►
From YouTube: Policy, Finance & HR Committee – September 12, 2023
Description
Regular meeting of the Asheville City Council's Policy, Finance & HR Committee.
Access the agenda and other meeting materials at the City of Asheville website: https://www.ashevillenc.gov/government/city-council-committees/policy-finance-and-human-resources-committee/
Participate before and during the meeting on our public engagement hub: https://publicinput.com/S28682
B
I
apologize
when
I
just
give
me
a
couple
more
minutes.
We
just
gotta
switch
up
one
thing:
real,
quick,
okay,.
B
D
A
Good
morning
my
name
is
Esther
manheimer
I'm,
chair
of
the
policy
finance
and
HR
committee
for
the
city
of
Asheville
and
I'd
like
to
welcome
you
to
the
September
12th
remote
meeting.
All
Council
committee
members
and
staff
are
participating
virtually
to
help
our
audience
follow
along
I'll
State,
each
section
of
the
agenda
aloud.
We
are
streaming
live
on
our
virtual
engagement
Hub,
which
is
successful
through
the
virtual
engagement
Hub
link
on
the
front
page
of
the
city
website.
A
We
also
have
an
option
for
the
public
to
listen,
live
by
phone
for
those
of
you
out
there
today
with
us.
Welcome
for
today's
meeting.
We
have
the
option
for
people
to
call
in
and
comment
live
during
the
meeting
to
call
in
and
comment.
Live
use
the
same
number
855-925-2801
meeting
code
5257
your
phone
will
be
muted
and
you'll
hear
the
meeting
live
at
this
point.
Speakers
will
need
to
push
star
3
to
enter
the
speaking
queue
speaker,
Q
I'll
now
go
through
and
introduce
all
committee
members
and
staff
who
are
participating.
A
A
Okay
of
the
first
item
on
our
agenda
is
the
adoption
or
the
approval
of
the
minutes.
Do
I
have
a
motion
to
approve
the
minutes?
Does
Kim
So
moved.
A
Okay
and
I'll
do
a
roll
call
book,
councilwoman,
Kim,
Rooney,
hi,
councilwoman,
Maggie,
Allman
hi
and
myself
I,
so
the
minutes
are
approved.
The
first
item
of
business
is
the
water
cost
of
service
study,
presentation
and
I'm.
Guessing
I
turned
over
to
Ben,
but
I,
don't
know
nope
I'm.
Turning
over
to
Tony.
G
Yeah
turning
over
to
me
mayor,
thank
you
very
much
and
good
morning,
mayor
and
committee
members,
Tony
McDowell.
G
C
Thank
you
so
much
sorry
for
the
interruption.
I
just
know
for
folks
that
might
be
watching
either
this
meeting
live
stream
or
archived.
This
is
the
anticipated
rate
study
that
we've
been
talking
about.
G
Okay,
jump
back
in
Tony,
McDowell
Finance,
director
I'm,
going
to
kick
things
off
today
with
the
presentation
and
do
a
little
introduction,
then
I'm
going
to
turn
it
over
to
Melissa,
Levin
and
Vanessa
and
Vanessa
Waller
from
raftalus
our
consultant,
who
completed
the
cost
of
service
study
for
us.
G
We
also
have,
on
the
meeting
this
morning,
David
Melton
from
the
Water
Resources
Department,
our
director
there
and
other
staff
who
probably
can
answer
some
questions
as
well
as
they
come
up.
So
we
can
go
to
the
next
slide.
So
as
always,
we're
going
to
start
with
some
key
takeaways
from
the
presentation
today
and
really.
G
What
we're
doing
today
is
we're
picking
up
with
a
conversation
that
we
left
off
with
you
all
back
during
the
budget
process,
and,
if
you
all
remember
back,
then
there
was
a
lot
of
discussion
around
the
water
rates.
The
water
rate
structure
and
staff
indicated
at
that
time
that
there
was
a
water
cost
of
service
study
that
was
already
planned
and
that
that
study
would
help
us
better
understand
the
rate
structure
and
make
recommendations
moving
forward.
That
would
include
three
things.
G
It
would
include
defining
the
cost
of
service
by
functional
area,
assessing
the
rate
structure
and
making
recommendations
for
an
equitable
and
functional
rate
model
moving
forward
and
would
incorporate
all
of
these
changes
into
an
updated
financial
planning
model.
So
again,
that's
kind
of
where
we
left
off
the
conversation
with
Council
back
in
April,
and
so,
while
we're
here
today.
G
So
we
can
go
to
the
next
slide
so
again
before
I
turn
it
over
to
Melissa
and
her
team
to
kind
of
walk
through
the
results
of
the
study
just
wanted
to
start
with,
and
with
an
introduction
and
kind
of
give
you
all
a
quick
system
overview,
and
this
may
be
for
folks
out
in
the
community.
G
You
maybe
don't
know
a
whole
lot
about
our
water
system,
but
it
is
a
large
Municipal
operation,
there's
a
little
over
60
000
accounts
or
customers
that
we
have
within
the
water
system
and
and
somewhere
between,
40
and
45
percent
of
those
customers
are
within
the
city
limits
and
the
rest
are
are
outside
the
city
limits
and
that's
kind
of
the
information
on
the
left
there
and
then
on
the
right.
We
have
customer
usage
by
class
and
you
can
see
here.
G
If
you
look
at
the
turn
on
the
left,
you
can
see
that
53
000
out
of
the
60
000
accounts
are
residential.
So
that's
about
90
percent
of
the
accounts
within
the
system
are
residential,
but
if
you
look
at
the
chart
on
the
right
and
look
at
usage
and
look
at
the
percentage,
there,
you'll
see
that
residential
use
and
commercial
use
are
almost
identical
and
so
they're,
both
somewhere
between
35
to
40
percent
of
the
total
usage
within
the
system.
G
So
that
kind
of
gives
you
all
a
snapshot
of
the
of
the
customer
base
and
the
usage
within
the
water
system.
So
we
can
go
to
the
next
slide.
So,
just
again
a
little
more
background
information,
so
the
Water
Department,
it's
the
largest
Department
in
the
city
by
total
budget
at
44
million.
G
It's
the
second
largest
Fund
in
the
city
after
the
general
fund
and
this
pie
or
donut
chart
gives
you
all
kind
of
a
breakdown
of
what
that
44
million
dollar
budget
looks
like,
and
one
thing
I
would
point
out
here
is
when
we
show
you
all
charts
like
this
for
the
general
fund,
you
will
see
that
the
majority
of
expenses
are
in
the
Personnel
category
and
the
water
fund's
a
little
different,
and
that's
mainly
because
there
is
a
extensive
Capital
infrastructure
that
has
to
be
maintained
in
the
water
within
the
water
operations,
and
so
a
substantial
part
of
the
budget
about
a
third
of
the
budget
actually
goes
toward
paying
for
current
capital
and
paying
debt
on
previous
Capital
expenditures.
G
We
can
go
to
the
next
slide
so
just
to
highlight
quickly
some
of
the
challenges
that
we
faced
with
the
water
system
here
that
you
all
are
aware
of
the
local
legislation
that
prohibits
charging
differential
rates
between
customers
in
this
inside
the
city
and
outside
the
city.
A
lot
of
systems
across
the
state
are
do
charge
differential
rates
and
so
kind
of
thinking
back
to
that
previous
slide
that
showed
that
just
under
half
of
our
customers
are
within
the
city.
G
Obviously
it
would
have
a
huge
impact
if
the
city
of
bash
city
of
Asheville
were
able
to
charge
higher
rates
to
outside
customers
and
it
impacts
the
overall
rate
structure
and
I.
Think
Melissa
and
her
team
are
going
to
talk
a
little
bit
more
about
that
during
their
presentation
as
an
Enterprise
fund,
the
water
budget's
based
solely
on
fees
and
charges.
