Agenda - 07/10/12 Eugene City Council and EWEB Joint Meeting

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Attachment 3 community in less-costly ways, such as withsocial media, use of email lists and newsletters, and other free forms of communications. Getting information to customers about energy efficiency programs and incentives, for example, is a key component of meeting our conservation goals. Participation/sponsorship of community events is another high profile activity that will be reduced as we focus resources on essential services. Water The water utility faces a short-term budgetary issue due to three consecutive summer weather patterns that, combined with a poor economy, have reduced revenues from water sales. However, the water utility is in a much different position in terms of rates and comparative costs. EWEB water rates remain among the lowest in the Pacific Northwest. EWEB plans to continue investments to upgrade our aging water system as well as address other long-term needs, such as securing a secondary water source, and expects water rate increases to continue in each of the next several years to pay for these initiatives. Summary In terms of process, to prepare for the 2013 budget that begins Jan. 1, EWEB will be conducting two important check-ins with the Board of Commissioners: An update and discussion of the utility’s Strategic Plan, scheduled for the regular Board meeting following the July 10 joint work session; and a July 17 financial retreat, in which the Board will give general direction specific to the 2013 budget. Staff will then draft a budget proposal during the summer and fall of 2012, with Board review and approval in December following two public hearings. This work is not occurring in a vacuum. In addition to the annual benchmark survey, staff has engaged the community in three distinct survey activities designed to better understand customer perceptions about EWEB in general, and their opinions related to trade-offs between service priorities and rates. The results of these surveys will be discussed with the Board at the financial retreat. Staff isalso preparing to change the format and timing for rate hearings, beginning in the fourth quarter of 2012, and have developed a high-level plan for increasing customer involvement in our budget and rate-setting process. In closing, we ask for your patience and understanding as we continue to adjust to new business models and confront the implications, both known and unknown. In the coming weeks, EWEB will be in direct communications with agency partners directly impactedby these service reductions. Like our other public agency partners, EWEB remains absolutely committed to providing value and high quality services to the community, while preparing the utility to meet the challenges and opportunities in the future. 3