City Council Workshop or Special Called Meeting

CITY COUNCIL WORKSHOP MEETING WEDNESDAY - FEBRUARY 12, 2025 - 5:30 PM Notice of AGENDA City Council Chamber/Municipal Courtroom 2801 Ranch Road 1869 Liberty Hill, TX 78642 Diane Williams Jacquetta Thayer Crystal Mancilla Wade Ashley Amanda L Young Michael Helbing LIVE VIDEO ACCESS AND RECORDINGS The live video link will be on the City's Facebook page. Following the meeting, the link for the live meeting will be removed. The recording of the meeting will be placed on the City's webpage: www.libertyhilltx.gov PLEASE SILENCE YOUR CELL PHONES 1) CALL TO ORDER AND ESTABLISH QUORUM 2) REGULAR AGENDA a) Presentation - 'Water Rates 101' Zack Stein and Grady Reed with HDR consultants Liberty Hill Water Rates Workshop 2_12_25.pdf 3) ADJOURNMENT 1 The City Council, Boards, and Commissions reserve the right to reconvene, recess, realign, change the order of business, or adjourn into Execu ve Session at any me during the course of the mee ng, prior to adjournment, to discuss any item listed above, as authorized by Texas Government Code Sec on §551.071 (Consulta on with A orney), §551.072 (Delibera ons about Real Property), §551.073 (Delibera ons about Gi s and Dona ons), §551.074 (Personnel Ma ers), §551.076 (Delibera ons about Security Devices), and §551.087 (Development). In compliance with the Americans with Disabili es Act, the City of Liberty Hill will provide reasonable accommoda on for persons a ending mee ngs. To be er serve you, requests need to be received 48 hours prior to the meeting. Contact the City Secretary at 512-778-5449 – Extension 125. POSTING CERTIFICATION: I, ELAINE SIMPSON – CITY SECRETARY – CITY OF LIBERTY HILL certify that the attached notice of meeting was duly posted on the bulletin board at City Hall located at 926 Loop 332, Liberty Hill, Texas 78642 and on the City website (www.libertyhilltx.gov) on the ______ day of ____________________, 202_ at ______. Elaine Simpson – City Secretary. REMOVAL CERTIFICATION: I ELAINE SIMPSON – CITY SECRETARY – CITY OF LIBERTY HILL certify that the attached notice of meeting was removed from the bulletin board at City Hall located at 926 Loop 332, Liberty Hill, Texas 78642 on the ______ day of __________________, 202_ at _______. INITIALS _______ 2 CITY COUNCIL WORKSHOP CITY COUNCIL WORKSHOP MEETING WEDNESDAY - FEBRUARY 12, 2025 2801 Ranch Road 1869 - Liberty Hill AGENDA ITEM 2.a Presentation - 'Water Rates 101' Zack Stein and Grady Reed with HDR consultants 3  2025 Update of Water Rates City Council Workshop February 12, 2025 4 BACKGROUND ▪ Water o Fund balance has been declining the last few years due to limited growth in revenue and increases in expenses. o While there is some uncertainty in the timing, the utility could experience rapid growth if additional water supplies are secured. o New projects to handle growth will cause expenses (debt-service) to rapidly increase in the near-term. o The water utility is a smaller utility (not the same economies of scale) with more limited growth than the wastewater utility. 5 ASSUMPTIONS ▪ Revenue is planned for an “average” year (residential use of 5,500 gallons per month). Revenue can be higher in hot, dry years. ▪ Assumes 1,842 connections for FY25 with a total billed use of 163.6 mg. ▪ Assumed growth rate of 7.5% for FY26 and increasing to 9.5% in FY29. ▪ Total water budget of $3.6 million for FY25. ▪ Water expenses are projected to increase to $8.4 million in FY29 ($4.8 million or 135%). ▪ Future expenses are being driven by increased debt service. 