G
So
there's
no
property
tax
revenue,
no
sales
tax
revenue
that
goes
into
into
supporting
the
fund
and
then
a
key
thing
to
point
out
and
again,
Melissa
is
going
to
talk
a
little
bit
more
about
this
and
you
all
are
going
to
see
the
impact
of
this
on
the
next
slide.
I
show
you-
and
it's
really
one
of
the
reasons
we're
here
today.
Having
this
conversation
is
that
the
Water
Resources
fund
lost
the
ability
to
collect
a
capital
Improvement
fee
about
three
years
ago
there
was
a
court
settlement
that
fee
was
eliminated.
G
We've
been
trying
to
recover
the
revenue
over
the
last
few
years
through
the
regular
water
rates,
and
it
has
had
a
substantial
impact
on
the
overall
fund
budget,
as
well
as
the
the
funds
that
are
available
to
go
to
Capital,
Improvements
and
and
having
funds
available
to
go
toward
capital
is
very,
very
important,
and
you
saw
again
on
that
previous
slide.
The
amount
of
the
budget
that
does
go
to
Capital
and
infrastructure
investment
within
the
water
system.
Mayor
question,
I.
A
Just
wanted
to
contextualize
that
that
is
not
that
lawsuit
was
not
just
with
the
city
of
Asheville.
Actually
it
was
several
cities
and
we
sort
of
saw
the
writing
on
the
wall
and
I
think
in
that
and
worked
out
changes
to
our
system,
but
but
it
affected
cities
in
North
Carolina
many
cities
in
North,
Carolina
who've
had
to
try
to
adjust
to
to
the
results
of
that
lawsuit.
G
A
That's
correct,
Tony
I
can
ask
you
a
question
about
you
mentioned
that
a
slide
showed
the
number
of
customers
within
the
City
versus
outside
the
city.
When
you
were
talking
about
differential
rates,
am
I
I
see
that
system
overview
slide
am.
A
G
Yeah
I
have
that
data
in
my
notes:
I'm
sorry
that
is
actually
not
in
the
slide.
I
misspoke
when.
A
So
what
is
that?
What
does
that
kind
of
look
like
in
terms
of
the
number
of
actually
it's
probably
more
relevant
in
terms
of
usage
inside
and
outside
the
city?
Because
that's
what
and
I
think
just
again
to
emphasize
the
point.
Asheville
has
local
legislation
that
restricts
it
from
not
charging
a
differential
rate
for
you,
customers
inside
our
city
limits
versus
outside,
and
that
is
unlike
other
cities
in
North
Carolina,
who
are
allowed
to
charge
a
differential
rate
and
do
do
charge
a
differential
rate.
G
Hey
in
terms
of
the
usage
inside
versus
outside
David
I,
don't
know
David,
Milton
or.
G
You
said
you
had
something
in
your
notes
and
we
can
get
you
the
exact
number
on
this
as
well,
but
we
estimate
that
currently,
somewhere
between
40
and
45
percent
of
the
customers
are
within
the
city
and
then
the
rest
are
outside
the
city.
Thanks
council,
member
Rooney,.
C
Thank
you
so
I'm
I'm,
curious
about
our
narrative
here
and
I
do
acknowledge
that
we
can't
charge
differential
rates
to
folks
that
are
outside
the
city
limits.
However,
Residential
Water
customers
do
not
have
the
ability
to
capture
outside
Revenue,
while
our
commercial
users
can
pass
along
the
cost
in
the
services
and
goods
they
sell,
which
is
the
only
way
that
we
can
work
with
our
community
to
make
sure
our
water
system
has
Quality
Service,
while
working
together
to
capture
outside
Revenue
and
I.
C
Think
that
as
a
pro-business
solution
to
have
a
quality
service
system,
I
think
we
would
all
acknowledge
that.
But
I
just
wanted
to
make
sure
that,
when
we're
talking
about
the
inability
to
capture
outside
Revenue,
that
might
be
a
missed
opportunity.
If
we're
not
looking
at
bringing
the
commercial
rates
up.
D
Yeah
I
just
wanted
to
add
that
this
is
really
just
an
overview.
The
details
will
be
presented
by
the
lesson
we
will
be
able
to
demonstrate
one
of
the
objectives
of
creating
a
more
Equitable
break
system
and-
and
that
is
that
will
be
forthcoming.
G
So,
just
to
quickly
highlight
the
last
bullet
on
this
page
and
then
we'll
move
on
and
I'll
turn
it
over
to
Melissa
here
quickly.
So,
as
I
mentioned,
the
Water
Resources
operation
is
a
large
operation.
G
We
do
have
to
issue
debt
associated
with
the
Capital
Improvements
that
we
make,
and
that
requires
us
to
go
to
the
LGC
to
the
rating
agencies,
and
so
the
first
thing
they
always
always
want
to
see
when
we
start
talking
to
them
about
issuing
debt
is,
do
we
have
a
multi-year
financial
plan
in
place
that
is
sustainable?
That
will
provide
enough
resources
for
the
fund
over
time
to
pay
for
the
operations,
as
well
as
the
debt
service.
G
So
we
can
go
to
the
next
slide
and
then
I'll
finish
up,
and
so
this
next
slide
again
is
just
highlighting
the
impact
of
of
losing
that
Capital
Improvement
fee
back
in
fiscal
year.
21
and
the
ability
to
fund
capital
from
the
water
operating
fund
has
gone
down
substantially
since
that
time.
So
with
that
and
with
time
in
mind,
I
will
end
there
and
I
will
turn
it
over
to
Melissa
Levin
from
I.
Think
we
have
a
separate
slide
deck
for
their
presentation.
Thank
you.
All.
H
Perfect
so
good
morning,
everyone
thank
you
all
for
allowing
us
to
be
here
with
you
guys
today,
I'm
Melissa
Levan,
with
ref
tell
us
and
I
have
Vanessa
Waller
with
me
here
as
well,
and
we're
really
excited
to
discuss
with
you
all
our
kind
of
preliminary
findings
of
the
cost
of
service
and
rate
study
that
we've
done
for
the
water
department.
H
Slide
so
for
our
agenda
today,
what
we're
going
to
do
is
we're
going
to
do
a
little
study,
overview
kind
of
the
four
different
pieces
of
the
rate
study
and
then
we're
going
to
get
into
really
the
financial
planning,
the
cost
of
service
concept
and
the
rate
design.
Those
three
pieces
really
make
up
those
components
of
the
rate
study.
So
what
we're
going
to
do
is
we're
going
to
walk
you
through
each
one
of
those
components.
H
Just
to
give
you
a
general
understanding
of
what
we
mean
when
we
say
financial
planning
cost
of
service
rate
design,
then
what
we're
going
to
do
is
we're
going
to
get
into
that
cost
to
service
analysis.
The
results
of
that
cost
of
service
analysis
that
we've
done
our
preliminary
kind
of
findings
and
next
steps
and
then
we're
going
to
wrap
up
with
any
questions
and
answers
that
you
guys
any
questions
that
you
may
have
and
provide
answers
for
that
all
right.
Next
slide.
H
Okay,
next
slide,
I'm
going
to
start
just
real
quick
I'm,
just
a
Shameless
plug,
so
Ralph
Telus
was
started
in
1993
here
in
Charlotte,
North
Carolina.
We
really
at
that
point
in
time
we
did
Water
and
Sewer
Financial,
Planning
and
rate
studies
we've
grown
over
the
last
30
years.
H
Now
you
can
see
we
Now
cover
the
country
there's
about
140
of
us
that
do
Consulting
work
for
raftelus
and
we've
touched
about
at
least
1200
utilities
and
agencies
across
the
U.S
and
and
now
we
no
longer
just
do
financial
planning,
but
we
also
do
strategic
planning
data
technology,
organizational
assessments,
all
kinds
of
communications
and
other
types
of
activities.
That
kind
of
revolve
around
both
utilities
and
cities
and
counties.
I
will
say
that
my
our
our
bread
and
butter
really
still
is
financial
planning
for
water
and
and
Sewer.
