An annual evaluation shall be conducted of the city's revenue sufficiency/rate structure, as follows:
A. Evaluate Certain Revenues: As an integral part of the annual fiscal year budget process, city management and the city commission will evaluate the sufficiency of utility rates, taxes and other revenues in meeting the appropriation and expenditure needs, including inflationary factors, of the city and its public trusts. The city manager's budget message will address this revenue evaluation and include any related recommendations for commission consideration.
B. Utility Rate Evaluation: In particular, utility rates shall be evaluated and, if necessary, adjusted on an annual basis, after reviewing the cost of operations, capital needs, budgetary transfer requirements, competitor's pricing structures, and overall economic climate to ensure rates are set at levels which will, at a minimum, cover the cost of delivery of the related services, including depreciation. Since adoption of more modest, relatively more frequent rate adjustments are more manageable for households and businesses alike, modest, more frequent adjustments are to be emphasized. Keeping rates at a sufficient level each fiscal year will prevent the necessity of relatively larger, more sudden and dramatic adjustments in any one year. (Ord. 896, 11-8-2004)