Agenda packet — American Canyon City Council, January 16, 2024 (part 1 of 2)

REGULAR CITY COUNCIL MEETING AGENDA
City Hall - Council Chambers
4381 Broadway St., Suite 201, American Canyon
January 16, 2024
6:30 PM
Tonight's mee(ng is a limited public forum. American Canyon promotes respec0ul and responsible behavior among its mee(ng par(cipants, whether they are present in person or remotely. Using offensive language or remarks that promote, foster, or perpetuate discrimina(on based on race, creed, color, age, religion, gender marital status, status regarding public assistance, na(onal origin, physical or mental disability or sexual orienta(on/gender iden(fica(on, as well as any other category protected by federal, state or local laws will not be tolerated. In the case of an occurrence, the speaker will be immediately disconnected from the microphone.

City Council and other public meengs will be conducted in person at City Hall, 4381 Broadway, Suite 201, American Canyon, CA 94503. This meeng is also available via Zoom Teleconferencing as a convenience for public parcipaon.

This meeng will be broadcast live to residents on Napa Valley TV, on our website here and on YouTube here. Should technical issues with Zoom occur, please select another viewing option.

PUBLIC PARTICIPATION
Oral comments, during the mee(ng: Oral comments can be made in person during Open and Closed Session. A Zoom Webinar has been established for public comments made via zoom, during Open Session only. To give your public comment via zoom, connect via the below Zoom link and use the “raise your hand” tool, or call into the zoom mee-ng at 408-638-0968 and press *9 to “raise your hand” when the item is called. To avoid confusion, all hands raised outside of Public Comment periods will be lowered.

Written comments, via eComments: Please submit wri2en comments through the eComments link, located on the Mee-ngs & Agendas page of our websitehere. Comments will be available to council members in real -me. To allow for review of comments, eComments will close at 3:00 pm on the day of the mee-ng. All comments received will be posted online and become part of the mee-ng record.

Zoom Meeting Link: Click here.

Webinar ID: 849 9699 3806 Passcode: 12345
The above-iden-fied measures exceed all legal requirements for par-cipa-on in public comment, including those imposed by the Ralph M. Brown Act. For more informa-on, please call the Office of the City Clerk at (707) 647-4369 or email [email protected].

AGENDA MATERIALS: City Council agenda materials are published 72 hours prior to the mee-ng and are available to the public via the City’s website at www.cityofamericancanyon.org.

AMERICANS WITH DISABILITIES ACT: The City Council will provide materials in appropriate Mayor: Leon Garcia
Vice Mayor: David Oro
Councilmembers: Mariam Aboudamous, Mark Joseph, Pierre Washington CITY COUNCIL MEETING AGENDA JANUARY 16, 2024
1 alterna-ve formats to comply with the Americans with Disabili-es Act. Please send a wri2en request to City Clerk at 4381 Broadway, Suite 201, American Canyon, CA 94503 or by email to [email protected]. Include your name, address, phone number and brief descrip-on of the requested materials, as well as your preferred alterna-ve format or auxiliary aid, at least three calendar days before the meeting.
5:00 P.M. – CLOSED SESSION
The mayor will call the meeng to order and conduct roll call. Council will immediately convene into Closed Session a,er hearing any public comment on Closed Session items. At 6:30 p.m. the Council will reconvene into Open Session and then resume Closed Session at the end of the meeting to address outstanding items, if necessary.

CALL TO ORDER - CLOSED SESSION

ROLL CALL - CLOSED SESSION

PUBLIC COMMENTS - CLOSED SESSION ITEMS
This me is reserved for members of the public to address the City Council on Closed Session Items only. Comments must be made in person and are limited to 3 minutes. Comments for items on the Open Session agenda will be taken when the item is called in Open Session. Comments for Items not on the Closed Session or Open Session agenda will be heard during the Open Session Public Comment period.

MEETING RECESS - COUNCIL TO CONVENE IN CLOSED SESSION
5:00 P.M. CLOSED SESSION ITEMS

1. Conference with Legal Counsel - Exis(ng Li(ga(on. Authorized pursuant to Government Code Section 54956.9(d)(1):
a. City of American Canyon v. City of Vallejo, et al. (Sacramento Superior Court Case No. 34-2022-00327471).
b. City of American Canyon v. Leon Dale Schmidt (Napa County Superior Court Cases No. 22CV001041 and 23PR00161).
c. Center for Biological Diversity v. City of American Canyon et al. (Napa County Superior Court Case No. 23CV000511).
d. Golden State Environmental Jus!ce Alliance v. City of American Canyon et al. (Napa Superior Court Case No. 23CV000510).
e. City of Vallejo v. City of American Canyon et al . (Napa County Superior Court Case No. 23CV000517).
f. City of Vallejo v. City of American Canyon et al . (Napa County Superior Court Case No. 23CV001600).

2. Conference with Legal Counsel – An(cipated Li(ga(on. Authorized pursuant to Government Code Section 54956.9 (d)(2). Two (2) Matters. 6:30 P.M. OPEN SESSION - REGULAR MEETING

CALL TO ORDER - COUNCIL TO RECONVENE IN OPEN SESSION
CITY COUNCIL MEETING AGENDA JANUARY 16, 2024
2 PLEDGE OF ALLEGIANCE

ROLL CALL - OPEN SESSION

REPORT ON CLOSED SESSION/CONFIRMATION OF REPORTABLE ACTION

PROCLAMATIONS AND PRESENTATIONS
There are no Proclamation or Presentation items.

PUBLIC COMMENTS - ITEMS NOT ON CLOSED SESSION OR OPEN SESSION AGENDA This me is reserved for members of the public to address the City Council on items that are not on the Closed Session or Open Session agenda and are within the subject ma4er jurisdicon of the City Council. Comments are limited to 3 minutes. Comments for items on the Open Session agenda will be taken when the item is called in Open Session.The City Council is prohibited by law from taking any acon on ma4ers discussed that are not on the agenda, and no adverse conclusions should be drawn if the City Council does not respond to public comment at this time.

AGENDA CHANGES
The Mayor and Council may change the order of the Agenda or request discussion of a Consent Item. A member of the Public may request discussion of a Consent Item by making that request during Public Comment.

CONSENT CALENDAR

3. Minutes of December 19, 2023
Recommendation: Approve the minutes of the Regular City Council mee-ng of December 19, 2023.

4. Measure T MOE and Equivalent Fund Certification
Recommendation: Take the following ac-ons related to Measure “T” (The Napa Countywide Road Maintenance Act):

1. Adopt a Resolu-on approving the Maintenance of Effort (MOE) cer-fica-on of $370,015 as required under Measure “T” Program (The Napa Countywide Road Maintenance Act)

2. Adopt a Resolu-on approving cer-fica-on of Equivalent Fund expenditures under the Measure "T" Program (The Napa Countywide Road Maintenance Act).

5. Coopera(ve Agreement for the American Canyon State Route 29 Corridor Improvement Project
Recommendation: Adopt a resolu-on authorizing the City Manager to execute Coopera-ve Agreement 04-2957 with Caltrans and Napa Valley Transporta-on Authority for Project Approval and Environmental Document phase services associated with the American Canyon State Route 29 Corridor Improvement Project.

6. Report Upon Return from Closed Session
Recommendation: Approve the Report Upon Return from Closed Session for the City Council meeting of December 19, 2023.

7. Regional Climate Action and Adaptation Plan
Recommendation: Adopt a Minute Order increasing FY 23/24 General Fund appropria-ons CITY COUNCIL MEETING AGENDA JANUARY 16, 2024
3 by $8,641 to cover American Canyon's share of the cost for Napa Countywide Climate Ac-on Commi2ee to prepare a Regional Climate Ac-on and Adapta-on Plan (RCAAP) with the source of funding being the General Fund Undesignated Fund Balance.

8. Watson Ranch Master Backbone Infrastructure (MBI) Phase 1 Improvements Project Recommendation:

Adopt a Resolu-on of the City Council of the City of American Canyon for par-al acceptance of the public improvements associated with the Watson Ranch Master Backbone Infrastructure (MBI) Phase 1 Improvements Project.

PUBLIC HEARINGS
There are no Public Hearing items.

BUSINESS

9. Utility Rate Changes
Recommendation: Adopt a Resolu-on of Inten-on to adopt new u-lity rates, seRng a public hearing date for April 2, 2024, and direc-ng the issuance of No-ces of a Proposi-on 218 Public Hearing to all u-lity customers and property owners within the City of American Canyon’s service area.

10. Annual Comprehensive Financial Report and Year-end Financial Results Recommendation: Receive and file the Annual Comprehensive Financial Report and related communications from the City's external auditor for Fiscal Year 2022-23.

MANAGEMENT AND STAFF ORAL REPORTS

11. Parks and Community Services Commission Mid-Year Update Recommendation: Receive an oral update regarding the Parks and Community Services Commission's FY2024/25 Work Plan.

12. Maintenance and Utilities Department, Sewer/Wastewater Division Update Recommendation: Receive a Presenta-on on Maintenance and U-li-es Department, Sewer/Wastewater Division Update.

13. Measure K Update

MAYOR/COUNCIL COMMENTS AND COMMITTEE REPORTS
The Mayor and Council may comment on ma4ers of public concern and announce ma4ers of public interest; no collective council action will be taken.

14. City Council Committee Report - Councilmember Mark Joseph

FUTURE AGENDA ITEMS
CITY COUNCIL MEETING AGENDA JANUARY 16, 2024
4 15. Future Agenda Items of Note:

February 2, 2024, Special City Council Meeting. 9:00 a.m.

Update Sustainability Goal (Financial and Environmental) Financial Forecast (FY 24/25 Budget and beyond)
Citywide Staffing, Technology and Service Delivery
February 6, 2024, Regular City Council Meeting. 6:30 p.m.

Proclamation Black History Month
Napa Valley Transportation Authority Presentation on Measure X Air Quality Standards of Review
February 20, 2024, Regular City Council Meeting. 6:30 p.m.

Mid-Year Budget Update
Eco-Center Long-Term Lease
State of the City Road Show:

February 21: Online presentation (evening)
February 22: Active Adult Center (morning)
March 1: ACHS Presentation (daytime)
March 12: Chamber of Commerce (lunchtime)
March 5, 2024 Regular City Council Meeting. 6:30 p.m.

Proclamation National Women's History Month
Proclamation American Red Cross Month
Annual Police Report
Annual Communications Report
March 19, 2024 Regular City Council Meeting. 6:30 p.m.

Proclamation Acknowledging Ramadan
Housing Element: Annual Report and Zone Changes
Circulation Element Review*
Note: Council requested items are marked "*"

ADJOURNMENT

CERTIFICATION
I, Taresa Geilfuss, City Clerk for the City of American Canyon, do hereby declare that the foregoing agenda of the City Council was posted in compliance with the Brown Act prior to the meeting date. ______________________________________
Taresa Geilfuss, CMC, City Clerk
CITY COUNCIL MEETING AGENDA JANUARY 16, 2024
5 CITY OF AMERICAN CANYON

REGULAR CITY COUNCIL MEETING

ACTION MINUTES
December 19, 2023
5:00 P.M. – CLOSED SESSION

CALL TO ORDER - CLOSED SESSION
The City Council meeting was called to order at 5:00 p.m.

ROLL CALL - CLOSED SESSION

Present: Councilmember Mariam Aboudamous, Councilmember Mark Joseph, Councilmember David Oro, Vice Mayor Pierre Washington, Mayor Leon Garcia

Absent: None
Excused: None

PUBLIC COMMENTS - CLOSED SESSION ITEMS
Mayor Garcia called for Closed Session public comments. Written comments: none. Oral comments: none.

The public comments period was closed.

MEETING RECESS - COUNCIL TO CONVENE IN CLOSED SESSION
Council recessed to Closed Session.
5:00 P.M. CLOSED SESSION ITEMS

1. Conference with Legal Counsel - Existing Litigation. Authorized pursuant to Government Code Section 54956.9(d)(1):
a. City of American Canyon v. City of Vallejo, et al. (Sacramento Superior Court Case No. 34- 2022-00327471).
b. City of American Canyon v. Leon Dale Schmidt (Napa County Superior Court Cases No. 22CV001041 and 23PR00161).
c. Center for Biological Diversity v. City of American Canyon et al. (Napa County Superior Court Case No. 23CV000511).
d. Golden State Environmental Justice Alliance v. City of American Canyon et al. (Napa Superior Court Case No. 23CV000510).
e. City of Vallejo v. City of American Canyon et al. (Napa County Superior Court Case No. 23CV000517).
f. City of Vallejo v. City of American Canyon et al. (Napa County Superior Court Case No. 23CV001600).
6 2. Conference with Legal Counsel – Anticipated Litigation. Authorized pursuant to Government Code Section 54956.9 (d)(2). Two (2) Matters.
6:30 P.M. OPEN SESSION - REGULAR MEETING

CALL TO ORDER - COUNCIL TO RECONVENE IN OPEN SESSION
The City Council meeting was called to order at 6:38 p.m.

PLEDGE OF ALLEGIANCE
The Pledge of Allegiance was recited.

ROLL CALL - OPEN SESSION

Present: Councilmember Mariam Aboudamous, Councilmember Mark Joseph, Councilmember David Oro, Vice Mayor Pierre Washington, Mayor Leon Garcia

Absent: None
Excused: None

REPORT ON CLOSED SESSION/CONFIRMATION OF REPORTABLE ACTION A report on Closed Session and confirmation of reportable action was given by City Attorney William Ross.

PROCLAMATIONS AND PRESENTATIONS
There were no Proclamation or Presentation Items.

PUBLIC COMMENTS - ITEMS NOT ON CLOSED SESSION OR OPEN SESSION AGENDA Mayor Garcia called for public comments. Written comments: none. Oral comments: Richard Sifuentes was called to speak; Sherry Tennyson was called to speak; Justin Hamilton Hole was called to speak. The public comments period was closed.

AGENDA CHANGES
There were no changes to the agenda.

CONSENT CALENDAR
Action: Motion to adopt CONSENT CALENDAR made by Councilmember Mark Joseph, seconded by Councilmember David Oro, and CARRIED by roll call vote.

Ayes: Councilmember Mariam Aboudamous, Councilmember Mark Joseph, Councilmember David Oro, Vice Mayor Pierre Washington, Mayor Leon Garcia Nays: None
Abstain: None

Absent: None
Excused: None
7 4. Minutes of December 5, 2023
Action: Approved the minutes of December 5, 2023.

5. Report Upon Return from Closed Session
Action: Approved the Report Upon Return from Closed Session from the meeting of December 5, 2023.

6. Local Appointments List of Boards, Commissions and Committees 2024 Vacancies Action: Approved the Local Appointments List of Boards, Commissions and Committees 2024 Vacancies.

PUBLIC HEARINGS
There were no Public Hearing Items.

BUSINESS

7. Solid Waste Hauling and Disposal
Council received a staff report from City Manager Jason Holley, with Recology General Manager Derek Nelson available for questions. Mayor Garcia called for public comments. Written comments: none. Oral comments: Fran Lemos was called to speak; Justin Hamilton Hole was called to speak; Janelle Sellick was called to speak. The public comments period was closed.

8. Selection of Vice Mayor and City Council Committee Appointments for 2024 Council received a staff report from City Clerk Taresa Geilfuss. Mayor Garcia called for public comments. Written comments: none. Oral comments: none. The public comments period was closed.

Action: Motion to adopt Minute Order 2023-19 nominating Councilmember David Oro as Vice Mayor to serve for a one-year term, January to December 2024 made by Vice Mayor Pierre Washington, seconded by Councilmember Mark Joseph, and CARRIED by roll call vote.

Ayes: Councilmember Mariam Aboudamous, Councilmember Mark Joseph, Councilmember David Oro, Vice Mayor Pierre Washington, Mayor Leon Garcia Nays: None
Abstain: None

Absent: None
Excused: None
8 Action: Motion to adopt Minute Order 2023-20 approving the 2024 City Council Appointments List as submitted made by Councilmember Mark Joseph, seconded by Vice Mayor Pierre Washington, and CARRIED by roll call vote.

Ayes: Councilmember Mariam Aboudamous, Councilmember Mark Joseph, Councilmember David Oro, Vice Mayor Pierre Washington, Mayor Leon Garcia Nays: None
Abstain: None

Absent: None
Excused: None

MANAGEMENT AND STAFF ORAL REPORTS
Council received oral updates from Finance Director Juan Gomez and Community Development Director Brent Cooper.

MAYOR/COUNCIL COMMENTS AND COMMITTEE REPORTS
Council members announced items of interest.

9. City Council Committee Report - Councilmember Mark Joseph

FUTURE AGENDA ITEMS

ADJOURNMENT
The meeting was adjourned with Council singing Christmas carols at 7:35 p.m.

CERTIFICATION
Respectfully Submitted,
_____________________________________
Taresa Geilfuss, CMC, City Clerk
9 10

CITY COUNCIL AGENDA
JANUARY 16, 2024

STAFF REPORT

CONSENT
ITEM NUMBER: 4.

TITLE
Measure T MOE and Equivalent Fund Certification

RECOMMENDATION
Take the following actions related to Measure “T” (The Napa Countywide Road Maintenance Act):

1. Adopt a Resolu5on approving the Maintenance of Effort (MOE) cer5fica5on of $370,015 as required under Measure “T” Program (The Napa Countywide Road Maintenance Act)

2. Adopt a Resolu5on approving cer5fica5on of Equivalent Fund expenditures under the Measure "T" Program (The Napa Countywide Road Maintenance Act).

CONTACT
Erica Ahmann Smithies, P.E., Public Works Director
Juan Gomez, Finance Director

BACKGROUND & ANALYSIS
The 2012 “Napa Countywide Road Maintenance Act” (also known as “Measure T”) imposes a ½ cent sales tax to pay for road repairs countywide. The Napa Valley Transporta5on Authority – Tax Agency (NVTATA) distributes these sales tax revenues over 5me and the City of American Canyon receives

7.7% of the sales tax revenues per year, as of July 1, 2018.

Maintenance of Effort (MOE)
The intent of Measure “T” is to supplement, not supplant, exis5ng local general fund revenues being used for the transporta5on improvements. American Canyon must demonstrate expending a minimum amount known as the “maintenance of effort” or “MOE” of local general fund revenues on transportation improvements.

The MOE is the calculated average for fiscal years 2007-08, 2008-09, and 2009-10 for “Local Streets and Roads Maintenance” and suppor5ng infrastructure within the public right-of-way. Examples include pavement sealing, overlays, reconstruc5on, storm drainage, sidewalks, and associated infrastructure.

American Canyon’s MOE is calculated to be $370,015. This amount will remain constant throughout the term of Measure T. Each year American Canyon must cer5fy to NVTA-TA Authority that it expended funds equal to the amount of the MOE on eligible transporta5on improvements. As 11 described in the Resolu5on and detailed in Exhibits “A”, “B”, “C”, “D”, “E”, and “F”, American Canyon spent more than $370,015 in General Fund revenues on eligible transporta5on improvements when using the three-year average for FY 2020-21, FY 2021-22, and FY 2022-23.

Equivalent Fund
All agencies must collec5vely commit non-Measure T funds towards Class I Bicycle Facili5es equivalent to 6.67% of the es5mated total revenue of Measure T. Qualifying funding sources for

6.67% Equivalent Fund projects can be in the form of local general funds, formula specific funds, and Class I facility contributions by private development.

The City must provide a copy of the Equivalent Fund Class I Bicycle Facili5es Expenditure Resolu5on approved by the City's governing body, along with backup documenta5on, showing the qualifying funding spent on Class I Bicycle Facili5es for the prior fiscal year. The resolu5on will cer5fy applicable expenditures for the prior fiscal year and be used by NVTA-TA in tracking the program par5cipants' collec5ve contribu5on towards the required Class I Facility spending over the term of the Measure T program.

Funds cer5fied during this cer5fica5on cycle include Fiscal Year 2022-23. The table below provides a summary of the Equivalent Fund expenditures, the Class I projects, and the sources of funding:

Fiscal Year Project Funding Source Amount
2022-23 Devlin Road Class I Local Funds (Development, NLP Phase 2) $119,340.00 2022-23 Newell Drive Class I Local Funds (Development, Canyon Estates) $91,050.00 2022-23 Rio Del Mar Class I Local Funds (Development, Watson Ranch) $252,000.00 2022-23 Rolling Hills Drive Class I Local Funds (Development, Watson Ranch) $171,000.00 2022-23 Mallen Way Class I Local Funds (Development, Watson Ranch) $210,000.00 2022-23 Artisan Subdivision Class I Local Funds (Development, Watson Ranch) $39,000.00 Total Contributions $882,390.00

COUNCIL PRIORITY PROGRAMS AND PROJECTS
Infrastructure: "Develop and maintain infrastructure resources to support sustainable growth."

FISCAL IMPACT
Maintenance of Effort (MOE)
By adop5ng the Maintenance of Effort Resolu5on and submiOng the cer5fica5on to NVTA-TA, the City of American Canyon will remain eligible to con5nue collec5ng 7.7% of the annual revenues available through the collec5on of the ½ cent sales tax. This amount for FY 2022-23 was approximately $2.0 million.

Equivalent Fund
12 There is no financial impact associated with this action.

ENVIRONMENTAL REVIEW
The proposed ac5ons are a mandatory component of compliance with Measure "T" and is not a "project" as defined by CEQA. Moreover, the ac5on is exempt consistent with CEQA Guidelines Section 15378(b) as a government funding mechanism.

ATTACHMENTS:

1. Resolution Measure T FY 2022-23 MOE Certification

2. Exhibit A. Measure T FY 2022-23 Summary Trial Balance

3. Exhibit B. Measure T FY 2022-23 Additional FTE Direct Project Time

4. Exhibit C. Measure T FY 2020-21 Summary Trial Balance

5. Exhibit D. Measure T FY 2021-22 Summary Trial Balance

6. Exhibit E - Measure T MOE Calculation - FY 2022-23

7. Exhibit F. Measure T MOE Certification Form - AmCan - FY 2022-23

8. Exhibit G. American Canyon MOE Attch 1 Measure T MOE Calc (FINAL)

9. Resolution - Measure T Equivalent Fund Certification and Exhibit A 13 RESOLUTION NO. 2024-

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF AMERICAN CANYON APPROVING THE MAINTENANCE OF EFFORT (MOE) CERTIFICATION OF $370,015 AS REQUIRED UNDER MEASURE “T” (THE NAPA COUNTYWIDE ROAD MAINTENANCE ACT)
WHEREAS, on November 6, 2012 the voters of Napa County passed the Napa Countywide Road Maintenance Act, also known as Measure T, which imposes a half cent transaction and use (sales) tax to provide supplemental funding for road maintenance as detailed in the Measure T Expenditure Plan; and WHEREAS, the Napa Valley Transportation Authority – Tax Authority (NVTA-TA) is the designated agency that administers and oversees Measure T revenues; and
WHEREAS, the City of American Canyon is an eligible recipient of Measure T funds; and WHEREAS, the tax proceeds will be used to pay for the projects outlined in the Measure T Expenditure Plan allocated to the County of Napa and the cities and towns within Napa County ("Local Agencies") as set forth in Measure T; and
WHEREAS, under the Measure T Expenditure Plan, Measure T funds are provided to the Local Agencies to be used for streets and roads projects as defined in the Measure; and WHEREAS, the City of American Canyon has entered into a Master Agreement with NVTA-TA that outlines procedures for Measure T expenditures, and
WHEREAS, the City of American Canyon has determined and certified to NVTA-TA the average maintenance of effort amount for Fiscal Years 2007-08, 2008-09, and 2009-10, consistent with the criteria set forth in Section 9 of Ordinance No. 2012-01, including a memorandum detailing the supporting financial documentation and the methodology utilized to calculate the average fiscal year street and roads costs; and
WHEREAS, by January 31st each calendar year, the City of American Canyon must certify to, and provide NVTA-TA a copy of supporting documentation as well as a Resolution approved by the governing body of the City of American Canyon, including backup documentation, demonstrating that the Maintenance of Effort was met the prior fiscal year based on the average of the prior three fiscal years; and WHEREAS, Measure T project(s) will comply with the requirements under the California Environmental Quality Act (California Code Sections 21000 et seq.; as implemented through California Regulations Title 14, Chapter 3, Sections 15000 et seq.)
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of American Canyon does resolve as follows:

1. The City Council of the City of American Canyon hereby certifies the Maintenance of Effort amount 14 2
of $370,015 has been met as set forth in Exhibits “A”, “B”, “C”, “D”, “E”, “F”, and “G”, and authorizes the Public Works Director to file the amount with NVTA-TA.

2. The Resolution is hereby adopted and becomes effective and in full force immediately upon adoption.

PASSED, APPROVED and ADOPTED at a regularly scheduled meeting of the City Council of the City of American Canyon held on the 16th day of January 2024, by the following vote:

AYES:

NOES:

ABSTAIN:

Printed: 01/08/2024 - 11:43AM
iubaldo
Summary Trial Balance
General Ledger
Period: 01 to 15, 2023
Account Number Description Budget Amount Beginning Balance Debit This Period Credit This Period Ending Balance Fund 100 100 GENERAL FUND

REVENUE
Dept 50 PUBLIC WORKS
100-50-520-35170 Developer Contribution In Lieu 0.00 0.00 0.00 0.00 0.00 100-50-520-36330 Insurance Reimbursements 30,000.00 0.00 0.00 11,004.74 -11,004.74 100-50-520-36390 Misc Revenues - Other 0.00 0.00 0.00 217.14 -217.14 100-50-520-37260 Transfer In from Gas Tax 300,000.00 0.00 0.00 300,000.00 -300,000.00 100-50-520-37270 Transfer In from Measure A 0.00 0.00 0.00 0.00 0.00 100-50 REVENUE Totals: 330,000.00 0.00 0.00 311,221.88 -311,221.88 REVENUE Totals: 330,000.00 0.00 0.00 311,221.88 -311,221.88

EXPENSE
Dept 50 PUBLIC WORKS
100-50-520-41110 Wages - Full time 199,247.89 0.00 209,831.09 11,957.56 197,873.53 100-50-520-41120 Wages - Part Time 0.00 0.00 0.00 0.00 0.00 100-50-520-41140 Wages - Overtime 3,000.00 0.00 2,279.50 23.07 2,256.43 100-50-520-41210 Health Insurance 17,166.00 0.00 17,661.66 0.00 17,661.66 100-50-520-41230 Health-In-Lieu 7,200.00 0.00 6,412.50 0.00 6,412.50 100-50-520-41240 Cafeteria Plan Section 125 9,330.60 0.00 8,945.04 0.00 8,945.04 100-50-520-41250 PERS Retirement 44,503.71 0.00 41,591.41 803.88 40,787.53 100-50-520-41260 Social Security & Medicare 3,128.79 0.00 3,303.23 188.91 3,114.32 100-50-520-41270 Worker Comp Insurance 8,296.07 0.00 8,200.28 0.00 8,200.28 100-50-520-41290 Benefits - Other 0.00 0.00 879.85 34.75 845.10 100-50-520-42150 Info Tech Support Services 3,000.00 0.00 701.82 0.00 701.82 100-50-520-42190 Misc Contractual Services 10,000.00 0.00 5,771.71 0.00 5,771.71 100-50-520-42310 General Repairs & Maint 168,000.00 0.00 110,455.25 2,584.86 107,870.39 100-50-520-42315 Reimbursable Repairs 30,000.00 0.00 7,000.00 0.00 7,000.00 100-50-520-42425 Membership Dues & Subscription 4,750.00 0.00 1,972.30 0.00 1,972.30 GL-Summary Trial Balance (1/8/2024 - 11:43 AM) Page 1
16 Account Number Description Budget Amount Beginning Balance Debit This Period Credit This Period Ending Balance 100-50-520-42430 Conferences - Training 6,500.00 0.00 3,142.93 20.00 3,122.93 100-50-520-42484 ISF - Fleet 67,596.00 0.00 67,580.00 0.00 67,580.00 100-50-520-42485 ISF - Info Tech 19,873.00 0.00 19,909.00 0.00 19,909.00 100-50-520-42487 ISF - Legal Services 4,292.00 0.00 4,286.00 0.00 4,286.00 100-50-520-43110 Office Supplies 1,000.00 0.00 701.86 36.18 665.68 100-50-520-43115 Operating Supplies 143,000.00 0.00 133,044.45 13,359.35 119,685.10 100-50-520-43210 Utilities - Gas & Elec 102,121.00 0.00 104,850.94 4,210.06 100,640.88 100-50-520-43220 Util-PhonesPgrsInternetCable 1,655.00 0.00 1,435.99 0.00 1,435.99 100-50 EXPENSE Totals: 853,660.06 0.00 759,956.81 33,218.62 726,738.19 EXPENSE Totals: 853,660.06 0.00 759,956.81 33,218.62 726,738.19 Fund 100 Totals: -523,660.06 0.00 759,956.81 344,440.50 415,516.31 Report Totals: -523,660.06 0.00 759,956.81 344,440.50 415,516.31 GL-Summary Trial Balance (1/8/2024 - 11:43 AM) Page 2
17 Project Management
CIP Project Accounting
TR21‐0100 2021 Annual Pavement
User: iubaldo
Printed: 01/05/24 14:42:21
Fiscal Year 2023 - Periods 01 to 15
Date Range 07/01/22 to 06/30/23
Tran Date Sort Field Description Hours
TR21-0100 2021 Annual Pavement Mgmt Proj
Tran Date Account No Name Description Total Amt
07/28/22 David Miller 55MillerD Employee Benefit 52.62
08/11/22 David Miller 55MillerD Employee Benefit 10.72
07/28/22 David Miller 55MillerD Employee Gross 652.86
08/11/22 David Miller 55MillerD Employee Gross 132.99
07/01/22 Kristine Joy Delos Santos 55DelosSan Employee Benefit 42.31 12/15/22 Kristine Joy Delos Santos 55DelosSan Employee Benefit 19.28 02/09/23 Kristine Joy Delos Santos 55DelosSan Employee Benefit 162.43 02/23/23 Kristine Joy Delos Santos 55DelosSan Employee Benefit 207.56 03/09/23 Kristine Joy Delos Santos 55DelosSan Employee Benefit 41.08 03/23/23 Kristine Joy Delos Santos 55DelosSan Employee Benefit 144.39 07/01/22 Kristine Joy Delos Santos 55DelosSan Employee Gross 133.30 12/15/22 Kristine Joy Delos Santos 55DelosSan Employee Gross 56.65 02/09/23 Kristine Joy Delos Santos 55DelosSan Employee Gross 509.85 02/23/23 Kristine Joy Delos Santos 55DelosSan Employee Gross 651.48 03/09/23 Kristine Joy Delos Santos 55DelosSan Employee Gross 141.63 03/23/23 Kristine Joy Delos Santos 55DelosSan Employee Gross 453.20 07/14/22 Ronald V Ranada Jr 55RanadaR Employee Benefit 27.37 07/28/22 Ronald V Ranada Jr 55RanadaR Employee Benefit 67.27 08/11/22 Ronald V Ranada Jr 55RanadaR Employee Benefit 209.94 08/25/22 Ronald V Ranada Jr 55RanadaR Employee Benefit 51.72 09/08/22 Ronald V Ranada Jr 55RanadaR Employee Benefit 74.89 09/22/22 Ronald V Ranada Jr 55RanadaR Employee Benefit 102.97 10/06/22 Ronald V Ranada Jr 55RanadaR Employee Benefit 346.33 10/20/22 Ronald V Ranada Jr 55RanadaR Employee Benefit 617.80 11/03/22 Ronald V Ranada Jr 55RanadaR Employee Benefit 271.45 11/17/22 Ronald V Ranada Jr 55RanadaR Employee Benefit 205.92 12/01/22 Ronald V Ranada Jr 55RanadaR Employee Benefit 18.73 12/15/22 Ronald V Ranada Jr 55RanadaR Employee Benefit 146.36 12/29/22 Ronald V Ranada Jr 55RanadaR Employee Benefit 19.72 01/12/23 Ronald V Ranada Jr 55RanadaR Employee Benefit 15.30 01/26/23 Ronald V Ranada Jr 55RanadaR Employee Benefit 19.53 02/09/23 Ronald V Ranada Jr 55RanadaR Employee Benefit 58.59 02/23/23 Ronald V Ranada Jr 55RanadaR Employee Benefit 119.91 03/09/23 Ronald V Ranada Jr 55RanadaR Employee Benefit 156.19 05/04/23 Ronald V Ranada Jr 55RanadaR Employee Benefit 39.05 07/14/22 Ronald V Ranada Jr 55RanadaR Employee Gross 101.24 07/28/22 Ronald V Ranada Jr 55RanadaR Employee Gross 742.39 08/11/22 Ronald V Ranada Jr 55RanadaR Employee Gross 776.14 08/25/22 Ronald V Ranada Jr 55RanadaR Employee Gross 217.56 09/08/22 Ronald V Ranada Jr 55RanadaR Employee Gross 290.08 09/22/22 Ronald V Ranada Jr 55RanadaR Employee Gross 398.86 18 10/06/22 Ronald V Ranada Jr 55RanadaR Employee Gross 1,341.62 10/20/22 Ronald V Ranada Jr 55RanadaR Employee Gross 2,393.16 11/03/22 Ronald V Ranada Jr 55RanadaR Employee Gross 1,051.54 11/17/22 Ronald V Ranada Jr 55RanadaR Employee Gross 797.72 12/01/22 Ronald V Ranada Jr 55RanadaR Employee Gross 72.52 12/15/22 Ronald V Ranada Jr 55RanadaR Employee Gross 580.16 12/29/22 Ronald V Ranada Jr 55RanadaR Employee Gross 217.56 01/12/23 Ronald V Ranada Jr 55RanadaR Employee Gross 72.52 01/26/23 Ronald V Ranada Jr 55RanadaR Employee Gross 72.52 02/09/23 Ronald V Ranada Jr 55RanadaR Employee Gross 217.56 02/23/23 Ronald V Ranada Jr 55RanadaR Employee Gross 471.38 03/09/23 Ronald V Ranada Jr 55RanadaR Employee Gross 580.16 05/04/23 Ronald V Ranada Jr 55RanadaR Employee Gross 145.04 07/01/22 Virginia Leija 71LeijaV Employee Benefit 5.65
07/14/22 Virginia Leija 71LeijaV Employee Benefit 13.67 07/28/22 Virginia Leija 71LeijaV Employee Benefit 17.91 08/11/22 Virginia Leija 71LeijaV Employee Benefit 12.25 08/25/22 Virginia Leija 71LeijaV Employee Benefit 19.32 09/08/22 Virginia Leija 71LeijaV Employee Benefit 33.93 09/22/22 Virginia Leija 71LeijaV Employee Benefit 45.71 10/06/22 Virginia Leija 71LeijaV Employee Benefit 73.98 10/20/22 Virginia Leija 71LeijaV Employee Benefit 56.55 11/03/22 Virginia Leija 71LeijaV Employee Benefit 52.78 11/17/22 Virginia Leija 71LeijaV Employee Benefit 40.53 02/09/23 Virginia Leija 71LeijaV Employee Benefit 10.37 07/01/22 Virginia Leija 71LeijaV Employee Gross 390.00
07/14/22 Virginia Leija 71LeijaV Employee Gross 942.50
07/28/22 Virginia Leija 71LeijaV Employee Gross 1,235.00 08/11/22 Virginia Leija 71LeijaV Employee Gross 845.00
08/25/22 Virginia Leija 71LeijaV Employee Gross 1,332.50 09/08/22 Virginia Leija 71LeijaV Employee Gross 2,340.00 09/22/22 Virginia Leija 71LeijaV Employee Gross 3,152.50 10/06/22 Virginia Leija 71LeijaV Employee Gross 5,102.50 10/20/22 Virginia Leija 71LeijaV Employee Gross 3,900.00 11/03/22 Virginia Leija 71LeijaV Employee Gross 3,640.00 11/17/22 Virginia Leija 71LeijaV Employee Gross 2,795.00 02/09/23 Virginia Leija 71LeijaV Employee Gross 715.00
TR21-0100 2021 Annual Pavement Mgmt Proj TOTAL    43,293.77 Sum of Total A Column Labels
Name Employee Benefit Employee Gross Grand Total
David  Miller 63.34                                                                785.85                                849.19 Kristine Joy  De                      617.05                                   1,946.11                             2,563.16 Ronald V Rana                   2,569.04                                 10,539.73                          13,108.77 Virginia  Leija 382.65                                                        26,390.00                          26,772.65 Grand Total 3,632.08                                                    39,661.69                          43,293.77 19 Project Management
CIP Project Accounting
TR22‐0300 2022 Annual Pavement
User: iubaldo
Printed: 01/05/24 14:41:21
Fiscal Year 2023 - Periods 01 to 15
Date Range 07/01/22 to 06/30/23
Tran Date Sort Field Description Hours
TR22-0300 2022 Annual Pavement Project
Tran Date Account No Name Description Total Amt
01/12/23 Kristine Joy Delos Santos 55DelosSan Employee Gross 226.60 01/12/23 Kristine Joy Delos Santos 55DelosSan Employee Benefit 72.19 01/26/23 Kristine Joy Delos Santos 55DelosSan Employee Gross 368.23 01/26/23 Kristine Joy Delos Santos 55DelosSan Employee Benefit 117.31 02/09/23 Kristine Joy Delos Santos 55DelosSan Employee Gross 56.65 02/09/23 Kristine Joy Delos Santos 55DelosSan Employee Benefit 18.06 02/23/23 Kristine Joy Delos Santos 55DelosSan Employee Gross 736.45 02/23/23 Kristine Joy Delos Santos 55DelosSan Employee Benefit 234.64 03/09/23 Kristine Joy Delos Santos 55DelosSan Employee Gross 453.20 03/09/23 Kristine Joy Delos Santos 55DelosSan Employee Benefit 131.47 03/23/23 Kristine Joy Delos Santos 55DelosSan Employee Gross 793.10 03/23/23 Kristine Joy Delos Santos 55DelosSan Employee Benefit 252.68 04/06/23 Kristine Joy Delos Santos 55DelosSan Employee Gross 2,124.38 04/06/23 Kristine Joy Delos Santos 55DelosSan Employee Benefit 676.82 04/20/23 Kristine Joy Delos Santos 55DelosSan Employee Gross 1,048.03 04/20/23 Kristine Joy Delos Santos 55DelosSan Employee Benefit 333.89 05/04/23 Kristine Joy Delos Santos 55DelosSan Employee Gross 991.38 05/04/23 Kristine Joy Delos Santos 55DelosSan Employee Benefit 315.86 05/18/23 Kristine Joy Delos Santos 55DelosSan Employee Gross 963.05 05/18/23 Kristine Joy Delos Santos 55DelosSan Employee Benefit 306.84 06/01/23 Kristine Joy Delos Santos 55DelosSan Employee Gross 3,059.10 06/01/23 Kristine Joy Delos Santos 55DelosSan Employee Benefit 974.62 06/15/23 Kristine Joy Delos Santos 55DelosSan Employee Gross 2,350.98 06/15/23 Kristine Joy Delos Santos 55DelosSan Employee Benefit 749.02 06/29/23 Kristine Joy Delos Santos 55DelosSan Employee Gross 3,399.00 06/29/23 Kristine Joy Delos Santos 55DelosSan Employee Benefit 313.04 04/06/23 Vendon McLeod 55McleodV Employee Gross 74.62
04/06/23 Vendon McLeod 55McleodV Employee Benefit 32.21 06/01/23 Vendon McLeod 55McleodV Employee Gross 242.52
06/01/23 Vendon McLeod 55McleodV Employee Benefit 101.83 06/29/23 Vendon McLeod 55McleodV Employee Gross 410.41
06/29/23 Vendon McLeod 55McleodV Employee Benefit 37.80 05/18/23 Ronald V Ranada Jr 55RanadaR Employee Gross 72.52 05/18/23 Ronald V Ranada Jr 55RanadaR Employee Benefit 19.07 06/01/23 Ronald V Ranada Jr 55RanadaR Employee Gross 725.20 06/01/23 Ronald V Ranada Jr 55RanadaR Employee Benefit 193.69 06/15/23 Ronald V Ranada Jr 55RanadaR Employee Gross 543.90 20 06/15/23 Ronald V Ranada Jr 55RanadaR Employee Benefit 145.29 06/29/23 Ronald V Ranada Jr 55RanadaR Employee Gross 1,958.04 06/29/23 Ronald V Ranada Jr 55RanadaR Employee Benefit 177.40 TR22-0300 2022 Annual Pavement Project TOTAL 25,801.09
Sum of Total Amt Column Labels
Name Employee Be Employee Gross Grand Total
Kristine Joy  Delos Santos 4,496.44                                   16,570.15                           21,066.59 Ronald V Ranada Jr 535.45                                        3,299.66                             3,835.11 Vendon  McLeod 171.84                                            727.55                                899.39 Grand Total 5,203.73                                  20,597.36                           25,801.09 21 22
23 User:

