County of Los Alamos - File #: CO0638-22-a

• File #: CO0638-22-a
• Version: 1
• Type: Code Ordinance
• Status: Introduction of Ordinance
• File created: 5/10/2022
• In control: Board of Public Utilities
• On agenda: 5/18/2022
• Final action: 5/18/2022
• Title: Introduction of Incorporated County of Los Alamos Code Ordinance No. 02-328; An Ordinance Amending Chapter 40, Article III, Sections 40-151, 40-152, 40-171, 40-173 and 40-175 of the Code of the Incorporated County of Los Alamos Pertaining to Gas Service Rates and Potable and Non-Potable Water Rates and Bulk Delivery Rates
• Presenters: Philo Shelton; Heather Garcia
• Indexes (Council Goals): * 2022 Council Goal - Investing in Infrastructure, DPU FY2022 - 1.0 Provide Safe and Reliable Utility Services, DPU FY2022 - 2.0 Achieve and Maintain Excellence in Financial Performance

Title
Introduction of Incorporated County of Los Alamos Code Ordinance No. 02-328; An Ordinance Amending Chapter 40, Article III, Sections 40-151, 40-152, 40-171, 40-173 and 40-175 of the Code of the Incorporated County of Los Alamos Pertaining to Gas Service Rates and Potable and Non-Potable Water Rates and Bulk Delivery Rates

Recommended Action
I introduce, without prejudice, Incorporated County of Los Alamos Code Ordinance No. 02-328; An Ordinance Amending Chapter 40, Article III, Sections 40-151, 40-152, 40-171, 40-173 and 40-175 of the Code of the Incorporated County of Los Alamos Pertaining to Gas Service Rates, Potable and Non-Potable Water Rates, and Bulk Delivery Rates.

Utilities Manager Recommendation
The Utilities Manager recommends that the Board of Public Utilities introduce this Ordinance.

Body
The ten-year forecast for the water utility presented with the FY2023 budget included a series of rate increases to generate revenues needed for current operations and to build cash reserves necessary for future infrastructure needs. Detailed in the Water fund 10-year forecasts were four consecutive years of increases of five percent for bulk, potable, and non-potable rates. Rate increases proposed in the Gas fund were three consecutive years of eight percent increases, followed by five percent in FY 2026. The Gas Rate Scheduled has been unaltered since 2016, in which the commodity rate was decreased from .29 cents per therm to .23 cents per therm. Prior to this change, in 2013, the commodity rate was decreased from .55 cents per therm. The gas rates for service charges have not been changed since 2009. And in 2018, several alternative long-term scenarios for water rates were prepared by staff and presented for Board consideration. After scenarios were selected which were intended to represent the most reasonable balance between increased rates and necessary system expenditures. This has been the foundation upon which the ten-year budgetary proje...