H
So
that's
my
expertise
and
I'm
excited
to
be
here
with
you
guys
to
talk
about
it.
Okay,
so
next
slide.
Okay.
So
when
we're
looking
at
our
project
overview-
and
this
is
going
to
have
some
things
that
build
so
just
kind
of
fair
warning-
it's
really
four
different
pieces.
It's
a
financial
plan,
it's
a
cost
of
service,
it's
a
rate
design
piece
and
it's
a
miscellaneous
fee
piece.
H
What
we
mean
by
financial
plan
just
real
quickly
and
Vanessa's,
going
to
get
into
it
in
a
little
bit
more
detail
as
we're
talking
about
a
financial
plan
we're
looking
at
over
the
next
five
to
ten
years.
What
are
your
costs
and
what
are
the
revenues
that
need
to
be
generated
to
cover
those
costs
right?
So
it's
your
financial
forecast,
it's
that
level
of
rates
that
need
to
be
generated,
and
then,
when
you
look
at
that
second
piece
of
the
study
that
cost
a
service
is
the
different
customer
classes.
H
It's
the
residential
class,
the
commercial
manufacturing
irrigation
those
level
of
revenues
that
need
to
be
generated
when
we're
looking
at
over
that
Financial
forecast,
how
should
those
revenues
be
generated?
Which
class
are
creating
the
cost
and
are
those
classes
of
customers
properly
recovering
those
costs,
so
that
causes
Services
ultimately
going
to
come
up
with
buckets
of
cost
and
we're
going
to
make
sure
those
different
classes
are
covering
those
costs?
H
Then
we
get
into
the
rate
design
piece
which
is,
after
those
buckets
of
cost,
have
been
allocated
among
the
different
customer
classes.
What
is
the
rate
structure
that
worked
for
that
particular
customer
class,
and
you
know
what
creates
fairness
within
that
customer
class
and
what
helps
you
to
achieve
the
objectives
that
you
need
to
achieve
with
your
customer
base
and
then
that
last
piece
that
miscellaneous
Feast
piece?
Those
are
your
ancillary
fees.
H
Those
are
things
such
as
your
taxes,
your
customer
service
type
B
such
as
your
late
payment
fees,
we're
also
looking
at
those
fees
too
to
make
sure
that
the
fees
are
set
so
that
they're
recovering
the
cost
of
providing
that
service.
So
those
are
the
four
different
pieces
of
the
study
that
we're
working
on.
H
Yeah
sorry,
so,
as
you
can
see,
the
financial
plan
you
know,
tells
us
how
much
money
do
we
need
the
cost
of
service
is
going
to
tell
us.
Is
everyone
paying
their
fair
share
and
you
see
the
rate
design?
How
can
our
rates
ensure
fairness
within
those
customer
classes
and
then
the
last
piece,
the
miscellaneous
fees,
those
are
those
ancillary
fees
and
are
we
recovering
those
costs
for
providing
that
service?
H
Okay,
so
next
slide.
So
with
this,
what
I'm
going
to
do
is
I'm
going
to
turn
it
over
to
Vanessa
and
she's
going
to
walk
you
through
kind
of
each
one
of
these
components,
so
you
can,
just
you
can
understand,
have
a
little
better,
a
better
understanding
of
what
each
one
means.
I
So
if
you
advance
to
the
next
slide,
I've
got
some
information
to
start
us
off
with
financial
planning.
So
there
are
several
steps
that
we
go
through
to
make
sure
we're
coming
up
with
a
realistic
projection
of
your
future
costs
and
revenues
as
well.
That
first
step
is
to
look
at
your
operating
cost.
That's
any
ongoing
cost
things
like
salaries,
benefits
Etc,
and
that
certainly
can
be
a
driver
of
read
increases
but
really
step.
I
Two
is
arguably
the
bigger
driver
of
a
need
to
keep
rates
at
a
certain
level,
because
that
is
your
CIP
or
Capital
Improvement
plan
funding,
and
we
look
at
that
to
make
sure
that
we
have
enough
Revenue
coming
in
to
support
your
future
infrastructure
Investments.
That
would
include
things
like
your
upcoming
75
million
dollar
treatment
plant
project.
Usually,
these
are
very
big
ticket
items.
Often
they
are
debt
funded.
So
that
is
a
large
part
of
what
we
look
at
when
we're
doing
financial
planning,
and
our
third
step
is
simply
your
existing
Debt
Service.
I
I
So
that
brings
us
to
step
four,
which
is
to
project
revenues,
and
we
do
that
by
doing
a
detailed
analysis
of
your
billing
data.
That's
you
know,
usage
and
customer
accounts,
and
we
multiply
that
billing
data
by
your
existing
rates
and
that
will
give
us
a
projection
of
future
revenues.
I
We
just
look
at
how
are
revenues
stacking
up
against
your
cost,
just
to
make
sure
that
your
costs
are
not
too
high
year
over
year
and
occasionally
you'll
see
a
year
where
costs
do
exceed
revenues,
but
that's
okay,
as
long
as
you
have
sufficient
reserves,
so
we're
kind
of
monitoring,
cost
versus
revenues,
making
sure
you
aren't
drawing
too
heavily
on
your
reserves
and
also
monitoring
your
debt
service
coverage.
To
make
sure
your
debt
coverage
is
at
a
suitable
ratio.
I
Next
slide,
please
so
coming
back
to
those
first
few
steps
in
the
process
for
your
Revenue
requirements
on
the
left.
You've
got
your
operating
and
maintenance
cost
again.
These
are
kind
of
ongoing
costs.
You
tend
to
have
each
year,
those
include
Personnel
utilities,
chemicals
supplies,
maintenance
and
some
other
miscellaneous,
smaller
costs.
It
can
also
include
things
like
equipment
or
vehicles
that
are,
you
know
a
little
bit
larger
in
volume
or
you
know,
insignificance,
but
they
tend
to
be
recurring
and
they
aren't
quite
big
enough
to
make
it
into
your
Capital
Improvement
plan.
I
I
We
also
look
at
your
existing
debt,
which
includes
both
revenue,
bonds
and
loans,
and
we
are
also
projecting
any
future
debt
issuances.
You
may
need
we
look
at
your
CIP
and
identify
which
projects
will
be
debt
funded
and
project
out.
What
we
think
would
be
a
reasonable
amount
of
debt
service
for
those
each
year.
I
Please
all
right,
so
one
question
we
sometimes
are
asked
is
about
the
difference
between
a
cost
of
service
study
and
a
rate
study
and
why
we
might
be
looking
at
a
cost
of
service
study
for
this
project,
so
I
kind
of
like
to
think
of
a
cost
of
service
study
as
like
a
very
high
resolution,
Snapshot
from
a
camera.
That
gives
a
lot
of
detail,
and
the
reason
for
that
is
because
it
only
looks
at
one
year
of
data.
I
I
In
contrast,
a
financial
planning
or
rate
study
we're
really
just
looking
at
the
level
of
rate
increases
you
need,
for
instance,
do
you
need
a
five
percent
rate
increase?
Do
you
need
a
10
read
increase
to
keep
up
with
your
costs
escalating
over
the
years
now
in
a
read
study,
we
might
also
look
at
customer
classes
in
terms
of
maybe
putting
let's
say
commercial
at
a
10
increase
in
residential
at
a
five
percent
increase,
but
it's
simply
not
as
detailed
as
cost
of
service.
I
I
I
It
attempts
to
recover
the
costs
from
users
in
proportion
to
their
use
of
the
system,
recognizing
the
impact
of
each
class
on
system
facilities
and
operations.
So
again,
equity
and
fairness
are
key
Concepts
and
we're
really
focusing
in
on
how
each
customer
class
uses
your
water
infrastructure
next
slide.
Please.
I
So
when
we
do
these
cost
of
service
studies,
we
use
industry
standard
practices.
We
have
several
different
sources
that
we
draw
on.
One
is
the
AWA
M1
manual.
