At 7 p.m. March 20, Sunset Valley City Administrator Clay Collins will explain the city's longtime utility subsidy and offer potential options of how to move forward.
The data-driven presentation to the Sunset Valley City Council will follow up on a February council discussion.
Sunset Valley residents enjoy free wastewater and solid waste services, as well as reduced water bills, thanks to a city subsidy.
Sunset Valley's utility fund should be self-sufficient—revenues should meet expenses. Since it does not, the city subsidizes the fund with money from the main operating budget, which is paid for mostly through sales tax.
The subsidy began with $44,643 in fiscal year 1999–2000 and has grown to $367,359 in fiscal year 2011–12.
City documents show that wastewater comprises the largest part of the subsidy.
Collins is expected to offer four potential options at the end of his presentation:
- Revise city policy to allow the council to set rates consistent with current practices
- Set a range or cap on utility fund transfers or set revenue requirements
- Revise policies to justify excluding certain capital expenses, such as water lines for fire protection, from the rate base
- Phase in any or all cost increases to make utility services self-sufficient
For more information, see the background agenda materials for the March 6 and March 20 meetings on the city's website.