Printed: 12/22/2022 - 9:15AM
jcruz
Summary Trial Balance
General Ledger
Period: 01 to 15, 2022
Account Number Description Budget Amount Beginning Balance Debit This Period Credit This Period Ending Balance Fund 100 100 GENERAL FUND

REVENUE
Dept 50 PUBLIC WORKS
100-50-520-35170 Developer Contribution In Lieu 0.00 0.00 0.00 0.00 0.00 100-50-520-36330 Insurance Reimbursements 30,000.00 0.00 0.00 3,974.00 -3,974.00 100-50-520-37260 Transfer In from Gas Tax 300,000.00 0.00 0.00 300,000.00 -300,000.00 100-50-520-37270 Transfer In from Measure A 0.00 0.00 0.00 0.00 0.00 100-50 REVENUE Totals: 330,000.00 0.00 0.00 303,974.00 -303,974.00 REVENUE Totals: 330,000.00 0.00 0.00 303,974.00 -303,974.00

EXPENSE
Dept 50 PUBLIC WORKS
100-50-520-41110 Wages - Full time 212,965.00 0.00 203,818.63 0.00 203,818.63 100-50-520-41120 Wages - Part Time 0.00 0.00 0.00 0.00 0.00 100-50-520-41140 Wages - Overtime 3,327.00 0.00 2,040.60 0.00 2,040.60 100-50-520-41210 Health Insurance 19,168.00 0.00 19,100.02 0.00 19,100.02 100-50-520-41230 Health-In-Lieu 7,200.00 0.00 7,200.00 0.00 7,200.00 100-50-520-41240 Cafeteria Plan Section 125 9,580.00 0.00 9,579.60 0.00 9,579.60 100-50-520-41250 PERS Retirement 41,289.00 0.00 41,085.20 0.00 41,085.20 100-50-520-41260 Social Security & Medicare 3,285.00 0.00 3,230.72 0.00 3,230.72 100-50-520-41270 Worker Comp Insurance 10,602.00 0.00 10,601.24 0.00 10,601.24 100-50-520-41290 Benefits - Other 807.00 0.00 781.23 0.00 781.23 100-50-520-42150 Info Tech Support Services 3,050.00 0.00 1,402.32 0.00 1,402.32 100-50-520-42190 Misc Contractual Services 10,200.00 0.00 8,162.92 186.35 7,976.57 100-50-520-42310 General Repairs & Maint 135,000.00 0.00 108,155.25 0.00 108,155.25 100-50-520-42315 Reimbursable Repairs 30,000.00 0.00 17,176.00 0.00 17,176.00 100-50-520-42425 Membership Dues & Subscription 5,000.00 0.00 2,307.51 0.00 2,307.51 100-50-520-42430 Conferences - Training 6,000.00 0.00 3,139.09 0.00 3,139.09 GL-Summary Trial Balance (12/22/2022 - 9:15 AM) Page 1
24 Account Number Description Budget Amount Beginning Balance Debit This Period Credit This Period Ending Balance 100-50-520-42484 ISF - Fleet 133,600.00 0.00 133,600.00 0.00 133,600.00 100-50-520-42485 ISF - Info Tech 3,600.00 0.00 3,600.00 0.00 3,600.00 100-50-520-43110 Office Supplies 1,000.00 0.00 1,144.73 0.00 1,144.73 100-50-520-43115 Operating Supplies 100,000.00 0.00 91,963.63 164.75 91,798.88 100-50-520-43210 Utilities - Gas & Elec 114,992.00 0.00 106,744.50 0.00 106,744.50 100-50-520-43220 Util-PhonesPgrsInternetCable 1,462.00 0.00 1,351.49 0.00 1,351.49 100-50 EXPENSE Totals: 852,127.00 0.00 776,184.68 351.10 775,833.58 EXPENSE Totals: 852,127.00 0.00 776,184.68 351.10 775,833.58 Fund 100 Totals: -522,127.00 0.00 776,184.68 304,325.10 471,859.58 Report Totals: -522,127.00 0.00 776,184.68 304,325.10 471,859.58 GL-Summary Trial Balance (12/22/2022 - 9:15 AM) Page 2
25 2020-21 Additional Direct 2021-22 Additional Direct 2022-23 Additional Direct Project Cost - Annual Pavement Project Cost - TR19-0400, Project Cost - TR21-0100, 2007-08 2008-09 2009-10 2020-21 Management Project (TR20-0100) 2021-22 TR20-0100, TR21-0100 2022-23 TR22-0300, TR24-0400 GROSS GENERAL FUND EXPENSES - 100-50-520
41110 FT Salaries 166,643.10 203,818.63 197,873.53
41120 PT Salaries - - -
41140 Overtime 1,524.21 2,040.60 2,256.43
41210 Health Insurance 18,511.12 19,100.02 17,661.66
41220 Dental Ins -
41230 Health In-lieu 7,350.00 7,200.00 6,412.50
41240 Cafeteria Plan 8,847.44 9,579.60 8,945.04
41250 PERS 36,081.77 41,085.20 40,787.53
41260 Social Security 2,668.19 3,230.72 3,114.32
41270 Worker's Comp 13,689.55 10,601.24 8,200.28
41290 Benefits - Other 711.59 781.23 845.10
total salaries 237,132.63 231,844.29 184,519.29 245,197.16 77,029.85 246,863.09 41,003.86 260,389.01 60,259.05 total benefits 94,217.81 92,924.43 78,075.68 111,645.79 23,786.13 99,174.76 7,596.75 94,802.24 8,835.81 42130 Engineering Contract Services 11,863.80 - -
42150 Information Technology Services - 2,104.00 1,791.84 1,201.30 1,402.32 701.82 42160 Other Professional Services 8,815.12 9,495.15 19,841.16 - - - 42180 Temp Agency Services - 9,125.81 - - -
42190 Misc. Contractual Services 2,779.05 3,863.36 9,231.06 10,813.81 7,976.57 5,771.71 42310 General Repairs and Maintenance 80,148.21 76,939.39 25,588.35 77,319.94 108,155.25 107,870.39 Street Sweeping - citywide cleaning only 40,343.36 63,142.49 57,946.68 - - 42315 Reimbursable Repairs 27,343.89 17,176.00 7,000.00 42425 Membership Dues 584.68 1,295.00 889.75 2,063.48 2,307.51 1,972.30 42430 Training 4,238.70 3,998.67 1,810.47 833.10 3,139.09 3,122.93 42440 Equipment Rental 1,107.48 3,820.47 1,361.43 - - - 42484 ISF: Fleet 92,900.00 133,600.00 67,580.00
42485 ISF: IT 3,100.00 3,600.00 19,909.00
ISF: Building Maintenance - - -
42490 Other Services 79.67 163.81 75.99 - - -
43110 Office Supplies 258.10 158.71 308.16 405.43 1,144.73 665.68 43115 Operating Supplies 95,727.85 149,380.83 71,659.95 37,990.35 91,798.88 119,685.10 43125 Small Tools & Equipment 3,374.71 679.61 7,742.38 - - 43190 Other Supplies 4,028.08 3,732.47 1,091.79 - -
43210 Electricity 99,704.86 102,124.48 105,216.70 95,025.89 106,744.50 100,640.88 43220 Telephone 2,302.57 3,903.40 1,734.65 1,527.32 1,351.49 1,435.99 46120 Major Equipment 30,649.47 - - - - -
47110 Support Services (Finance, HR, etc.) 86,600.00 98,780.00 69,200.00 - - - 48110 Fleet 38,100.00 33,940.00 30,900.00 - - -
48110 Public Works Administration 24,750.00 133,680.00 82,240.65 - - - 48110 Liability Insurance - streets 15,340.00 11,500.00 7,200.00 - - - 48120 Retiree Health 24,200.00 9,600.00 26,800.00 - - - 48140 Transfers to Other Funds 8,100.00 8,000.00 - - - - Subtotal 902,582.35 1,066,060.17 785,225.98 707,367.46 824,434.19 791,547.05

EXPENSE EXCLUSIONS
One-Time Expenses: Capital Purchase (30,649.47) - - - - One-time Expenses: Street Sweeping (40,343.36) (63,142.49) (57,946.68) - - Reimbursable Repairs (27,343.89) (17,176.00) (7,000.00) Retiree Health Insurance (24,200.00) (9,600.00) (26,800.00) - - Support Services (Finance, HR) (86,600.00) (98,780.00) (69,200.00) - - Employee home purchase (8,100.00) (8,000.00) - - -
ELIGIBLE STREET MAINTENANCE EXPENSES 709,007.00 807,364.00 655,995.00 680,023.57 807,258.19 784,547.05 LESS: REVENUES RECEIVED FROM OTHER SOURCES
Miscellaneous Revenues 13,629.46 3,037.94 3,654.34 11,455.53 3,974.00 11,221.88 Prop 1B 400,000.00
Gas tax 214,000.00 214,000.00 214,000.00 300,000.00 300,000.00 300,000.00

NET GENERAL FUND EXPENDITUIRES ON ELIGIBLE STREET MAINTENANCE EXPENSES 481,377.54 190,326.06 438,340.66 368,568.04 503,284.19 473,325.17 370,015 MOE Not Met MOE Met MOE Met
(1,446.71) - -
3-Year Average 3-Year Average 3-Year Average
416,844.92 425,044.89 448,392.47
MOE Met MOE Met MOE Met
- - -
Measure T MOE Certification
City of American Canyon
26 NVTA-TA Approved MOE
MOE Amount Certified for FY 2022-23
MOE Amount Certified for FY 2021-22
MOE Amount Certified for FY 2020-21
3-Year Average MOE Amount FY 21-23
Measure T funds Received in FY 2022-23
Measure T funds Expended in FY 2022-23
Measure T funds Balance in Account
$ 368,568.04
$ 448,392.47
$ 1,985,005.91
$ 1,051,704.23
$ 4,095,190.10
Measure T Maintenance of Effort (MOE) Certification for Fiscal Year 2022-2023
City of American Canyon
$ 473,325.17
$ 370,015.00
$ 503,284.19
27 (1) (2) (1) (2) (1) (2)
2007/2008 Proration MOE 2008/2009 Proration MOE 2009/2010 Proration MOE GENERAL FUND EXPENSES - (GL 101-50-520-xxxxx)
41110-40 FT, PT, OT Salaries 415,598 57% 237,133 352,598 61% 213,335 210,413 84% 175,743 41210 Health Insurance 61,963 57% 35,355 60,732 61% 36,745 37,266 84% 31,126 41220 Dental Ins 173 57% 99 - 61% - 84% -
41230 Health In-lieu 57% - - 61% - 84% -
41240 Cafeteria Plan 17,733 57% 10,118 16,384 61% 9,913 9,792 84% 8,179 41250 PERS 51,683 57% 29,490 45,666 61% 27,630 26,735 84% 22,330 41260 Social Security 9,585 57% 5,469 6,358 61% 3,847 3,683 84% 3,076 41270 Worker's Comp 22,361 57% 12,759 21,454 61% 12,980 13,428 84% 11,216 41290 Benefits - Other 255 57% 146 114 61% 69 219 84% 183 42130 Engineering Contract Services 69,310 0% - 54,319 0% - 19,158 0% - 42150 Information Technology Services - 57% - 2,104 61% 1,273 1,792 84% 1,497 42160 Other Professional Services 8,815 57% 5,030 9,495 61% 5,745 19,841 84% 16,572 42180 Temp Agency Services - 57% - 9,126 61% 5,521 - 84% - 42190 Misc. Contractual Services 2,779 57% 1,586 3,863 61% 2,337 9,231 84% 7,710 42310 General Repairs and Maintenance 80,148 100% 80,148 76,939 100% 76,939 25,588 100% 25,588 42310 Street Sweeping 40,343 0% - 63,142 0% - 57,947 0% - 42425 Membership Dues 585 57% 334 1,295 61% 784 890 84% 743 42430 Training 4,239 57% 2,419 3,999 61% 2,419 1,810 84% 1,512 42440 Equipment Rental 1,107 57% 632 3,820 61% 2,312 1,361 84% 1,137 42490 Other Services 80 57% 45 164 61% 99 76 84% 63
43110 Office Supplies 258 57% 147 159 61% 96 308 84% 257 43115 Operating Supplies 95,728 100% 95,728 159,710 100% 159,710 71,660 100% 71,660 43125 Small Tools & Equipment 3,375 57% 1,926 680 61% 411 7,742 84% 6,467 43190 Other Supplies 4,028 57% 2,298 3,732 61% 2,258 1,092 84% 912 43210 Electricity 99,705 57% 56,890 102,124 61% 61,789 105,217 84% 87,880 43220 Telephone 2,303 57% 1,314 3,903 61% 2,362 1,735 84% 1,449 46120 Major Equipment 30,649 57% 17,488 - 61% - - 84% - 47110 Support Services (Finance, HR, etc.) 86,600 57% 49,412 98,780 61% 59,766 69,200 84% 57,798 48110 Fleet 38,100 57% 21,739 33,940 61% 20,535 30,900 84% 25,809 48110 Public Works Administration 24,750 57% 14,122 133,680 61% 80,882 82,241 84% 68,690 48110 Liability Insurance - streets 15,340 57% 8,753 11,500 61% 6,958 7,200 84% 6,014 48120 Retiree Health 24,200 57% 13,808 9,600 61% 5,808 26,800 84% 22,384 48140 Transfers to Other Funds 8,100 57% 4,622 8,000 61% 4,840 - 84% - Subtotal Expenses 1,219,892 709,007 1,297,381 807,364 843,325 655,995 NON-GENERAL FUND REVENUE FY 2007/8 FY 2008/9 FY 2009/10 Miscellaneous Revenues 13,629 3,038 3,654
Prop 1B - 400,000 -
Gas tax 214,000 214,000 214,000
Subtotal Revenue 227,629 617,038 217,654
General Fund MOE (GF Expenses Less Non-GF Revenue) 481,377 190,326 438,340 Average General Fund MOE $ 370,015
28 RESOLUTION NO. 2024-

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF AMERICAN CANYON APPROVING CERTIFICATION OF 6.67% EQUIVALENT FUND EXPENDITURES UNDER THE MEASURE “T” PROGRAM (THE NAPA

COUNTYWIDE ROAD MAINTENANCE ACT)
WHEREAS, on November 6, 2012 the voters of Napa County passed the Napa Countywide Road Maintenance Act, also known as Measure T, which imposes a half cent transaction and use (sales) tax to provide supplemental funding for road maintenance as detailed in the Measure T Expenditure Plan; and WHEREAS, the Napa Valley Transportation Authority – Tax Authority (NVTA-TA) is the designated agency that administers and oversees Measure T revenues; and
WHEREAS, the City of American Canyon is an eligible recipient of Measure T funds; and WHEREAS, the tax proceeds will be used to pay for the projects outlined in the Measure T Expenditure Plan allocated to the County of Napa and the cities and towns within Napa County ("Local Agencies") as set forth in Measure T; and
WHEREAS, under the Measure T Expenditure Plan, Measure T funds are provided to the Local Agencies to be used for streets and roads projects as defined in the Measure; and WHEREAS, the City of American Canyon has entered into a Master Agreement, as amended, with NVTATA that outlines procedures for Measure T expenditures, and WHEREAS, the City of American Canyon shall determine and certify to NVTA-TA the annual spending towards qualifying Class I Bicycle Facilities, consistent with the criteria set forth in Section 3 B of Ordinance No. 1201-01, including a memorandum detailing the supporting financial documentation and the methodology utilized to calculate the total spending and funding source; and WHEREAS, the amount set forth in Exhibit “A” will be deemed the “Equivalent Fund Spending for Class I Bicycle Facilities” of the City of American Canyon, which must be maintained annually throughout the term of the Measure from qualifying local general funds, formula specific funds, and Class I facility contributions by private development; and
WHEREAS, by January 31st each calendar year, the City of American Canyon must certify to, and provide NVTA-TA a copy of supporting documentation as well as a Resolution approved by the governing body of the City of American Canyon, including backup documentation, demonstrating that the Equivalent Fund Class I Bicycle Facilities spending occurred during the prior fiscal year; and WHEREAS, Measure T project(s) will comply with the requirements under the California Environmental Quality Act (California Code Sections 21000 et seq.; as implemented through California Regulations Title 14, Chapter 3, Sections 15000 et seq.)
29 2
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of American Canyon does resolve as follows:

1. The City Council of the City of American Canyon hereby certifies the Equivalent Fund Class I Bicycle Facilities expenditures for Fiscal Year 2022-23 in Exhibit A.

2. The Resolution is hereby adopted and becomes effective and in full force immediately upon adoption.

PASSED, APPROVED and ADOPTED at a regularly scheduled meeting of the City Council of the City of American Canyon held on the 16th day of January, by the following vote:

AYES:

NOES:

ABSTAIN:

EXHIBIT A
List of Equivalent Fund Expenditures for Class I Trails Fiscal Year Project Funding Source Amount
2022-23 Devlin Road Class I Local Funds (Development: NLP Phase II) $119,340.00 2022-23 Newell Drive Class I Local Funds (Development: Canyon Estates) $91,050.00 2022-23 Rio Del Mar Class I Local Funds (Development: Watson Ranch) $252,000.00 2022-23 Rolling Hills Drive Class I Local Funds (Development: Watson Ranch) $171,000.00 2022-23 Mallen Way Class I Local Funds (Development: Watson Ranch) $210,000.00 2022-23 Artisan Subdivision Class I Local Funds (Development: Watson Ranch) $39,000.00 Total Contributions $882,390.00
31 CITY COUNCIL AGENDA
JANUARY 16, 2024

STAFF REPORT

CONSENT
ITEM NUMBER: 5.

TITLE
Cooperative Agreement for the American Canyon State Route 29 Corridor Improvement Project

RECOMMENDATION
Adopt a resolu.on authorizing the City Manager to execute Coopera.ve Agreement 04-2957 with Caltrans and Napa Valley Transporta.on Authority for Project Approval and Environmental Document phase services associated with the American Canyon State Route 29 Corridor Improvement Project.

CONTACT
Erica Ahmann Smithies, P.E., Public Works Director

BACKGROUND & ANALYSIS
American Canyon State Route 29 Corridor Improvement Project The Napa Valley Transporta.on Authority (NVTA), in coopera.on with the California Department of Transporta.on (Caltrans) and the City of American Canyon (City), proposes roadway improvements along State Route 29 (SR 29) within much of the City limits to address various opera.onal and safety needs along the SR 29 corridor.

In May 2020, NVTA completed the SR 29 Comprehensive Mul.modal Corridor Plan. Subsequently, a Project Study Report on the SR 29 corridor in American Canyon was ini.ated, proposing key enhancements such as improved signal infrastructure and roundabouts. This revision aligned the corridor planning process with the funding requirements outlined in SB 1, mee.ng the Comprehensive Mul.modal Corridor Plan (CMCP) guidelines established by the California Transportation Commission in December 2018.

Following comple.on of the CMCP update, NVTA moved forward with work to complete a Project Study Report – Project Development Support (PSR-PSD), also referred to as the project ini.a.on document (PID), focusing on a segment of the SR-29 corridor in American Canyon between Napa Junc.on Road and American Canyon Road. The PID adhered to Caltrans’ Project Development Procedures Manual, evalua.ng high-level project alterna.ves, defining scope, cost, and schedule for each option.

Next Steps
32 In February 2023, Caltrans and NVTA finalized the PID, iden.fying three alterna.ves, two build and one no-build. The build alternatives propose the following improvements:

Alterna.ve 1: Enhancements to exis.ng intersec.on signal infrastructure, featuring transit signal priority for queue jump lanes to optimize traffic flow and operational efficiency.

Alterna.ve 2: Replace five of six signalized intersec.ons along the corridor with roundabouts, increasing overall circula.on whilst providing traffic calming and enhanced intersec.on safety for all users.

Both build alterna.ves will construct enhanced transit stops, relocate exis.ng overhead u.li.es, and replace/construct new bicycle and pedestrian facilities.

The next stage of project development is the Project Approval and Environmental Document (PA&ED) phase. This phase of work will further refine the build alterna.ves iden.fied during the PID, select a preferred build alterna.ve, and produce two key project deliverables - a Project Report securing Caltrans approval and an environmental document ensuring compliance with the California Environmental Quality Act (CEQA) and the National Environmental Policy Act (NEPA).

The PA&ED phase requires extensive preliminary engineering and public engagement to obtain project approval and environmental clearance. NVTA released a request for proposals for professional consultant engineering services for the PA&ED phase on October 23, 2023. An evalua.on commiIee, comprising representa.ves from NVTA, City of American Canyon, County of Napa, and Caltrans, was established to assess proposals.

On December 1, 2023 NVTA received three proposal in response to the solicita.on, followed by interviews with the two most qualified proposers on December 4, 2023. The evalua.on commiIee ul.mately found the team proposed by Kimley-Horn and Associates the most qualified, based on technical exper.se, relevant project experience and understanding of the work to be done. NVTA will be recommending award of contract with Kimley-Horn & Associates to the NVTA Board on January 17, 2024.

The forthcoming Project Approval and Environmental Document (PA&ED) phase will refine the proposed alternatives, selecting a preferred option and producing vital project deliverables.

Cooperative Agreement
The project exists in Caltrans right of way; therefore it is necessary to enter into a coopera.ve agreement with Caltrans to define roles and responsibili.es around project delivery, funding, and oversite. NVTA will be taking lead on the project with Caltrans in regard to establishing the scope of work and securing financial resources to fund the work. The City's responsibili.es, as outlined in the agreement, are primarily focused on project coordina.on with NVTA, community outreach, public mee.ngs, and circula.on of environmental documenta.on. The coopera.ve agreement is s.ll in a draN form and may be subject to addi.onal minor modifica.ons that will be reviewed and mutually 33 agreed upon by each agency prior to final signature.

In April 2023, both NVTA and the City submiIed leIers to Caltrans proposing the use of approximately $1 million in funding previously paid by American Canyon to Caltrans pursuant to a 2006 SeIlement Agreement to support the PA&ED phase of the project. Caltrans concurred with the proposed requests and acknowledged this project will fulfill the SeIlement Agreement and Release commitment by priori.zing Class I bike facili.es along State Route 29 and providing pedestrian crossing improvements at major intersec.ons. In addi.on to the seIlement funding, NVTA secured $750,000 in Regional Measure 3 funding and $3 million in One Bay Areas Grant Cycle 3 funding for a total budget of $4,705,000. Planned project expenditures for the PA&ED phase are not expected to exceed $4,683,632.

Funding for this phase of the project is comprised of the following:

Source Party Fund Type Total
State Caltrans Settlement $955,000
Local NVTA Regional Measure 3 (RM3) $750,000
Local-Federal NVTA One Bay Area Grant Cycle 3 (OBAG3) $3,000,000 Staff recommends City Council authorize the City Manager to execute Coopera.ve Agreement 04- 2957 with Caltrans and Napa Valley Transporta.on Authority for PA&ED phase services associated with the American Canyon State Route 29 Corridor Improvement Project, ensuring con.nued progress on this critical corridor project.

COUNCIL PRIORITY PROGRAMS AND PROJECTS
Transporta.on: "Improve the transporta.on network within the City to alleviate conges.on and enhance the quality of life for the community."

FISCAL IMPACT
There is no direct fiscal impact to the City. However, Caltrans will be commiRng $955,000 of seIlement funding resul.ng from 2006 li.ga.on between the City and Caltrans towards the completion of the PA&ED phase services.

ENVIRONMENTAL REVIEW
None
ATTACHMENTS:

1. Resolution - Caltrans and Napa Valley Transportation Authority

2. Draft NVTA/City/Caltrans Cooperative Agreement SR29 PAED

3. 2006 Settlement Agreement and 2023 City, NVTA and Caltrans Correspondence.pdf 34 RESOLUTION NO. 2024-
A RESOLUTION AUTHORIZING THE CITY MANAGER TO EXECUTE COOPERATIVE AGREEMENT 04-2957

WITH CALTRANS AND NAPA VALLEY TRANSPORTATION AUTHORITY FOR PROJECT APPROVAL AND

ENVIRONMENTAL DOCUMENT PHASE SERVICES ASSOCIATED WITH THE AMERICAN CANYON STATE ROUTE 29 CORRIDOR IMPROVEMENT PROJECT
WHEREAS, the Napa Valley Transportation Authority (NVTA), in cooperation with the California Department of Transportation (Caltrans) and the City of American Canyon (City), proposes roadway improvements along State Route 29 (SR 29) within much of the City limits to address various operational and safety needs along the SR 29 corridor; and
WHEREAS, the proposed SR29 corridor improvements will include transit, bicycle, pedestrian infrastructure and beautification; and
WHEREAS, in 2023 Caltrans and NVTA completed a project initiation document (PID) focusing on a segment of the SR 29 corridor in American Canyon between Napa Junction Road and American Canyon Road; and
WHEREAS, the next stage of project development is the Project Approval and Environmental Document (PA&ED) phase. This phase of work will further refine the build alternatives identified during the PID, select a preferred build alternative, and produce two key project deliverables - a Project Report securing Caltrans approval and an environmental document ensuring compliance with the California Environmental Quality Act (CEQA) and the National Environmental Policy Act (NEPA); and WHEREAS, when a project exists in Caltrans right of way, a cooperative agreement is necessary between all partes to define roles and responsibilities around project delivery, funding and oversight; and WHEREAS, NVTA will be taking lead on the project with Caltrans in regard to establishing the scope of work and securing financial resources to fund the work while the City's responsibilities, as outlined in the agreement, will be primarily focused on project coordination with NVTA, community outreach, public meetings, and circulation of environmental documentation; and WHEREAS, in Cooperative Agreement 04-2957 Caltrans will commit $955,000 of settlement funding previously paid by the City to Caltrans pursuant to a 2006 Settlement Agreement and Release to support the PA&ED phase of the project; and
WHEREAS, NVTA has secured and committed an additional $750,000 in Regional Measure 3 funding and $3,000,000 in One Bay Areas Grant Cycle 3 funding for a total budget of $4,705,000; and WHEREAS, planned expenditures for the PA&ED phase of the project are not anticipated to exceed $4,683,632.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of American Canyon hereby authorizes the City Manager to execute Cooperative Agreement 04-2957 with Caltrans and Napa Valley 35 2
Transportation Authority for Project Approval and Environmental Document phase services associated with the American Canyon State Route 29 Corridor Improvement Project.

PASSED, APPROVED and ADOPTED at a regularly scheduled meeting of the City Council of the City of American Canyon held on the 16th day of January, by the following vote:

AYES:

NOES:

ABSTAIN:

ABSENT:
____________________________
Leon Garcia, Mayor
ATTEST: APPROVE AS TO FORM:
____________________________ _____________________________ Taresa Geilfuss, CMC, City Clerk William D. Ross, City Attorney 36 Agreement 04-2957
Project No. 0419000297
EA 4Q010
04-NAP-29-0.6/2.1
Project Development Agreement 2017-02-17 (Created September 25, 2023) i

COOPERATIVE AGREEMENT COVER SHEET
Work Description
SR 29 AMERICAN CANYON MULTI-MODAL CORRIDOR IMPROVEMENT PROJECT WOULD MAKE ROADWAY IMPROVEMENTS ALONG STATE ROUTE 29 (SR 29) BETWEEN POST MILES 0.69 AND 2.05. PROPOSED IMPROVEMENTS INCLUDE TRANSIT, BICYCLE AND PEDESTRIAN INFRASTRUCTURE. THREE ALTERNATIVES WERE

DEVELOPED DURING THE PROJECT STUDY REPORT-PROJECT DEVELOPMENT SUPPORT PHASE, 2 BUILD AND 1 NO BUILD. BUILD ALTERNATIVE 1 EVALUATES

IMPROVEMENT OF EXISTING SIGNALIZED INTERSECITONS INCLUDING SIGNAL

OPERATIONAL IMPROVEMENTS, ADAPTIVE TECHNOLOGY, AND QUEUE JUMPS WITH AUXILARY LANES. BUILD ALTERNATIVE 2 EVALUATES INTERSECTION

OPERATIONAL IMPROVEMENTS BY REPLACING EXISTING SIGNALIZED INTERSECITONS WITH ROUNDABOUTS. STREET BEAUTIFICATION, BIKE AND

PEDESTRIAN INFRASTRASTRUCTURE, AND SIGNAGE AND WAYFINDING

IMPROVEMENTS ARE PROPOSED UNDER BOTH BUILD ALTERNATIVES 37 Cover Sheet AGREEMENT 04-2957
Project No. 0419000297
Project Development Agreement 2017-02-17 (Created September 25, 2023) ii Contact Information

CALTRANS
Amani Meligy, Regional Project Manager for Napa County
111 Grand Avenue
Oakland, CA 94612
Office Phone: (510) 286-5103
Email: [email protected]

NAPA VALLEY TRANSPORTATION AUTHORITY
Danielle Schmitz, Capital Development & Planning
625 Burnell Street
Napa, CA 94559
Office Phone: (707) 259-5968
Email: [email protected]

CITY OF AMERICAN CANYON
Erica Ahmann Smithies, Public Works Director
Napa, CA 94559
Office Phone: (707) 647-4360
Email: [email protected]
38 Agreement 04-2957
Project No. 0419000297
EA 4Q010
04-NAP-29-0.6/2.1
Project Development Agreement 2017-02-17 (Created September 25, 2023) 1 of 19

COOPERATIVE AGREEMENT
This AGREEMENT, executed on and effective from _______________________________, is between the State of California, acting through its Department of Transportation, referred to as CALTRANS, and:

Napa Valley Transportation Authority, a public corporation/entity, referred to hereinafter as NVTA and
City of American Canyon, a public corporation/entity, referred to hereinafter as CITY An individual signatory agency in this AGREEMENT is referred to as a PARTY. Collectively, the signatory agencies in this AGREEMENT are referred to as PARTIES.