We
also
have
our
reptiles,
textbook,
The,
Water
and
Wastewater
finance
and
pricing
textbook,
and
these
both
include
really
commonly
accepted
industry
practices
that
have
been
around
for
years.
So
we
make
sure
that
all
of
our
models
that
we
build
are
in
line
with
these
sources
in
terms
of
theory,
next
slide,
please
so
this
slide
I
like
it
because
I
think
it's
a
good
high
level
overview.
I
I
know
there's
a
lot
of
information
on
here,
but
it's
a
good
graphic
to
represent
the
most
important
parts
of
our
cost
of
service
model.
So
I'll
start
at
the
very
top.
You'll
see
that
allocation
of
costs
to
functions.
That
is
a
really
detailed
section
up
there,
but
all
that
really
is
is
taking
all
of
your
Revenue
requirements
and
allocating
those
Revenue
requirements
to
various
functions
that
the
utility
is
responsible
for.
I
That
is
when
you
take
those
previously
allocated
costs,
and
do
it
a
second
time
sort
of
reallocating
them
once
again,
but
this
time
we
are
looking
at
allocating
to
more
like
flow-based
components
and
a
fixed
charge
components.
So
those
include
things
like
your
base
or
average
flow
Peak
flow.
When
you
have
an
unusually
high
demand
on
your
water
system,
we
also
have
something
called
Readiness
to
serve
in
there
and
that
just
represents
the
availability
of
your
infrastructure,
24
7,
to
provide
water
service.
I
Next
slide.
Please
all
right,
I'll
talk
a
little
bit
more
about
rate
design,
which
is
our
final
process
that
we
go
through
next
slide.
Please!
So,
even
once
you
do
that
full
cost
of
service
process.
The
next
step
you
have
to
think
about
is
what
are
the
rates
that
will
best
suit
your
goals
and
policies,
and
each
utility
is
so
unique
that
this
is
kind
of
a
collaborative
effort
with
staff.
This
slide
just
shows
a
really
wide
sampling
of
the
various
types
of
objectives
that
you
might
see
on
a
for
a
typical
utility.
I
You
have
everything
from
just
making
sure
you're
financially
self-sufficient
at
the
very
top
in
the
middle
there,
Financial
sufficiency,
Economic
Development
might
be
a
goal.
You
have
Revenue
stability
ease
of
implementation.
Those
are
all
different
objectives
that
you
could
focus
on
for
your
rate,
design
next
slide.
I
Here's
an
example
of
a
plan
to
just
prioritize,
because
not
all
of
them
can
be
the
top
priorities.
All
of
them
are
good
to
have,
but
you
have
to
be
selective
with
how
you
prioritize
one
example
is:
if
you
want
conservation
rates,
these
can
often
conflict
with
Revenue
stability,
because
you're
charging
lower
rates
for
those
lower
levels
of
consumption,
rather
than
making
all
customers
pay
it
at
a
higher
rate,
even
if
they're
losing
using
a
little
bit
less
water.
I
Another
example,
if
you
have
higher
fixed
charges
each
month,
that
might
give
you
more
stability,
but
then
might
affect
the
affordability,
because
customers
may
have
less
leverage
to
control
that
bill
as
they
change
their
water
usage
and
this
little
graphic
to
the
right.
This
shows
our
understanding
of
Asheville's
priority
objectives.
I
Most
importantly,
we
have
Financial
sufficiency,
affordability,
cost
of
service
allocations
and
ease
of
implementation.
Those
were
the
objectives
that
stood
out
to
us
as
we
worked
with
staff
on
this
project,
and
we
really
wanted
to
focus
on
that
when
we
thought
about
what
would
you
know,
future
rate
adjustments
look
like
that
on
the
other
side
and
the
important
category
rate,
stability,
conservation
and
revenue,
stability
were
absolutely
important,
but
they
weren't
as
highly
emphasized.
I
So
again,
we
had
to
we
kind
of
were
forced
to
rank
these
a
little
bit
but
they're
all
things
that
we
are
keeping
in
mind
as
we
move
forward
with
staff
next
slide.
Please
so
I
know
Tony
touched
a
little
bit
on
your
current
customers
and
reads,
but
just
wanted
to
highlight
your
current
reads
once
more
to
give
some
background
so
on.
On
the
left
hand,
side,
one
thing
to
mention
is
that
most
of
your
customers
are
charged
of
bi-monthly
base
charge.
I
Some
of
them
are
charged
monthly
and
so
that
charge
would
be
cut
in
half
the
one
that
you
see,
starting
with
12.95,
but
most
of
them
are
bi-monthly
and
those
charges
increase
by
meter
size,
because
that
reflects
the
fact
it
takes
a
little
more
time
and
cost
to
maintain
those
larger
metered
connections.
I
But
most
of
your
Revenue
actually
comes
from
your
volumetric
rates
on
the
right.
These
are
charged
per
CCF.
That's
your
unit
of
consumption
they're,
mostly
uniform
rates
regardless
of
usage,
for
instance,
your
single
family,
residential
customers,
they'll
pay
521
for
every
CCF,
even
if
they
use
a
lot
more
water.
I
In
contrast,
you've
got
your
commercial
and
Manufacturing
that
have
a
two-tiered
structure.
Commercial
and
Manufacturing
pay
a
slightly
lower
rate
per
CCF
once
they
surpass
that
2000
CCF
threshold,
but
other
than
that.
It's
a
fairly
straightforward
rate
structure,
with
distinctions
among
various
customer
classes.
Already
next
slide.
Please
so
again,
I
know
Tony
kind
of
touched
on
this
already,
but
when
we
look
at
you
know
which
customers
are
actually
paying,
which
rates
that
can
kind
of
help
us
understand
the
significance
of
what
would
it
mean
to
change
the
rate
structure?
I
One
thing
to
note,
of
course,
is
the
monthly
versus
bi-monthly.
So
that's
something
we
can
consider
I
think
that
comes
up
on
a
future
slide.
Just
you
know.
Do
we
want
to
keep
that
distinction
of
bi-monthly
versus
monthly
one
other
thing
worth
noting
here
is
that
on
the
right
side
you
can
see
residential
is
the
largest
class,
but
you
also
have
a
lot
of
usage
coming
in
from
your
commercial
and
Manufacturing,
so
changing
those
rates
would
absolutely
make
a
big
difference
in
terms
of
revenues.
I
Collected
another
class
to
highlight
would
be
your
wholesale.
It
is
at
the
bottom,
so
it
kind
of
is
hard
to
to
notice
it
I
guess,
but
it's
actually
even
more
than
your
manufacturing
class
in
terms
of
volume
of
water,
so
that
would
also
make
a
big
difference
if
you
were
to
increase
those
wholesale
rates.
Now,
of
course,
you
only
have
a
few
wholesale
customers.
I
So
I'll
just
highlight
on
the
next
slide
a
couple
of
objectives
that
the
water
department
had
on
the
residential
class.
That's
your
largest
customer
base.
It
does
make
a
big
difference.
We
wanted
to
ensure
that
the
rates
were
in
line
with
cost
of
service
just
to
make
sure
everything
was
equitable.
I
We
also
wanted
to
understand
the
increases
needed
to
balance
the
revenue
sufficiency
with
affordability,
so
both
of
those
had
to
be
in
balance,
and
then
we
also
were
interested
in
exploring
a
tiered
structure
at
some
point.
So
that
was
something
We
examined
with
staff
for
residential,
then
on
your
non-residential
and
wholesale
side:
fewer
customers,
but
still
quite
a
bit
of
usage.
We
wanted
to
also
just
really
make
sure
that
everyone
was
paying
their
Equitable
share
of
costs
for
the
water
department.
So
again,
I'm
really
relied
on
that
cost
of
service
to
guide
our
next
steps.
I
H
Okay,
thanks
Vanessa,
okay,
next
slide,
all
right,
so
we've
completed
the
cost
of
service
analysis
and
if
you
remember,
when
we
were
talking
about
the
cost
of
service
analysis,
we
talked
about
buckets
of
cost.
