Proposed Increase in Utility Service

The City of Greenfield is committed to providing high quality utility services at the lowest possible rates for our customers. To meet this commitment over the next five fiscal years, the City evaluated programs, infrastructure needs, and costs of providing water and sewer services. Rate increases to water and sewer service charges are necessary for the City to recover current and projected costs of operations and maintenance, make capital infrastructure improvements and repairs, maintain its operational and financial stability, and ensure sufficient reserves for unplanned events. The proposed service charges currently being considered for approval are the product of a detailed cost-of-service rate study which sought to:

• Calculate the cost of providing water and sewer service to customers using industry accepted methodologies
• Create utility rate schedules that ensure adequate revenues to meet the ongoing financial requirements of the water and sewer utilities
• Develop a multi-year financial management plan that integrates the capital funding needs expressed by the City's Master Plan
• Develop rate structures that equitably recover the cost of service from each customer

As a public utility provider, the City can only charge its customers for the costs associated with providing utility service and cannot earn a profit. When determining the proposed rates, the City prioritized the fair treatment of all customers, reflecting the true cost of providing utility service to its customers, and protecting the City's financial stability and its ability to provide a high-level of service.

Public Hearing & Protests

Any record owner of a parcel upon which water or sewer service fees are proposed for imposition, or any tenant directly responsible for the payment of water or sewer service fees (i.e., a customer of record), may submit a written protest to the proposed rate increases to the City's fees; provided, however, only one protest will be counted per identified parcel. Each protest must:

1. Be in writing
2. State that the protest is submitted in opposition to the rate increases
3. Provide the location of the identified parcel or parcels (by service address, customer account number, or assessor's parcel number)
4. Include the name and signature of the person submitting the written protest.

Written protests may be submitted by mail to the City Clerk. Written protests may also be submitted in person at the address above or at the public hearing (date and time noted herein). All written protests must be received prior to the conclusion of the public input portion of the public hearing. Please identify on the front of the envelope for any protest, whether mailed or submitted in person, that the enclosed letter is for the Public Hearing on Water and Sewer Rates.

The City Council will consider all written protests timely submitted and hear and consider all public comments made at the public hearing. At the conclusion of the public hearing, the City Council will determine whether to adopt the proposed rate increases as described in this notice. If, after the close of the public hearing, written protests against the proposed rate increases as outlined above are not presented by a majority of the record owners and customers of record of the identified parcels upon which the fees are proposed to be imposed, the City Council will be authorized to impose the rate increases.

Proposed Rate Revenue Increases

The overall proposed water rate revenue increase is 7.056% in fiscal year 2017 (effective August 1, 2016) and 5% for the 4 subsequent fiscal years (effective each July 1st). The overall proposed sewer rate revenue increase is 16% in fiscal year 2017 (effective August 1, 2016), 16% in fiscal year 2018 (effective July 1, 2017) and 3.5% for the 3 subsequent fiscal years (effective each July 1st).

Even with the proposed rates presented herein, the City’s cost of service will remain among the lowest of communities in the area. The figure below presents a cost comparison to neighboring communities for a typical residential water and sewer user. The results of the survey indicate that the City charges a combined water and sewer monthly bill that is among the lowest in the area.