RECITALS

1. PARTIES are authorized to enter into a cooperative agreement for improvements to the State Highway System per the California Streets and Highways Code, Sections 114 and 130.

2. For the purpose of this AGREEMENT, SR 29 American Canyon Multi-modal Corridor Improvement Project would make roadway improvements along State Route 29 (SR 29) between Post miles 0.69 and 2.05. Proposed improvements include transit, bicycle and pedestrian infrastructure. Three alternatives were developed during the Project Study ReportProject Development Support phase, 2 build and 1 no build. Build alternative 1 evaluates improvement of existing signalized intersections including signal operational improvements, adaptive technology, and queue jumps with auxiliary lanes. Build alternative 2 evaluates intersection operational improvements by replacing existing signalized intersections with roundabouts. Street beautification, bike and pedestrian infrastructure, and signage and wayfinding improvements are proposed under both build alternatives will be referred to hereinafter as PROJECT. The PROJECT scope of work is defined in the project initiation and approval documents (e.g. Project Study Report, Design Engineering Evaluation Report, or Project Report).

3. All obligations and responsibilities assigned in this AGREEMENT to complete the following PROJECT COMPONENT will be referred to hereinafter as WORK:
• PROJECT APPROVAL AND ENVIRONMENTAL DOCUMENT (PA&ED)
Each PROJECT COMPONENT is defined in the CALTRANS Workplan Standards Guide as a distinct group of activities/products in the project planning and development process. 39 Agreement 04-2957
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4. The term AGREEMENT, as used herein, includes this document and any attachments, exhibits, and amendments.

This AGREEMENT is separate from and does not modify or replace any other cooperative agreement or memorandum of understanding between the PARTIES regarding the PROJECT.

PARTIES intend this AGREEMENT to be their final expression that supersedes any oral understanding or writings pertaining to the WORK. The requirements of this AGREEMENT will preside over any conflicting requirements in any documents that are made an express part of this AGREEMENT.

If any provisions in this AGREEMENT are found by a court of competent jurisdiction to be, or are in fact, illegal, inoperative, or unenforceable, those provisions do not render any or all other AGREEMENT provisions invalid, inoperative, or unenforceable, and those provisions will be automatically severed from this AGREEMENT.

Except as otherwise provided in the AGREEMENT, PARTIES will execute a written amendment if there are any changes to the terms of this AGREEMENT.

PARTIES agree to sign a CLOSURE STATEMENT to terminate this AGREEMENT.

However, all indemnification, document retention, audit, claims, environmental commitment, legal challenge, maintenance and ownership articles will remain in effect until terminated or modified in writing by mutual agreement or expire by the statute of limitations.

5. No PROJECT deliverables have been completed prior to this AGREEMENT.

6. In this AGREEMENT capitalized words represent defined terms, initialisms, or acronyms.

7. PARTIES hereby set forth the terms, covenants, and conditions of this AGREEMENT.

RESPONSIBILITIES
Sponsorship

8. A SPONSOR is responsible for establishing the scope of the PROJECT and securing the financial resources to fund the WORK. A SPONSOR is responsible for securing additional funds when necessary or implementing PROJECT changes to ensure the WORK can be completed with the funds committed in this AGREEMENT.

PROJECT changes, as described in the CALTRANS Project Development Procedures Manual, will be approved by CALTRANS as the owner/operator of the State Highway System.

9. NVTA is the SPONSOR for the WORK in this AGREEMENT.
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10. The IMPLEMENTING AGENCY is the PARTY responsible for managing the scope, cost, schedule, and quality of the work activities and products of a PROJECT COMPONENT. • NVTA is the Project Approval and Environmental Document (PA&ED) IMPLEMENTING AGENCY.

PA&ED includes the completion of the Final Environmental Document and the Project Report (documenting the project alternative selection).

11. NVTA will provide a Quality Management Plan (QMP) for the WORK in every PROJECT COMPONENT that they are implementing. The QMP describes the IMPLEMENTING AGENCY’s quality policy and how it will be used. The QMP will include a process for resolving disputes between the PARTIES at the team level. The QMP is subject to CALTRANS review and concurrence.

12. Any PARTY responsible for completing WORK will make its personnel and consultants that prepare WORK available to help resolve WORK-related problems and changes for the entire duration of the PROJECT including PROJECT work that may occur under separate agreements.

Funding

13. Funding sources, PARTIES committing funds, funding amounts, and invoicing/payment details are documented in the Funding Summary section of this AGREEMENT.

PARTIES will amend this AGREEMENT by updating and replacing the Funding Summary, in its entirety, each time the funding details change. Funding Summary replacements will be executed by a legally authorized representative of the respective PARTIES. The most current fully executed Funding Summary supersedes any previous Funding Summary created for this AGREEMENT.

14. PARTIES will not be reimbursed for costs beyond the funding commitments in this AGREEMENT.

15. Unless otherwise documented in the Funding Summary, overall liability for project costs within a PROJECT COMPONENT, subject to program limitations, will be in proportion to the amount contributed to that PROJECT COMPONENT by each fund type.

16. Unless otherwise documented in the Funding Summary, any savings recognized within a PROJECT COMPONENT will be credited or reimbursed, when allowed by policy or law, in proportion to the amount contributed to that PROJECT COMPONENT by each fund type. 41 Agreement 04-2957
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17. WORK costs, except those that are specifically excluded in this AGREEMENT, are to be paid from the funds obligated in the Funding Summary. Costs that are specifically excluded from the funds obligated in this AGREEMENT are to be paid by the PARTY incurring the costs from funds that are independent of this AGREEMENT.

CALTRANS’ Quality Management

18. CALTRANS, as the owner/operator of the State Highway System (SHS), will perform quality management work including Quality Management Assessment (QMA) and owner/operator approvals for the portions of WORK within the existing and proposed SHS right-of-way.

19. CALTRANS’ Quality Management Assessment (QMA) efforts are to ensure that NVTA's quality assurance results in WORK that is in accordance with the applicable standards and the PROJECT’s quality management plan (QMP). QMA does not include any efforts necessary to develop or deliver WORK or any validation by verifying or rechecking WORK.

When CALTRANS performs QMA, it does so for its own benefit. No one can assign liability to CALTRANS due to its QMA.

20. CALTRANS, as the owner/operator of the State Highway System, will approve WORK products in accordance with CALTRANS policies and guidance and as indicated in this AGREEMENT.

21. Per National Environmental Policy Act (NEPA) assignment and California Environmental Quality Act (CEQA) statutes, CALTRANS will perform environmental document quality control and NEPA assignment review procedures for environmental documentation.

CALTRANS quality control and quality assurance procedures for all environmental documents are described in Chapter 38 of the Standard Environmental Reference (SER), available at https://dot.ca.gov/programs/environmental-analysis/standard-environmental-referenceser/volume-1-guidance-for-compliance/ch-38-nepa-assignment. This also includes the independent judgment analysis and determination under CEQA that the environmental documentation meets CEQA requirements.

22. NVTA will provide WORK-related products and supporting documentation upon CALTRANS’ request for the purpose of CALTRANS’ quality management work. 42 Agreement 04-2957
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23. NVTA and CITY, including any employee, agent, consultant or sub-consultant retained by the NVTA and CITY, shall implement uniform document control policies necessary to retain all records and electronically stored information associated with the WORK, including but not limited to those records identified in California Public Resources Code, Section 21167.6, and including email and attachments, in a manner consistent with the CALTRANS Uniform Filing System and the “Final Caltrans Environmental Records Retention Policy”, available at https://dot.ca.gov/-/media/dot-media/programs/environmental-analysis/documents/ser/neparecordretention-policy-final-a11y.pdf. These records, along with an index of the records, shall be provided to CALTRANS within 60 days of CALTRANS’ written request.

CEQA/NEPA Lead Agency

24. NVTA is the CEQA Lead Agency for the PROJECT.

25. CALTRANS is a CEQA Responsible Agency for the PROJECT.

26. CALTRANS is the NEPA Lead Agency for the PROJECT.

Environmental Permits, Approvals and Agreements

27. PARTIES will comply with the commitments and conditions set forth in the environmental documentation, environmental permits, approvals, and applicable agreements as those commitments and conditions apply to each PARTY’s responsibilities in this AGREEMENT.

28. Unless otherwise assigned in this AGREEMENT, the IMPLEMENTING AGENCY for a PROJECT COMPONENT is responsible for all PROJECT COMPONENT WORK associated with coordinating, obtaining, implementing, renewing, and amending the PROJECT permits, agreements, and approvals whether they are identified in the planned project scope of work or become necessary in the course of completing the PROJECT.

29. It is expected that the PROJECT requires the following environmental permits/approvals:

ENVIRONMENTAL PERMITS/REQUIREMENTS
404, US Army Corps Of Engineers
401, Regional Water Quality Control Board
National Pollutant Discharge Elimination System (NPDES), State Water Resources Control Board
43 Agreement 04-2957
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30. As the PA&ED IMPLEMENTING AGENCY, NVTA is responsible for all PA&ED WORK except those activities and responsibilities that are assigned to another PARTY and those activities that are excluded under this AGREEMENT.

31. CALTRANS will be responsible for completing the following PA&ED activities:

CALTRANS Work Breakdown Structure Identifier (If Applicable) AGREEMENT Funded Cost
100.10.10.xx Quality Management No
165.15.15.xx Essential Fish Habitat Consultation Yes
165.15.15.xx Section 7 Consultation Yes
165.25.25 Approval to Circulate Resolution Yes
180.10.05.45 Section 7 Consultation Yes
180.15.05 Record of Decision (NEPA) Yes

32. Any PARTY preparing environmental documentation, including studies and reports, will ensure that qualified personnel remain available to help resolve environmental issues and perform any necessary work to ensure that the PROJECT remains in environmental compliance.

33. NVTA will provide written notice of the initiation of environmental studies to the NEPA Lead Agency prior to completing any other PA&ED phase work.

California Environmental Quality Act (CEQA)

34. The CEQA Lead Agency will determine the type of CEQA documentation and will cause that documentation to be prepared in accordance with CEQA requirements.

35. Any PARTY involved in the preparation of CEQA documentation will prepare the documentation to meet CEQA requirements and follow the CEQA Lead Agency’s standards that apply to the CEQA process.
44 Agreement 04-2957
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36. CALTRANS is a CEQA Responsible Agency for the PROJECT and is responsible for review, comment, and concurrence on all environmental documentation (including, but not limited to, studies, reports, public notices, and public meeting materials, determinations, administrative drafts, and final environmental documents) at appropriate stages of development prior to approval and public availability.

37. Any PARTY preparing any portion of the CEQA documentation, including any studies and reports, will submit that portion of the documentation to the CEQA Lead Agency for review, comment, and approval at appropriate stages of development prior to public availability.

38. If the CEQA Lead Agency makes any changes to the CEQA documentation, the CEQA Lead Agency will allow CALTRANS to review, comment, and concur on those changes prior to the CEQA Lead Agency’s approval at appropriate stages of development prior to public availability.

39. If the CEQA Lead Agency makes any changes to CEQA-related public notices, then the CEQA Lead Agency will allow CALTRANS to review, comment, and concur on those changes prior to publication and circulation.

40. The CEQA Lead Agency will attend all CEQA-related public meetings.

41. If a PARTY who is not the CEQA Lead Agency holds a public meeting about the PROJECT, that PARTY must clearly state its role in the PROJECT and the identity of the CEQA Lead Agency on all meeting publications. All meeting publications must also inform the attendees that public comments collected at the meetings are not part of the CEQA public review process.

That PARTY will submit all meeting advertisements, agendas, exhibits, handouts, and materials to the CEQA Lead Agency for review, comment, and approval at least ten (10) working days prior to publication or use. If that PARTY makes any changes to the materials, it will allow the CEQA Lead Agency to review, comment on, and approve those changes at least three (3) working days prior to the public meeting date.

The CEQA Lead Agency maintains final editorial control with respect to text or graphics that could lead to public confusion over CEQA-related roles and responsibilities. 45 Agreement 04-2957
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Project Development Agreement 2017-02-17 (Created September 25, 2023) 8 of 19 National Environmental Policy Act (NEPA)

42. Pursuant to Chapter 3 of Title 23, United States Code, Sections 326 and 327, CALTRANS is the NEPA Lead Agency for the PROJECT. CALTRANS is responsible for NEPA compliance, will determine the type of NEPA documentation, and will cause that documentation to be prepared in accordance with NEPA requirements.

CALTRANS, as the NEPA Lead Agency for PROJECT, is responsible for the review, comment, and approval of all environmental documentation (including, but not limited to, studies, reports, public notices, and public meeting materials, determinations, administrative drafts, and final environmental documents) at appropriate stages of development prior to approval and public availability.

When required as NEPA Lead Agency, CALTRANS will conduct consultation and coordination and obtain, renew, or amend approvals pursuant to the Federal Endangered Species Act, and Essential Fish Habitat.

When required as NEPA Lead Agency, CALTRANS will conduct consultation and coordination approvals pursuant to Section 106 of the National Historic Preservation Act.

43. Any PARTY involved in the preparation of NEPA documentation will follow FHWA and CALTRANS standards that apply to the NEPA process including, but not limited to, the guidance provided in the FHWA Environmental Toolkit (available at http://environment.fhwa.dot.gov/index.asp) and the CALTRANS Standard Environmental Reference.

44. Any PARTY preparing any portion of the NEPA documentation (including, but not limited to, studies, reports, public notices, and public meeting materials, determinations, administrative drafts, and final environmental documents) will submit that portion of the documentation to CALTRANS for CALTRANS’ review, comment, and approval prior to public availability.

45. NVTA and CITY will prepare, publicize, and circulate all NEPA-related public notices, except Federal Register notices. NVTA will submit all notices to CALTRANS for CALTRANS’ review, comment, and approval prior to publication and circulation.

CALTRANS will work with the appropriate federal agency to publish notices in the Federal Register.

46. The NEPA Lead Agency will attend all NEPA-related public meetings.

47. NVTA and CITY will submit all NEPA-related public meeting materials to CALTRANS for CALTRANS’ review, comment, and approval at least ten (10) working days prior to the public meeting date.
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48. If a PARTY who is not the NEPA Lead Agency holds a public meeting about the PROJECT, that PARTY must clearly state its role in the PROJECT and the identity of the NEPA Lead Agency on all meeting publications. All meeting publications must also inform the attendees that public comments collected at the meetings are not part of the NEPA public review process.

That PARTY will submit all meeting advertisements, agendas, exhibits, handouts, and materials to the NEPA Lead Agency for review, comment, and approval at least ten (10) working days prior to publication or use. If that PARTY makes any changes to the materials, it will allow the NEPA Lead Agency to review, comment on, and approve those changes at least three (3) working days prior to the public meeting date.

The NEPA Lead Agency has final approval authority with respect to text or graphics that could lead to public confusion over NEPA-related roles and responsibilities.

49. NVTA and CITY will ensure that the PROJECT is included in the approved Federal Statewide Transportation Improvement Program (FSTIP) prior to the NEPA Lead Agency’s approval of the environmental document.

Schedule

50. PARTIES will manage the WORK schedule to ensure the timely use of committed funds and to ensure compliance with any environmental permits, right-of-way agreements, construction contracts, and any other commitments. PARTIES will communicate schedule risks or changes as soon as they are identified and will actively manage and mitigate schedule risks.

51. The IMPLEMENTING AGENCY for each PROJECT COMPONENT will furnish PARTIES with written monthly progress reports during the completion of the WORK. 47 Agreement 04-2957
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Standards

52. PARTIES will perform all WORK in accordance with federal and California laws, regulations, and standards; Federal Highway Administration (FHWA) standards; and CALTRANS standards. CALTRANS standards include, but are not limited to, the guidance provided in the:
• CADD Users Manual
• CALTRANS policies and directives
• Plans Preparation Manual
• Project Development Procedures Manual (PDPM)
• Workplan Standards Guide
• Standard Environmental Reference
• Highway Design Manual
• Encroachment Permits Manual
Noncompliant Work

53. CALTRANS retains the right to reject noncompliant WORK. NVTA agrees to suspend WORK upon request by CALTRANS for the purpose of protecting public safety, preserving property rights, and ensuring that all WORK is in the best interest of the State Highway System.

Qualifications

54. Each PARTY will ensure that personnel participating in WORK are appropriately qualified or licensed to perform the tasks assigned to them.

Consultant Selection

55. NVTA and CITY will invite CALTRANS to participate in the selection of any consultants that participate in the WORK.
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56. CALTRANS will issue, upon proper application, the encroachment permits required for WORK within State Highway System (SHS) right-of-way. NVTA, CITY, their contractors, consultants, agents, and utility owners will not work within the SHS right-of-way without an encroachment permit which specifically allows them to do so. CALTRANS will provide encroachment permits to NVTA and CITY at no cost. CALTRANS will provide encroachment permits to utility owners at no cost. If the encroachment permit and this AGREEMENT conflict, the requirements of this AGREEMENT will prevail.

57. The IMPLEMENTING AGENCY for a PROJECT COMPONENT will coordinate, prepare, obtain, implement, renew, and amend any encroachment permits needed to complete the WORK.

Protected Resources

58. If any PARTY discovers unanticipated cultural, archaeological, paleontological, or other protected resources during WORK, all WORK in that area will stop and that PARTY will notify all PARTIES within 24 hours of discovery. WORK may only resume after a qualified professional has evaluated the nature and significance of the discovery and CALTRANS approves a plan for its removal or protection.

Disclosures

59. PARTIES will hold all administrative drafts and administrative final reports, studies, materials, and documentation relied upon, produced, created, or utilized for the WORK in confidence to the extent permitted by law and where applicable, the provisions of California Government Code, Section 7921.505(c)(5) will protect the confidentiality of such documents in the event that said documents are shared between PARTIES.

PARTIES will not distribute, release, or share said documents with anyone other than employees, agents, and consultants who require access to complete the WORK without the written consent of the PARTY authorized to release them, unless required or authorized to do so by law.

60. If a PARTY receives a public records request pertaining to the WORK, that PARTY will notify PARTIES within five (5) working days of receipt and make PARTIES aware of any disclosed public records.
49 Agreement 04-2957
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61. HM-1 is hazardous material (including, but not limited to, hazardous waste) that may require removal and disposal pursuant to federal or state law, irrespective of whether it is disturbed by the PROJECT or not.

HM-2 is hazardous material (including, but not limited to, hazardous waste) that may require removal and disposal pursuant to federal or state law only if disturbed by the PROJECT.

The management activities related to HM-1 and HM-2, including and without limitation, any necessary manifest requirements and disposal facility designations are referred to herein as HM-1 MANAGEMENT and HM-2 MANAGEMENT respectively.

62. If HM-1 or HM-2 is found the discovering PARTY will immediately notify all other PARTIES.

63. CALTRANS, independent of the PROJECT, is responsible for any HM-1 found within the existing State Highway System right-of-way. CALTRANS will undertake, or cause to be undertaken, HM-1 MANAGEMENT with minimum impact to the PROJECT schedule.

CALTRANS will pay, or cause to be paid, the cost of HM-1 MANAGEMENT for HM-1 found within the existing State Highway System right-of-way with funds that are independent of the funds committed in this AGREEMENT.

64. If HM-1 is found within the PROJECT limits and outside the existing State Highway System right-of-way, responsibility for such HM-1 rests with the owner(s) of the parcel(s) on which the HM-1 is found. NVTA, in concert with the local agency having land use jurisdiction, will ensure that HM-1 MANAGEMENT is undertaken with minimum impact to PROJECT schedule.

The cost of HM-1 MANAGEMENT for HM-1 found within the PROJECT limits and outside the existing State Highway System right-of-way will be paid from funds that are independent of the funds committed in this AGREEMENT and will be the responsibility of the owner(s) of the parcel(s) where the HM-1 is located.

65. The CONSTRUCTION IMPLEMENTING AGENCY is responsible for HM‑2 MANAGEMENT within the PROJECT limits.
50 Agreement 04-2957
Project No. 0419000297
Project Development Agreement 2017-02-17 (Created September 25, 2023) 13 of 19 NVTA, CITY and CALTRANS will comply with the Soil Management Agreement for Aerially Deposited Lead Contaminated Soils (Soil Management Agreement) executed between CALTRANS and the California Department of Toxic Substances Control (DTSC). Under Section 3.2 of the Soil Management Agreement, CALTRANS and NVTA each retain joint and severable liability for noncompliance with the provisions of the Soil Management Agreement.

NVTA will assume all responsibilities assigned to CALTRANS in the Soil Management Agreement during PROJECT COMPONENTS for which they are the IMPLEMENTING AGENCY except for final placement and burial of soil within the State right-of-way, per Section 4.5 of the Soil Management Agreement, which is subject to CALTRANS concurrence and reporting to DTSC which will be performed by CALTRANS.

66. CALTRANS’ acquisition or acceptance of title to any property on which any HM-1 or HM-2 is found will proceed in accordance with CALTRANS’ policy on such acquisition.

Claims

67. Any PARTY that is responsible for completing WORK may accept, reject, compromise, settle, or litigate claims arising from the WORK without concurrence from the other PARTY.

68. PARTIES will confer on any claim that may affect the WORK or PARTIES’ liability or responsibility under this AGREEMENT in order to retain resolution possibilities for potential future claims. No PARTY will prejudice the rights of another PARTY until after PARTIES confer on the claim.

69. If the WORK expends state or federal funds, each PARTY will comply with the Federal Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards of 2 CFR, Part 200. PARTIES will ensure that any for-profit consultant hired to participate in the WORK will comply with the requirements in 48 CFR, Chapter 1, Part 31.

When state or federal funds are expended on the WORK these principles and requirements apply to all funding types included in this AGREEMENT.

Accounting and Audits

70. PARTIES will maintain, and will ensure that any consultant hired by PARTIES to participate in WORK will maintain, a financial management system that conforms to Generally Accepted Accounting Principles (GAAP), and that can properly accumulate and segregate incurred PROJECT costs and billings.
51 Agreement 04-2957
Project No. 0419000297
Project Development Agreement 2017-02-17 (Created September 25, 2023) 14 of 19

71. PARTIES will maintain and make available to each other all WORK-related documents, including financial data, during the term of this AGREEMENT.

PARTIES will retain all WORK-related records for three (3) years after the final voucher.

PARTIES will require that any consultants hired to participate in the WORK will comply with this Article.

72. PARTIES have the right to audit each other in accordance with generally accepted governmental audit standards.

CALTRANS, the State Auditor, FHWA (if the PROJECT utilizes federal funds), and NVTA will have access to all WORK -related records of each PARTY, and any consultant hired by a PARTY to participate in WORK, for audit, examination, excerpt, or transcription.

The examination of any records will take place in the offices and locations where said records are generated and/or stored and will be accomplished during reasonable hours of operation.

The auditing PARTY will be permitted to make copies of any WORK-related records needed for the audit.

The audited PARTY will review the draft audit, findings, and recommendations, and provide written comments within thirty (30) calendar days of receipt.

Upon completion of the final audit, PARTIES have forty-five (45) calendar days to refund or invoice as necessary in order to satisfy the obligation of the audit.

Any audit dispute not resolved by PARTIES is subject to mediation. Mediation will follow the process described in the General Conditions section of this AGREEMENT.

73. If the WORK expends state or federal funds, each PARTY will undergo an annual audit in accordance with the Single Audit Act in the Federal Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards as defined in 2 CFR, Part 200.

74. When a PARTY reimburses a consultant for WORK with state or federal funds, the procurement of the consultant and the consultant overhead costs will be in accordance with the Local Assistance Procedures Manual, Chapter 10.

Interruption of Work

75. If WORK stops for any reason, IMPLEMENTING AGENCY will place the PROJECT rightof-way in a safe and operable condition acceptable to CALTRANS. 52 Agreement 04-2957
Project No. 0419000297
Project Development Agreement 2017-02-17 (Created September 25, 2023) 15 of 19

76. If WORK stops for any reason, each PARTY will continue with environmental commitments included in the environmental documentation, permits, agreements, or approvals that are in effect at the time that WORK stops, and will keep the PROJECT in environmental compliance until WORK resumes.

Penalties, Judgments and Settlements

77. The cost of awards, judgments, fines, interest, penalties, attorney’s fees, and/or settlements generated by the WORK are considered WORK costs.

78. The cost of legal challenges to the environmental process or documentation are considered WORK costs.

79. Any PARTY whose action or lack of action causes the levy of fines, interest, or penalties will indemnify and hold all other PARTIES harmless per the terms of this AGREEMENT.

Project Files

80. NVTA and CITY will furnish CALTRANS with the Project History Files related to the PROJECT facilities on State Highway System within sixty (60) days following the completion of each PROJECT COMPONENT. NVTA will assure that the Project History File is prepared and submitted in compliance with the Project Development Procedures Manual, Chapter 7. All material will be submitted neatly in a three-ring binder and in PDF format.

GENERAL CONDITIONS

81. All portions of this AGREEMENT, including the Recitals Section, are enforceable.

Venue

82. PARTIES understand that this AGREEMENT is in accordance with and governed by the Constitution and laws of the State of California. This AGREEMENT will be enforceable in the State of California. Any PARTY initiating legal action arising from this AGREEMENT will file and maintain that legal action in the Superior Court of the county in which the CALTRANS district office that is signatory to this AGREEMENT resides, or in the Superior Court of the county in which the PROJECT is physically located.

Exemptions

83. All CALTRANS’ obligations and commitments under this AGREEMENT are subject to the appropriation of resources by the Legislature, the State Budget Act authority, programming and allocation of funds by the California Transportation Commission (CTC). 53 Agreement 04-2957
Project No. 0419000297
Project Development Agreement 2017-02-17 (Created September 25, 2023) 16 of 19 Indemnification

84. Neither CALTRANS nor any of its officers and employees, are responsible for any injury, damage, or liability occurring by reason of anything done or omitted to be done by NVTA, its contractors, sub-contractors, and/or its agents under or in connection with any work, authority, or jurisdiction conferred upon NVTA under this AGREEMENT. It is understood and agreed that NVTA and CITY, to the extent permitted by law, will defend, indemnify, and save harmless CALTRANS and all of their officers and employees from all claims, suits, or actions of every name, kind, and description brought forth under, but not limited to, tortious, contractual, inverse condemnation, or other theories and assertions of liability occurring by reason of anything done or omitted to be done by NVTA, CITY, its contractors, subcontractors, and/or its agents under this AGREEMENT.

85. Neither NVTA, CITY nor any of its officers and employees, are responsible for any injury, damage, or liability occurring by reason of anything done or omitted to be done by CALTRANS, its contractors, sub-contractors, and/or its agents under or in connection with any work, authority, or jurisdiction conferred upon CALTRANS under this AGREEMENT. It is understood and agreed that CALTRANS, to the extent permitted by law, will defend, indemnify, and save harmless NVTA, CITY and all of their officers and employees from all claims, suits, or actions of every name, kind, and description brought forth under, but not limited to, tortious, contractual, inverse condemnation, or other theories and assertions of liability occurring by reason of anything done or omitted to be done by CALTRANS, its contractors, sub-contractors, and/or its agents under this AGREEMENT.

Non-parties

86. PARTIES do not intend this AGREEMENT to create a third party beneficiary or define duties, obligations, or rights for entities not signatory to this AGREEMENT. PARTIES do not intend this AGREEMENT to affect their legal liability by imposing any standard of care for fulfilling the WORK different from the standards imposed by law.

87. PARTIES will not assign or attempt to assign obligations to entities not signatory to this AGREEMENT without an amendment to this AGREEMENT.

Ambiguity and Performance

88. Neither PARTY will interpret any ambiguity contained in this AGREEMENT against the other PARTY. PARTIES waive the provisions of California Civil Code, Section 1654.

A waiver of a PARTY’s performance under this AGREEMENT will not constitute a continuous waiver of any other provision.
54 Agreement 04-2957
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Project Development Agreement 2017-02-17 (Created September 25, 2023) 17 of 19

89. A delay or omission to exercise a right or power due to a default does not negate the use of that right or power in the future when deemed necessary.

Defaults

90. If any PARTY defaults in its performance of the WORK, a non-defaulting PARTY will request in writing that the default be remedied within thirty (30) calendar days. If the defaulting PARTY fails to do so, the non-defaulting PARTY may initiate dispute resolution.

Dispute Resolution

91. PARTIES will first attempt to resolve AGREEMENT disputes at the PROJECT team level as described in the Quality Management Plan. If they cannot resolve the dispute themselves, the CALTRANS District Director and the Executive Officer of NVTA will attempt to negotiate a resolution. If PARTIES do not reach a resolution, PARTIES’ legal counsel will initiate mediation. PARTIES agree to participate in mediation in good faith and will share equally in its costs.

Neither the dispute nor the mediation process relieves PARTIES from full and timely performance of the WORK in accordance with the terms of this AGREEMENT. However, if any PARTY stops fulfilling its obligations, any other PARTY may seek equitable relief to ensure that the WORK continues.

Except for equitable relief, no PARTY may file a civil complaint until after mediation, or forty-five (45) calendar days after filing the written mediation request, whichever occurs first.

PARTIES will file any civil complaints in the Superior Court of the county in which the CALTRANS District Office signatory to this AGREEMENT resides or in the Superior Court of the county in which the PROJECT is physically located.

92. PARTIES maintain the ability to pursue alternative or additional dispute remedies if a previously selected remedy does not achieve resolution.

Prevailing Wage

93. When WORK falls within the Labor Code § 1720(a)(1) definition of "public works" in that it is construction, alteration, demolition, installation, or repair; or maintenance work under Labor Code § 1771, PARTIES will conform to the provisions of Labor Code §§ 1720-1815, and all applicable provisions of California Code of Regulations, Title 8, Division 1, Chapter 8, Subchapter 3, Articles 1-7. PARTIES will include prevailing wage requirements in contracts for public work and require contractors to include the same prevailing wage requirements in all subcontracts.
55 Agreement 04-2957
Project No. 0419000297
Project Development Agreement 2017-02-17 (Created September 25, 2023) 18 of 19 Work performed by a PARTY’s own employees is exempt from the Labor Code's Prevailing Wage requirements.

If WORK is paid for, in whole or part, with federal funds and is of the type of work subject to federal prevailing wage requirements, PARTIES will conform to the provisions of the DavisBacon and Related Acts, 40 U.S.C. §§ 3141-3148.

When applicable, PARTIES will include federal prevailing wage requirements in contracts for public works. WORK performed by a PARTY’s employees is exempt from federal prevailing wage requirements.
56 Agreement 04-2957
Project No. 0419000297
Project Development Agreement 2017-02-17 (Created September 25, 2023) 19 of 19

SIGNATURES
PARTIES are authorized to enter into this AGREEMENT and have delegated to the undersigned the authority to execute this AGREEMENT on behalf of the respective agencies and hereby covenants to have followed all the necessary legal requirements to validly execute this AGREEMENT. By signing below, the PARTIES each expressly agree to execute this AGREEMENT electronically.

The PARTIES acknowledge that executed copies of this AGREEMENT may be exchanged by facsimile or email, and that such copies shall be deemed to be effective as originals.

STATE OF CALIFORNIA

DEPARTMENT OF TRANSPORTATION
Robert Effinger
Acting Deputy District Director, Design
Verification of funds and authority:

Jeffrey Kuehnel
District Budget Manager
Certified as to financial terms and policies:
_
Nadine Karavan
HQ Accounting Supervisor

NAPA VALLEY TRANSPORTATION

AUTHORITY
Kate Miller
Executive Director
Attest:

Laura Sanderlin
Board Secretary
Approved as to form and procedure:

Osman Mufti
NVTA General Counsel
57 Agreement 04-2957
Project No. 0419000297
Project Development Agreement 2017-02-17 (Created September 25, 2023) 20 of 2

CITY OF AMERICAN CANYON
Jason B. Holley
City Manager
Attest:

Taresa Geilfuss
City Clerk
Approved as to form and procedure:

William D. Ross
City Attorney
58 AGREEMENT 04 - 2957
Project No. 0419000297
EA 4Q010
04-NAP-29-0.6/2.1
Project Development Agreement 2017-02-17 (Created September 25, 2023) 1 of 4 FUNDING SUMMARY NO. 01
FUNDING TABLE v. 1
PA&ED
Source Party Fund Type Totals
STATE CALTRANS Settlement 955,000
LOCALFEDERAL NVTA RSTP 3,000,000
Totals 3,955,000
MNon-federal match
59 FUNDING SUMMARY No. 01 AGREEMENT 04 - 2957
Project No. 0419000297
Project Development Agreement 2017-02-17 (Created September 25, 2023) 2 of 4 SPENDING SUMMARY v 2
PA&ED
Fund Type CALTRANS NVTA Totals
Settlement 0 955,000 955,000
RSTP 500,000 2,500,000 3,000,000
Totals 500,000 3,455,000 3,955,000
60 FUNDING SUMMARY No. 01 AGREEMENT 04 - 2957
Project No. 0419000297
Project Development Agreement 2017-02-17 (Created September 25, 2023) 1 of 5 Funding

1. If there are insufficient funds available in this AGREEMENT to place the PROJECT right-of-way in a safe and operable condition, the appropriate IMPLEMENTING AGENCY will fund these activities until such time as PARTIES amend this AGREEMENT.

That IMPLEMENTING AGENCY may request reimbursement for these costs during the amendment process.

