2018-1571 FILE RESOLUTION NO. 2018-1571
A resolution authorizing the City Manager to file for a conventional rate case with the
Public Service Commission (PSC)
WHEREAS, the Janesville Water Utility's financial position is deteriorating as rates are not
adequate to support its Capital Improvement Program (CIP), specifically the water main
replacement program; and
WHEREAS, the City of Janesville has retained the independent contractor services of Trilogy
Consulting, LLC, to assist with the development of the Water Utility's long-range financial plan to
strengthen the fund's financial position; and
WHEREAS, Trilogy Consulting, LLC, critically examined the Water Utility's water consumption
trends; cash flows; operating and maintenance expenses; infrastructure needs; debt burden and
ratios; reserves; etc., to develop three long-range financial plan scenarios; and
WHEREAS, the Common Council held a study session on July 17, 2018 to review the Water
and Wastewater Utilities' finances; and
WHEREAS, as part of the study session, staff and Trilogy Consulting, LLC, provided to the City
Council an overview of three Water Utility long-range financial plans; and
WHEREAS, the City of Janesville is committed to maintaining the current level or increased
level of funding for the water main replacement program; and
WHEREAS, the City of Janesville can continue the water main replacement program and
strengthen the Water Utility's short- and long-term financial position by accelerating the
depreciation of water mains as a means to finance the water main replacement program; and
WHEREAS, the City of Janesville can only effectuate this change by filing for a conventional
rate case with the Public Service Commission (PSC);
NOW THEREFORE, BE IT RESOLVED BY THE COMMON COUNCIL OF THE CITY OF
JANESVILLE that they hereby find it is in the best interest of and benefit to the City and its
residents, businesses, and other Water Utility rate users and payers, to cash finance the water
main replacement program and, therefore, hereby authorize the City Manager to file, on behalf
of the City of Janesville and its Water Utility, a conventional rate case that includes the
accelerated depreciation of water mains with the Public Service Commission (PSC); and
BE IT FURTHER RESOLVED that the City Manager is hereby authorized to take whatever
other actions or to make whatever other changes that may be necessary to effectuate this
conventional rate case and intent of this Resolution.
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ADOPTED: August 13, 2018 Motion by: Wolfe
Second by: Conley
APPROVED: Councilmember Aye Nay Pass Absent
a Conley X
Farrell X
Mark A. reitag, City Manager Gruber X
Jorgensen X
ATT • , // Marklein X
//t ' Williams X
Wolfe X
David T. Godek, City Clerk-Treasurer
APPROVED AS TO FORM:
Wald Klimczyk, City Attorney
Proposed by: Utility Division and Finance Office
Prepared by: Utility Division and Finance Office
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