTMENT: Finance
DEPARTMENT HEAD: Ben Gorzell, Chief Financial Officer
COUNCIL DISTRICTS IMPACTED: City Wide
SUBJECT:
A briefing from the San Antonio Water System (SAWS) on the 2017 rate adjustment, proposed 2017 Water Management Plan, and an update on the Vista Ridge Project and a briefing by City staff on the 2017 rate adjustment.
SUMMARY:
This item will be a briefing from SAWS on the 2017 rate adjustment, the proposed 2017 Water Management Plan, and the status of the Vista Ridge Project and a briefing from City staff on the 2017 rate adjustment.
BACKGROUND INFORMATION:
The below is information on the 2017 rate adjustment, proposed 2017 Water Management Plan, and the Vista Ridge Project.
2017 Rate Adjustment
In connection with the development of its 2017 Operating Budget and Capital Improvement Program (CIP), SAWS has determined that a rate adjustment is required for 2017. The impact to the average residential customer is 6.8% which is less than the maximum 2017 rate adjustment of 7.9% approved by City Council on November 19, 2015.
Based upon information provided by SAWS, two thirds of the revenue generated by the rate adjustment will support the 2017 SAWS CIP which is expected to total $367.5 million. The 2017 CIP includes $141.5 million in capital projects specifically identified to comply with SAWS commitments under the Environmental Protection Agency (EPA) Consent Decree. Another $112 million will be invested in infrastructure improvements necessary to begin receiving water from the Vista Ridge project in 2020. The remaining capital investments will address production and treatment facilities upgrades and improvements as well as the replacement of water and sewer mains in support of the City's bond program.
A portion of the rate adjustment will also support a full year operation of the brackish groundwater desalination plant that will come online in late 2016 as well as the purchase of additional 2,500 acre feet of water from the Sc...
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