2. If there are insufficient funds in this AGREEMENT to implement the obligations and responsibilities of this AGREEMENT, including the applicable commitments and conditions included in the PROJECT environmental documentation, permits, agreements, and/or approvals that are in effect at a time that WORK stops, each PARTY accepts responsibility to fund their respective WORK until such time as PARTIES amend this AGREEMENT.

Each PARTY may request reimbursement for these costs during the amendment process.

3. The cost of any engineering support performed by CALTRANS includes all direct and applicable indirect costs. CALTRANS calculates indirect costs based solely on the type of funds used to pay support costs. State and federal funds administered by CALTRANS are subject to the current Program Functional Rate. All other funds are subject to the current Program Functional Rate and the current Administration Rate. The Program Functional Rate and Administration Rate are adjusted periodically.

4. If the WORK is funded with state or federal funds, any PARTY seeking CALTRANS reimbursement of indirect costs must submit an indirect cost rate proposal and central service cost allocation plan (if any) in accordance with Local Assistance Procedures Manual, 2 CFR, Part 200 and Chapter 5. These documents are to be submitted annually to CALTRANS’ Audits and Investigations for review and acceptance prior to CALTRANS’ reimbursement of indirect costs.

5. Travel, per diem, and third-party contract reimbursements for WORK are to be paid from the funds in this AGREEMENT only after the contractor performs the work and incurs said costs.
61 AGREEMENT 04 - 2957
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Project Development Agreement 2017-02-17 (Created September 25, 2023) 2 of 5 Payments for travel and per diem will not exceed the rates paid rank and file state employees under current California Department of Human Resources (CalHR) rules current at the effective date of this AGREEMENT.

If NVTA invoices for rates in excess of CalHR rates, NVTA will fund the cost difference and reimburse CALTRANS for any overpayment.

6. In accordance with the CALTRANS Federal-Aid Project Funding Guidelines, PARTIES must obtain approval from the Federal Highway Administration prior to any PROJECT funding changes that that will change the federal share of funds.

7. Notwithstanding the terms of this AGREEMENT, PARTIES agree to abide by the funding guidelines for all contributed funds that are programmed and allocated by the CTC.

Invoicing and Payment

8. PARTIES will invoice for funds where the SPENDING SUMMARY shows that one PARTY provides funds for use by another PARTY. PARTIES will pay invoices within forty-five (45) calendar days of receipt of invoice when not paying with Electronic Funds Transfer (EFT). When paying with EFT, NVTA will pay invoices within five (5) calendar days of receipt of invoice.

9. If NVTA has received EFT certification from CALTRANS then NVTA will use the EFT mechanism and follow all EFT procedures to pay all invoices issued from CALTRANS.

10. When a PARTY is reimbursed for actual cost, invoices will be submitted each month for the prior month's expenditures. After all PROJECT COMPONENT WORK is complete, PARTIES will submit a final accounting of all PROJECT COMPONENT costs. Based on the final accounting, PARTIES will invoice or refund as necessary to satisfy the financial commitments of this AGREEMENT.

11. If an executed Program Supplement Agreement (PSA) or STIP Planning, Programming, and Monitoring Program Fund Transfer Agreement (PPM) exists for this PROJECT then NVTA will abide by the billing and payment conditions detailed for the fund types identified in the PSA or PPM.

12. If CALTRANS reimburses NVTA for any costs later determined to be unallowable, NVTA will reimburse those funds.
62 AGREEMENT 04 - 2957
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Project Development Agreement 2017-02-17 (Created September 25, 2023) 3 of 5 Project Approval and Environmental Document (PA&ED)

13. PARTIES will invoice and reimburse for actual costs incurred and paid. 63 64
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William D. Ross
David P. Schwarz
Kypros G. Hostetter
Christina M. Bellardo
Law Offices of
William D. Ross
400 Lambert Avenue
Palo Alto, California 94306
Telephone: (650) 843-8080
www.lawross.com
Los Angeles Office:
11420 Santa Monica Blvd
#25532
Los Angeles, CA 90025
File No: 199/6
December 20, 2023

VIA E-MAIL
The Honorable Leon Garcia, Mayor
and Members of the City Council
City of American Canyon
4381 Broadway, Suite 201
American Canyon, CA 94503
Re: Report Upon Return from Closed Session; Regular City Council Closed Session Meeting of the American Canyon City Council of December 19, 2023 Dear Mayor Garcia and Members of the City Council:

This communication sets forth reportable action, if any, of the City Council (“Council”) of the City of American Canyon (“City”), consistent with provisions of the Ralph M. Brown Opening Meeting Act (Government Code Section 54950, et seq.) resulting from the Closed Session of the Regular City Council Closed Session Meeting of December 19, 2023, consistent with Government Code Section 54957.1.

Mayor Leon Garcia called the meeting to order in Open Session at 5:00 p.m. and after ascertaining that there were no public comments on Closed Session matters, the Council then adjourned to Closed Session at 5:00 p.m.

There were two matters agendized for City Closed Session consideration:

1. Conference with Legal Counsel – Existing Litigation
Authorized Pursuant to Government Code Section 54956.9(d)(1):
a. City of American Canyon v. City of Vallejo, et al.
(Sacramento Superior Court Case No. 34-2022-00327471);
b. City of American Canyon v. Leon Dale Schmidt, (Napa
County Superior Court Case No. 22CV001041 and
23PR00161);
c. Center for Biological Diversity v. City of American Canyon et al. (Napa County Superior Court Case No. 23CV000511); 99 The Honorable Leon Garcia, Mayor
and Members of the City Council
December 20, 2023

Page 2 ends

d. Golden State Environmental Justice Alliance v. City of American Canyon et al. (Napa County Superior Court Case No. 23CV000510);
e. City of Vallejo v. City of American Canyon et al. (Napa County Superior Court Case No. 23CV000517); and,
f. City of Vallejo v. City of American Canyon et al. (Napa County Superior Court Case No. 23CV001600).

2. Conference with Legal Counsel – Anticipated Litigation Authorized Pursuant to Government Code Section No. 54956.9(d)(2) Two Matters.

With respect to Closed Session Agenda Item No. 1.a. through 1.e, there was no reportable action by your Council under the common law attorney-client privilege and that provided by Government Code Section 54956.9(d)(1).

With respect to Closed Session Agenda Item No. 1.f., although there was direction given to the City Attorney and City Staff, there was no reportable action under the common law attorneyclient privilege and that provided by Government Code Section 54956.9(d)(1).

With respect to Closed Session Agenda Item No. 2., there was no reportable action under the common law attorney-client privilege and that provided by Government Code Section 54956.9(d)(2).

Your Council concluded the Closed Session at 6:28 p.m.

In Open Session, it was indicated that a written report upon return from Closed Session consistent with Government Code Section 54957.1, would be prepared concerning the matters agendized for Closed Session.

This communication should be reviewed under the Consent portion of the Agenda of your next Regular or Special City Council Meeting.

Should you have questions concerning this Report, it may be taken off the Consent calendar when agendized in the future, or our office may be contacted in the interim.

Very truly yours,
William D. Ross
City Attorney
100
The Honorable Leon Garcia, Mayor
and Members of the City Council
December 20, 2023

Page 3 ends

WDR:jf
cc: Jason B. Holley, City Manager
Maria Ojeda, Assistant City Manager
Taresa Geilfuss, City Clerk
Cherri Walton, Deputy City Clerk
101

CITY COUNCIL AGENDA
JANUARY 16, 2024

STAFF REPORT

CONSENT
ITEM NUMBER: 7.

TITLE
Regional Climate Action and Adaptation Plan

RECOMMENDATION
Adopt a Minute Order increasing FY 23/24 General Fund appropriations by $8,641 to cover American Canyon's share of the cost for Napa Countywide Climate Ac4on Commi5ee to prepare a Regional Climate Ac4on and Adapta4on Plan (RCAAP) with the source of funding being the General Fund Undesignated Fund Balance.

CONTACT
Leon Garcia, Mayor
Mark Joseph, Council Member
Jason Holley, City Manager

BACKGROUND & ANALYSIS
In June 2019, Napa County; the Ci4es of American Canyon, Calistoga, Napa, and St. Helena; and the Town of Yountville adopted Resolu4ons regarding the "Countywide Commitment to Address Climate Change." The Resolu4ons proposed to: (1) address climate change in their respec4ve General Plans, consistent with State guidelines; (2) form a commi5ee to iden4fy countywide goals and strategies for addressing climate change, including an updated greenhouse gas (GHG) inventory, countywide GHG goals and 4melines, and common GHG reduc4on standards for each jurisdic4on to adopt independently; and (3) identify potential threats and funding to improve community resiliency.

ThereaAer, all six jurisdic4ons came together to form the Napa Countywide Climate Ac4on Commi5ee (CAC). The CAC consists of two elected appointees from each of the jurisdic4ons. The CAC is supported by County staff. The CAC was formalized in December 2020 through a Joint Powers Agreement (JPA).

Since then, the CAC has prepared a regional greenhouse gas (GHG) inventory, recommended a building reach code, and solicited regional and state funding for its ac4vi4es. The GHG inventory es4mates current GHG emission by jurisdic4on, as well as es4mates for future emissions through 102
2030.

Greenhouse Gas Inventory
At their April 23, 2021 mee4ng, the CAC requested the prepara4on an updated regional GHG emissions inventory for all six jurisdic4ons. The CAC also requested an inventory of short-lived climate pollutants (SLCP) and an evalua4on of the poten4al for carbon sequestra4on within Napa County. In October 2021, the CAC requested staff proceed with both addi4onal tasks, with the cost to be allocated based on the cost-sharing formula agreed to in the existing JPA.

On June 18, 2021, the County received a grant from the Bay Area Air Quality Management District (BAAQMD) in the amount of $50,000 to prepare the GHG inventory. As a result of a compe44ve solicita4on, the County selected Ascent Environmental to prepare the GHG inventory. The regional funding was sufficient to cover the cost of the GHG inventory, but does not cover the cost of the two additional tasks.

Work on the GHG inventory, short-lived climate pollutants, and carbon sequestra4on memorandum is complete. The cost of the additional work is as follows:
$7,400 for additional coordination with staff;
$2,960 for one additional CAC meeting; and
$13,750 for additional work related to the short-lived climate pollutant study.

The addi4onal work totaled $24,100. In accordance with the JPA, the cost of the addi4onal work is to be allocated as follows:

Napa County: $7,953
City of Napa: $7,206
City of American Canyon: $3,085
City of St. Helena: $2,048
City of Yountville: $1,808
Regional Climate Action and Adaptation Plan (RCAAP)
Reducing GHG emissions requires effec4ve inter-governmental coordina4on of various strategies and implementa4on measures. Ac4ons will be more effec4ve and efficient if carried out consistently amongst CAC members. The CAC believes prepara4on of a Regional Climate Ac4on and Adapta4on Plan (RCAAP) will provide the goals, 4melines, and measurable ac4ons to reduce future GHG emissions. In addi4on, the RCAAP will include resiliency strategies to effec4vely respond to climate change events.

At the October 6, 2022 Napa County League of Governments (NCLOG) mee4ng, there was broad support for proceeding with an RCAAP to provide a policy and implementa4on framework for reducing GHG emissions. There was also general agreement that each jurisdic4on should consider the proposal for a RCAAP at a future Council/Board mee4ng to guide CAC representa4ves as they move forward.
103
At their May 16, 2023 mee4ng, the County Board of Supervisors directed County staff to begin work on the RCAAP. At their May 26, 2023, mee4ng, the CAC made the prepara4on of the RCAAP its top priority for the 2023-2024 Fiscal Year. County staff worked with staff from the ci4es/town, the Napa Valley Transporta4on Authority, and the Napa County Resource Conserva4on District to prepare the RFP.

The County received two RCAAP proposals. While both are well-qualified, the reviewers unanimously recommend Ascent Environmental. The CAC unanimously affirmed recommenda4on on November 27, 2023.

The proposed contract with Ascent Environmental is for a maximum of $599,660. Fortunately, State Senator Dodd obtained $500,000 in State funding to prepare the RCAAP. The JPA cost-sharing formula allocates remaining costs ($99,660) as follows:

Napa County: $32,888
City of Napa: $29,798
City of American Canyon: $12,756
City of St. Helena: $8,471
City of Calistoga: $8,272
City of Yountville: $7,475
Lastly, Ascent will evaluate the op4ons for compliance with California Environmental Quality Act (CEQA) when adop4ng the RCAAP. However, if an Environmental Impact Report (EIR) is required, this would cost additional $250,000 to $400,000 (of which American Canyon's cost would be between $30,000 and $50,000). The addi4onal cost of an EIR is not currently budgeted and would likely be borne by the JPA member jurisdictions (unless additional outside funding is secured).

Manager Holley and American Canyon CAC appointees Garcia and Joseph recommend the Council approve addi4onal appropria4ons in the amount of $12,756 to cover American Canyon's share of the addi4onal costs of the GHG Inventory and the RRCAP. This recommenda4on is based on the fact American Canyon will benefit by having an RCAAP to rely upon in its ongoing General Plan Update (and future development approvals) and preparing a 'standalone' climate ac4on plan would cost substantially more than American Canyon's proposed share of the RCAAP.

COUNCIL PRIORITY PROGRAMS AND PROJECTS
Organizational Effectiveness: "Deliver exemplary government services."

FISCAL IMPACT
Since the FY 23/24 Budget already includes $7,200 for this item, the result of Recommended Ac4on will increase FY 23/24 General Fund Expenditures by $8,641 with the source of funding being the General Fund Undesignated Fund Balance. The Recommended Ac4on will reduce the amount the General Fund Undesignated Fund Balance available for other uses, the impact of which will be 104
discussed in further detail in conjunction with the Mid-Year Budget Update in February.

ENVIRONMENTAL REVIEW
The proposed ac4on is not a project as defined by 14 California Code of Regula4ons 15378 (State CEQA Guidelines) and therefore CEQA is not applicable.

ATTACHMENTS:

None
105

CITY COUNCIL AGENDA
JANUARY 16, 2024

STAFF REPORT

CONSENT
ITEM NUMBER: 8.

TITLE
Watson Ranch Master Backbone Infrastructure (MBI) Phase 1 Improvements Project

RECOMMENDATION
Adopt a Resolu1on of the City Council of the City of American Canyon for par1al acceptance of the public improvements associated with the Watson Ranch Master Backbone Infrastructure (MBI) Phase 1 Improvements Project.

CONTACT
Erica Ahmann Smithies, P.E., Public Works Director/City Engineer Edison Bisnar, P.E., Senior Civil Engineer

BACKGROUND & ANALYSIS
On November 7, 2023, The City of American Canyon City Council par1ally accepted all the public improvements associated with the Watson Ranch Master Backbone Infrastructure Phase 1 Improvements, for opera1on and maintenance, with the excep1on of the punch list repair items for sidewalk, concrete and minor pavement repairs, CC Resolution 2023-84.

On January 9, 2024, Public Works went to the site to inspect if the punch list repair items are sa1sfied. The repairs were made but some items in the original punch list were le? out and were not addressed. Public Works created additional punch list items (Exhibit A).

On January 16, 2024, the developer (AC 1) and contractor (ECS) submi@ed a promissory note sta1ng that the outstanding punch list items will be completed by February 12, 2024 for an es1mated cost 106
of $23,650.

Because all public improvements have been completed, and punch list repair items completed by the approved date, Public Works recommends the Watson Ranch Master Backbone Infrastructure (MBI) Phase 1 Improvements Project accepted into the City’s system for opera1on and maintenance.

COUNCIL PRIORITY PROGRAMS AND PROJECTS
Infrastructure: "Develop and maintain infrastructure resources to support sustainable growth."

FISCAL IMPACT
All costs associated with the opera1on and maintenance of the public facili1es will be the responsibility of the City.

ENVIRONMENTAL REVIEW
Pursuant to the California Environmental Quality Act, the Final Environmental Impact Report for the Project was presented at a no1ced public hearing held on October 4, 2018. The Planning Commission adopted Resolu1on 2018-19 recommending that the City Council adopt the Mi1ga1on Monitoring and Reporting Program.

ATTACHMENTS:

Watson Ranch Public Improvements Final Acceptance Resolution.pdf Exhibit A Backbone Punch List Report 01-10-24.pdf
107
RESOLUTION NO. 2024 - _____

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF AMERICAN CANYON FOR FINAL ACCEPTANCE OF

THE PUBLIC IMPROVEMENTS ASSOCIATED WITH THE WATSON RANCH MASTER BACKBONE INFRASTRUCTURE (MBI) PHASE 1 IMPROVEMENTS PROJET.

WHEREAS, on November 7, 2023, The City of American Canyon City Council partially accepted all the public improvements associated with the Watson Ranch Master Backbone Infrastructure Phase 1 Improvements, for operation and maintenance, with the exception of the punch list repair items for sidewalk, concrete and minor pavement repairs, CC Resolution 2023-84.; and WHEREAS, on January 9, 2024, Public Works went to the site to inspect if the punch list repair items are satisfied. The repairs were made but some items in the original punch list were left out and were not addressed. Public Works created additional punch list items (Exhibit A).; and WHEREAS, On January 16, 2024, the developer (AC 1) and contractor (ECS) submitted a promissory note stating that the outstanding punch list items will be completed by February 12, 2024 for an estimated cost of $23,650.; and
NOW, THEREFORE, BE IT FURTHER RESOLVED that the City Council of the City of American Canyon hereby accepts all the public improvements into the City’s system for operation and maintenance.

PASSED, APPROVED and ADOPTED at a regularly scheduled meeting of the City Council of the City of American Canyon held on the 16th day of January 2024, by the following vote:

AYES:

NOES:

ABSTAIN:

ABSENT:
________________________________
Leon Garcia, Mayor
ATTEST: APPROVED AS TO FORM:
______________________________ ______________________________ Taresa Geilfuss, CMC, Interim City Clerk William D. Ross, City Attorney Attachments:

Resolution
Exhibit A: Backbone Punch List Report 01-10-24
108
Watson Ranch Phase 1 (Backbone)
Corrective Action / Punch List Report
01-10-2024
Punch List Items
Item # Category Description Date Created Completed Days to Resolution
Attached
Files
( before /
after )
Attached
Photos
( before /
after )
Urgency
115 Concrete ROLLINGHILLS 14+75 Jan 09 2024 08:39 am [ ] 1 0/0 1/0 Level 1 116 Misc. Back up sidewalk ROLLINGHILLS 14+50
area
Jan 09 2024 08:42 am [ ] 1 0/0 0/0 Level 1
117 Concrete ROLLINGHILLS @ Frontier st. Trip hazard Jan 09 2024 08:45 am [ ] 1 0/0 1/0 Level 1 118 Concrete ROLLINGHILLS 13+20 lt cl joint trench
boxcracking conc.

Jan 09 2024 08:47 am [ ] 1 0/0 2/0 Level 1
119 Concrete ROLLINGHILLS @EVA RD. CONCRETE

CRACKED
Jan 09 2024 08:51 am [ ] 1 0/0 1/0 Level 1
120 Concrete ROLLINGHILLS sta. 17+40 trip hazard @
joint trench vaul
Jan 09 2024 08:54 am [ ] 1 0/0 1/0 Level 1
121 Concrete ROLLINGHILLS sta 17+95 lt cl chipped
concrete
Jan 09 2024 08:56 am [ ] 1 0/0 1/0 Level 1
122 Concrete Clean/grind latent concrete at repaired
areas of walks
Jan 09 2024 08:59 am [ ] 1 0/0 2/0 Level 1
123 Concrete ROLLINGHILLS 23+45 sidewalk cracking Jan 09 2024 09:03 am [ ] 1 0/0 2/0 Level 1 124 Concrete ROLLINGHILLS 25+10 , 25+60 Jan 09 2024 09:08 am [ ] 1 0/0 1/0 Level 1 125 Striping/Legends Bike path medallions per details sheet 69 Jan 09 2024 09:11 am [ ] 1 0/0 0/0 Level 1 126 Storm Drain Inlet medallions on catch basins and drain inlets
Jan 09 2024 09:14 am [ ] 1 0/0 0/0 Level 1
109
Item # Category Description Date Created Completed Days to Res Att Files Att Photos Urgency 127 Utilities RDM 29+60 RT CL AT transformer Jan 09 2024 09:17 am [ ] 1 0/0 1/0 Level 1 128 Concrete RDM 30+40 CHIP REPAIR Jan 09 2024 09:19 am [ ] 1 0/0 1/0 Level 1 129 Concrete RDM 30+40 CHIP REPAIR Jan 09 2024 09:19 am [ ] 1 0/0 0/0 Level 1 130 Concrete RDM 31+20 TO 31+85+/- CENTERLINE

JOINT OF SW
Jan 09 2024 09:22 am [ ] 1 0/0 3/0 Level 1
131 Concrete RDM 38+75 rt cl 50' rt cl+/- Jan 09 2024 09:27 am [ ] 1 0/0 1/0 Level 1 132 Concrete RDM 40+45 TRIP HAZARD Jan 09 2024 09:30 am [ ] 1 0/0 1/0 Level 1 133 Concrete RDM 42+75 FILL EDGE OF WALK Jan 09 2024 09:33 am [ ] 1 0/0 1/0 Level 1 134 Concrete Mallen rd. Crack repair Jan 09 2024 09:37 am [ ] 1 0/0 1/0 Level 1 135 Landscaping MALLEN 16+65 IRR DAMAGED BY WHEEL

TRAFFIC
Jan 09 2024 09:40 am [ ] 1 0/0 1/0 Level 1
136 Traffic Signal Mallen @RDM reset sign post Jan 09 2024 09:42 am [ ] 1 0/0 1/0 Level 1 137 Storm Drain Catchbasin and DI inlets require cleaning Jan 09 2024 09:45 am [ ] 1 0/0 3/0 Level 1 138 Concrete Rdm 39+80 lt cl Jan 09 2024 09:48 am [ ] 1 0/0 1/0 Level 1 139 Concrete RDM STA 30+40 SID3WALK CRACKING Jan 09 2024 09:51 am [ ] 1 0/0 3/0 Level 1 140 Striping/Legends RDM CENTER MEDIAN @ MARCUS RD. Jan 09 2024 09:57 am [ ] 1 0/0 0/0 Level 1 141 Concrete Marcuss rd. @ 250 Marcuss. Sidewal,
cracked
Jan 09 2024 09:58 am [ ] 1 0/0 1/0 Level 1
142 Concrete Maarcuss rd. 15+50 lt cl sidewalk chipped Jan 09 2024 10:02 am [ ] 1 0/0 1/0 Level 1 143 Concrete Marcuss rd. At speed table lt cl Jan 09 2024 10:04 am [ ] 1 0/0 1/0 Level 1 144 Asphalt Cleanliness of streets and adjacent areas Jan 09 2024 10:06 am [ ] 1 0/0 9/0 Level 1 110

CITY COUNCIL AGENDA
JANUARY 16, 2024

STAFF REPORT

BUSINESS
ITEM NUMBER: 9.

TITLE
Utility Rate Changes

RECOMMENDATION
Adopt a Resolu(on of Inten(on to adopt new u(lity rates, se,ng a public hearing date for April 2, 2024, and direc(ng the issuance of No(ces of a Proposi(on 218 Public Hearing to all u(lity customers and property owners within the City of American Canyon’s service area.

CONTACT
Erica Ahmann Smithies, P.E., Public Works Director
Juan Gomez, Finance Director

BACKGROUND & ANALYSIS
Tonight's item is the first step in a required two-step process. It is both informa(onal and procedural in nature. Importantly, final ac(on to implement proposed u(lity rates changes will not occur a<er the Council independently considers and then approves changes in conjunc(on with a Protest Hearing on April 2, 2024. Any changes to u(lity rates will not go into effect un(l a<er the Council approves such changes consistent with Proposi(on 218. Said differently, tonight staff is only recommending the Council authorize the ini(a(on of a procedure to no(fy ratepayers of poten(al u(lity rate changes. Staff is not recommending the Council approve any changes to u(lity rates tonight.

Background
The City of American Canyon’s u(lity infrastructure includes a network of treatment plants, pipes, tanks, pump sta(ons, fire hydrants, meters, and other facili(es. Through this valuable infrastructure, the City provides safe and reliable drinking water, collects and treats wastewater, and produces recycled water for reuse, advancing sustainability efforts. Skilled labor, quality materials, and reliable equipment are necessary to operate and maintain the u(lity systems and facilitate water purchases from the Cities of Napa and Vallejo, as well as the State Water Project.

As a result of external cost pressures; including infla(on, new regulatory measures, water supply challenges, aging infrastructure, and more, the cost of providing these essen(al services con(nues to increase, requiring staff to review the long-term sustainability of these Enterprise Funds. The last rate study for the Sewer Enterprise Fund was completed in 2007 and has increased yearly by CPI 111
since 2011. Although CPI increases may cover some expenses, it has not kept up with increases in expansion costs, personnel costs, and treatment chemical costs. Also, there are no established recycled water rates at this (me which is needed to cover opera(onal costs and service loans made to this fund for startup costs. In summary, the current u(lity rates do not bring in sufficient revenue to cover the cost of providing reliable water and wastewater services. Since rates are the primary funding source, with no taxes used for these services, the City must consider a poten(al rate increase for water and wastewater as well as establishing new rates for recycled water.

Analysis
The City Council established the U(lity Rate Advisory CommiEee on November 15, 2022. Since then, the commiEee has met several (mes with staff to understand the City’s u(lity needs and the costs of providing service while collabora(ng with staff to prepare a recommenda(on for the City Council.

Proposed u(lity rates were developed based on the City's costs to provide the service and considering future annual opera(ng costs and budgeted repair and replacement expenses by evalua(ng the prior years’ audited financial data. The proposed u(lity rates represent an increase in existing utility rates that will support a cost-of-service structure consistent with current law.

The City's U(lity Rate Study was prepared by independent consul(ng firm NBS and contains a detailed description of the analysis which serves as the basis for the committee’s recommendation.

The City's ability to adjust rates is governed by Proposi(on 218. In 1996, California voters approved Proposi(on 218 which requires a specific process for ci(es to impose or increase certain types of fees. The provisions of Proposi(on 218 set forth in Ar(cle XIII D of the California Cons(tu(on provide that certain types of "Property Related Fees" are subject to a "majority protest" process.

The provisions of Proposi(on 218 set criteria for property-related fees for refuse, water, and sewer services. The fees must be set so that:

The revenues generated by the fee do not exceed the cost of service.

No property owner's fee exceeds his/her proportionate share of the costs.

The City does not impose a property-related fee for a service that is not available to the property owner.

In prepara(on of the Proposi(on 218 process, City Council will be provided a presenta(on of the proposed water rates, as well as the proposed u(lity rate schedules for each of the respec(ve utilities to meet the City's operational expenses and necessary long-term capital program needs.

Proposed City residential rate increase in comparison to other agencies are as follows:

Water Rates - Regional Comparison*
Agency Fixed Rate
Volumetric
Rate
Monthly
Bill
Annual
Bill
112
City of Napa $26.02 $28.59 $54.61 $655.33
City of Petaluma $20.03 $34.99 $55.02 $660.24
City of Benicia $26.59 $38.78 $65.37 $784.38
City of American Canyon (Current) $26.56 $53.39 $79.95 $959.40 City of American Canyon
(Proposed - Year 1)
$31.32 $52.17 $83.49 $1,001.82
City of Vallejo $51.72 $33.32 $85.04 $1,020.48
City of St. Helena $67.75 $41.93 $109.68 $1,316.16
Town of Yountville $93.76 $22.49 $116.25 $1,394.94
City of Calistoga $62.82 $94.22 $157.04 $1,884.48
*Rates based on 7 HCF (Avg SFR usage)
Sewer Rates - Regional Comparison*
Agency Fixed Rate
Volumetric
Rate
Monthly
Bill
Annual
Bill
City of American Canyon (Current) $60.48 $60.48 $725.76 Napa Sanitation District $61.55 $61.55 $738.60
Town of Yountville $65.42 $65.42 $785.04
Vallejo Flood & Wastewater
District
$73.74 $73.74 $884.88
City of American Canyon
(Proposed - Year 1)
$75.29 $75.29 $903.44
City of Benicia $58.07 $23.80 $81.87 $982.38
City of Petaluma $39.85 $66.15 $106.00 $1,272.00
City of Calistoga $106.24 $106.24 $1,274.88
City of St. Helena $89.63 $69.23 $158.86 $1,906.32
*Rates based on 7 HCF (Avg SFR usage)
If adopted, the new rates would become effec(ve with each customer's first billing period that begins May 2024. The first bills reflec(ng the new rates will not be received by customers un(l June 2024. Scheduled annual increases then occur in January each year through 2028.

Conclusion
Staff recommends that the City Council adopt a resolu(on that sets a public hearing date of April 2, 2024, for the u(lity rate increase in conformance with Proposi(on 218 and direc(ng Staff to commence the 45-day protest process consistent with Proposi(on 218. A no(ce including procedures for submi,ng a wriEen protest will be mailed to all property owners shown on the last equalized property tax assessment roll of all property owners and customers within the City of American Canyon service area. Owners will be informed that if they wish to protest the proposed new rates, they must submit their wriEen protest to the City Clerk in advance or on the night of the public hearing prior to the close of the hearing. The no(ce will include informa(on about the 113
various u(lity services, the reason for the proposed rate increase, as well as the current rates and proposed rates.

Addi(onal public outreach planned includes the publishing of a dedicated page on the City’s website (www.cityofamcan.org/water). English, Spanish, and Tagalog versions of the no(ce will be available on the page. The page will also include the American Canyon U(lity Rate Study containing the analysis which serves as the basis for rate structure, customer resources – including Frequently Asked Ques(ons (FAQs), low-income customer op(ons, an online bill impact calculator, a printable protest leEer, and visual infographics to inform customers how rates are spent and cost comparison of regularly purchased products with a gallon of water. A poster with the key messaging and QR Code to the website will be posted in the lobby at City Hall, and other key public areas in the community. A large postcard mailer of similar content will be mailed to all residences in American Canyon via the United States Postal Service Every Door Delivery Mail service.

In addi(on to the no(ce, website page, poster, and large postcard mailer, City staff will include public outreach messaging in the City Manager's Update, social media plaTorms, and u(lity bill inserts.

COUNCIL PRIORITY PROGRAMS AND PROJECTS
Infrastructure: "Develop and maintain infrastructure resources to support sustainable growth."

FISCAL IMPACT
There is no fiscal impact related to this item. The goal of the rate study is to provide adequate funding for opera(onal expenses and necessary long-term capital program needs. As Enterprise Funds, the Water, Sewer and Recycled Water Funds should be self-sustaining, the aEached rate study ensures that these funds achieve the goal of long-term fiscal and operational sustainability.

ENVIRONMENTAL REVIEW
Not applicable.

ATTACHMENTS:

1. Resolution Setting a Public Hearing

2. Draft Proposition 218 Notice 2024 - Proposed Utility Rates

3. Amercian Canyon Rate Study Report
114
RESOLUTION NO. 2024- XX

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF AMERICAN CANYON, CALIFORNIA DECLARING ITS INTENTION TO ADOPT NEW UTILITY RATES, SETTING A PUBLIC HEARING DATE FOR APRIL 2, 2024, AND DIRECTING THE ISSUANCE OF NOTICES OF A PROPOSITION 218 PUBLIC HEARING TO ALL UTILITY CUSTOMERS AND PROPERTY OWNERS WITHIN THE CITY OF AMERICAN CANYON’S SERVICE AREA WHEREAS, the City of American Canyon’s utility infrastructure includes a network of treatment plants, pipes, tanks, pump stations, fire hydrants, meters, and other facilities; and WHEREAS, through this valuable infrastructure, the City provides safe and reliable drinking water, collects and treats wastewater, and produces recycled water for reuse, advancing sustainability efforts; and WHEREAS, skilled labor, quality materials, and reliable equipment are necessary to operate and maintain the utility systems and facilitate water purchases from the Cities of Napa and Vallejo, as well as the State Water Project; and
WHEREAS, the City’s current utility rates, comprised of Water, Wastewater, and Recycled Water Enterprise Funds, do not bring in sufficient revenue to cover operating and capital costs; and WHEREAS, water rates have not increased since 2018, wastewater rates have not increased since 2009, and there are no established recycled water rates; and
WHEREAS, a Utility Rate Study was prepared by an independent consulting firm, NBS, and contains a detailed description and analysis of the proposed utility rates per the respective enterprise fund; and WHEREAS, the City and the Utility Rate Advisory Committee (URAC) have conducted a detailed fiscal analysis of the utility rates and developed recommendations regarding adjustments to the utility rates in order to comply with state law; and
WHEREAS, these rate adjustments will help ensure the health and safety of the community while protecting the City’s financial health; and
WHEREAS, the City Council intends to adopt a utility rate structure proposed by the analysis following the procedures required by Proposition 218, article XIII D, section 6 of the California Constitution; and NOW THEREFORE BE IT RESOLVED that the American Canyon City Council does hereby resolve as follows:

1. The City hereby initiates proceedings to adopt adjusted utility rates in accordance with the recommendation of the Utility Rate Advisory Committee and pursuant to the Utility Rate Study and as attached hereto as Exhibit A.

2. The City Council hereby fixes the 2nd day of April 2024, at 6:30 p.m. at the Chambers of the City Council, City Hall, 4381 Broadway Street, 2nd Floor, American Canyon, California 94503, as the time and place for a public hearing (“Public Hearing”) on the proposed utility rate adjustments.

3. The City Clerk is hereby instructed to provide notice of the proposed utility rate adjustments in conformity with Proposition 218.
115

4. At the April 2, 2024 Public Hearing, the City Council shall consider all objections or protests, if any to the proposed utility rate adjustments, and any person shall be permitted to present written or oral testimony. Although oral comments at the Public Hearing will not qualify as a formal protest, the City Council welcomes community input during the Public Hearing.

5. At the conclusion of the Public Hearing, all protests submitted will be tabulated in conformity with the City’s tabulation guidelines.

6. A majority protest exists if protests are submitted in opposition to the proposed utility rate adjustments by a majority (50% plus 1) of property owners and utility customers.

7. If there is a majority protest against the imposition of the utility rate adjustments, the City Council shall not adopt the changes to the current utility rates.