H
If
you
look
on
the
right
hand,
side
of
this
chart
where
we
say
current
revenue
and
then
you
look
down
the
left
hand
side
where
we've
got
the
different
customer
classes.
That
is
currently
the
way
that
your
customer
classes
recover,
Revenue,
so
residential
class
recovers
about
49.6
percent
of
the
revenue,
Marshall,
the
28.5,
irrigation,
1.8
and
so
on.
Down
that
right
hand
side
of
the
chart
when
we
did
the
cost
of
service
study.
H
You
know
we
come
up
with
the
buckets
of
costs
that
should
be
recovered
through
or
from
each
class,
and
so
what
you
see
right
in
the
middle
that
cost
of
service
Revenue.
That
is
the
revenue
that
should
be
generated
from
each
customer
class.
So
you
see
the
43.3
percent
for
residential
32.4
for
commercial.
H
The
one
thing
that
should
jump
out
at
you
when
you're
looking
at
these
numbers
is
when
you
look
at
the
current
revenue
for
the
residential
class
versus
the
cost
of
service
Revenue
that
Revenue
that
should
be
collected
from
that
class
I'm.
Currently,
the
residential
class
is
over
recovering
in
Revenue.
All
of
the
other
classes.
Commercial
Irrigation,
manufacturing
wholesale
are
all
under
recovering.
H
A
H
Is
correct
and
remember
this
is
this:
is
the
test
year
so
we're
looking?
We
did
this
based
on
fiscal
year
24..
So
if
we're
looking
at
this
particular
year,
what
we're
saying
is
it
is
anticipated
that
they're
gonna,
based
on
all
the
rates
that
we've
got
and
the
cost
is
anticipated
that
this
is
the
revenue
that
they
will
generate,
and
this
is
the
revenue
that
they
should
generate.
A
And
this
is
the
total,
the
total
water
bill,
including
any
flat
rates
and
usage
rates.
Everything
combined
everything.
H
Combined,
yes,
all
of
the
fixed
charges
and
all
of
the
volumetric
charges,
and
that
is
for
even
the
Wholesale
customer
class
as
well,
because
I
know
wholesale
pays
what
we
call
a
capacity
charge
in
addition
to
their
volumetric
charge.
That
has
been
factored
in
here
as
well.
C
Thank
you.
This
is
council
member
Roney,
I
Heard.
The
word
Equity
used
a
lot
and
I
wonder
if
you
could
help
me
understand
which
disparities
we're
attempting
to
address
when
we
say
equity.
H
So
if
you,
if
you
remember
the
chart
that
showed
it,
was
a
pretty
detailed
chart
that
Vanessa
had
flashed
up
there
earlier
where
we
went
through
the
detailed
cost
allocation,
and
that
was
where
we
took
you
know
all
of
the
cost,
and
we
said
these
costs
are
attributable
to
treatment.
H
These
costs
are
attributable
to
pumping
transmission
distribution
and
we
went
through
that
that
cost
allocation
kind
of
in
detail,
and
then
we
allocated
those
calls
to
the
different
parts
of
the
water
system
we've
and
we
look
at
the
way
each
of
those
customer
classes
are
using
that
water
system
and
just
to
maybe
kind
of
make
it
a
little
bit
easier.
H
If
you
think
about
a
water
system,
is
that's
a
really,
you
know
very
expensive
and
you
have
to
build
a
water
system
to
accommodate
Peak
usage.
So
you
know
you
can't
just
build
it
for
the
average
usage,
because
you
know
if
you
have
a
peak
usage
one
day
or
everyone's
irrigating
all
at
the
same
time,
everyone's
flushing,
the
toilet,
your
plants
got
to
be
able
to
accommodate
that
Peak.
H
So
we've
got
to
build
that
that
plant
to
accommodate
the
peak.
We
look
at
those
customer
classes
in
the
way
that
they
use
that
system
and
who,
which
customer
classes
are
creating
that
Peak.
So
we're
looking
to
see
okay
well,
if
this
customer
class
is
peaking
more,
they
need
more
of
those
kind
of
peak
calls,
so
that
class
gets
assigned
more
of
those
Peak
costs.
C
Okay,
that
that
helps
me
understand
a
little
bit
since
we're
only
looking
at
one
year.
It's
a
snapshot
right,
so
it
doesn't
tell
our
history
and
how
we
got
here
right.
It
also
does
not
address
the
owning
class
versus
renters
to
owners
of
commercial
properties.
Are
the
impact
of
we
have
a
long
history
of
Brewing
and
Distilling
here
in
the
mountains?
C
It's
an
exportable
good
and
it
can
be
really
good
paying
jobs,
but
it
is,
you
know,
a
use
of
our
public
system
and
we
also
have
our
tourism
industry
with
a
large
a
significantly
large
number
of
short-term
rentals.
So
I
just
wanted
to
be
really
clear
that
we're
not
talking
about
racial
Equity
or
class
Equity.
We're
talking
about
equity
for
commercial
users.
H
G
And
Melissa,
if
I
could
just
jump
in
and
make
one
quick
point,
I
mean
I.
Think
the
discussion
about
the
the
snapshot
in
time
is
is
great
and
important
because,
like
if
you
were
to
look
back,
let's
say
four
or
five
years
ago,
when
the
CIP
fee
was
still
in
place.
This,
these
percentage
breakdowns
would
be
a
lot
different
than
they
are
today
or
substantially
different.
I
would
say,
maybe
because
that
fee
did
fall
more
heavily
on
the
commercial
class
than
it
did
on
the
residential
class.
H
Yeah
so
next
slide
and
to
Tony's
point.
So
if
you
look,
if
you
look
on
this
chart
here,
we
had
that
that
Capital
Improvement
fee
charge
in
place
till
2020
and
it
went
away
in
2021.
H
H
That
fee
was
more
heavily
weighted
towards
the
larger
meters,
which
are
your
commercial
manufacturing
type
customers.
So
when
that
fee
was
in
place,
it
generated
more
revenue
from
from
that
for
those
particular
customer
classes.
So,
as
we
look
at
this
particular
test
year
that
we
were
just
discussing
and
those
results
had
we
looked
at
it,
you
know
back
in
2020.
The
picture
would
have
been
a
little
bit
different
because
you
had
been
generating.
H
H
Next
slide,
so
you
know,
based
on
what
we
saw
for
the
cost
of
service
analysis,
as
we
kind
of
maybe
move
go
ahead
and
move
to
the
next
slide.
What
are
we
thinking?
H
H
For
now,
if
you
think
about
that
residential
class,
it
is
the
ones
that
are
having
the
bi-monthly
billing.
A
conservation
rate
structure
really
is
put
in
place
to
discourage
discretionary
water
use.
H
Right
now,
with
the
bi-monthly
billing
that
you
guys
have,
the
conservation
signal
will
get
lost,
because
if
you
think
about
it,
you
know
they
use
the
water
and
you
they
only
get
billed
every
other
month,
so
that
that
conservation
signal
is
not
as
effective
as
if
it
were
done
on
a
monthly
basis.
So
the
thinking
would
be
that
when
you
convert
to
monthly
billing,
that
might
be
a
better
time
to
put
in
a
tiered
rate
structure
for
that
residential
class.
H
One
of
the
things
as
we
think
back
to
the
cost
of
service
study
the
results
that
we
saw.
We
know
right
now
that
residential
class
is
over
recovering
relative
to
the
other
classes.
H
We
are
most
likely
going
to
have
to
have
a
rate
increase,
but
the
rate
increase
for
that
particular
class
would
not
be.
You
know
as
much
as
some
of
the
other
classes
that
are
currently
under
recovery.
E
Melissa
so,
and
the
reason
you're
not
recommending
kind
of
a
sooner
switch
is
that
we
won't
have
the
technical
capacity
for
monthly
billing
until
our
meter
switch
out
project
is
at
am
I,
remembering
that
correctly
yeah.
