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City Council <br />Meeting Minutes June 30, 2020 <br />Times have changed so we are reviewing this tonight. <br />• With no impact for FY20 and to achieve a 25% fund balance that would be a <br />12% increase in FY21 required to achieve financial policy goals. <br />• FY21 CIP does not impact FY21 utility rate, but will in the following years. <br />Ms. Moyer provided examples of non-residential bill increases of 12% rate <br />increase impacts <br />Examples of averages for non-residential bill increases: <br />• Small downtown business: $3/month <br />• Interstate restaurant: $6/month <br />• Apartment complex: $400/month (median $80/month) <br />• Industrial business: $496/month (median $50/month) <br />Ms. Moyer stated that our strong approach to addressing stormwater quality is the <br />primary driver of Stormwater utility rates. FY21 CIP has no impact to FY21 <br />Stormwater Utility rate but will impact the FY22 rate. <br />• Four scenarios were developed to illustrate CIP and rate requirement connection. <br />• Need guidance from Council for revision to FY21 CIP and development of future <br />CIPS. <br />Ms. Moyer mentioned the priority projects that have existing participation <br />agreements in place or expectations by citizens for implementation in FY21 <br />priority projects (stormwater only): <br />• 11135 Stormwater Oversize (Sunset Acres) at $5.3M <br />• Academy/Sessom Improvement at $1.5M <br />• Hills of Hays at $3M <br />In FY22 priority projects (stormwater only) are <br />• Wallace Addition Offsite at $4.5M <br />• Sunset Acres at $4M <br />• Castle Forrest Channel at $1.5M <br />Ms. Moyer stated that staff is pursuing other funding avenues and have applied for <br />Water Development Board funding for multiple projects to help balance the <br />funding request. <br />Ms. Moyer presented the four options: <br />Option #1 Minimum FY21 CIP increase of 3% <br />• FY21 CIP reduced to $2M (plus $4M existing funds) <br />• FY22 and beyond reduced to $6M annually <br />Option <br />FY21 CIP <br />Amount <br />FY22 CIP <br />Amount <br />FY23 CIP <br />Amount <br />FY21 <br />Rate <br />Increase <br />FY22 <br />Rate <br />Increase <br />FY23 <br />Rate <br />Increase <br />FY24 <br />Rate <br />Increase <br />1 <br />$2,000,000 <br />$6,000,000 <br />$6,000,000 <br />12% <br />3% <br />3% <br />3 <br />City of San Marcos Page 9 <br />