PASSED, APPROVED and ADOPTED at a regularly scheduled meeting of the City Council of the City of American Canyon held on the 16th day of January, 2024, by the following vote:

AYES:

NOES:

ABSTAIN:

ABSENT:
____________________________
Leon Garcia, Mayor
ATTEST: APPROVED AS TO FORM:
_______________________________ _________________________________ Taresa Geilfuss, CMC, City Clerk William D. Ross, City Attorney 116

DRAFT NOTICE CONTENT (PRE-DESIGN)

NOTICE TO PROPERTY OWNERS

PUBLIC HEARING ABOUT PROPOSED UTILITY SERVICE FEE RATE INCREASES APRIL 2, 2024, AT 6:30 PM
CITY HALL COUNCIL CHAMBERS, 4381 BROADWAY, 2ND FLOOR, AMERICAN CANYON, CA 94503 FULL NOTICE AND MORE INFORMATION AT WWW.CITYOFAMERICANCANYON.ORG/WATER | (707) 647-4364 [INSERT TAGALOG TRANSLATION OF NOTICE TO PROPERTY OWNERS AND NOTIFICATION OF AVAILABILITY OF FULL NOTICE CONTENT, AND ASSISTANCE AT CITY HALL, ON WEBSITE OR VIA PHONE.] [INSERT SPANISH TRANSLATION OF NOTICE TO PROPERTY OWNERS AND NOTIFICATION OF AVAILABILITY OF FULL NOTICE CONTENT, AND ASSISTANCE AT CITY HALL, ON WEBSITE OR VIA PHONE.] The City of American Canyon City Council will hold a public hearing on Tuesday, April 2, 2024, at 6:30 PM, at the City Council Chambers located at 4381 Broadway, 2nd floor in American Canyon, to consider adopting increases in the rates for its water, sewer, and recycled water service fees. The proposed increase will apply to all parcels that receive water and sewer services from the City of American Canyon.

American Canyon is committed to transparency throughout this process. To learn more about the research and reasons behind the proposed rate increase, visit www.CityOfAmericanCanyon.org/Water.

PROPOSED RATE INCREASES
American Canyon provides services to 5,786 residential and commercial water customers and 5,052 residential and commercial sewer customers. American Canyon’s utility infrastructure includes a network of treatment plants, pipes, tanks, pump stations, fire hydrants, meters, and other facilities. Through this valuable infrastructure, American Canyon provides safe and reliable drinking water, collects and treats wastewater, and produces recycled water for reuse, advancing sustainability efforts. Skilled labor, quality materials, and reliable equipment are necessary to operate and maintain the utility systems and facilitate water purchases from the Cities of Napa and Vallejo, as well as the State Water Project.

As a result of external cost pressures; including inflation, new regulatory measures, water supply challenges, aging infrastructure, and more, the cost of providing these essential services continues to increase. The last rate study for the Sewer Enterprise Fund was completed in 2007 and has increased yearly by CPI since 2011. Although CPI increases cover some expenses, it has not kept up with increases in expansion costs, personnel costs, and treatment chemical costs. The last rate study for the Water Enterprise was completed in 2018, with the last increase in January 2023. Current rates do not bring in sufficient revenue to cover the cost of providing reliable water and wastewater services. Since rates are the primary funding source, with no taxes used for these services, American Canyon must consider a potential rate increase.

The City Council established the Utility Rate Advisory Committee on November 15, 2022. Since then, the committee has met several times with staff to understand the City’s utility needs and the costs of providing service while collaborating with staff to prepare a recommendation for the City Council. Proposed utility rates were developed based on the City's costs to provide the service and considering future annual operating costs and budgeted repair and replacement expenses by evaluating the prior years’ audited financial data. The proposed utility rates represent an increase in existing utility rates that will support a cost-of-service structure consistent with current law.

The American Canyon Utility Rate Study was prepared by independent consulting firm NBS and contains a detailed 117
description of the analysis which serves as the basis for the committee’s recommendation. The Study is available online at www.CityOfAmericanCanyon.org/Water or can be reviewed in person at City Hall (4381 Broadway).

If adopted, the new rates would become effective with each customer's first billing period, which begins in May 2024. If adopted, the new rates would become effective with each customer's first billing period, which begins in May 2024. The first bills reflecting the new rates will not be received by customers until June 2024. Scheduled annual increases then occur in January each year through 2028.
118

HOW TO FILE A PROTEST AGAINST THE PROPOSED RATE CHANGES Any property owner of record whose property is subject to the proposed new rates for the City’s utility service fees may submit a written protest against the proposed rate increases. Only one written protest will be counted per identified parcel. To be valid, each written protest must:
• State that the identified property owner is in opposition to the proposed rate increases; • Provide the location of the identified parcel (by assessor’s parcel number, street address, or customer account); • Include the name and original signature of the property owner submitting the protest; and • If the person protesting was not shown on Napa County’s last equalized assessment roll as the property owner of record, provide written evidence that the person is the property owner (example: current copy of city services bill).

Written protests may be submitted by mail or in person to: City of American Canyon, Attention: City Clerk, 4381 Broadway, Suite 201 American Canyon, CA 94503. Any protest submitted via e-mail or other electronic means will not qualify as a written protest. Written protests may also be submitted at the public hearing (date and time noted above).

All written protests must be submitted to the City prior to the conclusion of the public comment portion of the public hearing.

At the public hearing, the City Council will accept and consider all written protests and hear all oral comments on the proposed rate increases. Oral comments at the public hearing will not qualify as formal protests unless accompanied by a written protest. At the conclusion of the public hearing, the City Council will consider adoption of the proposed changes as follows:
(1) If less than a majority of property owners or ratepayers file a protest, the City Council will consider increasing water rates, effective June 1, 2024.
119
(2) If a majority of affected property owners or ratepayers protest the increase before the conclusion of a required public hearing, the City is prohibited by law from increasing water rates.

Please note that there is a 120-day statute of limitations from the effective date of the resolution or ordinance adopting the rates to challenge any of the rates described herein. 120
nbsgov.com
Report for:

Sewer, Water, and Recycled Water Enterprise Rate
Studies
January 2024

121

TABLE OF CONTENTS

1. Purpose and Overview of the Study ................................................................................1

1.1 Purpose......................................................................................................................1

1.2 The City of American Canyon Background................................................................1

1.3 Overview of the Study...............................................................................................2

2. Water Rate Study ...........................................................................................................7

2.1 Key Water Rate Study Issues.....................................................................................7

2.2 Financial Plan.............................................................................................................7

2.3 Cost-of-Service Analysis ............................................................................................9

2.4 Characteristics of Water Customers by Customer Class.........................................11

2.5 Rate Design Analysis................................................................................................13

2.6 Proposed Water Rates ............................................................................................17

2.7 Comparison of Current and Proposed Water Bills..................................................18

2.8 Drought Rates..........................................................................................................20

3. Recycled Water Rate Study ........................................................................................... 22

3.1 Key Recycled Water Rate Study Issues....................................................................22

3.2 Recycled Water Utility Revenue Requirements......................................................22

3.3 Proposed Recycled Water Rates.............................................................................23

3.4 Current vs. Proposed Recycled Water Rates...........................................................23

4. Sewer Rate Study ......................................................................................................... 25

4.1 Key Sewer Rate Study Issues...................................................................................25

4.2 Financial Plan...........................................................................................................25

4.3 Cost-of-Service Analysis ..........................................................................................26

4.4 Rate Design Analysis................................................................................................28 122

4.5 Comparison of Current and Proposed Sewer Bills..................................................30

5. Recommendations and Next Steps................................................................................ 32

5.1 Consultant Recommendations................................................................................32

5.2 Next steps................................................................................................................32

5.3 NBS’ Principal Assumptions and Considerations ....................................................32 Technical Appendices .......................................................................................................... 33 Appendix A. Water Rate Study Tables and Figures................................................................ 34 Appendix B. Recycled Water Rate Study Tables and Figures ................................................. 87 Appendix C. Sewer Rate Study Tables and Figures.............................................................. 109 123

TABLE OF FIGURES
Figure 1. Primary Components of a Rate Study ................................................................................................. 3 Figure 2. Summary of Water Revenue Requirements........................................................................................ 9 Figure 3. Summary of Primary Water Reserve Funds......................................................................................... 9 Figure 4. Allocation Percentages of Revenue Requirements .......................................................................... 11 Figure 5. Allocated Net Revenue Requirements .............................................................................................. 11 Figure 6. Water Consumption by Customer Class............................................................................................ 12 Figure 7. Capacity Factors by Customer Class.................................................................................................. 12 Figure 8. Number of Meters by Customer Class............................................................................................... 13 Figure 9. Hydraulic Capacity Factors ................................................................................................................ 14 Figure 10. Equivalent Meters .......................................................................................................................... 14 Figure 11. Calculation of Fixed Service Charges (Residential) ......................................................................... 15 Figure 12. Summary of Supply Sources Allocated to Tiers............................................................................... 15 Figure 13. Allocated Consumption from Each Source of Supply ...................................................................... 16 Figure 14. Tier Breakpoints for Residential Customers.................................................................................... 16 Figure 15. Tiered Rates for FY 2023/24 ............................................................................................................ 16 Figure 16. Uniform Tier Rates for FY 2023/24.................................................................................................. 17 Figure 17. Current and Proposed Water Rates................................................................................................. 18 Figure 18. Monthly Water Bill Comparison for Residential Customers............................................................ 19 Figure 19. Monthly Water Bill Comparison for Commercial Customers.......................................................... 19 Figure 20. Expenses Directly Impacted by Conservation ................................................................................. 20 Figure 21. Projected Consumption at Baseline and Each Successive Drought Stage....................................... 21 Figure 22. Proposed Drought Rates.................................................................................................................. 21 Figure 23. Summary of Recycled Water Revenue Requirements..................................................................... 22 Figure 24. Summary of Recycled Water Revenue Requirements for FY 2023/24............................................ 23 Figure 25. Recycled Water Fixed Rate Calculation ........................................................................................... 23 Figure 26. Recycled Water Variable Rate Calculation ...................................................................................... 23 Figure 27. Current and Proposed Recycled Water Rates ................................................................................. 24 Figure 28. Summary of Wastewater Revenue Requirements.......................................................................... 26 Figure 29. Summary of Sewer Reserve Funds.................................................................................................. 26 Figure 30. Allocation of Revenue Requirements by Customer Class ............................................................... 27 Figure 31. Development of the Flow Allocation Factor.................................................................................... 28 Figure 32. Development of the Customer Allocation Factor............................................................................ 28 Figure 33. Current vs. Proposed Sewer Rates ................................................................................................. 29 Figure 34. Single Family Sewer Bill Comparison............................................................................................... 30 Figure 35. Multi-Family Residential Sewer Bill Comparison............................................................................. 30 Figure 36. Commercial Sewer Bill Comparison................................................................................................. 31 124
Enterprise Rate Study – City of American Canyon
Prepared by NBS – January 2024 1

1. Purpose and Overview of the Study

1.1 Purpose
The City of American Canyon (City) retained NBS to conduct a comprehensive rate study for its water, recycled water, and sewer enterprise funds. The City had a number of objectives and goals in mind for this study including meeting revenue requirements, reviewing current rate structures based on recent consumption data, funding capital improvements and changes in costs, and complying with certain legal requirements (e.g., California Constitution Article XIII D, Section 6, which is commonly referred to as Proposition 218 [Prop 218]). The City’s broader objectives in this study include ensuring adequate funding for operating and capital costs, maintaining reasonable reserves, ensuring revenue stability in utility rates, and developing new recycled water and drought rates to reflect the revenue requirements at various stages of water conservation. The rates resulting from this study were developed in a manner that is consistent with industry standard cost-of-service principles. In addition to documenting the rate study methodology, this report is provided with the intent to assist the City in its continuing effort to maintain transparent communications with the residents and community it serves.

In developing new rates for the City’s enterprise funds, NBS worked cooperatively with City staff and the City Council (Council) in selecting the appropriate rate alternatives that address the City’s goals and objectives. Based on input provided by City staff, NBS proposes the rates summarized in this report. The Council has the final decision regarding the adoption of the proposed rates and whether to proceed with the Proposition 218 approval process.

1.2 The City of American Canyon Background
The City of American Canyon was incorporated in 1992 and is located in southern Napa County about thirtyfive miles northeast of San Francisco.

WATER UTILITY
The City provides potable water service to approximately 6,825 metered customers. Of these potable water customers, residential customers represent approximately 90%, including single-family and multi-family users. Recent consumption records indicate that residential households use 59% of total water sold compared to all other non-residential customers who use the remaining 41%. The City’s existing potable water system includes treatment, storage, pumping, and distribution infrastructure serving residential, industrial, commercial, and agricultural customers.1
The City relies on several sources of water to meet its needs including water from the State Water Project, water from the cities of Vallejo and Napa, and recycled water produced at the City’s Water Reclamation Facility (WRF). The primary source of water is from the State Water Project (61%) via the North Bay Aqueduct, while the remaining supply consists of treated water from the cities of Vallejo and Napa as well as raw water from the City of Vallejo. The City has also partnered with the Sites Reservoir Project in 2017 to construct an off-river reservoir that will capture excess water from major storms that can be utilized during drier periods. This project is in the final stages of environmental review. 1 Source: https://www.cityofamericancanyon.org/ home/showpublisheddocument/17957. 125
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RECYCLED WATER UTILITY
The City owns and operates a complementary water and wastewater utility infrastructure that includes water reclamation and water reuse within the City limits. The current area served with recycled water is approximately 5 square miles with an overall potential service area of over 14 square miles, including potential customers within Napa County just outside City limits along the northern boundary.2 The City currently serves public schools, public parks, industrial, commercial, and agricultural users, and produces approximately 80 million gallons of recycled water each year primarily for outdoor use. The City provides recycled water service to 76 customers.

Using recycled water for irrigation saves electricity, using one quarter of the energy needed to pump groundwater, and dramatically reduces the consumption of potable water. The additional treatment of wastewater at the reclamation plant also reduces nitrates which could otherwise impact the groundwater basin. As with reclaimed water providers throughout California, the City’s recycled water rates tries to be competitive with other sources of irrigation water while ideally recovering basic operating costs.

SEWER UTILITY
The City currently provides sewer service to customers located within the City limits, as well as the Airport Industrial Area and a few areas within the unincorporated County area. The City completed construction of the Water Reclamation Facility (WRF) in 2002 to treats domestic and industrial wastewater flows.

Currently, the sewer utility services approximately 6,100 connections; the vast majority (77%) of which are single-family residential users. The remainder of the customers are primarily multi-family residential users (21%) and a handful of commercial and industrial users (3%). The current area served is approximately 6.3 square miles with an overall potential service area of over 8.5 square miles and includes approximately 53 miles of sewer mains, five pump stations, and 5 miles of sewer force main.3

1.3 Overview of the Study
Comprehensive rate studies, such as this one, typically include three components: (1) preparation of a financial plan that identifies the net revenue requirements for the utility; (2) analysis of the cost to serve each customer class, and (3) the rate structure design. These steps are shown in Figure 1 and are intended to follow industry standards. They reflect the fundamental principles of cost-of-service rate making embodied in the American Water Works Association’s (AWWA) Principles of Water Rates, Fees, and Charges,
4 also referred to as Manual M1 for water rates and the Water Environment Federation’s (WEF) Financing and Charges for Wastewater Systems, Manual of Practice No. 275 or sewer rates. They also address requirements under Proposition 218 that rates do not exceed the cost of providing the service and be proportionate to the cost of providing service for all customers. In terms of the chronology of the study, these three steps represent the order in which they were performed in this Study.
2 Source: https://www.cityofamericancanyon.org/home/showpublisheddocument/9735. 3 Source: https://www.cityofamericancanyon.org/home/showpublisheddocument/9733. 4 Principles of Water Rates, Fees, and Charges, Manual of Water Supply Practices, Manual M1, American Water Works Association, 7
th Edition, 2017.
5 Financing and Charges for Wastewater Systems, Manual of Practice No. 27, Water Environment Federation, 4th Edition, 2018. 126
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Figure 1. Primary Components of a Rate Study
NBS projected revenues and expenditures, developed net revenue requirements, performed cost-of-service rate analyses, and developed new water, recycled water, and sewer rates for the City using this approach.

The following sections in this report present an overview of the methodologies, assumptions, and data used along with the financial plans and rates developed. Detailed tables and figures documenting the development of the proposed rates are provided in the Appendices.

The City provided NBS with the data necessary to conduct the study, including historical, current, and projected revenues and expenditures, number of customer accounts, and water consumption data along with other operational and capital cost information.

FINANCIAL PLAN
As a part of the rate study, NBS projected revenues and expenditures on a cash-flow basis for the next five (5) years. The amount of rate revenue required, that will allow reserves to be maintained at the recommended levels, is known as the net revenue requirement. As current rate revenue falls short of the net revenue requirement, rate adjustments - or more accurately, adjustments in the total revenue collected from rates - are recommended. This report presents an overview of the methodologies, assumptions, and data used along with the financial plan and proposed rates developed in this study.6

COST-OF-SERVICE ANALYSIS
The basic purpose of the cost-of-service analysis (COSA) is to fairly and equitably allocate costs to customer classes. The cost-of-service analysis consists of two major components: (1) the classification of expenses, and (2) the allocation of costs to customer classes. For example, a key task is the “classification” of the water revenue requirements into the following categories:
• Commodity related costs
• Recycled water related costs
• Capacity related costs
• Customer service related costs
• Fire Protection related costs
6 The complete financial plans are available in the Appendices. 127
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In addition, here are the categories used in the “classification” of the sewer revenue requirements :
• Flow related costs
• Strength related costs
• Customer service related costs
These cost allocation factors represent the types of cost allocations in the cost of service. Further details are discussed below and documented in the Appendices.

RATE DESIGN ANALYSIS
During the rate design phase of the study, NBS and City staff worked together to develop rate alternatives to meet the City’s objectives. It is important for the City to send proper price signals to its customers about the actual cost of providing service. This objective is typically addressed through both the magnitude of the rate adjustments and the rate structure design. In other words, both the amount of revenue collected and the way in which the revenue is collected from customers are important.

Several criteria are typically considered in setting rates and developing sound rate structures. The fundamentals of this process have been well documented in a number of rate-setting manuals, such as AWWA’s Manual M1. The foundation for evaluating rate structures is generally credited to James C.

Bonbright in Principles of Public Utility Rates,
7 which outlines pricing policies, theories, and economic concepts along with various rate designs. The following is a simplified list of the attributes of a sound rate structure:
• Rates should be easy to understand from the customer’s perspective. • Rates should be easy to administer from the utility’s perspective. • Rates should promote the efficient allocation of the resource. • Rates should be equitable and non-discriminating (i.e., cost based). • There should be continuity in the rate making philosophy over time. • Addressing other utility policies (e.g., conservation and economic development). • Rates should provide month-to-month and year-to-year revenue stability.

RATE STRUCTURE TERMINOLOGY
This section covers basic rate design criteria that NBS and City staff considered as a part of their review of the rate structure alternatives. One of the most fundamental points in considering rate structures is the relationship between fixed and variable costs. Fixed costs, such as debt service and personnel costs, typically do not vary with the amount of water consumed. In contrast, variable costs, such as the cost of purchased water, chemicals, and electricity, tend to change with the quantity of water sold. The vast majority of rate structures contain a fixed, or minimum, charge in combination with a volumetric charge. • Fixed Charges – Fixed charges can be called base charges, minimum monthly charges, customer charges, fixed meter charges, etc. Fixed charges for water utilities typically increase by meter 7 James C. Bonbright, Albert L. Danielsen, and David R. Kamerschen, Principles of Public Utility Rates, Arlington, VA: Public Utilities Report, Inc., Second Edition, 1988, pp. 383-384.
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size. For example, a customer with a 2-inch meter has a fixed meter charge that is more than five times greater than the typical residential customer based on the safe operating capacity of the meter.
8 Since a large portion of utility costs are typically related to meeting capacity requirements, individual capacity demands are important in establishing equitable rates for customers.
• Variable (Consumption-Based) Charges – In contrast to fixed charges, variable costs, such as purchased water, groundwater replenishment costs, and the cost of electricity used in pumping water and chemicals for treatment, tend to change with the quantity of water produced. For a water utility, variable charges are calculated based on a metered consumption per unit price (e.g., per 100 cubic feet, or HCF).
• Uniform (Single-Tier) Water Rates – There are significant variations in the basic philosophy of variable charge rate structure alternatives. Under a uniform (single tier) rate structure, the cost per unit does not change with consumption and, therefore, provides a simple and straightforward approach from the customer’s perspective and in terms of the City’s rate administration.
• Tiered Water Charges – In contrast to a uniform tier, a tiered (or inclining block) rate structure attempts to send a price signal to customers that the cost of water increases as more water is consumed and is considered to be a more conservation-oriented rate structure. Tiered water rates are encouraged by state law and regulatory mandates but are also intended to represent the higher costs for customers who contribute more to peak usage and place greater demands on the system. The types of higher costs reflected in the higher tiers may include:
• Conservation Program Costs - These are cost intended to encourage customers to eliminate inefficient and wasteful water use, and otherwise reduce consumption during peak periods.
• Purchased Water Costs - When consumption exceeds the amount of water rights the City is allocated, the City may incur additional costs for replacement water in order to meet that increased demand. That replacement water comes at a higher cost. • Energy Costs - During summer months, the City may pay more in electric charges to pump, treat, and deliver water, and have a higher percentage of its energy bill in higher electricity “tiers.”
• Higher Maintenance Costs - Peak periods tend to have higher number of service calls, capacity costs, and system maintenance issues when the water system is running at peak demand.

REGULATORY ISSUES
Drought and Water Conservation – On January 17, 2014, Governor Jerry Brown declared a State of Emergency throughout California due to severe drought conditions. On April 1, 2015, the Governor issued Executive Order B-29-15 mandating statewide water conservation of 25 percent. The specific conservation mandate for each community in California varied from 4 to 36 percent. Beginning in June 2016, 8 Principles of Water Rates, Fees, and Charges, Manual of Water Supply Practices, Manual M1, AWWA, 7th Edition, 2017, pp. 151- 152.
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communities like the City were allowed to “self-certify” that they had sufficient supply to meet customer demand for three years but were no longer mandated to achieve a specific conservation target.

While conservation is good from a supply and environmental standpoint, it places added financial pressure on the water utility. Consumption impacts both revenue and expenses and with positive conservation efforts continuing to be a priority for the City, revenue declines could put the water utility at risk in the future without changes in the consumption charges. To help offset these risks, the drought rates proposed in this study account for various stages of water conservation to allow the City to continue meeting its financial obligations going forward. The drought rates would be intended to go into effect whenever the City declares it is in a specific stage of its adopted drought mitigation plan.

KEY FINANCIAL ASSUMPTIONS
The following is a summary of the key financial assumptions used in the analyses. The following capital and operational fund targets reflect input from City staff in order to meet specific utility objectives:
• Funding of Capital Projects – The capital improvement costs will be funded with a combination of cash in reserves and the additional revenue generated from the proposed rate increases.

The capital projects listed in the financial plan are from the City’s capital improvement plan.

The analysis assumes:
• Capital costs attributable to existing customers are funded by rate revenue. • Capital costs attributable to growth are funded through revenue from the capacity fee reserves.
• Reserve Targets – For each utility (i.e., water, recycled water, and sewer) the City maintains reserves for operations, capital, and other specific needs. The details of each utility’s reserve targets are covered in their respective section of this report. • Inflation and Growth Projections – Assumptions were made in the analysis with regard to cost inflation in order to project future revenues and expenses for the study period. The following inflation factors were used in the analysis:
• Customer growth is estimated at 1.80% per year.
• General cost inflation is set at 3.0% annually.
• Labor cost inflation is set at 3.5% annually.
• Energy cost inflation is set at 7.44% annually.
• Electricity cost inflation is set at 5.64% annually.
• Fuel & Utilities cost inflation is set at 5.24% annually. • Construction cost inflation is set at 3.5% annually.

These inflation factors are based on long-term trends; therefore, the City should re-examine these factors in another year to assess whether short-term trends are a better reflection of the costs going forward. 130
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2. Water Rate Study

2.1 Key Water Rate Study Issues
The City’s water rate analysis was undertaken with a few specific objectives, including:
• Generating sufficient revenue to meet anticipated operating and maintenance costs and fund necessary capital improvement projects for the next five years. • Continuing with a rate design that promotes revenue stability. • Developing drought rates.
• Verifying that the City’s tiered volumetric rates are cost of service based. • Encouraging water conservation with a tiered rate structure. • Maintaining adequate reserve levels to ensure continuity in operations. • Complying with the legal requirements of Proposition 218 to ensure the cost of providing service is properly allocated amongst user classifications.

NBS developed various water rate alternatives as requested by City staff over the course of this study. All rate structure alternatives relied on industry standards and cost-of-service principles. The fixed and volumebased charges were calculated based on the net revenue requirements, number of customer accounts, water consumption and estimated water discharge, and other relevant data provided by the City.

The following are the basic components included in this analysis:
• Developing Cost Allocations – The water revenue requirements were “functionalized” into five categories: (1) commodity (or volume-based) costs; (2) recycled water costs; (3) fixed capacity costs; (4) customer service costs; and (5) fire protection costs. These functionalized costs were then used to develop unit costs based on various factors, such as water consumption, peaking factors, and number of accounts by meter size.
• Determining Revenue Requirements by Customer Class – The total revenue that needs to be collected from each customer class was determined using the functional costs and allocation factors. For example, customer costs are allocated based on the number of meters, while volume-related costs are allocated based on the water consumption of each customer class.

Once the costs are allocated and the net revenue requirement for each customer class is determined, collecting the revenue requirements from each customer class is addressed within the rate design.
• Evaluating Rate Design (Fixed vs. Variable Charges) – The revenue requirements for each customer class are collected through a combination of fixed monthly service charges and volumetric rates. Based on direction from City staff, the rates proposed in this report will collect 40% of the rate revenue from the fixed charge and 60% from the variable charges.

2.2 Financial Plan
It is important for municipal utilities to not only collect sufficient revenues every year, but to also maintain reasonable reserves to handle emergencies, fund working capital, maintain a good credit rating, and generally follow sound financial management practices. Rate adjustments are governed by the need to 131
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meet operating and capital costs as well as maintain reasonable reserve funds. The current state of the City’s water utility, with regard to these objectives, is as follows:
• Meeting Net Revenue Requirements: For FY 2023/24 through FY 2027/28, the projected net revenue requirement (that is, total annual expenses plus debt service and rate-funded capital costs, less non-rate revenues) for the water system is approximately $13.4 million per year. The net revenue requirement includes interfund transfers for debt service and capital projects totaling $3.5 million annually and are expected to continue over the next five years. As a result, the water utility is financially sound and requires only minimal rate adjustments over the 5-year rate adoption period. However, it is important to note that the utility would be facing a deficit that would grow to $3.7 million by the end of this period if these contributions were to cease. • Building and Maintaining Reserve Funds: Reserve funds provide a basis for a utility to cope with fiscal emergencies, such as revenue shortfalls, asset failure, and natural disasters, among other events. Reserve policies provide guidelines for sound financial management, with an overall long-range perspective to maintain financial solvency and mitigate financial risks associated with revenue instability, volatile capital costs, and unexpected emergencies. • NBS along with City staff have chosen to set the following reserve targets:
• Operating Reserve equal to 90 days of operating and maintenance expenses, or approximately $1.9 million in FY 2023/24. An operating reserve is intended to promote financial viability in the event of any short-term fluctuation in revenues and/or expenditures, such as those caused by weather patterns, the natural inflow and outflow of cash during billing cycles, natural variability in demand-based revenue streams (e.g., volumetric charges), and - particularly in periods of economic distress - changes or trends in the age of receivables.
• Capital Rehabilitation & Replacement Reserve, at a minimum, should equal 3% of net capital assets, or approximately $1.9 million in FY 2023/24. This reserve is intended to be a cash resource set aside to address long-term capital system replacement and rehabilitation needs.
• Funding Capital Improvement Projects: The City must also be able to fund necessary capital improvements in order to maintain current service levels. City staff has identified roughly $20.2 million in expected capital expenditures for the next five years (FY 2023/24 through FY 2027/28) which is an average of $4 million in capital expenditures annually. Beyond FY 2027/28, an average of $4 million in capital expenditures is expected annually (future year value). With the recommended rate increases, these capital expenditures can be funded without draining existing reserves.
• Inflation and Growth Projections: Assumptions regarding cost inflation were made in order to project future revenues and expenses for the study period. Customer growth is expected to be nearly 1.80% annually. This factor was used in the analysis for some revenues and expenses, and all other inflation factors are based on the Consumer Price Index for all urban consumers in the San Francisco area.9
• Impact of Annual Rate Adjustment Date: The financial plan assumes that rate adjustments occur in January of each year. This means that only about half of the planned revenue to be 9 Website: https://www.bls.gov/cpi/.
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collected from the rate adjustment listed for one fiscal year will be collected in that year. For example, in Year 1, there is a 9.0% increase in rate revenue planned which means that the rates are developed to recover $10.3 million. However, due to the timing of when the rates will go into effect, the financial plan results in only $9.7 million in rate revenue that will be collected for FY 2023/24 due to the mid- year implementation.
• Figure 2 summarizes the sources and uses of funds, net revenue requirements, and the annual percent adjustments in total rate revenue recommended for the next 5 years.

Figure 2. Summary of Water Revenue Requirements
Figure 3 summarizes the projected reserve fund balances and reserve targets for the City’s unrestricted funds. A detailed version of the proposed 5-year financial plan is included in Appendix A. The tables in the appendix include the revenue requirement, reserve funds, revenue sources, proposed rate adjustments, capital improvement program, and the proposed rate adjustments needed to meet City’s funding requirements.

Figure 3. Summary of Primary Water Reserve Funds

2.3 Cost-of-Service Analysis
Once the net revenue requirements are determined, the cost-of-service analysis (COSA) proportionately distributes the revenue requirements to each of the customer classes. The COSA consists of two major components: (1) the classification of expenses, and (2) the allocation of costs to each customer class. Costs are classified corresponding to the function they serve. All costs in the City’s budget are allocated to each component of the rate structure in proportion to the level of service required by customers. The level of service is related to the volume and strength of the water treated, infrastructure capacity, and customer service. These costs are based on allocation factors, such as water consumption, number of meters, and Budget Projected
FY 2021/22 FY 2022/23 FY 2023/24 FY 2024/25 FY 2025/26 FY 2026/27 FY 2027/28 Sources of Water Funds
Rate Revenue Under Prevailing Rates $ 8,410,172 $ 9,606,729 $ 9,441,640 $ 9,611,590 $ 9,774,987 $ 9,941,161 $ 10,110,161 Non-Rate Revenues 664,001 485,241 473,600 482,125 490,321 498,656 507,134 Interest Earnings (212,625) 118,212 275,008 87,285 61,319 56,589 58,325 Total Sources of Funds $ 8,861,548 $ 10,210,182 $ 10,190,248 $ 10,180,999 $ 10,326,626 $ 10,496,407 $ 10,675,619 Uses of Water Funds
560 - Water Treatment Plant $ 1,483,133 $ 2,275,892 $ 2,088,189 $ 3,357,121 $ 2,228,382 $ 2,302,054 $ 2,378,221 565 - Water Distribution 991,284 1,343,387 1,536,149 1,586,987 1,639,520 1,693,803 1,749,895 50 - Public Works 1,356,080 316,973 366,768 378,613 390,854 403,506 416,582 Water Purchases 3,380,850 4,385,210 3,602,218 3,674,262 3,747,748 3,822,703 3,899,157 Non-Operating Expenses 1,263,894 1,507,202 2,206,123 2,207,963 2,171,674 2,237,313 2,304,938 Debt Service 523,735 744,109 820,140 823,637 1,468,278 2,523,408 3,014,261 Rate-Funded Capital Expenses 251,795 2,790,541 4,566,877 1,523,075 1,565,040 754,328 665,707 Total Use of Funds $ 9,250,771 $ 13,363,314 $ 15,186,464 $ 13,551,658 $ 13,211,497 $ 13,737,114 $ 14,428,761 Surplus (Deficiency) before Rate Increase $ (389,223) $ (3,153,132) $ (4,996,216) $ (3,370,659) $ (2,884,870) $ (3,240,707) $ (3,753,142) Additional Revenue from Rate Increases 1 - - 212,437 1,336,492 2,361,290 3,190,413 3,710,759 Surplus (Deficiency) after Rate Increase $ (389,223) $ (3,153,132) $ (4,783,779) $ (2,034,168) $ (523,580) $ (50,295) $ (42,383) Projected Annual Rate Increase 0.00% 0.00% 9.00% 9.00% 9.00% 4.00% 3.00% Cumulative Rate Increases 0.00% 0.00% 9.00% 18.81% 29.50% 34.68% 38.72% Net Revenue Requirement2 $ 8,799,395 $ 12,759,861 $ 14,393,795 $ 12,938,188 $ 12,610,375 $ 13,132,387 $ 13,813,821

1. Assumes new rates are implemented April 1, 2024.

2. Total use of funds less non-rate revenues and interest earnings.

Summary of Sources and Uses of Funds and
Net Revenue Requirements
5-Year Projected Rate Period
Budget Projected
FY 2021/22 FY 2022/23 FY 2023/24 FY 2024/25 FY 2025/26 FY 2026/27 FY 2027/28 Operating Reserve
Ending Balance $ 3,245,347 $ 6,423,257 $ 4,142,536 $ 2,278,487 $ 1,930,446 $ 2,055,691 $ 2,188,848 Recommended Minimum Target 1,803,000 2,080,000 1,898,000 2,249,000 2,002,000 2,056,000 2,111,000 Capital Rehabilitation & Replacement Reserve
Ending Balance $ 35,571 $ 4,217,199 $ 2,118,478 $ 2,079,900 $ 2,079,900 $ 2,079,900 $ 2,079,900 Recommended Minimum Target 1,420,700 1,548,600 1,870,900 2,079,900 2,260,500 2,370,700 2,458,100 Total Ending Balance $ 3,280,918 $ 10,640,455 $ 6,261,013 $ 4,358,387 $ 4,010,346 $ 4,135,591 $ 4,268,748 Total Recommended Minimum Target $ 3,223,700 $ 3,628,600 $ 3,768,900 $ 4,328,900 $ 4,262,500 $ 4,426,700 $ 4,569,100 Beginning Reserve Fund Balances and
Recommended Reserve Targets
5-Year Projected Rate Period
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customer class. Ultimately, a COSA is intended to result in rates that are proportional to the cost of providing service to each customer class.