H
Thank
you,
yeah,
okay,
so
any
other
questions
for
the
the
residential
customer
class.
So
we're
you
know,
based
on
the
cost
of
service,
where
that
rate
increase
for
that
class
relative
to
the
other
classes
will
be
lower
just
because
of
the
cost
of
service
analysis.
Results
of
that
that
we
that
we
looked
at.
A
It
so
would
we
see,
would
we
sort
of?
Would
the
idea
be
that
we
kind
of
adopt
a
schedule
of
rates
that
moves
us
in
line
with
the
cost
of
service
over
some
period
of
time
like
one
year
two
year
three
year,
I
mean
whatever
you
all
and
maybe
I'm
jumping
the
gun,
but
would
that
be
the
idea
that
we
gradually
move
in
that
direction
so
that
we
level
out
the
rates
and
they
we
get
them
equal
to
the
cost
of
service.
H
I'm
not
sure
if
staff
wants
to
want
stuff,
I
think
Esther,
one
of
the
the
things
that
we're
thinking
you
know,
we've
got
the
cost
of
service
analysis
done
we're.
Looking
at
that
financial
plan
now
and
that's
going
to
determine
that
level
of
rate
increases,
that's
going
to
be
needed,
and
so
it
it's
really
just
going
to
depend
on.
You
know:
balancing
the
level
of
rate
increases
and
the
impacts
to
the
different
customer
classes.
So
it
could
be.
H
You
know
a
good
solution
that
we
would
phase
those
in
over
two
or
three
years
to
move
everyone
where
they
need
to
be,
and
then,
at
that
point
in
time,
two
I'm,
assuming
that
the
monthly
billing
would
be
in
place
and
that
we
could
could
look
at
that
residential
class
and
put
the
tears
in.
A
F
Good
morning
everybody
David
Melton,
director
of
Water
Resources.
Our
plan
is
to
finish
this
first
phase
of
the
Ami
project,
then
we'll
be
in
a
much
better
position
to
move
to
monthly
billing,
we're
still
scheduled
for
the
end
of
2025
for
the
suppose
of
the
project
to
be
completed
so
shortly
after
that,
we
would
take
on
the
task.
A
month
ago,.
H
All
right
so
as
we
move
to
the
next
slide
and
we
look
at
the
commercial
and
the
manufacturing
customer
classes,
one
of
the
things
that
I
wanted
to
kind
of
point
out
on
these
commercial
and
Manufacturing
classes.
If
you
look,
you
know
over
on
that
far
left
hand
side
the
com,
the
the
tiers
for
each
of
those
classes,
both
commercial
and
Manufacturing
you've
got
a
tier
cut
off
at
2000
CCF
on
a
bi-monthly
basis,
which
is
a
thousand
CCF
on
a
monthly
basis.
H
17
down
there
in
tier
two
pays
that
2.74
cents
when
we
look
at
the
manufacturing,
Tier
1
28
of
their
usage,
is
in
that
tier
one.
That
zero
to
two
thousand
tier
two
is
about
72
percent
of
the
usage.
So
when
you
think
about
kind
of
those
two
particular
classes,
you
know
you've
got
83
percent.
When
you
look
at
the
commercial
going
through
tier
one
and
17
getting
into
tier
two
for
manufacturing.
28
of
the
usage
is
in
tier
one,
but
they've
got
72
percent,
that's
in
tier
two
and
we
think
about
like.
H
We
look
at
the
rates
for
those
two
different
tiers
on
average,
when
we
look
at
the
commercial
rate
they're
paying
about
four
dollars
and
13
cents
per
CCF,
just
because
of
the
distribution
of
the
usage
between
those
two
tiers
and
for
that
manufacturing
class
they're,
paying
about
three
dollars
and
four
cents
per
CCF.
H
One
of
the
things
that
we
are
kind
of
recommending
to
you
all
is
that
tier
two
rate
right
now
for
the
commercial
classes,
62
percent
of
the
tier
one
rate.
So
basically,
you've
got
you
know.
The
274
is
is
62
percent
of
the
441
and
then,
as
we
look
at
that
manufacturing
class,
that
tier
tier
rate,
that
250
is
57
of
the
441..
H
We're
Inc
we're
recommending
to
increase
that
tier
differential
so
that
the
differential
between
those
two
different
rates
would
only
be
80
percent
instead
of
that
62
percent
and
the
57
percent
that
you're
seeing
and
we're
also
recommending
that
we
kind
of
put
those
two
customer
classes
together
both
that
commercial
and
Manufacturing
with
the
thinking
being
is
most
the
time
when
you
see
a
two-tiered
structure
like
that
is
for
a
non-residential
class
and
that
second
tier
is
really
intended
for
manufacturing
and
industrial
type.
H
H
These
particular
classes
we'll
see
kind
of
a
a
higher
level
of
rate
increase
than
versus
just
say.
Your
residential
class
Maggie.
E
If
so,
let's
take
commercial,
even
though
I
know
you're
suggesting
to
combine
that
which
I
also
have
some
questions
about,
but
just
so
I
understand,
like
the
logic
of
your,
where
you're
proposing,
if
you
in
the
commercial,
if
you
wanted
to
get
tier
two
closer
to
the
80
differential,
the
number
that
would
move
would
be
that
2000
CCF.
So
you
would
move
the
bar
from
which
you
transition
from
one
to
the
other
or
oh.
H
E
F
E
In
the
shoes
of
a
business
or
I
mean
like
trying
to
really
understand,
what's
in
it
for
them
and
like
what?
What
does
this
impact
have
in
this
chart
is
making
me
do
that
math
on
the
Fly
I'm,
just
trying
to
understand
the
implications
of
this
because
I'm
not
I,
don't
fully
understand
it,
and
it
makes
me
hesitant
to
be
like
yeah.
Let's
make
sense.
H
Yeah
and
I
know
this
is
I'm
used
to
looking
at
this
kind
of
stuff
all
day
long,
so
it
makes
complete
sense
to
me,
but
for
other
folks
it
it
may
be
a
little
bit
harder
to
follow
and
and
by
no
means
were
we
just
when
we
look
at
this
chart,
we're
not
saying
that
it
would
just
be
a
tier
two
rate
that
would
increase.
It
would
also
be
a
tier
one
rate
that
would
increase
as
well,
because
you
would
need
to
get
the
benefit
of
raising
kind
of
both
of
those
rates.
H
Right
now,
I
believe
there's
only
nine
customers
in
the
manufacturing
class.
It's
actually
a
kind
of
a
really
small
class
and
there's
not
a
lot
of
differentiation
between
the
customers
that
are
in
that
particular
class
versus
what's
in
the
commercial
class.
H
So
you
know
the
the
definitions
between
those
two
classes
and
the
way
that
those
customers
are
defined
in
the
data
are
not
are
not
necessarily,
you
know
clear,
and
you
know
I
mentioned
when
you
have
that
tier
two
rate,
a
lot
of
times
that
tier
two
rate
is
put
into
effect
to
address
that
industrial,
any
manufacturing
type
usage.
H
So
it's
almost
a
redundant
rate
structure
to
see
you
know
both
of
those
questions,
this
kind
of
having
two
tiers
and
really,
if
you
think
about
it,
it's
the
same
they've
got
the
same
tier
one
rate.
It's
just
they've
got
different
tier
two
rates
which
are
both
too
low,
so
that
was
kind
of
part
of
the
reasoning.
A
That's
what
manufacturing
seems
to
be
it's
like
a
10
of
what
the
commercial
usage
is.
It
may
have
made
sense
historically
Maggie
that
we
had
a
manufacturing
class
because
we
had
you
know
we
had
a
different
going
back,
20
30
40
years
I,
don't
know
how
old
this
race
structure
is,
but
maybe
it
makes
works
at
some
point
in
time
depends
if
there's.
E
Like
political
will
in
Economic
Development
and
attraction
strategy
to
be
like
hey,
here's,
here's
Economic,
Development
subsidy
for
this
type
of
manufacturing
I
could
see
some
of
that
logic
of
why,
at
some
time
that
would
be
there.