6 ASSUMPTIONS ▪ Operations and Maintenance fund balance - $1,000,000 ▪ Impact Fee Fund Balance - $8,200,000 ▪ No changes to rate structure – rate increases will be “across the board” ▪ No transfer to the General Fund in FY25 or future years ▪ Use of Impact Fee funds to pay for debt service beginning in FY26 ($750,000 in FY26 increasing to $2,250,000 in FY29) ▪ $3.0 million of impact fee funds remain for future use 7  CAPITAL IMPROVEMENT PLAN Source Five-Year of Estimated Project Cost by Year CIP Project Name Funding 2025 2026 2027 2028 2029 Total RR 1869 Fire (WL-1) Fees $ - $ - $ - $ - $ 2,084,126 $ 2,084,126 Hickman St Fire (WL-2) Cash $ - $ - $ - $ - $ 500,044 $ 500,044 Downtown Fire (WL-3) Cash $ - $ - $ - $ - $ 9,733 $ 9,733 Seward Junction Loop (WL-4) Debt $ - $ - $ - $ 18,902,575 $ - $ 18,902,575 SH-29 to Well Site 4 (WL-5) Debt $ - $ - $ - $ - $ 7,995,843 $ 7,995,843 EST Loop Closure E (WL-6) Debt $ - $ - $ - $ - $ 2,844,534 $ 2,844,534 Prop School Service (WL-7) Debt $ - $ 617,594 $ - $ - $ - $ 617,594 Butler Farms EST Water Line (WL-8) Debt $ - $ - $ 530,939 $ - $ - $ 530,939 SH 29 to Bulter Farms (WL-9) Fees $ - $ - $ - $ 2,289,413 $ - $ 2,289,413 Butler Farms EST (WT-1) Debt $ - $ 21,594,144 $ - $ - $ - $ 21,594,144 Georgetown Connection Upgrades (WS-1) Fees $ 946,500 $ - $ - $ - $ - $ 946,500 Various water line replacements Other $ 2,850,000 $ - $ - $ - $ - $ 2,850,000 $ 6,796,500 $ 22,211,738 $ 530,939 $ 21,191,988 $ 13,434,280 $ 64,165,445 8  RATE RECOMMENDATIONS ▪ 9.0% Across the Board rate increase through FY29 o $7.37/month for 7,500 gallons of use in first year Sample Monthly Bill Change % Change Class Monthly Use 2024 2025 2026 2027 2028 2029 2024-2025 2024-2025 Residential w/ 3/4" meter 2,500 $ 54.53 $ 59.44 $ 64.80 $ 70.64 $ 77.00 $ 83.94 $ 4.92 9.0% 5,000 $ 68.00 $ 74.14 $ 80.82 $ 88.11 $ 96.05 $ 104.71 $ 6.14 9.0% 7,500 $ 81.48 $ 88.84 $ 96.85 $ 105.59 $ 115.10 $ 125.49 $ 7.37 9.0% 10,000 $ 94.95 $ 103.54 $ 112.87 $ 123.06 $ 134.15 $ 146.26 $ 8.59 9.1% 12,500 $ 117.40 $ 128.02 $ 139.55 $ 152.14 $ 165.85 $ 180.81 $ 10.62 9.0% 15,000 $ 139.85 $ 152.49 $ 166.22 $ 181.21 $ 197.55 $ 215.36 $ 12.64 9.0% 20,000 $ 184.75 $ 201.44 $ 219.57 $ 239.36 $ 260.95 $ 284.46 $ 16.69 9.0% Commercial w/ 1" meter 5,000 $ 129.57 $ 141.26 $ 153.97 $ 167.85 $ 182.96 $ 199.44 $ 11.69 9.0% 10,000 $ 156.52 $ 170.66 $ 186.02 $ 202.80 $ 221.06 $ 240.99 $ 14.14 9.0% 15,000 $ 201.42 $ 219.61 $ 239.37 $ 260.95 $ 284.46 $ 310.09 $ 18.19 9.0% 25,000 $ 304.62 $ 332.11 $ 361.97 $ 394.60 $ 430.16 $ 468.89 $ 27.49 9.0% 50,000 $ 596.12 $ 649.86 $ 708.22 $ 772.10 $ 841.66 $ 917.39 $ 53.74 9.0% 9 100,000 $ 1,062.52 $ 1,158.26 $ 1,262.22 $ 1,376.10 $ 1,500.06 $ 1,634.99 $ 95.74 9.0% 250,000 $ 2,928.12 $ 3,191.86 $ 3,478.22 $ 3,792.10 $ 4,133.66 $ 4,505.39 $ 263.74 9.0% WATER UTILITY SUMMARY 10 WATER UTILITY FUND 11 RESIDENTIAL BILL COMP. - Sorted by Residential Bill @ 5,000 Gallons/Month Water Use - WATER City Bill for 5,000 Gallons Liberty Hill (Proposed) $ 74 Pflugerville $ 72 Liberty Hill (Current) $ 68 Kyle $ 66 Leander $ 60 San Marcos $ 52 Hutto $ 51 Bastrop $ 47 Buda $ 47 Lockhart $ 46 Georgetown $ 39 Belton $ 36 Cedar Park $ 33 12 Round Rock $ 29 COMMERCIAL BILL COMP. - Sorted by Commercial Bill @ 25,000 Gallons/Month Water Use - WATER City Bill for 25,000 Gallons Buda $ 349 Liberty Hill (Proposed) $ 332 Pflugerville $ 321 Liberty Hill (Current) $ 305 Kyle $ 289 Leander $ 249 San Marcos $ 241 Hutto $ 233 Lockhart $ 214 Georgetown $ 145 Cedar Park $ 138 Bastrop $ 138 Belton $ 118 13 Round Rock $ 106 QUESTIONS? 14