FUNCTIONALIZATION AND CLASSIFICATION OF COSTS
Most costs are not typically allocated just to fixed or variable categories but allocated to multiple functions of water service. The functionalization and classification process provides the basis for allocating costs to various customer classes based on the cost causation (classification) components described below:
• Commodity related costs are costs associated with the change in the volume of water produced and delivered. These commonly include the costs of water quality testing, energy related to pumping for transmission and distribution, and source of supply. • Capacity related costs are costs associated with sizing facilities to meet the maximum, or peak, demand. This includes both operating costs and capital infrastructure costs incurred to accommodate peak system capacity events.
• Customer related costs are costs associated with having a customer connected to the water system, such as meter reading, postage, billing, and other administrative duties. • Recycled Water related costs are costs associated with the collection, treatment, and delivery of recycled water. Recycled water customers have separate fixed and volumetric rates which are discussed further in Section 3.
• Fire Protection related costs are costs associated with providing sufficient capacity in the system for fire meters and other operating and maintenance costs of providing water to properties for private fire service protection.
• The City’s budgeted costs were reviewed and allocated to these cost causation components which are used as the basis for establishing new water rates and translated to fixed and variable charges. Tables in the Appendices show how the City’s expenses were classified and allocated to these cost causation components. In the analysis, these cost causation components are also considered to be either fixed or variable.

FIXED AND VARIABLE COSTS
Ideally, utilities should recover all of their fixed costs from fixed charges and all of their variable costs from volumetric charges. When this is the case, fluctuations in water sales revenues would be directly offset by reductions or increases in variable expenses. When rates are set in this manner, they provide greater revenue stability for the utility. However, other factors are often considered when designing water rates, such as community values, water conservation goals, ease of understanding, and ease of administration.10 NBS functionalized the City’s costs into categories that can be more generally grouped into fixed and variable costs. This analysis resulted in a cost distribution that is approximately 56% fixed and 44% variable (i.e., volumetric or source specific). However, the City has decided on a rate structure that collects 40% of the net revenue requirement from fixed rates and 60% from volumetric charges. This rate structure will 10 Principles of Water Rates, Fees, and Charges, Manual of Water Supply Practices, Manual M1, AWWA, 7th Edition, 2017, pp. 6 and

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provide financial stability for the City, while maintaining a tiered rate structure that encourages water conservation. Proposed new rates are based on these allocations.

Figure 4 summarizes how costs are allocated to each cost component and used to establish new water rates. Figure 5 shows the resulting cost allocation to each cost classification component. The remaining revenue requirements are allocated to capacity, customer, and fire protection cost categories.

Figure 4. Allocation Percentages of Revenue Requirements Figure 5. Allocated Net Revenue Requirements

2.4 Characteristics of Water Customers by Customer Class Customer classes are typically determined by grouping customers with similar demand characteristics into categories that reflect the cost differentials to serve each type of customer. Customer classes are most often identified as single family, multi-family, commercial, landscape, etc., and the City follows this common methodology. The rates proposed in this report follow a similar structure where the fixed charges within each customer class vary by meter size. Variable rates are tiered (two tiers) for single family residential (SFR); all non-residential customers are charged a uniform volumetric rate. The only exception is that fire protection meters are subject to a different fixed charge by meter size that is less than the standard water meter charge.

The amount of consumption, the peaking factors, and the number of meters by size are used to allocate costs as a part of COSA to allocate costs to customer classes and determine the appropriate rate structures for each. These components of the COSA are presented in the following figures.

Commodity related costs are costs associated with the total annual consumption of water by customer class. Figure 6 below summarizes the most recent consumption data by customer class and represents the expected percent of consumption over the 5-year rate period.

Commodity-Related Costs $ 6,174,833 60.0%
Capacity-Related Costs 3,709,181 36.0%
Customer-Related Costs 300,640 3.0%
Fire Protection-Related Costs 106,734 1.0%
Net Revenue Requirement $ 10,291,388 100.0%
Classification Components
(40% Fixed / 60% Variable)
Cost-of-Service Net Revenue
Requirements (FY 2023/24)

VARIABLE
Residential $ 3,092,204 $ 1,565,159 $ 214,963 $ - $ 4,872,326 47.3% Multi-Family 546,290 1,777,034 56,075 - 2,379,400 23.1% Commercial 1,943,118 221,463 15,109 - 2,179,689 21.2%
Landscape 323,989 38,794 3,216 - 365,999 3.6%
Private Fire Protection 139,154 77,779 10,792 106,734 334,458 3.2% Temporary Hydrant Meters 50,606 16,254 352 67,213 0.7%
Raw Water 79,472 12,699 132 - 92,303 0.9%
Total Net Revenue Requirement $ 6,174,833 $ 3,709,181 $ 300,640 $ 106,734 $ 10,291,388 100% Customer Classes
Classification Components
Cost of Service
Net Rev. Req'ts
% of COS Net
Revenue Req'ts
FIXED
CommodityRelated CostsCapacity-Related
Costs
CustomerRelated CostsFire ProtectionRelated Costs
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Figure 6. Water Consumption by Customer Class
Figure 7 shows the capacity allocation factors for each customer class.

Figure 7. Capacity Factors by Customer Class
Development of the Volumetric/Variable Allocation Factor1 Customer Class
FY 2021/22
Consumption
(hcf)
% Adjustment for
Conservation2
Est. FY 2021/22
Volume Adjusted
for Conservation
FY 2021/22
% of Total
Volume
Residential 507,339 20.0% 405,871 50.1%
Multi-Family 89,630 20.0% 71,704 8.8%
Commercial 318,808 20.0% 255,046 31.5%
Landscape 53,157 20.0% 42,526 5.2%
Private Fire Protection 22,831 20.0% 18,265 2.3%
Temporary Hydrant Meters 8,303 20.0% 6,642 0.8%
Raw Water 13,039 20.0% 10,431 1.3%
Total 1,013,107 810,486 100%

1. Consumption data is based on the City of American Canyon's billing data.

2. A conservation factor of 20% included in table above based on the "20 by 2020" law passed in 2009.

Source: https://www.ca-ilg.org .

Customer Class Meter Size1 No. of Meters
Hydraulic
Capacity
Factors2
Total
Equivalent
Meters
% of EDUs
Residential 4,880 4,930 42.2%
< 1" meter 1,986 1.00 1,986
1" meter 2,875 1.00 2,875
1 1/2" meter 7 2.00 14
2" meter 9 3.20 29
3" meter 1 6.40 6
4" meter 2 10.00 20
Multi-Family 556 5,598 47.9%
1 1/2" meter 20 2.00 40
2" meter 201 3.20 643
3" meter 96 6.40 614
4" meter 48 10.00 480
6" meter 191 20.00 3,820
Commercial 343 698 6.0%
< 1" meter 102 1.00 102
1" meter 88 1.00 88
1 1/2" meter 54 2.00 108
2" meter 81 3.20 259
3" meter 11 6.40 70
4" meter 7 10.00 70
Landscape 73 122 1.0%
< 1" meter 13 1.00 13
1" meter 30 1.00 30
1 1/2" meter 14 2.00 28
2" meter 16 3.20 51
Private Fire Protection 245 245 2.1%
< 1" meter 245 1.00 245
Temporary Hydrant Meters 8 51 0.4%
3" meter 8 6.40 51
Raw Water 3 40 0.3%
4" meter 2 10.00 20
6" meter 1 20.00 20
Total 6,108 11,684 100%

1. Meter by class and size are based on June 2022 customer billing data.

2. Source: Principles of Water Rates, Fees, and Charges , Manual M1, AWWA, Table B-1. 136
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Figure 8 shows the number of meters for each customer class. The percentage of total customers by customer class is then used to develop the customer allocation factors in order to allocate customer costs.

Customer costs are those costs associated with having customers connected to the water system and include costs related to meter reading, postage, and billing.

Figure 8. Number of Meters by Customer Class

2.5 Rate Design Analysis
The process of evaluating the water rate structure provides the opportunity to review and incorporate ratedesign objectives and policies, including revenue stability, equity among customers, and water conservation. NBS discussed several water rate alternatives and methodologies with City Staff over the course of this study, such as the percentage of revenue collected from fixed vs. variable charges and differentiating rates by customer class. Ultimately, City staff selected a rate alternative that is similar to the results of the COSA that includes a fixed service charge based on customer class and meter size. The following sections describe this process. The selected rate structure also maintains the existing two tiers for single family residential customers and proposes a uniform tier for all other customer classes.

The following sections describe how the proposed water rates were developed.

DEVELOPMENT OF PROPOSED RATES
Fixed Service Charges
The fixed meter charge recognizes that the water utility incurs fixed costs regardless of whether customers actually use water. There are two components that comprise the fixed meter charge: (1) the customer component, and (2) the capacity component. The customer components are those costs related to reading and maintaining meters, customer billing and collection, and other customer service-related costs. The capacity component recovers costs associated with sizing the water system to ensure there is sufficient capacity in the system to meet peak demand. A user class with higher peaking (capacity) needs is allocated a proportionately higher share of the capacity related costs compared to customer classes with lower peaking needs.

Development of the Customer Allocation Factor
Customer Class
No. of
Meters/Accounts
FY 2021/221
% of Total Meters
Residential 4,880 71.5%
Multi-Family21,273 18.7%
Commercial 343 5.0%
Landscape 73 1.1%
Private Fire Protection 245 3.6%
Temporary Hydrant Meters 8 0.1%
Raw Water 3 0.0%
Total 6,825 100.0%

1. Meter count data is based on the City's billing data for June 2022.

2. Multi-family residential customers are by dwelling units. 137
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Meter sizes have different fixed charges based on their capacity requirements, where larger meters have the potential to use more of the system’s capacity11 or, said differently, they can have higher peaking factors compared to smaller meters. The potential capacity demanded (peaking) is proportional to the maximum hydraulic flow through each meter size based on the hydraulic capacity ratios established by AWWA.
12 The AWWA capacity ratios used for this report are shown in Figure 9.

Figure 9. Hydraulic Capacity Factors
The actual number of meters by size is multiplied by the corresponding capacity ratios to calculate equivalent meters. The number of equivalent meters is used as a proxy for the potential demand that each customer can place on the water system. Figure 10 summarizes the number of meters, the hydraulic capacity factors, and the number of equivalent meters (i.e., the number of meters multiplied by the hydraulic capacity factor) by customer class and meter size.

Figure 10. Equivalent Meters
Using the costs allocated to each customer class from Figure 5, Figure 11 shows the calculation of the fixed monthly service charges for all customer classes based on meter size. As previously mentioned, the customer service charge is calculated by dividing the customer service-related costs by the total number of meters, whereas the fixed capacity charge is calculated by dividing the capacity-related costs by the total number of equivalent meters for each meter size.
11 System capacity is the system’s ability to supply water to all delivery points at the time when demanded. 12 Principles of Water Rates, Fees and Charges, Manual of Water Supply Practices, Manual M1, AWWA, 7th Edition, 2017, p. 386.

Water Meters – Selection, Installation, Testing and Maintenance, Manual M6, AWWA, 5th Edition, 2012, pp. 63-65. 5/8 inch 20 1.00
3/4 inch 30 1.00
1 inch 50 1.00
1 1/2 inch 100 2.00
2 inch 160 3.20
3 inch 320 6.40
4 inch 500 10.00
6 inch 1,000 20.00
8 inch 1,600 32.00
10 inch 4,200 84.00
12 inch 5,300 106.00

1. Per AWWA, M1 Manual, Table B-1.

Compound Class I Meters
Turbine Class II Meters
Meter Capacity
(gpm)1
Meter Size Equivalency
to 1 inch
Displacement Meters
Standard Meters
< 1" meter 1" meter 1 1/2" meter 2" meter 3" meter 4" meter 6" meter 8" meter Residential 1,986 2,875 7 9 1 2 0 0 4,880
Multi-Family 0 0 20 201 96 48 191 0 556
Landscape 13 30 14 16 0 0 0 0 73
Commercial 102 88 54 81 11 7 0 0 343
Private Fire Protection 245 0 0 0 0 0 0 0 245
Temporary Hydrant Meters 0 0 0 0 8 0 0 0 8
Raw Water 0 0 0 0 0 2 1 0 3
Total Meters/Accounts 2,346 2,993 95 307 116 59 192 0 6,108 Hydraulic Capacity Factor 2 1.00 1.00 2.00 3.20 6.40 10.00 20.00 32.00 Total Equivalent Meters 2,346 2,993 190 982 742 590 3,840 0 11,684

1. Meter by Class and Size are based on June 2022 customer billing data.

2. Source: Principles of Water Rates, Fees, and Charges , Manual M1, AWWA, Table B-1.

Number of Meters by Class and Size Total 1 FY 2023/24
138
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Figure 11. Calculation of Fixed Service Charges (Residential) Volumetric Rates
Currently, the City uses a 2-tier rate structure for residential customers (i.e., single family customers), while all non-residential customers are charged a uniform, or single tier, volumetric rate. The following sections of this report describe how the tiered rates were developed.

Source of Supply
The City has three primary sources of supply: (1) State Water Project (SWP); (2) Cities of Napa and Vallejo treated water; and (3) City of Vallejo raw water. Figure 12 shows how these supply sources are allocated to each tier. A description of how this allocation was developed is included in Appendix A.

Figure 12. Summary of Supply Sources Allocated to Tiers Figure 13 shows the amount of each source of supply that is included in the tiers for residential customers. < 1" meter 1" meter 1 1/2" meter 2" meter 3" meter 4" meter 6" meter 8" meter Monthly Fixed Service Charges
Customer Costs ($/Acct/month) $4.10 $4.10 $4.10 $4.10 $4.10 $4.10 $4.10 $4.10 Capacity Costs ($/Acct/month) $27.22 $27.22 $54.43 $87.09 $174.19 $272.17 $544.33 $870.93 Total Monthly Meter Charge $31.32 $31.32 $58.53 $91.19 $178.29 $276.27 $548.43 $875.03 Annual Fixed Costs Allocated to Monthly Meter Charges
Customer Costs $ 300,640
Capacity Costs 3,815,915
Total Fixed Meter Costs $ 4,116,555
Annual Revenue from Monthly Meter Charges
Customer Charges $ 115,491 $ 147,298 $ 4,676 $ 15,111 $ 5,710 $ 2,904 $ 9,450 $ - $ 300,640 Capacity Charges $ 766,330 $ 977,381 $ 62,054 $ 320,851 $ 242,467 $ 192,693 $ 1,254,139 $ - $ 3,815,915 Total Revenue from Monthly Meter Charges $ 881,821 $ 1,124,680 $ 66,730 $ 335,961 $ 248,177 $ 195,597 $ 1,263,590 $ - $ 4,116,555 Number of Meters by Class and Size FY 2023/24 Total
139
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Figure 13. Allocated Consumption from Each Source of Supply Residential Tiered Rates
Before the tiered rates could be developed, expected consumption in each tier was determined, and tier breakpoints were established. The breakpoint for Tier 1 was set so that expected consumption within each tier would most closely match the allocated consumption by that source. That is, the amount of expected consumption in Tier 1 would correspond to the amount of water from SWP and the City of Vallejo (raw water) could supply. Similarly, expected consumption in Tier 2 corresponds to the amount of treated water supply from the cities of Napa and Vallejo.

For residential customers, the tier breakpoints were identified by first determining the quantity available in each tier (see Figure 13). Once the quantity of water by tier is determined, individual customer billing records are analyzed to determine what tier breakpoint would maximize the use of water in each tier. The resulting breakpoint was determined to be the 6 HCF as shown in Figure 14. The amount of estimated consumption in Tier 1 differs slightly from the allocated consumption due to the fact that monthly reads for all customers are not precise.

Figure 14. Tier Breakpoints for Residential Customers
Once the expected consumption by tier was determined, the expenses assigned to commodity-related costs, previously shown in Figure 4, were spread over the expected consumption resulting in the rates shown in Figure 15.

Figure 15. Tiered Rates for FY 2023/24
Uniform Rates
Expected consumption in the uniform tier accounts for the remaining amount of supply from all three water sources. Figure 16 identifies the uniform tier rate per unit of water for all non-residential customers.

In AF In HCF
SWP (Contracted Purchase) 3,590 1,563,804 81.5%
Vallejo Raw Water (Contracted Purchase) 500 217,800 11.4% Treated Water (Contracted Purchase)1 313 136,181 7.1%
Totals 4,403 1,917,785 100.0%
Source of Supply
Total Contracted Purchases Acre Feet as a
% of Total
Tier 1 - SWP & Vallejo Raw Water 322,836 79.5%
Tier 2 - Treated Water (Napa & Vallejo) 83,035 20.5%
Total 405,871 100.0% 7.0
% of
Consumption
Consumption
Avg. Monthly
Consumption
FY 2020/21 (hcf)
Tier
Breakpoint
(hcf)

6.00 Residential Tiers Source of Supply
Supply Costs Allocated
to Residential Tiered
Rates
Source of Supply
Costs
Other Costs
Allocated to Vol.

Rates
Total Costs
Allocated
FY 2020/21
Consumption
Residential Rates
($/HCF)
Residential Tiered Rate Costs (1) (2) (3) (4) (5) (6)
Tier 1 - SWP & Vallejo Raw Water 66.8% $ 716,792 $ 1,700,817 $ 2,417,610 406,110 $5.95 Tier 2 - Treated Water (Napa & Vallejo) 33.2% 356,039 844,816 1,200,856 201,720 $5.95 Total Residential Tiered Rate Costs 100.0% $ 1,072,831 $ 2,545,634 $ 3,618,465 607,830 140
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Figure 16. Uniform Tier Rates for FY 2023/24
The rate for each unit of water is determined by dividing costs to recover, or total target revenue requirements, per tier by the estimated consumption. The tiered rates per HCF are identified as follows:
• Residential Tier 1 is equal to the costs for water from the SWP and the raw water from the City of Vallejo.
• Residential Tier 2 is equal to the treated water costs for the cities of Napa and Vallejo. • Uniform Tier is equal to all remaining water supply costs not allocated to residential customers from SWP and the cities of Napa and Vallejo.

2.6 Proposed Water Rates
Currently, all customers are subject to a fixed service charge that varies by meter size and volumetric charges based on consumption for the various customer classes. The cost-of-service analysis (COSA) by nature “re-balances” how costs are allocated between customer classes and, as a result, there are uneven adjustments in the first year of the 5-year rate adoption period. In contrast, in the subsequent four years of the rate planning period, proposed charges are simply adjusted by the proposed adjustment in total rate revenue needed to meet projected revenue requirements.

Figure 17 provides a comparison of the current and proposed water rates for FY 2023/24 through 2027/28 for each customer class and meter size. Projected rates for FY 2023/2413 reflect adjustments based on the COSA. More detailed tables on the development of the proposed water rates are documented in Appendix A.
13 All rate adjustments are scheduled to be effective on January 1st except Year 1 which will be implemented on April 1, 2024.

Customer Classes
Number of
Meters1
Water
Consumption
(hcf/yr)2
Total Target
Rev. Req't from
Vol. Charges
% of Total Rate
Revenue
Uniform
Commodity
Rates ($/hcf)
Proposed Rate
Structure
Residential 4,880 405,871 $ 3,092,204 30.0% n/a 2 Tiers Multi-Family 1,273 71,704 546,290 5.3% $7.619 Uniform
Commercial 343 255,046 1,943,118 18.9% $7.619 Uniform
Landscape 73 42,526 323,989 3.1% $7.619 Uniform
Private Fire Protection 245 18,265 139,154 1.4% $7.619 Uniform Temporary Hydrant Meters 8 6,642 50,606 0.5% $7.619 Uniform Raw Water 3 10,431 79,472 0.8% $7.619 Uniform
Total Potable Water 6,825 810,486 $ 6,174,833 60%

1. Consumption data is based on the City of American Canyon's billing data.

2. Water consumption is actual consumption for FY 2021/22 and includes an adjustment of 20% for conservation. See Table 28. 141
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Figure 17. Current and Proposed Water Rates

2.7 Comparison of Current and Proposed Water Bills
Figure 18 and Figure 19 compare a range of monthly water bills under the current and proposed water rates for residential and commercial customers. These monthly bills are based on typical meter sizes and highlight the average consumption levels for each customer.

FY 2023/24 FY 2024/25 FY 2025/26 FY 2026/27 FY 2027/28
Monthly Fixed Service Charges (in $/mo)
Residential Use
< 1" meter $26.56 $31.32 $34.14 $37.21 $38.70 $39.86
1" meter $26.56 $31.32 $34.14 $37.21 $38.70 $39.86
1 1/2" meter $26.56 $58.53 $63.80 $69.55 $72.33 $74.50
2" meter $26.56 $91.19 $99.40 $108.35 $112.68 $116.06
3" meter $26.56 $178.29 $194.33 $211.82 $220.30 $226.91 4" meter $26.56 $276.27 $301.13 $328.23 $341.36 $351.60 6" meter $26.56 $548.43 $597.79 $651.59 $677.66 $697.99 8" meter $26.56 $875.03 $953.78 $1,039.63 $1,081.21 $1,113.65 Multi-Family, Commercial and Landscape
< 1" meter $26.56 $31.32 $34.14 $37.21 $38.70 $39.86
1" meter (Residential) $26.56 $31.32 $34.14 $37.21 $38.70 $39.86 1" meter (Commercial) $44.42 $31.32 $34.14 $37.21 $38.70 $39.86 1 1/2" meter $88.75 $58.53 $63.80 $69.55 $72.33 $74.50
2" meter $141.99 $91.19 $99.40 $108.35 $112.68 $116.06
3" meter $283.98 $178.29 $194.33 $211.82 $220.30 $226.91 4" meter $443.74 $276.27 $301.13 $328.23 $341.36 $351.60 6" meter $887.48 $548.43 $597.79 $651.59 $677.66 $697.99 8" meter $1,420.06 $875.03 $953.78 $1,039.63 $1,081.21 $1,113.65 Private Fire Protection
< 1" meter $13.28 $31.32 $34.14 $37.21 $38.70 $39.86
1" meter $13.28 $31.32 $34.14 $37.21 $38.70 $39.86
1 1/2" meter $13.28 $58.53 $63.80 $69.55 $72.33 $74.50
2" meter $13.28 $91.19 $99.40 $108.35 $112.68 $116.06
3" meter $13.28 $178.29 $194.33 $211.82 $220.30 $226.91 4" meter $13.28 $276.27 $301.13 $328.23 $341.36 $351.60 6" meter $13.28 $548.43 $597.79 $651.59 $677.66 $697.99 8" meter $13.28 $875.03 $953.78 $1,039.63 $1,081.21 $1,113.65 Temporary Hydrant Meters
< 1" meter $283.98 $31.32 $34.14 $37.21 $38.70 $39.86
1" meter $283.98 $31.32 $34.14 $37.21 $38.70 $39.86
1 1/2" meter $283.98 $58.53 $63.80 $69.55 $72.33 $74.50 2" meter $283.98 $91.19 $99.40 $108.35 $112.68 $116.06
3" meter $283.98 $178.29 $194.33 $211.82 $220.30 $226.91 4" meter $283.98 $276.27 $301.13 $328.23 $341.36 $351.60 6" meter $283.98 $548.43 $597.79 $651.59 $677.66 $697.99 8" meter $283.98 $875.03 $953.78 $1,039.63 $1,081.21 $1,113.65 Raw Water
< 1" meter n/a $31.32 $34.14 $37.21 $38.70 $39.86
1" meter $44.42 $31.32 $34.14 $37.21 $38.70 $39.86
1 1/2" meter n/a $58.53 $63.80 $69.55 $72.33 $74.50
2" meter $141.99 $91.19 $99.40 $108.35 $112.68 $116.06
3" meter n/a $178.29 $194.33 $211.82 $220.30 $226.91
4" meter $443.74 $276.27 $301.13 $328.23 $341.36 $351.60 6" meter $887.48 $548.43 $597.79 $651.59 $677.66 $697.99 8" meter n/a $875.03 $953.78 $1,039.63 $1,081.21 $1,113.65 Water Rate Schedule Current Proposed Rates
Rates
142
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Figure 18. Monthly Water Bill Comparison for Residential Customers Figure 19. Monthly Water Bill Comparison for Commercial Customers 143
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2.8 Drought Rates
The City is obligated to meet its annual net revenue requirements to keep the utility operating and functional regardless of whether consumption levels decline due to conservation or other unexpected events (e.g., unseasonal weather, natural disasters, etc.). At the request of the City, drought rates have been developed so that if total consumption should decrease further due to an increase in conservation required by the state, another regulatory agency, or if the City Council declares that it is in more severe drought stages, the City’s water utility would still be kept whole, financially. In the event that consumption decreases beyond projected baseline consumption levels, some costs will also decrease, and the proposed drought rates have taken this reduced revenue need into consideration.14 Figure 20 shows the expenses directly impacted by conservation over the next five years. Because these expenses are a significant portion of the City’s budget, drought rates will offset the loss of variable revenue, if needed and implemented by the City in different stages of drought severity.

Figure 20. Expenses Directly Impacted by Conservation
Figure 21 shows the calculation of the updated commodity costs for each percentage of conservation the City is looking to achieve with the drought rates for FY 2023/24. Figure 22 presents the proposed drought surcharge that would replace the uniform volumetric rate (shown in Figure 17) at each stage of conservation through FY 2027/28.

The projected monthly revenues should be based on the FY 2020/21 monthly consumption levels adjusted for conservation and the volumetric rate. Key aspects of the drought rates include:
• The drought surcharge was developed using water usage for FY 2020/21, the same assumption used in the proposed volumetric rates.
• The City Council must activate the drought rate surcharge. If the surcharge is activated, it will remain in effect as necessary and will be reviewed by the City Council at a minimum of every six (6) months for determination of necessity until the surcharge is deactivated. • The drought rate surcharge is added to the uniform volumetric rate on a per unit basis to cover the cost of water service during times of mandated conservation and/or extreme water supply shortage.
14 Details regarding the calculation of the drought rates can be found in Appendix A.

FY 2023/24 FY 2024/25 FY 2025/26 FY 2026/27 FY 2027/28
City of Napa $ 278,000 $ 283,560 $ 289,231 $ 295,016 $ 300,916 North Bay Aqueduct 3,203,000 3,267,060 3,332,401 3,399,049 3,467,030 City of Vallejo 121,218 123,642 126,115 128,638 131,210 Total: $ 3,602,218 $ 3,674,262 $ 3,747,748 $ 3,822,703 $ 3,899,157 Description
Commodity-Related Costs
144
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Figure 21. Projected Consumption at Baseline and Each Successive Drought Stage Figure 22. Proposed Drought Rates
Shortage Level
Percent
Shortage
Range
Potable Water
Consumption
(AF/yr.)
Potable Water
Consumption
(hcf/yr.)
Difference to
Baseline (hcf)
Baseline Consumption2 1,861 810,486 0
1 Up to 10% Voluntary Conservation 1,675 729,437 (81,049) 2 Up to 20% Water Alert 1,488 648,388 (162,097)
3 Up to 30% Water Emergency 1,302 567,340 (243,146)
4 Up to 40% Critical Water Emergency 1,116 486,291 (324,194) 5 Up to 50% Severe Water Emergency 930 405,243 (405,243) 6 >50% Catastrophic Interruption of Water Supplies 744 324,194 (486,291)

1. Drought stages based on the City's Water Conservation Plan. Source files: 2._Redlines_Ordinance_Water_Conservation_Plan_Chapter_13.14 (4).pdf & 3._Table_8-1_Water_Shortage_Contingency_Plan_Levels.pdf .

2. This represents the baseline consumption for FY 2021/22 consumption (excludes recycled water). Conservation percentage for each drought stage is relative to the baseline consumption.

Shortage Response Action
2021/22 Consumption Assumptions1
Drought Rate Schedule (in $/hcf) Current
Rates
FY 2023/24 FY 2024/25 FY 2025/26 FY 2026/27 FY 2027/28
10% Conservation n/a $7.97 $8.89 $9.90 $10.49 $11.00
20% Conservation n/a $8.41 $9.43 $10.56 $11.21 $11.78
30% Conservation n/a $8.98 $10.13 $11.41 $12.14 $12.77
40% Conservation n/a $9.73 $11.07 $12.54 $13.38 $14.10
50% Conservation n/a $10.79 $12.37 $14.12 $15.11 $15.95 60% Conservation n/a $12.38 $14.33 $16.49 $17.70 $18.74 145
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3. Recycled Water Rate Study

3.1 Key Recycled Water Rate Study Issues
Recycled water rates face a unique set of challenges in determining what rates should be charged.

Regardless of actual system costs, rates cannot exceed what the “market” can bear, or else recycled water customers will likely use alternative sources. This has often resulted in setting these rates arbitrarily low so that they do not exceed the costs of alternative sources (or exceed potable prices). Actual costs are also unclear because typically wastewater customers often benefit from reclaimed water as it tends to reduce wastewater disposal costs.

The primary issues addressed in this study for the recycled water system were: (1) ensuring rates generate a reasonable level of revenue to pay for operating costs of the system, and (2) establishing reasonable rates that are competitive with other sources of irrigation water while ideally recovering basic operating costs.

Currently, the City does not have separate fixed and volumetric charges for recycled water customers, so NBS worked with City staff to determine the appropriate cost allocations of sewer treatment and distribution costs that recycled water customers should pay. The following sections describe the results of this analysis.

3.2 Recycled Water Utility Revenue Requirements
A cost-of-service analysis was performed, and rates were designed to collect 80% of the rate revenue from variable rates and 20% from fixed rates. Recycled water connections represent about 1.1% of all the City’s meters. Figure 23 summarizes the sources and uses of funds, net revenue requirements, and the annual percent adjustments in total rate revenue recommended for the next 5 years, and Figure 24 summarizes the recycled water revenue requirements for FY 20203/24.

Figure 23. Summary of Recycled Water Revenue Requirements Projected
FY 2022/23 FY 2023/24 FY 2024/25 FY 2025/26 FY 2026/27 FY 2027/28 Sources of Water Funds
Rate Revenue Under Prevailing Rates $ 203,365 $ 207,000 $ 210,726 $ 214,308 $ 217,952 $ 221,657 Interest Earnings 3,468 22,343 2,195 7,873 4,912 2,640
Total Sources of Funds $ 206,833 $ 229,343 $ 212,921 $ 222,182 $ 222,864 $ 224,297 Uses of Water Funds
Fund 580 - Recycled Water Operations $ 874,700 $ 893,163 $ 797,921 $ 823,477 $ 849,857 $ 877,086 Interfund Loan Repayment - 198,566 198,566 267,497 267,497 267,497 Rate-Funded Capital Expenses - - - - - -
Total Use of Funds $ 874,700 $ 1,091,728 $ 996,487 $ 1,090,974 $ 1,117,354 $ 1,144,583 Surplus (Deficiency) before Rate Increase $ (667,867) $ (862,386) $ (783,566) $ (868,793) $ (894,490) $ (920,286) Additional Revenue from Rate Increases1 - 129,375 563,692 652,033 728,149 788,637 Surplus (Deficiency) after Rate Increase $ (667,867) $ (733,011) $ (219,874) $ (216,759) $ (166,341) $ (131,650) Projected Annual Rate Increase 0.00% 250.00% 10.00% 10.00% 5.00% 5.00% Cumulative Rate Increases 0.00% 250.00% 285.00% 323.50% 344.68% 366.91% Net Revenue Requirement2 $ 871,232 $ 1,069,386 $ 994,292 $ 1,083,101 $ 1,112,441 $ 1,141,943

1. Assumes new rates are implemented April 1, 2024.

2. Total use of funds less interest earnings.

Summary of Sources and Uses of Funds and
Net Revenue Requirements
5-Year Projected Rate Period
146
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Figure 24. Summary of Recycled Water Revenue Requirements for FY 2023/24

3.3 Proposed Recycled Water Rates
Fixed Charges
Fixed charges have been calculated in the same manner as potable water fixed charges. Figure 25 shows the calculation of the monthly fixed meter charges. In total, the fixed and variable charges collect the target revenue from recycled water customers as shown previously in Figure 24.

Figure 25. Recycled Water Fixed Rate Calculation
Given the amount of consumption relative to the number of meters in the recycled water system, it is expected that 80% of the rate revenue will be collected from the variable charge. Figure 26 calculates the volumetric rate per HCF and the fixed monthly charge per equivalent meter (monthly fixed charges will be based on meter size).

Figure 26. Recycled Water Variable Rate Calculation

3.4 Current vs. Proposed Recycled Water Rates
Using the same hydraulic capacity factors listed in Figure 9, monthly fixed charges were developed for each meter size. Figure 27 shows the current and proposed recycled water rates for FY 2023/24 through FY 2027/28. The self-haul rate was based on the current self-rate, then escalated at the same rate as the delivered recycled water.

Variable (Collected from Vol. Rates) $ 855,509 80%
Fixed (Collected from Fixed Charges) 213,877 20%
Net Revenue Requirement $ 1,069,386 100%
Recycled Water
Classification Components
Cost-of-Service Net Revenue
Requirements (2023/24)
Total
< 1" meter 1" meter 1 1/2" meter 2" meter 3" meter 4" meter 6" meter 8" meter Recycled Water
Recycled Water 2 13 14 28 13 6 0 0 76
Total Meters/Accounts 2 13 14 28 13 6 0 0 76
Hydraulic Capacity Factor 2 1.00 1.67 3.33 5.33 10.67 16.67 33.33 53.33 Total Equivalent Meters 2 22 47 149 139 100 0 0 458
Monthly Fixed Service Charges
Fixed Charge ($/EM/month)3 $38.89 $38.89 $38.89 $38.89 $38.89 $38.89 $38.89 $38.89 Fixed Monthly Charge $38.89 $64.81 $129.62 $207.40 $414.79 $648.11 $1,296.23 $2,073.96 Annual Fixed Costs Allocated to Monthly Meter Charges
Total Revenue from RW Meter Charges $ 933 $ 10,111 $ 21,777 $ 69,685 $ 64,708 $ 46,664 $ - $ - $ 213,877

1. Meter by Class and Size are based on June 2022 customer billing data.

2. Source: Principles of Water Rates, Fees, and Charges , Manual M1, AWWA, Table B-1.

3. Cost per month per equivalent meter. Monthly fixed charges are set for each meter size using the hydraulic capacity factors and total equivalent meters.

Number of RW Meters
by Class and Size1
FY 2023/24
Recycled Water
Recycled Water 127,857 458 100.0% $ 855,509 $ 213,877 $ 1,069,386 $6.69 $38.89 Total Net Revenue Requirement 127,857 458 100.0% $ 855,509 $ 213,877 $ 1,069,386 -- --

1. Number of meters by size times the hydraulic capacity factor for each meter size. Source: AWWA, Manual M1, Table B-1 & AWWA, Manual M6, Table 5-3.

2. Total Variable Costs times the proportional share of annual RW consumption.

3. Fixed costs times the percent of equivalent meters.

4. Total Variable Costs divided by Total Annual RW Consumption.

5. Total Fixed Costs divided by total Equivalent Meters. This provides the basis for monthly fixed charges for each meter size.