So
what
I'm
hearing
is,
there's
a
redundancy
and
combining
them
probably
would
reduce
admin
and
create
efficiency
and
the
complexities
of
basically
maintaining
different
rate
structures
that
that's
the.
Why.
A
E
Yeah
for
recovery
from
that
which
is,
it
sounds
like
the
like
to
me.
The
bottom
line
of
all
of
this
information,
which
is
very
helpful,
Melissa
the
level
of
depth
you're
providing
is
like
I
think
it's
that
slide,
where
it
just
shows
the
comparison
of
current
rates
to
the
cost
of
service,
and
that
the
heavy
imbalance
is
that
residential
are
paying
more
than
their
fair
share,
and
so
we'll
have
Council
will
have
to
decide
if
we
want
to
figure
out
a
path
to
get
to
more
parity
yeah,
which
I'm
interested
in.
H
Okay,
next
slide
wholesale.
This
is
a
class
if
you
remember
that
I
believe
there's
three
wholesale
customers.
These
are
your
Municipal
of
or
municipal
districts.
H
You
know,
currently
they
pay
a
rate
I
believe
it's
a
dollar
twenty
three
and
one
of
the
things
that
we
saw
here
is
that
they
were
not
paying
their
fair
share
of
of
cost
I
mentioned
they
are
paying
a
pasty
fee
as
part
of
their
wholesale
rate,
which
is
a
monthly
fee
to
reserve
capacity
in
your
system,
but
even
with
that
revenue
from
that
capacity
fee
that
kind
of
monthly
capacity
fee
Revenue
that
they
pay.
H
H
Next
slide,
all
right,
so
when
we're
talking
about
next
steps,
we're
talking
about
presenting
you
know
rates
in
December,
for
you
guys
to
consider
part
of
these
rates
are
really
going
to
be
intended
to
recover
some
of
the
revenue
that
that
previous
kind
of
capital
Improvement
charge
generated
so
that
we
we
know
that
there's
going
to
be
a
revenue
increase
needed.
H
So
there's
going
to
we're
most
likely
gonna,
you
know,
recommend
rate
increases,
we're
going
to
try
to
minimize
that
rate
increase
to
the
residential
class
and
maintain
a
single
tier
for
now,
but
recognize
that
residential
class
is
the
largest
class.
So
even
if
we
raise
rates
on
some
of
these
other
classes,
depending
on
how
much
additional
revenue
is
is
needed,
that
class
may
need
to
see
a
rate
increase
too
it'll
just
be
relative
to
the
other
classes.
It
will
be
a
lot
less
talking
about
combining
commercial
and
Manufacturing
classes.
H
F
E
Yeah
I
guess
the
question
I
have
is
back
to
the
residential.
E
E
H
We
can
we've
got
the
information
to
do
it.
You
know,
we've
got
bot
right
now.
The
way
that
we
would
do.
That
is,
if
you
kind
of,
if
you
think
about
it,
you
we've
got
five
monthly
billing
data,
so
we
can
see
kind
of
how
those
customers
use
the
system
on
a
bi-monthly
basis
and
why
it's
important
to
understand
how
they
use
the
system
is
you're
going
to
be
with
a
tiered
structure.
You
would
be
drawing
tears
within
that
residential
class
and
just
say
if
they
were
on
a
monthly
basis.
H
You
would
draw
tier
one
at
a
four
CCF
and
tier
two
at
a
10
or
10
or
12
CCF,
and
you
would
design
those
rates
to
recover
that
level
of
Revenue
that's
required
from
that
class.
But
you
would
want
to
do
it
to
where
you
recovered
a
certain
percentage
of
usage
in
tier
one,
a
certain
percentage
of
usage
in
tier
two
and
a
certain
percentage
in
tier
three.
H
So
we
would
be
designing
that
tiered
structure
around
by
monthly
billing
and
we
can
do
it
and
we
can
put
it
in
place.
I,
don't
know
that
it
would
necessarily,
if
you
think
about
what
is
the
purpose
of
a
tiered
structure.
The
purpose
of
a
tiered
structure
is
really
to
just
to
discourage
discretionary
water
use.
It's
just
discourage
irrigation
so
when,
in
times
of
drought
and
folks
are
trying
to
irrigate-
and
you
you
know-
you
don't
want
them
to
be
doing
that
you're
trying
to
stop
them
from
from
doing
that.
H
So
it.
If
that's
the
purpose
and
we're
doing
that,
bi-monthly
billing.
If
we're
only
billing
every
other
month,
then
by
the
time
they
get
their
water
bill,
they're
going
to
be,
you
know,
they're
going
to
irrigate
in
just
say
June,
but
by
the
time
they
get
their
water
bill.
It's
going
to
be
the
end
of
August
and.
H
E
What
if
the
purpose
isn't
solely
about
conservation,
it's
about
parity
and
the
people
who
are
making
choices
or
have
the
need
for
extensive
amounts
of
water
and
I
need
to
pay
for
more
share
of
the
system.
So
there
could
be
a
dual
purpose,
which
could
still
value
while
not
receiving
the
conservation
signal.
Or
are
you
saying
that
because
well,
it's
very
theoretical
theoretical
that
the
signal
will
be
effective.
Therefore,
making
that
tier
class
unpredictable
for
the
rates
and
for
Revenue
it.
H
H
You
know,
but
instead
of
like
a
four
CCT
or
CCF
cut
off,
it
would
be
like
an
eight
CCF
to
address
the
bi-monthly
billing,
and
then
we
would
just
need
to
kind
of
cut
those
tiers
in
half
and
just
kind
of
check
to
make
sure
it's
working
like
what
we
intended
it
to
once.
We
had
the
monthly
billing
data.
J
C
Thank
you
Melissa,
so
it
would
help
I
think
we
kind
of
talked
about
this
a
little
bit
at
our
agenda
briefing
on
Thursday,
but
it
would
help
me
and
I
think
help
us
to
communicate
what
our
options
are.
If
we
had
an
option,
that
is
minimize
rate
increase
to
residential
class
and
another
option
to
freeze
rate
increases
for
residential
class
until
we
have
the
monthly
billing
structure.
D
And
I
think
that
if
I
could
jump
in
Miss
running
weekend,
I'd
bring
that
information
back
to
you
in
December,
because
that's
when
we
are
going
to
bring
back
kind
of
the
right
recommendations
that
we
can
bring
those
options
back
to
you
is
that
okay.
D
H
Right
I
think
I've
gone
through
most
of
these
bullets.
I
think
we
left
off
at
the
commercial
and
Manufacturing
rate
increases
reflecting
the
cost
of
service,
increasing
that
tier
two
relative
to
the
tier
one,
definitely
increasing
the
wholesale
rates,
and
then
there
will
be
some
rate
increases
to
address.
You
know
irrigation
and
multi-family,
but
those
will
not
be,
as
maybe
large
in
proportion
to
the
commercial
manufacturing
and
the
wholesale
customers
all
right.
Next
steps
are
sorry,
next
slide,
so
the
key
takeaways,
so
we've
done
kind
of
the
cost
of
service
analysis.
H
Part
of
the
rate
study.
Our
next
steps
is,
are
really
you
know,
kind
of
understanding
that
Financial
forecast
that
financial
plan
that
Vanessa
talked
about
that
five
to
ten
years.
As
we
look
at
what
is
the
level
of
revenues
that
are
needed
to
that?
H
We
need
to
generate
then
what
we're
planning
to
do
is
kind
of
take
the
rage
structure,
tweak
it
to
generate
the
level
of
revenues
that
we
know
that
we
need
in
the
financial
plan
and
bring
those
rates
back
to
you
all
in
December,
and
you
know
really
kind
of
align
the
customer
classes.
We
saw
that
you
know
right
now:
residential
is
paying
more
than
its
fair
share
versus
the
other
classes,
the
commercial
manufacturing
and
the
wholesale
classes.
