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Council Reviews Utility Rate Model Update

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June 20, 2022


Addison's current utility rate model extends through Fiscal Year (FY) 2023. The Town hired utility rate consultant Raftelis Financial Consultants, Inc. to update and extend the rate model through FY2028. The rate model update was conducted according to the policy adopted by Council in 2018 to include a mix of cash and bond-funded capital projects, to maintain a fund balance of at least 25%, and provide systematic rate increases.

The new plan recommends the following increases over the next five years:

FY2024, FY2025, and FY2026 - 5.5%

FY2027 - 4%

FY2028 - 3.5%

Council will formally adopt the rate model's financial plan for fiscal years 2024-2028 at a future meeting. On an annual basis, staff will review the actual activity compared to the rate model and make rate recommendations to Council during the budget process.

You can watch the Council's utility rate model discussion here and review the presentation here.

Council Reviews Utility Rate Model Update