RW Fixed
Charges
($/Eq. Meter/
Month) 5
RW
Volumetric
Rate ($/hcf) No. of Equiv. 4
Meters
Equivalent Meters1
% of Equiv.

Meters
Recycled Water Customers
Cost Allocation Factors
Net Revenue
Req'ts
Annual RW
Consumption
Fixed
Costs3
Variable
Costs2
Cost Classifications
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Figure 27. Current and Proposed Recycled Water Rates
FY 2023/24 FY 2024/25 FY 2025/26 FY 2026/27 FY 2027/28
Monthly Fixed Service Charges (in $/mo)
< 1" meter $26.56 $38.89 $42.78 $47.05 $49.41 $51.88
1" meter $44.42 $64.81 $71.29 $78.42 $82.34 $86.46
1 1/2" meter $88.75 $129.62 $142.58 $156.84 $164.69 $172.92 2" meter $141.99 $207.40 $228.14 $250.95 $263.50 $276.67 3" meter $283.98 $414.79 $456.27 $501.90 $526.99 $553.34 4" meter $443.74 $648.11 $712.92 $784.22 $823.43 $864.60 6" meter $887.48 $1,296.23 $1,425.85 $1,568.43 $1,646.85 $1,729.20 8" meter $1,420.06 $2,073.96 $2,281.36 $2,509.49 $2,634.97 $2,766.71 Commodity Charges for All Water Consumed (in $/hcf)
Variable Charge $0.90 $6.69 $7.36 $8.10 $8.50 $8.93
Variable Charge - Self-Haul n/a $4.00 $4.41 $4.85 $5.09 $5.34 Recycled Water Rate Schedule Current
Rates
Proposed Rates
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4. Sewer Rate Study

4.1 Key Sewer Rate Study Issues
The City manages a wastewater system for approximately 6,150 customers within its service area. The City owns and operates the American Canyon Water Reclamation Facility (WRF) that collects and treats wastewater for both domestic and industrial customers. The City’s wastewater rate analysis was undertaken with a few specific objectives, including:
• Ensuring equity among customer classes by collecting rate revenue through the cost-of-service process based on both fixed monthly charges and volumetric rates. • Maintain adequate reserve levels to ensure continuity in operations. • Provide greater revenue stability for the utility, due to the level of capital investment planned over the next five years.
• Comply with Prop 218 requirements to ensure cost-of-service are properly allocated amongst user classifications.

4.2 Financial Plan
Similar to the water utility, it is important for the wastewater utility to ensure rates provide sufficient funding to cover operating and maintenance costs, planned capital expenditures, and maintain reasonable reserves. The wastewater utility’s rate increases are governed by these needs, and the current state of City’s wastewater utility is as follows:
• Meeting Net Revenue Requirements: For FY 2023/24 through FY 2027/28, the projected net revenue requirements (that is, total operating expenses plus rate-funded capital costs less nonrate revenues) for the City averages approximately $8.5 million, annually. If no rate adjustments are implemented, the City is projected to average a $3.3 million deficit each year. • Maintaining Reserve Funds: Reserve funds provide a basis for a utility to cope with fiscal emergencies such as revenue shortfalls, asset failure, and natural disasters, among other events. Reserve policies provide guidelines for sound financial management, with an overall long-range perspective to maintain financial solvency and mitigate financial risks associated with revenue instability, volatile capital costs, and emergencies. NBS recommends that the City target a minimum of approximately $2.5 million in unrestricted reserve funds over the 5-year period. The reserve funds for the sewer utility are considered unrestricted reserves and consist of the following:
• Operating Reserve should equal approximately 90 days of operating expenses, or approximately $1.8 million annually. An operating reserve is intended to promote financial viability in the event of any short-term fluctuation in revenues and/or expenditures. Fluctuations in revenue can be caused by weather patterns, the natural inflow and outflow of cash during billing cycles, natural variability in demand-based revenue streams (such as volumetric charges), and – particularly in periods of economic distress – changes or trends in age of receivables.
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• Capital Rehabilitation & Replacement Reserve should equal approximately 3% of net capital assets which is approximately $936,000 in FY 2023/24. This reserve is set aside to address long-term capital system replacement and rehabilitation needs.

Rate revenue increases will be needed throughout the 5-year rate adoption period in order to fully fund all operating expenses and planned capital projects as well as maintain reserves at the recommended targets.

Figure 28 summarizes the sources and uses of funds, net revenue requirements, and the recommended annual increases in wastewater rate revenue proposed for the next 5 years.

Figure 28. Summary of Wastewater Revenue Requirements
Figure 29 summarizes the projected reserve fund balances and reserve targets for the sewer utility’s unrestricted funds. A more detailed version of the utility’s proposed 5-year financial plan is included in Appendix C. The appendix tables include revenue requirements, reserve funds, revenue sources, proposed rate increases, and the City’s capital improvement program. As Figure 28 shows, given the proposed rate increases, reserves are well over the minimum target balances.

Figure 29. Summary of Sewer Reserve Funds

4.3 Cost-of-Service Analysis
Once the net revenue requirements are determined, the cost-of-service analysis (COSA) proportionately distributes the revenue requirements to each of the customer classes. COSA consists of the classification of expenses and then the allocation of those expenses to customer classes based on allocation factors, such as water consumption and number of equivalent dwelling units (EDUs), or accounts. Ultimately, a COSA is intended to result in rates that are proportional to the cost of providing service to each customer class.

Projected
FY 2022/23 FY 2023/24 FY 2024/25 FY 2025/26 FY 2026/27 FY 2027/28 Sources of Sewer Funds
Rate Revenue Under Prevailing Rates $ 4,953,527 $ 5,042,690 $ 5,128,416 $ 5,215,599 $ 5,304,264 $ 5,394,436 Additional Revenue from Rate Increases - 630,336 1,923,156 3,077,203 4,141,569 4,755,735 Total: Rate Revenue 4,953,527 5,673,026 7,051,572 8,292,802 9,445,833 10,150,172 Interest Earnings 18,883 120,000 22,911 22,211 24,657 21,576 Total: Sources of Funds $ 4,972,410 $ 5,793,026 $ 7,074,483 $ 8,315,013 $ 9,470,491 $ 10,171,748 Uses of Sewer Funds
Operating Expenses $ 6,723,898 $ 6,260,396 $ 6,503,425 $ 6,723,889 $ 9,410,800 $ 7,188,544 Rate-Funded Capital Expenses 3,201,161 2,573,447 197,942 1,111,368 14,992 2,230,867 Total: Use of Funds $ 9,925,058 $ 8,833,843 $ 6,701,367 $ 7,835,256 $ 9,425,791 $ 9,419,410 Projected Increases in Rate Revenue 0.00% 25.00% 20.00% 12.00% 12.00% 0.00% Cumulative Rate Increases 0.00% 25.00% 50.00% 68.00% 88.16% 88.16% Net Revenue Requirement1 $ 10,015,965 $ 8,830,324 $ 6,802,043 $ 7,935,240 $ 9,536,723 $ 9,541,748

1. Total Use of Funds less non-rate revenues and interest earnings. This is the annual amount needed from sewer rates.

Summary of Sources and Uses of Funds and
Net Revenue Requirements
5-Year Projected Rate Period Projected
FY 2022/23 FY 2023/24 FY 2024/25 FY 2025/26 FY 2026/27 FY 2027/28 Unrestricted Reserves
Operating Reserve
Ending Balance $ 1,988,288 $ 1,677,226 $ 1,626,000 $ 1,805,087 $ 1,579,529 $ 1,797,000 Recommended Minimum Target 1,681,000 1,565,000 1,626,000 1,681,000 2,353,000 1,797,000 Capital Rehabilitation & Replacement Reserve
Ending Balance $ 862,031 $ 882,962 $ 1,047,302 $ 1,088,664 $ 1,088,664 $ 1,341,869 Recommended Minimum Target 852,000 936,000 968,000 1,060,000 1,156,000 1,255,000 Total Ending Balance $ 2,850,319 $ 2,560,188 $ 2,673,302 $ 2,893,751 $ 2,668,194 $ 3,138,869 Total Recommended Minimum Target $ 2,533,000 $ 2,501,000 $ 2,594,000 $ 2,741,000 $ 3,509,000 $ 3,052,000 Beginning Reserve Fund Balances and 5-Year Projected Rate Period Recommended Reserve Targets
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CLASSIFICATION OF COSTS
As previously noted, costs are classified into the following categories: (1) flow-related costs; (2) strengthrelated costs (BOD and TSS); and (3) customer-related costs. Most costs are typically allocated to more than one of these categories. The City’s budgeted costs were reviewed and allocated to these basic categories which serve as the basis for calculating the fixed and variable charges. Tables in Appendix C show how the City’s expenses were classified and allocated to these cost-causation components.

Based on the City’s projected costs, the COSA resulted in a distribution that is approximately 90% fixed and 10% variable. Currently, the City’s rate structure collects 100% of the rate revenue from fixed charges for residential customers and either fixed or variable charges for commercial customers, depending on which is greater.

Figure 30 summarizes the allocation of the net revenue requirements to each cost causation component for the proposed rate structure. More detail on the development of the allocation factors that resulted in this summary will be covered in the following section.

Figure 30. Allocation of Revenue Requirements by Customer Class

CHARACTERISTICS OF CUSTOMERS BY CLASS
Customer classes are determined by combining customers with similar demand characteristics and types of use into categories that reflect the cost differentials to serve each type of customer. The most recent water consumption data was used to estimate the amount of flow that each customer class sends to the City’s Water Reclamation Facility (WRF). Volumetric charges for all customer classes were based on the average winter water consumption for the three lowest months of use.15 For non-residential customers that do not have typical (i.e., residential) effluent strengths, volumetric rates reflect both their estimated flow and the appropriate non-residential effluent strengths.

Figure 31 shows the development of the flow (or volume) allocation factors by customer class calculated by taking the lowest consecutive 3-month water usage for FY 2020/21 and annualizing the usage per customer class.
15 Lowest consecutive winter months are January through March 2021.

Volume BOD TSS Customer
Net Revenue Requirements 1 $ 630,336 $ 2,708,464 $ 2,708,464 $ 256,099 $ 6,303,363 --

10.0% 43.0% 43.0% 4.1% 100.0%
Residential Customers
All Other Customers $ 422,522 $ 1,818,832 $ 1,816,129 $ 195,975 $ 4,253,457 67.5% Multi-Family Residential 72,373 311,544 311,081 52,635 747,633 11.9% All Other Customers
Commercial $ 58,589 $ 432,359 $ 431,717 $ 7,365 $ 930,030 14.8% Industrial
Hess Collection Winery $ 4,365 $ 2,292 $ 1,148 $ 42 $ 7,847 0.1% AmCan Beverage (Coca-Cola) 54,715 104,539 94,572 42 253,867 4.0% Mezzetta Processing Facility 17,773 38,898 53,817 42 110,528 1.8% Total: $ 630,336 $ 2,708,464 $ 2,708,464 $ 256,099 $ 6,303,363 100%

1. Revenue requirement for each customer class is determined by multiplying the revenue requirement from each cost classification by the allocation factors for each customer class.
% of COS
Net Revenue
Reqts.

Customer Class
Cost Classification Components Cost-of-Service
Net Revenue
Reqts.
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Figure 31. Development of the Flow Allocation Factor
Determining Customer Class Effluent Strengths
Effluent strength factors for each customer class were estimated by using the Revenue Program Guidelines16 issued by the State Water Resources Control Board (SWRCB) as described below:
• Residential customers were assigned BOD and TSS strength factors of 175 mg/l which is within the normal range for residential users.
• Commercial customers were assigned BOD and TSS strength factors of 150 mg/l.

Figure 32 summarizes the development of the customer allocation factor.

Figure 32. Development of the Customer Allocation Factor

4.4 Rate Design Analysis
The process of evaluating the sewer rate structure provides the opportunity to incorporate a number of rate-design objectives and policies, including revenue stability, equity among customer classes, and water 16 Revenue Program Guidelines: Commercial User Strength Characteristics, State Water Resources Control Board, Appendix G, page G-21. Site: https://www.waterboards.ca.gov/publications_forms/publications/general/docs/srf_wastewater_facilities _b.pdf.

Customer Class1 Flow
MGD
BOD
mg/l
TSS
mg/l
BOD
lbs/day
TSS
lbs/day
Flow
MG
BOD
mg/l4
BOD
lbs
% of
Total
BOD
TSS
mg/l4
TSS
lbs
% of
Total TSS
Residential Customers
Single Family Residential 0.97 175 175 1,409 1,409 352 n/a 514,224 69.4% n/a 514,224 69.8% Multi-Family Residential 0.17 175 175 241 241 60 n/a 88,080 11.9% n/a 88,080 12.0% All Other Customers
Commercial 0.13 300 300 335 335 49 n/a 122,237 16.5% n/a 122,237 16.6% Industrial 5
Hess Collection Winery 0.01 50 30 4 2 4 8.6 260 0.0% 2.3 70 0.0% AmCan Beverage (Coca-Cola) 0.13 200 220 209 229 46 23.1 8,782 1.2% 5.3 1,998 0.3% Mezzetta Processing Facility 0.04 150 220 51 74 15 61.7 7,631 1.0% 81.2 10,035 1.4% Total: 1.44 2,248 2,291 526 741,214 100.0% 736,644 100.0%

1. Customer data provided by the City for FY 2021/22. Source file: FY 2021-22 Summary by Rate Code - Detailed v2.xlsx .

2. SFR, MFR, and Industrial customers are based on the number of dwelling units and all other customers are based on the number of accounts.

3. Annual consumption for all customer classes based on average winter water consumption.

4. Annual volume and strength factors provided by the City. Source file: SIU 2 year data.xlsx .

5. Flow for industrial customer is based on wastewater flow. Strength factors are based on input from City staff and lower than expected due to customers' pretreatment process. Source file: INF-001 & SIU Flow.xlsx.

Design Capacity Total Annual Volume
Customer Class
Number of
Dwelling Units /
Accounts1
Percent
of Total
Residential Customers
Single Family Residential 4,710 76.5%
Multi-Family Residential 1,265 20.6%
All Other Customers
Commercial 177 2.9%
Industrial1
Hess Collection Winery 1 0.0%
AmCan Beverage (Coca-Cola) 1 0.0%
Mezzetta Processing Facility 1 0.0%
Total: 6,155 100.0%

1. SFR, MFR, and Industrial customers are based on the number of dwelling units and all other customers are based on the number of accounts. 152
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conservation. The overall objective is to improve the fairness and equity of the rate design and ensure costs were being appropriately collected from each customer class. During the course of the study, NBS discussed several sewer rate alternatives and methodologies with City staff, such as the percentage of revenue collected from fixed vs. variable charges and differentiating rates by customer class. The proposed rates were developed based on input provided by City staff and the City Council.

FIXED CHARGES
The fixed charge recognizes that the sewer utility incurs fixed costs regardless of whether customers send any wastewater into the City’s collection system. There are three factors used to develop the fixed charge:
1) the number of dwelling units for residential customers; 2) the number of accounts for non-residential customers; and 3) the annual revenue requirement. The monthly fixed charge is calculated by taking the 90% fixed rate multiplied by the annual revenue requirement which is then divided by the number of dwelling units for residential customers and accounts for commercial customers and billing periods per year.

VARIABLE CHARGES
The variable charges, on the other hand, are calculated by taking the remaining 10% portion of the net revenue requirement in each customer class and dividing it by the estimated effluent volume produced based on annualized average winter water use for both residential and non-residential customer classes.

The proposed sewer rates in this study were developed with the goal of developing a new rate structure that consists of both a fixed and variable rate component based on the number of dwelling units or accounts (for customer-related costs) and the water consumption for all customer classes. Figure 33 compares the current and proposed rates for FY 2023/24 through FY 2027/28 by customer class. Projected rates for future years, with implementation date of April 1 in Year and then January 1 each year thereafter.

These rates reflect adjustments based on the following factors: 1) the cost-of-service analysis, 2) the 90% fixed and 10% variable rate design structure; and 3) the recommended annual percentage increases in rate revenue. More detailed tables on the development of the proposed rates are documented in Appendix C.

Figure 33. Current vs. Proposed Sewer Rates
FY 2023/24 FY 2024/25 FY 2025/26 FY 2026/27 FY 2027/28
Residential - Monthly Fixed Service Charges
Single Family Residential Per Dwelling Unit $60.48 $75.26 $90.31 $101.14 $113.28 $113.28 Multi-Family Residential Per Dwelling Unit $45.36 $49.25 $59.10 $66.19 $74.14 $74.14 Commercial Customers 3
Monthly Fixed Service Charge Per Account $60.48 $136.63 $163.95 $183.63 $205.66 $205.66 Volumetric Charge Per HCF $5.40 $2.45 $2.94 $3.29 $3.69 $3.69 Industrial Customers
Monthly Fixed Charge
Hess Collection Winery n/a $338 $405 $454 $508 $508
AmCan Beverage (Coca-Cola) n/a $15,836 $19,004 $21,284 $23,838 $23,838 Mezzetta Processing Facility n/a $4,584 $5,501 $6,161 $6,900 $6,900 Volumetric Charge
Hess Collection Winery n/a $1.04 $1.25 $1.40 $1.57 $1.57 AmCan Beverage (Coca-Cola) n/a $1.40 $1.68 $1.88 $2.11 $2.11 Mezzetta Processing Facility n/a $3.75 $4.50 $5.03 $5.64 $5.64

1. Sewer rates are set according to the average monthly water use for January to March of the previous calendar year. New customers are charged at the average winter water use rate (standard) and adjusted the following year if applicable.

2. The fixed charge includes a monthly customer charge per account.

3. Current rates for commercial customers are charged the higher of the fixed or variable rate. Proposed rates have both a fixed and volumetric charge per commercial customer.

Per 1,000 gal
sewage flow
Sewer Rate Schedule1,2 Description Current
Rates
Proposed Sewer Rates
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4.5 Comparison of Current and Proposed Sewer Bills
The following figures compare monthly sewer bills under current and proposed rates for various customers over the 5-year rate period.

Figure 34. Single Family Sewer Bill Comparison
Figure 35. Multi-Family Residential Sewer Bill Comparison 154
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Figure 36. Commercial Sewer Bill Comparison
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5. Recommendations and Next Steps

5.1 Consultant Recommendations
NBS recommends the City take the following actions:
• Approve and Accept this Study: NBS recommends the City Council formally approve and adopt this Study and its recommendations and proceed with the next steps outlined below to implement the proposed rates. This will provide documentation of the rate study analyses and the basis for analyzing potential changes to future rates. • Implement Recommended Levels of Rate Increases and Proposed Rates: Based on successfully meeting the Proposition 218 procedural requirements, the City should proceed with implementing the 5-year schedule of proposed rates (including drought rates) and rate increases previously shown in Figure 17, Figure 22, Figure 27, and Figure 33. This will help ensure the continued financial health of City’s utilities.

5.2 Next steps
Annually Review Rates and Revenue – Any time an agency adopts new utility rates or rate structures, those new rates should be closely monitored over the next several years to ensure the revenue generated is sufficient to meet the annual revenue requirements. Changing economic and water consumption patterns underscore the need for this review, as well as potential and unseen changing revenue requirements— particularly those related to environmental regulations that can significantly affect capital improvements and repair and replacement costs.

Note: The attached Technical Appendices provide more detailed information on the analysis of the financial plan, revenue requirements, cost-of-service, and the rate design analyses that have been summarized in this report.

5.3 NBS’ Principal Assumptions and Considerations
In preparing this report and the opinions and recommendations included herein, NBS has relied on a number of principal assumptions and considerations with regard to financial matters, conditions, and events that may occur in the future. This information and these assumptions, including the City’s budgets, capital improvement costs, customer accounts and consumption, and information from City staff were provided by sources we believe to be reliable, although NBS has not independently verified this data.

While we believe NBS’ use of such information and assumptions is reasonable for the purpose of this report and its recommendations, some assumptions will invariably not materialize as stated herein and may vary significantly due to unanticipated events and circumstances. Therefore, the actual results can be expected to vary from those projected to the extent that actual future conditions differ from those assumed by us or provided to us by others.
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Technical Appendices
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Appendix A. Water Rate Study Tables and Figures
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CITY OF AMERICAN CANYON Financial Plan & Reserve Summary

WATER RATE STUDY
Financial Plan and Reserve Projections
TABLE 1 : FINANCIAL PLAN AND SUMMARY OF REVENUE REQUIREMENTS Actuals Budget
FY 2021/22 FY 2022/23 FY 2023/24 FY 2024/25 FY 2025/26 FY 2026/27 FY 2027/28 FY 2028/29 FY 2029/30 FY 2030/31 FY 2031/32 FY 2032/33 Sources of Water Funds
Rate Revenue: 1
Water Sales - Meter Use Fees $ 8,362,554 $ 9,526,729 $ 9,360,200 $ 9,528,684 $ 9,690,671 $ 9,855,413 $ 10,022,955 $ 10,193,345 $ 10,366,632 $ 10,532,498 $ 10,701,018 $ 10,872,234 Water Sales - Metered Water 47,619 80,000 81,440 82,906 84,315 85,749 87,206 88,689 90,197 91,640 93,106 94,596 Non-Rate Revenue:

Grant - State/Local $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - Interest Earnings2 (212,625) 118,212 275,008 87,285 61,319 56,589 58,325 60,169 56,736 48,854 37,654 23,863 Miscellaneous Revenues 570,024 372,950 359,300 365,767 371,985 378,309 384,740 391,281 397,933 404,300 410,769 417,341 Late Penalties / Interest 93,977 112,291 114,300 116,357 118,335 120,347 122,393 124,474 126,590 128,615 130,673 132,764 Interfund Transfer In (Loan Repayment) - - 44,061 44,061 49,482 49,482 49,482 49,482 49,482 49,482 49,482 49,482 Total Sources of Funds $ 8,861,548 $ 10,210,182 $ 10,234,309 $ 10,225,060 $ 10,376,108 $ 10,545,889 $ 10,725,101 $ 10,907,439 $ 11,087,569 $ 11,255,388 $ 11,422,701 $ 11,590,279 Uses of Water Funds
Operating Expenses: 1
Water Operations:
560 - Water Treatment Plant $ 1,483,133 $ 2,275,892 $ 2,088,189 $ 3,357,121 $ 2,228,382 $ 2,302,054 $ 2,378,221 $ 2,456,970 $ 2,538,391 $ 2,622,580 $ 2,709,633 $ 2,799,651 565 - Water Distribution 991,284 1,343,387 1,536,149 1,586,987 1,639,520 1,693,803 1,749,895 1,807,858 1,867,753 1,929,647 1,993,606 2,059,700 50 - Public Works 1,356,080 316,973 366,768 378,613 390,854 403,506 416,582 430,096 444,064 458,500 473,420 488,842 Water Purchases 3,380,850 4,385,210 3,602,218 3,674,262 3,747,748 3,822,703 3,899,157 3,977,140 4,056,683 4,137,816 4,220,573 4,304,984 Subtotal: Water Supply & Distribution: Expenses: $ 7,211,347 $ 8,321,462 $ 7,593,324 $ 8,996,983 $ 8,006,504 $ 8,222,065 $ 8,443,854 $ 8,672,063 $ 8,906,891 $ 9,148,543 $ 9,397,232 $ 9,653,176 Non-Operating Expenses: 3
Transfer To General Fund 1,263,894 1,507,202 2,206,123 2,207,963 2,171,674 2,237,313 2,304,938 2,374,610 2,446,390 2,520,343 2,596,533 2,675,030 Subtotal: Non-Operating Expenses: $ 1,263,894 $ 1,507,202 $ 2,206,123 $ 2,207,963 $ 2,171,674 $ 2,237,313 $ 2,304,938 $ 2,374,610 $ 2,446,390 $ 2,520,343 $ 2,596,533 $ 2,675,030 Other Expenditures:

Existing Debt Service $ 523,735 $ 744,109 $ 820,140 $ 823,637 $ 1,468,278 $ 2,523,408 $ 3,014,261 $ 3,269,396 $ 3,287,122 $ 3,227,021 $ 3,128,082 $ 103,586 New Debt Service - - - - - - - - - - - -
Rate-Funded Capital Expenses 251,795 2,790,541 4,566,877 1,523,075 1,565,040 754,328 665,707 952,128 1,201,396 1,421,386 1,618,317 1,797,260 Subtotal: Other Expenditures $ 775,530 $ 3,534,650 $ 5,387,017 $ 2,346,712 $ 3,033,319 $ 3,277,736 $ 3,679,968 $ 4,221,524 $ 4,488,517 $ 4,648,407 $ 4,746,399 $ 1,900,846 Total Uses of Water Funds $ 9,250,771 $ 13,363,314 $ 15,186,464 $ 13,551,658 $ 13,211,497 $ 13,737,114 $ 14,428,761 $ 15,268,197 $ 15,841,798 $ 16,317,293 $ 16,740,164 $ 14,229,052 plus: Revenue from Rate Increases4 - - 212,437 1,336,492 2,361,290 3,190,413 3,710,759 3,981,564 4,049,251 4,114,039 4,179,863 4,246,741 Annual Surplus/(Deficit) $ (389,223) $ (3,153,132) $ (4,739,718) $ (1,990,107) $ (474,099) $ (813) $ 7,099 $ (379,194) $ (704,979) $ (947,866) $ (1,137,600) $ 1,607,968 Net Revenue Req't. (Total Uses less Non-Rate Revenue) $ 8,799,395 $ 12,759,861 $ 14,393,795 $ 12,938,188 $ 12,610,375 $ 13,132,387 $ 13,813,821 $ 14,642,792 $ 15,211,058 $ 15,686,042 $ 16,111,587 $ 13,605,603 Total Rate Revenue After Rate Increases $ 8,410,172 $ 9,606,729 $ 10,291,388 $ 11,419,530 $ 12,658,891 $ 13,389,056 $ 14,025,170 $ 14,263,598 $ 14,506,079 $ 14,738,176 $ 14,973,987 $ 15,213,571 Projected Annual Rate Revenue Increase 0.00% 0.00% 9.00% 9.00% 9.00% 4.00% 3.00% 0.00% 0.00% 0.00% 0.00% 0.00% Cumulative Increase from Annual Revenue Increases 0.00% 0.00% 9.00% 18.81% 29.50% 34.68% 38.72% 38.72% 38.72% 38.72% 38.72% 38.72% Debt Coverage After Rate Increase N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A

1. Revenue and expenses for FY 2021/22 through FY 2023/24 provided by the City. Revenues and expenses for all other years are escalated based on the forecasting assumptions located in Table 10. Source files: Fund 510 Water Operations.xlsx , FY2023-24 Exp Budget Water.xlsx , and Fund 510 - 580 FY 23-24 Budget Status as of 09-19-2023.xlsx .

2. Interest earnings for FY 2021/22 and FY 2022/23 are from the City's Budget. For all other years, it is calculated based on historical LAIF returns.

3. These expenses are from source file: 1 - Budget - Water.xlsx .

RATE REVENUE REQUIREMENTS SUMMARY
5-Year Projected Rate Period Projected
Prepared by NBS
www.nbsgov.com | Toll-free: 800.676.7516 Financial Plan, Page 1 of 48 159 CITY OF AMERICAN CANYON Financial Plan & Reserve Summary

WATER RATE STUDY
Financial Plan and Reserve Projections
1 <-- Select Financial Plan Scenario Here
Financial Plan Alternatives FY 2021/22 FY 2022/23 FY 2023/24 FY 2024/25 FY 2025/26 FY 2026/27 FY 2027/28 FY 2028/29 FY 2029/30 FY 2030/31 FY 2031/32 FY 2032/33 1 Alternative 1 - Full Cost Recovery Rate Increases1

0.00% 0.00% 9.00% 9.00% 9.00% 4.00% 3.00% 0.00% 0.00% 0.00% 0.00% 0.00% 2 Alternative 2 - Phased-in Rate Increases2

0.00% 0.00% 7.00% 7.00% 7.00% 7.00% 6.00% 0.00% 0.00% 0.00% 0.00% 0.00% 3 Alternative 3 - Minimal Rate Increases3

0.00% 0.00% 5.00% 5.00% 5.00% 5.00% 5.00% 0.00% 0.00% 0.00% 0.00% 0.00% 4 Alternative 4 - No Rate Increases 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%

1. Alternative 1: Scenario 1 - Rates needed to meet all revenue requirements and meet the target reserve levels (Large increase followed by smaller increases).

2. Alternative 2: Scenario 2 - Large increases phased In over two years, followed by smaller increases (Reserves drop below target level).

3. Alternative 3: Scenario 3 - Smaller increases (Reserves drop below target level).

TABLE 2 : RESERVE FUND SUMMARY
Actuals Projected
FY 2021/22 FY 2022/23 FY 2023/24 FY 2024/25 FY 2025/26 FY 2026/27 FY 2027/28 FY 2028/29 FY 2029/30 FY 2030/31 FY 2031/32 FY 2032/33 Unrestricted Reserve:

Total Beginning Cash1 $ 3,670,141 $ 13,667,530 $ 10,874,673 Operating Reserve
Beginning Reserve Balance $ 3,634,570 $ 13,667,530 $ 10,874,673 $ 4,142,536 $ 2,278,487 $ 1,930,446 $ 2,055,691 $ 2,188,848 $ 1,935,712 $ 1,356,792 $ 534,984 $ (476,558) Plus: Net Cash Flow (After Rate Increases) (389,223) (3,153,132) (4,739,718) (1,990,107) (474,099) (813) 7,099 (379,194) (704,979) (947,866) (1,137,600) 1,607,968 Plus: Transfer in of Debt Reserve Surplus - - - - - - - - - - - - Plus: Transfer in from Capital and Infrastructure Reserve - - - - - - - - - - - - Plus: Transfer in from Capacity Fee Reserve (Interfund Loan) - 126,058 126,058 126,058 126,058 126,058 126,058 126,058 126,058 126,058 126,058 - Less: Transfer out to Capital and Infrastructure Reserve - (4,217,199) (2,118,478) - - - - - - - - - Ending Operating Reserve Balance $ 3,245,347 $ 6,423,257 $ 4,142,536 $ 2,278,487 $ 1,930,446 $ 2,055,691 $ 2,188,848 $ 1,935,712 $ 1,356,792 $ 534,984 $ (476,558) $ 1,131,410 Target Ending Balance (90-days of O&M) 2 $ 1,803,000 $ 2,080,000 $ 1,898,000 $ 2,249,000 $ 2,002,000 $ 2,056,000 $ 2,111,000 $ 2,168,000 $ 2,227,000 $ 2,287,000 $ 2,349,000 $ 2,413,000 Capital Rehabilitation & Replacement Reserve
Beginning Reserve Balance $ 35,571 $ - $ - $ 2,118,478 $ 2,079,900 $ 2,079,900 $ 2,079,900 $ 2,079,900 $ 2,079,900 $ 2,079,900 $ 2,079,900 $ 2,079,900 Plus: Grant Proceeds - - - - - - - - - - - -
Plus: Transfer of Operating Reserve Surplus - 4,217,199 2,118,478 - - - - - - - - - Less: Transfer out to Operating Reserve - - - - - - - - - - - - Less: Use of Reserves for Capital Projects - - - (38,578) - - - - - - - - Ending Capital and Infrastructure Reserve Balance $ 35,571 $ 4,217,199 $ 2,118,478 $ 2,079,900 $ 2,079,900 $ 2,079,900 $ 2,079,900 $ 2,079,900 $ 2,079,900 $ 2,079,900 $ 2,079,900 $ 2,079,900 Target Ending Balance (3% of net assets) 3 $ 1,420,700 $ 1,548,600 $ 1,870,900 $ 2,079,900 $ 2,260,500 $ 2,370,700 $ 2,458,100 $ 2,548,200 $ 2,641,000 $ 2,736,700 $ 2,835,300 $ 2,937,000 Ending Balance - Excl. Restricted Reserves $ 3,280,918 $ 10,640,455 $ 6,261,013 $ 4,358,387 $ 4,010,346 $ 4,135,591 $ 4,268,748 $ 4,015,612 $ 3,436,692 $ 2,614,884 $ 1,603,342 $ 3,211,310 Min. Target Ending Balance -Excl. Restricted Reserves $ 3,223,700 $ 3,628,600 $ 3,768,900 $ 4,328,900 $ 4,262,500 $ 4,426,700 $ 4,569,100 $ 4,716,200 $ 4,868,000 $ 5,023,700 $ 5,184,300 $ 5,350,000 Ending Surplus/(Deficit) Compared to Reserve Targets $ 57,218 $ 7,011,855 $ 2,492,113 $ 29,487 $ (252,154) $ (291,109) $ (300,352) $ (700,588) $ (1,431,308) $ (2,408,816) $ (3,580,958) $ (2,138,690)

1. Beginning cash balances provided by City staff for Fund 510 - Water Operations. Source files: 4 - Current Cash and Fund Balance - Water 12062021.xlsx & Beg Fund Balance FY23- Water.xls .

2. The target ending balance is set equal to 90-days of O&M expenses. Source file: 4 - Current Cash and Fund Balance - Water 12062021.xlsx .

3. The target ending balance is set equal to 3% of net capital assets. See Exhibit 2 (CIP) for details. 5-Year Projected Rate Period

SUMMARY OF CASH ACTIVITY
Projected
Prepared by NBS
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WATER RATE STUDY
Financial Plan and Reserve Projections
TABLE 3 : RESERVE FUND SUMMARY, cont.