H
So
we're
going
to
align
those
rates
to
make
them
more
Equitable,
based
on
the
results
of
that,
and
we
will
have
a
multi-year
projection,
we'll
have
a
five-year
forecast
and
we
can
look
at
either
implementing
those
rates
in
one
year
and
or
facing
them
again
kind
of
over
two
or
three
years
as
we
move
forward.
C
Yeah
I
guess
for
me.
My
lingering
concern
is
that,
if
we're
waiting
until
December,
then
it
really
limits
Us
in
the
amount
of
flexibility
that
we
have
through
our
budget
process
and
the
ability
to
communicate
and
do
public
engagement
and
Outreach
around
it.
And
it
creates
this
sort
of
urgency
that
puts
us
in
a
tight
spot
and
I
really
hope
that
we're
not
going
to
put
ourselves
in
that
tight
spot.
C
I'd
also
hope
that
we
would
see
some
options
at
this
level
because
we've
been
waiting
so
long
to
get
to
this
point.
So
I
guess
I
feel
a
little
bit
like
it's
possible
that
we
didn't
communicate
that
during
the
study
as
the
city
of
Asheville,
but
I
feel
a
little
bit
like
we
didn't
achieve
completion
of
what
we
need
out
of
this
part
of
the
study.
C
I
know
there's
more
work
ahead,
but
I
personally
would
hope
that
we
wouldn't
wait
till
December
just
because
once
again
that
really
limits
our
ability
to
do
public
engagement
and
to
make
choices
together
as
a
community.
A
Kim
Let
Me
Clear.
Let
me
make
sure
I
understand
you're
thinking
around
the
timeline,
so
so
I
think
what
I'm
hearing
is
that
the
recommendation
is
going
to
be
to
not
make
a
rate
adjustment
until
you
know
that
as
we
approach
the
next
fiscal
year
as
we
would
normally
adjust
rates
every
year
as
part
of
the
budget
process,
I
think
as
a
baseline.
That's
what
I'm
hearing
staff
say
is
that
rate
adjustment.
We
wouldn't
do
a
mid-year
rate
adjustment.
We
would
do
a
rate
adjustment
in
conjunction
with
the
budget
cycle
and
I.
C
Reiterated
in
a
different
way,
number
one
if
we
wait
until
December
folks
are
going
to
be
really
upset
that
we're
waiting
to
the
last
minute
when
we
don't
have
as
much
time
to
make
a
decision
in
the
budget
cycle
and
number
two.
We
have
lots
of
questions
about
transparency
and
public
engagement
and
how
we
do
Outreach
and
there's
so
much
happening
at
the
end
of
the
year.
C
C
A
Okay,
so
so
in
December
Deborah,
if
I
understand
you,
we
would
have,
we
would
have
a
recommendation
around
rates
for
the
next
fiscal
year
and
then
we
would
also
have
this
sort
of
option
b
that
councilman
roney's
talking
about
where,
where
you
know
what
does
it
look
like
to
freeze
residential
rates,
while
we
make
the
I
think
I
think
Kim,
what
you're
saying
is
freeze
residential
rates
while
we
bring
the
other
rates
in
line
with
the
cost
of
service.
C
A
A
Don't
adopt
the
budget
until
the
end
of
June,
so
December
I
mean
it
doesn't
quite
feel
squished
up
for
me,
but
I
see
what
you're
saying
in
terms
of
we
get
into
all
the
discussions.
I,
you
know
Deborah.
Why
don't?
Why?
Don't
we
leave
it?
You
hear
the
request:
is
there
a
way
to
accelerate
it?
It
doesn't
sound
like
you
guys,
can
quite
answer
that
on
the
spot
right
now,
so
so
maybe
get
back
to
us
about
whether
there's
a
way
to
move
that
timeline
up.
A
A
You
know
we
got
to
go
out
into
the
community
and
talk
about
what
the
options
are
and
then
you
know,
obviously,
if
we're
making
adjustments
to
Commercial
and
Industrial
users,
they're
sort
of
the
the
the
Outreach
that
needs
to
happen
with
those
users,
so
they
understand
I
mean
we
probably
need
to
take
this
presentation
to
to
the
chamber
or
other
places
where
those
sorts
of
users
would
hear.
This
information
understand
the.
Why
behind
why
we
would
be
making
these
changes
absolutely.
D
And
and
as
we
said,
actually
it's
part
of
the
end
of
the
budget
process,
we
say
that
this
process
would
not
be
completed
until
Nightfall
and
I
think
that
you're
coming
in
again
early
so
again,
I
think
I
am
hearing
the
direction
of
that.
You
want
us
to
look
at
the
potential
for
freezing
for
presidential,
but
we
need
the
time
to
understand
the
implications
of
doing
that
for
the
rest
of
the
right
payers,
as
well
as
on
the
capital
budget
and
projects
that
are
scheduled
to
be
either
underway
or
completed.
E
What
I'm
hearing
the
most
when
I'm
talking
to
businesses
when
I'm
saying
we're
expecting
to
get
this
information
back
and
that
it's
that
basically
commercials
getting
highly
subsidized
and
I
hear
businesses,
saying
I,
understand
just
give
us
time
and
be
very
clear
and
so
I
mean
no
one
wants
rate
changes,
but
I
think
we
also
there's
a
couple
balls
that
we're
trying
to
juggle
right
is
whatever
I'm
hearing
you
say:
do
the
analysis
with
the
rigor
that's
necessary
to
run
the
utility?
E
We
don't
want
to
compromise
that
I'm
hearing
Kim
say:
let's
do
community
engagement
so
before
we
make
decisions,
people
are
involved
and
then
we
also
need
to
do
this
in
enough
time
so
that
people
can
financially
plan
so
that
they're
not
like
we
decided
June
and
then
the
rate
hits
them
in
July
and
so
doing
all
of
those
things
it
seems
like
if
I
recall,
I
feel
like
when
we
were
talking
about
this.
We
were
talking
about
the
potential
to
make
great
changes
in
January.
C
And
to
add
my
take
on
this
too
I
thought
we
had
talked
about
making
changes
to
Commercial
and
Manufacturing
rates
in
January
as
well,
and
that's
why
it
feels
like
we're,
probably
abandoning
that
at
this
point.
But
if
we're
not,
then
we
need
to
talk
about
the
impact
sooner.
A
I
notice,
there's
a
few
more
slides
on
or
well
maybe
not
on
the
one
that
was
linked
to
the
agenda.
There's
some,
but
maybe
we're
not
supposed
to
go
through
those,
but
they
just
look
at
other
cities
and
their
rates
and
restructures.
Do
we
need
to
talk
any
about
those.
A
D
A
I
appreciate
it
I
think
it
was.
You
know,
thorough
and
I
think
you
know
the
education
piece
of
it
around
how
you
look
at
rates
and
design
rates
is
helpful
for
for
us
that
aren't
working
in
that
industry.
All
the
time
and
I
appreciate
that.
D
A
A
Do
you
all
have
time
to
keep
going
or
or
should
we
move
these
to
the
next
meeting
staff?
Do
you
have
I
know
you
guys
said
the
audit
item
and
the
work
plan
item
we
could
move
off.
Tell
me
what
you're
thinking
about
the
CIP
and
the
bond
item
mayor.
D
If,
if
folks
have
time,
we
could
get
you,
the
CRP
discussion,
I
believe
in
about
10
minutes
the
kind
of
kind
of
questions
that
it's
it's
totally
up
to
you
all
in
the
members.
If
they
have
time
yeah,
that's.
A
Okay,
all
right
so
we'll
we'll
conclude
the
meeting
now
and
come
back
to
those
items
at
our
next
meeting
and
if
I'll
talk
to
staff,
if
we
need
to
squeeze
in
an
additional
Finance
meeting
before
our
next
scheduled
Finance
meeting,
we'll
figure
that
out.
E
B
Mayor,
just
as
just
as
there
was
no
public
sorry.