CC 2016-05-10_11b Drought Rates Council Meeting May 10 2016Water and Wastewater Fund Analysis
Consideration of Temporary Drought Rates
May 10, 2016
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Water Consumption
Conservation efforts have been successful
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5 year rate study maintained reserves at $6M
$3.2 M shortfall now projected over next 3 years
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rate increase vs. expenditure reductions
10% Rate increase = approximately $600,000/yr
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Proposed approach: rate increase and expenditure reductions
Closing the Gap:
Rate Increase $1,700,000
Capital project deferral 640,000
Eliminate contribution to Water Neutralization Fund 600,000
Use of Reserves 260,000
$3,200,000
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Proposed approach: rate increase and expenditure reductions
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Proposed approach: rate increase
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Impacts to residential customers (water)
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Impacts to residential customers (sewer)
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Proposition 218 process
Issue notice of rate increase
At least 45 days prior to Public Hearing
Public Hearing currently anticipated for July 26, 2016
Rates would become effective with August billing cycle
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recommendation
Schedule a public hearing to consider adjustments to water and wastewater rates via drought rates
Direct staff to prepare and distribute a Proposition 218 notice for the proposed temporary
water and wastewater drought rates
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