Actuals Projected
FY 2021/22 FY 2022/23 FY 2023/24 FY 2024/25 FY 2025/26 FY 2026/27 FY 2027/28 FY 2028/29 FY 2029/30 FY 2030/31 FY 2031/32 FY 2032/33 Restricted Reserve: 1
Capacity Fee Reserve
Beginning Reserve Balance $5,688,050 $6,284,390 $6,333,173 $ 6,397,366 $ 11,290,006 $ 9,761,564 $ 8,534,556 $ 7,552,200 $ 6,768,455 $ 6,145,989 $ 5,653,746 $ 5,267,306 Plus: Interest Earnings 77,699 157,110 158,329 87,388 154,221 133,343 116,582 103,163 92,457 83,954 77,230 71,951 Plus: Capacity Fee Revenue 1,252,878 332,954 1,662,778 7,785,325 915,300 930,860 946,685 962,778 979,146 994,812 1,010,729 1,026,901 Less: Transfer out to Operating Reserve (Interfund Loan) - (126,058) (126,058) (126,058) (126,058) (126,058) (126,058) (126,058) (126,058) (126,058) (126,058) - Less: Use of Reserves for Capital Projects - - (1,630,856) (2,854,016) (2,471,905) (2,165,153) (1,919,564) (1,723,628) (1,568,012) (1,444,951) (1,348,341) (1,273,232) Ending Connection Fee Fund Balance $ 7,018,626 $ 6,648,395 $ 6,397,366 $ 11,290,006 $ 9,761,564 $ 8,534,556 $ 7,552,200 $ 6,768,455 $ 6,145,989 $ 5,653,746 $ 5,267,306 $ 5,092,926 Target Ending Balance (3% of net assets) 3 $ 1,420,700 $ 1,548,600 $ 1,870,900 $ 2,079,900 $ 2,260,500 $ 2,370,700 $ 2,458,100 $ 2,548,200 $ 2,641,000 $ 2,736,700 $ 2,835,300 $ 2,937,000 Debt Reserve
Beginning Reserve Balance $ 1,151,405 $ 122,586 $ 125,651 $ 128,792 $ 130,551 $ 132,335 $ 134,142 $ 135,975 $ 137,832 $ 139,715 $ 141,623 $ 143,558 Plus: Reserve Funding from New Debt Obligations - - - - - - - - - - - - Plus: Interest Earnings 15,728 3,065 3,141 1,759 1,783 1,808 1,832 1,857 1,883 1,909 1,935 1,961 Less: Transfer of Surplus to Operating Reserve - - - - - - - - - - - - Ending Debt Reserve Balance $ 1,167,133 $ 125,651 $ 128,792 $ 130,551 $ 132,335 $ 134,142 $ 135,975 $ 137,832 $ 139,715 $ 141,623 $ 143,558 $ 145,519 Target Ending Balance $ 71,827 $ 72,068 $ 72,053 $ 71,580 $ 70,175 $ 66,417 $ 53,204 $ - $ - $ - $ - $ - Annual Interest Earnings Rate 2 1.37% 2.50% 2.50% 1.37% 1.37% 1.37% 1.37% 1.37% 1.37% 1.37% 1.37% 1.37%

1. The beginning cash balances provided by the City. Source file: 4 - Current Cash and Fund Balance - Water 12062021.xlsx , Beg Fund Balance FY23- Water.xls, & Beg Fund Balance FY23- Recycled Water.xls .

2. The target ending balance is set equal to 3% of net capital assets. See Exhibit 2 (CIP) for details.

3. Historical interest earning rates are per the average annual yields for funds invested in LAIF (2017-2021). The source is the California State Treasurer's website: https://www.treasurer.ca.gov/pmia-laif/historical/annual.asp .

SUMMARY OF CASH ACTIVITY
5-Year Projected Rate Period Projected
Prepared by NBS
www.nbsgov.com | Toll-free: 800.676.7516 Financial Plan, Page 3 of 48 161 CITY OF AMERICAN CANYON Charts & Tables

WATER RATE STUDY
Rate Adjustment Charts and Report Tables
CHART 1
$ mil.
$3 mil.
$5 mil.
$8 mil.
$10 mil.
$13 mil.
$15 mil.
$18 mil.
$20 mil.
2022 2023 2024 2025 2026 2027 2028
Annual Obligations
Fiscal Year Ending June 30
Water Revenue Requirements vs.

Revenue Under Existing and Increased Rates
Cash Funded Capital Expenses
Debt Service
O&M Expenses
Revenues under Existing Rates
Revenues under Increased Rates
Prepared by NBS
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WATER RATE STUDY
Rate Adjustment Charts and Report Tables
CHART 2
$.0 Mil.
$2.0 Mil.
$4.0 Mil.
$6.0 Mil.
$8.0 Mil.
$10.0 Mil.
$12.0 Mil.
2022 2023 2024 2025 2026 2027 2028
Fiscal Year Ending June 30
Ending Cash Balances vs.

Recommended Reserve Targets
Ending Cash Balance (Unrestricted Reserves) Minimum Target Reserve Balance Prepared by NBS
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WATER RATE STUDY
Rate Adjustment Charts and Report Tables
CHART 3

9.0% 9.0% 9.0%

4.0%

3.0%
0%
1%
2%
3%
4%
5%
6%
7%
8%
9%
10%
2024 2025 2026 2027 2028
Fiscal Year Ending June 30
Projected Increases to Rate Revenue
Prepared by NBS
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WATER RATE STUDY
Rate Adjustment Charts and Report Tables
CHART 4
$6.2 Mil
$4.4 Mil
$4.0 Mil
$2.9 Mil
$2.6 Mil
$2.7 Mil
$2.8 Mil
$2.9 Mil
$3.0 Mil
$3.1 Mil
$.0 Mil.
$1.0 Mil.
$2.0 Mil.
$3.0 Mil.
$4.0 Mil.
$5.0 Mil.
$6.0 Mil.
$7.0 Mil.
$8.0 Mil.
2024 2025 2026 2027 2028 2029 2030 2031 2032 2033
City of American Canyon
Capital Improvement Projects
5-Year Project Rate Period
Prepared by NBS
www.nbsgov.com | Toll-free: 800.676.7516 Charts and Tables, 7 of 48165 CITY OF AMERICAN CANYON Exhibit 1 - O&M

WATER RATE STUDY
Operating Revenue and Expenses
TABLE 4 : REVENUE FORECAST1
Actuals Budget
FY 2021/22 FY 2022/23 FY 2023/24 FY 2024/25 FY 2025/26 FY 2026/27 FY 2027/28 FY 2028/29 FY 2029/30 FY 2030/31 FY 2031/32 FY 2032/33 Rate Revenue
Water Service Charge - Potable 1 $ 8,362,554 $ 9,526,729 $ 9,360,200 $ 9,528,684 $ 9,690,671 $ 9,855,413 $ 10,022,955 $ 10,193,345 $ 10,366,632 $ 10,532,498 $ 10,701,018 $ 10,872,234 Water Service Charge - Raw 1 47,619 80,000 81,440 82,906 84,315 85,749 87,206 88,689 90,197 91,640 93,106 94,596 Other Revenue
Grant - State/Local 1 - - - - - - - - - - - -
Interest Earnings See FP (212,625) 118,212 - - - - - - - - - - Charges for Services 9 329,720 - - - - - - - - - - -
Miscellaneous Revenues 1 240,304 352,950 359,300 365,767 371,985 378,309 384,740 391,281 397,933 404,300 410,769 417,341 Late Penalties / Interest 1 93,977 112,291 114,300 116,357 118,335 120,347 122,393 124,474 126,590 128,615 130,673 132,764 Insurance Reimbursements 9 - 20,000 - - - - - - - - - - Fund Transfer In
Interfund Transfer In (Loan Repayment) 9 - - 44,061 44,061 49,482 49,482 49,482 49,482 49,482 49,482 49,482 49,482 Capacity Fee Revenue
Water Capacity Fees 1 1,252,878 332,954 1,662,778 7,785,325 915,300 930,860 946,685 962,778 979,146 994,812 1,010,729 1,026,901 Interest Earnings 1 114,219 282,378 50,000 50,900 51,765 52,645 53,540 54,450 55,376 56,262 57,162 58,077 TOTAL: REVENUE $ 10,228,645 $ 10,825,513 $ 11,672,079 $ 17,974,001 $ 11,281,855 $ 11,472,805 $ 11,667,002 $ 11,864,499 $ 12,065,355 $ 12,257,609 $ 12,452,939 $ 12,651,394 TABLE 5 : REVENUE SUMMARY
Actuals Budget
FY 2021/22 FY 2022/23 FY 2023/24 FY 2024/25 FY 2025/26 FY 2026/27 FY 2027/28 FY 2028/29 FY 2029/30 FY 2030/31 FY 2031/32 FY 2032/33 Rate Revenue
Water Service Charge - Potable $ 8,362,554 $ 9,526,729 $ 9,360,200 $ 9,528,684 $ 9,690,671 $ 9,855,413 $ 10,022,955 $ 10,193,345 $ 10,366,632 $ 10,532,498 $ 10,701,018 $ 10,872,234 Water Service Charge - Raw 47,619 80,000 81,440 82,906 84,315 85,749 87,206 88,689 90,197 91,640 93,106 94,596 Other Revenue
Grant - State/Local - - - - - - - - - - - -
Interest Earnings (212,625) 118,212 - - - - - - - - - - Miscellaneous Revenues 570,024 372,950 359,300 365,767 371,985 378,309 384,740 391,281 397,933 404,300 410,769 417,341 Late Penalties / Interest 93,977 112,291 114,300 116,357 118,335 120,347 122,393 124,474 126,590 128,615 130,673 132,764 Interfund Transfer In (Loan Repayment) - - 44,061 44,061 49,482 49,482 49,482 49,482 49,482 49,482 49,482 49,482 Capacity Fee Revenue
Water Capacity Fees 1,252,878 332,954 1,662,778 7,785,325 915,300 930,860 946,685 962,778 979,146 994,812 1,010,729 1,026,901 Interest Earnings 114,219 282,378 50,000 50,900 51,765 52,645 53,540 54,450 55,376 56,262 57,162 58,077 TOTAL: REVENUE $ 10,228,645 $ 10,825,513 $ 11,672,079 $ 17,974,001 $ 11,281,855 $ 11,472,805 $ 11,667,002 $ 11,864,499 $ 12,065,355 $ 12,257,609 $ 12,452,939 $ 12,651,394 Basis DESCRIPTION
DESCRIPTION Basis
5-Year Projected Rate Period Projected
5-Year Projected Rate Period Projected
Prepared by NBS
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WATER RATE STUDY
Operating Revenue and Expenses
TABLE 6 : OPERATING EXPENSE FORECAST1
Actuals Budget
FY 2021/22 FY 2022/23 FY 2023/24 FY 2024/25 FY 2025/26 FY 2026/27 FY 2027/28 FY 2028/29 FY 2029/30 FY 2030/31 FY 2031/32 FY 2032/33 Fund 510 - Water Operations
560 - Water Treatment Plant
Wages - Full time 3 $ 419,960 $ 650,026 $ 612,238 $ 633,667 $ 655,845 $ 678,800 $ 702,558 $ 727,147 $ 752,597 $ 778,938 $ 806,201 $ 834,418 Wages - Overtime 3 10,703 9,000 9,000 9,315 9,641 9,978 10,328 10,689 11,063 11,451 11,851 12,266 Health Insurance 3 73,246 98,213 95,546 98,890 102,351 105,933 109,641 113,478 117,450 121,561 125,815 130,219 Health-In-Lieu 3 - 7,200 9,690 10,029 10,380 10,743 11,119 11,509 11,911 12,328 12,760 13,206 Cafeteria Plan Section 125 3 15,149 22,812 24,587 25,448 26,338 27,260 28,214 29,202 30,224 31,282 32,377 33,510 Social Security & Medicare 3 6,835 9,861 9,374 9,703 10,042 10,394 10,757 11,134 11,524 11,927 12,344 12,776 Worker Comp Insurance 3 32,904 37,114 49,859 51,604 53,410 55,280 57,215 59,217 61,290 63,435 65,655 67,953 Benefits - Other 3 1,125 754 1,106 1,145 1,185 1,226 1,269 1,314 1,360 1,407 1,457 1,508 Info Tech Support Services 2 40,818 16,400 116,200 119,686 123,277 126,975 130,784 134,708 138,749 142,911 147,199 151,615 Professional Services 2 132,912 190,900 366,400 377,392 388,714 400,375 412,386 424,758 437,501 450,626 464,145 478,069 Temp Agency Services 2 - 1,000 - - - - - - - - - -
Misc Contractual Services 2 4,962 54,600 59,200 60,976 62,805 64,689 66,630 68,629 70,688 72,809 74,993 77,243 General Repairs & Maint 2 220,338 500,000 53,800 55,414 57,076 58,789 60,552 62,369 64,240 66,167 68,152 70,197 Advertising 2 4,908 2,000 6,000 6,180 6,365 6,556 6,753 6,956 7,164 7,379 7,601 7,829 Postage/Mail/Copy/Printing Svc 2 8,482 2,000 2,000 2,060 2,122 2,185 2,251 2,319 2,388 2,460 2,534 2,610 Membership Dues & Subscription 2 2,430 2,800 3,200 3,296 3,395 3,497 3,602 3,710 3,821 3,936 4,054 4,175 Conferences - Training 2 8,946 10,000 13,500 13,905 14,322 14,752 15,194 15,650 16,120 16,603 17,101 17,614 Rentals - Equipment/Space 2 4,305 17,500 3,700 3,811 3,925 4,043 4,164 4,289 4,418 4,551 4,687 4,828 Regulatory Compliance Permits 2 29,461 3,500 - - - - - - - - - - Office Supplies 2 2,929 4,000 25,000 25,750 26,523 27,318 28,138 28,982 29,851 30,747 31,669 32,619 Operating Supplies 2 347,712 460,250 488,400 503,052 518,144 533,688 549,699 566,189 583,175 600,670 618,691 637,251 Water Plant Membrane Filters 2 - - - 1,200,000 - - - - - - - - Utilities - Gas & Elec 5 61,656 88,273 73,000 77,116 81,465 86,059 90,912 96,038 101,454 107,175 113,218 119,603 Util-PhonesPgrsInternetCable 2 5,422 5,281 5,800 5,974 6,153 6,338 6,528 6,724 6,926 7,133 7,347 7,568 Major Equipment 2 15,000 - - - - - - - - - - -
Capital Outlay-Contra Account 9 (40,761) - - - - - - - - - - - PERS Retirement 3 73,689 82,408 60,588 62,708 64,903 67,175 69,526 71,959 74,478 77,085 79,783 82,575 Subtotal - Water Treatment Plant $ 1,483,133 $ 2,275,892 $ 2,088,189 $ 3,357,121 $ 2,228,382 $ 2,302,054 $ 2,378,221 $ 2,456,970 $ 2,538,391 $ 2,622,580 $ 2,709,633 $ 2,799,651 DESCRIPTION Basis
5-Year Projected Rate Period Projected
Prepared by NBS
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WATER RATE STUDY
Operating Revenue and Expenses
TABLE 7 : OPERATING EXPENSE FORECAST, cont.1
Actuals Budget
FY 2021/22 FY 2022/23 FY 2023/24 FY 2024/25 FY 2025/26 FY 2026/27 FY 2027/28 FY 2028/29 FY 2029/30 FY 2030/31 FY 2031/32 FY 2032/33 565 - Water Distribution
Wages - Full time 3 $ 426,369 $ 450,085 $ 544,808 $ 563,876 $ 583,612 $ 604,038 $ 625,180 $ 647,061 $ 669,708 $ 693,148 $ 717,408 $ 742,517 Wages - Overtime 3 24,335 3,000 3,000 3,105 3,214 3,326 3,443 3,563 3,688 3,817 3,950 4,089 Health Insurance 3 43,356 84,864 110,792 114,670 118,683 122,837 127,137 131,586 136,192 140,959 145,892 150,998 Health-In-Lieu 3 14,200 - - - - - - - - - - -
Cafeteria Plan Section 125 3 21,165 21,222 27,459 28,420 29,415 30,444 31,510 32,613 33,754 34,936 36,158 37,424 Social Security & Medicare 3 7,057 6,834 8,298 8,588 8,889 9,200 9,522 9,855 10,200 10,557 10,927 11,309 Worker Comp Insurance 3 44,905 38,373 58,411 60,455 62,571 64,761 67,028 69,374 71,802 74,315 76,916 79,608 Benefits - Other 3 1,354 1,797 1,901 1,968 2,036 2,108 2,182 2,258 2,337 2,419 2,503 2,591 Info Tech Support Services 2 5,422 82,100 84,600 87,138 89,752 92,445 95,218 98,075 101,017 104,047 107,169 110,384 Professional Services 2 932 50,000 52,000 53,560 55,167 56,822 58,526 60,282 62,091 63,953 65,872 67,848 Misc Contractual Services 2 6,051 8,900 9,300 9,579 9,866 10,162 10,467 10,781 11,105 11,438 11,781 12,134 General Repairs & Maint 2 177,364 341,000 375,100 386,353 397,944 409,882 422,178 434,844 447,889 461,326 475,165 489,420 Reimbursable Repairs 2 - 20,000 20,000 20,600 21,218 21,855 22,510 23,185 23,881 24,597 25,335 26,095 Postage/Mail/Copy/Printing Svc 2 - 3,500 3,499 3,604 3,712 3,823 3,938 4,056 4,178 4,303 4,432 4,565 Membership Dues & Subscription 2 1,312 3,100 3,200 3,296 3,395 3,497 3,602 3,710 3,821 3,936 4,054 4,175 Conferences - Training 2 8,755 7,000 7,000 7,210 7,426 7,649 7,879 8,115 8,358 8,609 8,867 9,133 Rentals - Equipment/Space 2 5,206 13,000 13,000 13,390 13,792 14,205 14,632 15,071 15,523 15,988 16,468 16,962 Office Supplies 2 1,660 800 2,000 2,060 2,122 2,185 2,251 2,319 2,388 2,460 2,534 2,610 Operating Supplies 2 15,671 33,000 33,200 34,196 35,222 36,279 37,367 38,488 39,643 40,832 42,057 43,318 Water Meters 7 98,208 100,000 100,000 103,500 107,123 110,872 114,752 118,769 122,926 127,228 131,681 136,290 Util-PhonesPgrsInternetCable 5 3,960 3,673 4,100 4,331 4,575 4,833 5,106 5,394 5,698 6,019 6,359 6,717 Major Equipment 2 15,000 - - - - - - - - - - -
PERS Retirement 3 69,004 71,139 74,481 77,088 79,786 82,578 85,468 88,460 91,556 94,760 98,077 101,510 Subtotal -Water Distribution $ 991,284 $ 1,343,387 $ 1,536,149 $ 1,586,987 $ 1,639,520 $ 1,693,803 $ 1,749,895 $ 1,807,858 $ 1,867,753 $ 1,929,647 $ 1,993,606 $ 2,059,700 Basis
5-Year Projected Rate Period Projected DESCRIPTION
Prepared by NBS
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WATER RATE STUDY
Operating Revenue and Expenses
TABLE 8 : OPERATING EXPENSE FORECAST, cont.1
Actuals Budget
FY 2021/22 FY 2022/23 FY 2023/24 FY 2024/25 FY 2025/26 FY 2026/27 FY 2027/28 FY 2028/29 FY 2029/30 FY 2030/31 FY 2031/32 FY 2032/33 50 - Public Works
810 - Non Departmental
Wages - Full time 3 $ 113,357 $ 122,711 $ 128,293 $ 132,783 $ 137,430 $ 142,240 $ 147,219 $ 152,371 $ 157,704 $ 163,224 $ 168,937 $ 174,850 Wages - Overtime 3 954 - - - - - - - - - - -
Allowances 3 1,811 1,920 1,920 1,987 2,057 2,129 2,203 2,280 2,360 2,443 2,528 2,617 Health Insurance 3 18,856 19,929 21,244 21,987 22,757 23,553 24,378 25,231 26,114 27,028 27,974 28,953 Cafeteria Plan Section 125 3 4,227 3,919 4,312 4,463 4,619 4,781 4,948 5,122 5,301 5,486 5,678 5,877 Social Security & Medicare 3 1,747 1,864 2,038 2,109 2,183 2,259 2,338 2,420 2,505 2,592 2,683 2,777 Worker Comp Insurance 3 7,901 7,179 9,825 10,169 10,525 10,893 11,274 11,669 12,077 12,500 12,937 13,390 OPEB 3 80,835 32,051 47,537 49,201 50,923 52,705 54,550 56,459 58,435 60,480 62,597 64,788 Pension Expense 3 (223,456) - - - - - - - - - - -
Benefits - Other 3 1,371 - - - - - - - - - - -
Info Tech Support Services 2 - - 33,414 34,416 35,449 36,512 37,608 38,736 39,898 41,095 42,328 43,598 Professional Services 2 42,173 100,000 66,586 68,584 70,641 72,760 74,943 77,191 79,507 81,892 84,349 86,880 Postage/Mail/Copy/Printing Svc 2 - - 6,000 6,180 6,365 6,556 6,753 6,956 7,164 7,379 7,601 7,829 Bad Debt Expense 2 (11,826) - - - - - - - - - - -
Membership Dues & Subscription 2 425 2,500 2,600 2,678 2,758 2,841 2,926 3,014 3,105 3,198 3,294 3,392 Regulatory Compliance Permits 2 - - - - - - - - - - - - Services - Cash for Grass 2 17,463 10,000 30,000 30,900 31,827 32,782 33,765 34,778 35,822 36,896 38,003 39,143 Services - Toilet Rebates 9 5,300 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 Services - Washer Rebates 2 - - - - - - - - - - - -
Office Supplies 2 - 500 500 515 530 546 563 580 597 615 633 652 Operating Supplies 2 750 3,000 - - - - - - - - - -
Utilities - Water 5 2,155 1,401 2,500 2,641 2,790 2,947 3,113 3,289 3,474 3,670 3,877 4,096 City of Napa 8 178,426 200,000 278,000 283,560 289,231 295,016 300,916 306,934 313,073 319,335 325,721 332,236 North Bay Aqueduct 8 2,142,501 2,000,000 3,203,000 3,267,060 3,332,401 3,399,049 3,467,030 3,536,371 3,607,098 3,679,240 3,752,825 3,827,881 City of Vallejo 8 1,059,922 2,185,210 121,218 123,642 126,115 128,638 131,210 133,834 136,511 139,241 142,026 144,867 AC Recycled Water 2 10,000 -
Depreciation 2 1,282,037 -
Transfer to Gen Fund Support Sv 2 766,412 918,214 1,124,203 1,157,929 1,192,667 1,228,447 1,265,300 1,303,259 1,342,357 1,382,628 1,424,107 1,466,830 Transfer To General Fund - Oth 9 57,195 60,000 160,000 100,000 - - - - - - - - Retiree Health Benefits 3 60,100 48,831 74,980 77,605 80,321 83,132 86,042 89,053 92,170 95,396 98,735 102,191 PERS Retirement 3 17,037 16,089 16,257 16,826 17,415 18,024 18,655 19,308 19,984 20,683 21,407 22,156 ISF - Bldg Maint 2 77,400 218,944 325,219 334,976 345,025 355,376 366,037 377,018 388,328 399,978 411,978 424,337 ISF - Fleet 2 238,950 178,643 354,173 364,798 375,742 387,014 398,625 410,584 422,901 435,588 448,656 462,115 ISF - Info Tech 2 18,000 44,874 54,709 56,350 58,041 59,782 61,575 63,423 65,325 67,285 69,304 71,383 ISF - Legal Services 2 28,800 21,607 96,582 99,479 102,464 105,538 108,704 111,965 115,324 118,784 122,347 126,018 Subtotal - Non Departmental $ 6,000,824 $ 6,209,385 $ 6,175,109 $ 6,260,838 $ 6,310,276 $ 6,463,522 $ 6,620,677 $ 6,781,846 $ 6,947,136 $ 7,116,658 $ 7,290,526 $ 7,468,856 TOTAL: WATER OPERATIONS EXPENSES $ 8,475,241 $ 9,828,665 $ 9,799,447 $ 11,204,947 $ 10,178,178 $ 10,459,378 $ 10,748,792 $ 11,046,673 $ 11,353,281 $ 11,668,886 $ 11,993,765 $ 12,328,206 TABLE 9 : OPERATING EXPENSE FORECAST, cont.1(for information only) Actuals Budget
FY 2021/22 FY 2022/23 FY 2023/24 FY 2024/25 FY 2025/26 FY 2026/27 FY 2027/28 FY 2028/29 FY 2029/30 FY 2030/31 FY 2031/32 FY 2032/33

CAPITAL PROJECTS
Intra-fund Transfer Out Water 7 $ 89,642 $ 85,675 $ 2,038,185 $ 2,109,521 $ 2,183,355 $ 2,259,772 $ 2,338,864 $ 2,420,724 $ 2,505,450 $ 2,593,141 $ 2,683,900 $ 2,777,837 Intra-fund Transfer Out Recycled 7 - - 120,000 124,200 128,547 133,046 137,703 142,522 147,511 152,674 158,017 163,548 Misc. Contractual Services (Dept 450) 2 400,000 50,000 - - - - - - - - - - Transfer Cap Projs Fund - Gen 7 - - 596,000 616,860 638,450 660,796 683,924 707,861 732,636 758,278 784,818 812,287 Transfer Cap Proj - Water 7 - - - - - - - - - - - -
Transfer Cap Proj - Wastewater 7 (155,893) 412,280 250,000 258,750 267,806 277,179 286,881 296,922 307,314 318,070 329,202 340,724 Transfer Cap Proj - Recycled 7 - - 917,509 949,622 982,859 1,017,259 1,052,863 1,089,713 1,127,853 1,167,328 1,208,185 1,250,471 Subtotal - Capital Projects $ 333,749 $ 547,955 $ 3,921,694 $ 4,058,954 $ 4,201,017 $ 4,348,053 $ 4,500,235 $ 4,657,743 $ 4,820,764 $ 4,989,490 $ 5,164,123 $ 5,344,867 5-Year Projected Rate Period Projected
5-Year Projected Rate Period Projected DESCRIPTION Basis DESCRIPTION Basis
Prepared by NBS
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WATER RATE STUDY
Operating Revenue and Expenses
TABLE 10 : FORECASTING ASSUMPTIONS
Basis 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 Customer Growth31 -- 1.80% 1.80% 1.80% 1.70% 1.70% 1.70% 1.70% 1.70% 1.60% 1.60% 1.60% General Cost Inflation42 -- 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% Labor Cost Inflation53 -- 3.50% 3.50% 3.50% 3.50% 3.50% 3.50% 3.50% 3.50% 3.50% 3.50% 3.50% Energy64 -- 7.44% 7.44% 7.44% 7.44% 7.44% 7.44% 7.44% 7.44% 7.44% 7.44% 7.44% Electricty75 -- 5.64% 5.64% 5.64% 5.64% 5.64% 5.64% 5.64% 5.64% 5.64% 5.64% 5.64% Fuel & Utilities86 -- 5.24% 5.24% 5.24% 5.24% 5.24% 5.24% 5.24% 5.24% 5.24% 5.24% 5.24% Construction Cost Inflation97 -- 3.50% 3.50% 3.50% 3.50% 3.50% 3.50% 3.50% 3.50% 3.50% 3.50% 3.50% Water Purchases10 8 -- 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% No Escalation 9 -- 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%

1. Revenue and expenses for FY 2021/22 through FY 2023/24 provided by the City. Revenues and expenses for all other years are escalated based on the forecasting assumptions located in Table 10. Source files: Fund 510 Water Operations.xlsx , FY 22 Fund 520 Water Cap Revenue Detailed Trial Balance , & FY 23 Fund 520 Water Cap Revenue Detailed Trial Balance .

2. Expenses are inflated each year by the following annual inflation factor categories.

3. Customer growth is based on service area population growth through FY 2039/40. Source file: American Canyon 2015 UWMP.pdf , page 26.

4. General cost inflation is based on the 5-year average annual change in the Consumer Price Index for all Urban Consumers in the San Francisco-Oakland-Hayward, CA area.

5. Labor cost inflation is based on the 5-year average annual change in the Quarterly Census of Employment and Wages for San Francisco County, CA.

6. Energy cost inflation is based on the 5-year average annual change in the Consumer Price Index for all Urban Consumers in the San Francisco-Oakland-Hayward, CA area.

7. Electricity cost inflation is based on the 5-year average change in the Consumer Price Index for San Francisco County.

8. Fuel & Utilities cost inflation is based on the 5-year average annual change in the Consumer Price Index - Average Price Data for Fuels and related products and power. This factor is used for utility costs other than electricity.

9. Construction cost Inflation is the 10-year average change in the Construction Cost Index for 2012-2022. Source: Engineering News Record website (http://enr.construction.com ).

10. Water purchases growth is estimated at 2% annually. Source file: Water cost projections.xlsx .

INFLATION FACTORS2
Prepared by NBS
www.nbsgov.com | Toll-Free: 800.676.7516 Exhibit 1 (O&M), 12 of 48 170 CITY OF AMERICAN CANYON Exhibit 2 - CIP

WATER RATE STUDY
Capital Improvement Plan Expenditures
TABLE 11 : CAPITAL FUNDING SUMMARY
CAPITAL FUNDING FORECAST Actuals Budget
FY 2021/22 FY 2022/23 FY 2023/24 FY 2024/25 FY 2025/26 FY 2026/27 FY 2027/28 FY 2028/29 FY 2029/30 FY 2030/31 FY 2031/32 FY 2032/33 Grants $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
Use of Capacity Fee Reserves - - 1,630,856 2,854,016 2,471,905 2,165,153 1,919,564 1,723,628 1,568,012 1,444,951 1,348,341 1,273,232 SRF Loan Funding - - - - - - - - - - - -
Use of New Revenue Bond Proceeds - - - - - - - - - - - - Use of Capital Rehabilitation and Replacement Reserve - - - 38,578 - - - - - - - - Rate Revenue 251,795 2,790,541 4,566,877 1,523,075 1,565,040 754,328 665,707 952,128 1,201,396 1,421,386 1,618,317 1,797,260 Total Sources of Capital Funds $ 251,795 $ 2,790,541 $ 6,197,733 $ 4,415,669 $ 4,036,946 $ 2,919,481 $ 2,585,271 $ 2,675,756 $ 2,769,407 $ 2,866,337 $ 2,966,658 $ 3,070,492 Uses of Capital Funds:

Total Project Costs $ 251,795 $ 2,790,541 $ 6,197,733 $ 4,415,669 $ 4,036,946 $ 2,919,481 $ 2,585,271 $ 2,675,756 $ 2,769,407 $ 2,866,337 $ 2,966,658 $ 3,070,492 Capital Funding Surplus (Deficiency) $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -

CAPITAL IMPROVEMENT PROGRAM FUNDING OPTIONS
Capital Improvement Program Funding Choice FY 2021/22 FY 2022/23 FY 2023/24 FY 2024/25 FY 2025/26 FY 2026/27 FY 2027/28 FY 2028/29 FY 2029/30 FY 2030/31 FY 2031/32 FY 2032/33 Effective Annual Funding Amount $ 251,795 $ 2,790,541 $ 6,197,733 $ 4,415,669 $ 4,036,946 $ 2,919,481 $ 2,585,271 $ 2,675,756 $ 2,769,407 $ 2,866,337 $ 2,966,658 $ 3,070,492 5-Year Projected Rate Period Projected
Funding Sources:

Prepared by NBS
www.nbsgov.com | Toll-Free: 800.676.7516 Exhibit 2 (CIP), 13 of 48 171 CITY OF AMERICAN CANYON Exhibit 2 - CIP

WATER RATE STUDY
Capital Improvement Plan Expenditures

CAPITAL IMPROVEMENT PROGRAM
TABLE 12 : CAPITAL IMPROVEMENT PROGRAM COSTS (in Current-Year Dollars ) 1 Project No. Description FY 2021/22 FY 2022/23 FY 2023/24 FY 2024/25 FY 2025/26 FY 2026/27 FY 2027/28 FY 2028/29 FY 2029/30 FY 2030/31 FY 2031/32 FY 2032/33 Capital Projects 2
TR23-0100 Knightsbridge Rehab and Water Main Replacement $ - $ - $ 505,000 $ - $ - $ - $ - $ - $ - $ - $ - $ - TR24-0300 ARPA Rancho Del Mar Paving and Utility Improvements - - 1,162,000 - - - - - - - - - WW16‐0300 SCADA - 250,000 - - - - - - - - -
UM20‐0100 Engi Energy Services Contract Budget Expense Remaining 162,280 - - - - - - - - - - - WA24-0100 Rio Del Mar Water Main Upgrade - - 45,000 360,000 - - - - - - - - WA24-0200 North Kelly Road Water Main - - - 145,000 - - - - - - - - WA25-0100 Hanna Drive Water Main Repl. - - - - 550,000 - - - - - - - WA26-0100 Northampton Water Main Repl. - - - - - 650,000 - - - - - - NEW Water Treatment Plant Shop - - 75,000 - - - - - - - - - NEW WTP Filter Media Replacement and Underdrain Repair - - 350,000 - - - - - - - - - NEW Parks - Irrigation Controller Upgrade (RW) - - 200,000 - - - - - - - - - NEW Solids Handling at WTP - - 100,000 900,000 - - - - - - - - Master Plan Projects - Potable Water 3
W1 Zone 1 Storage $ - $ - $ 343,000 $ 343,000 $ 343,000 $ 343,000 $ - $ - $ - $ - $ - $ - W2 Annual Water Main Replacements - 1,500,000 1,455,000 995,000 950,000 850,000 1,500,000 1,500,000 1,500,000 1,500,000 1,500,000 1,500,000 W3 Annual Water Service Replacements 81,000 81,000 81,000 81,000 - - - - - - - - W4 High Pressure Zone System - 1,024,000 1,024,000 1,024,000 1,024,000 - - - - - - - W8 Replace Transmission Mains Near SR29 - - - - 196,000 196,000 196,000 196,000 196,000 196,000 196,000 196,000 W9 Replace Oat Hill Transmission Main - - - - 128,000 128,000 128,000 128,000 128,000 128,000 128,000 128,000 W11 Fire Flows in Hess Drive - - - - 79,000 79,000 79,000 79,000 79,000 79,000 79,000 79,000 W13 Main Zone Reliability Improvements - - - - 129,000 129,000 129,000 129,000 129,000 129,000 129,000 129,000 Estimated Future Projects
Future Projects4 - - - - - - - - - - - -
Total: CIP Program Costs (Future-Year Dollars) $ 243,280 $ 2,605,000 $ 5,590,000 $ 3,848,000 $ 3,399,000 $ 2,375,000 $ 2,032,000 $ 2,032,000 $ 2,032,000 $ 2,032,000 $ 2,032,000 $ 2,032,000 Prepared by NBS
www.nbsgov.com | Toll-Free: 800.676.7516 Exhibit 2 (CIP), 14 of 48 172 CITY OF AMERICAN CANYON Exhibit 2 - CIP

WATER RATE STUDY
Capital Improvement Plan Expenditures
TABLE 13 : CAPITAL IMPROVEMENT PROGRAM COSTS (in Future-Year Dollars ) 5 Project No. Description FY 2021/22 FY 2022/23 FY 2023/24 FY 2024/25 FY 2025/26 FY 2026/27 FY 2027/28 FY 2028/29 FY 2029/30 FY 2030/31 FY 2031/32 FY 2032/33 Capital Projects 2
TR23-0100 Knightsbridge Rehab and Water Main Replacement $ - $ - $ 559,903 $ - $ - $ - $ - $ - $ - $ - $ - $ - TR24-0300 ARPA Rancho Del Mar Paving and Utility Improvements - - 1,288,330 - - - - - - - - - WW16‐0300 SCADA - - 277,179 - - - - - - - - -
UM20‐0100 Engi Energy Services Contract Budget Expense Remaining 167,960 - - - - - - - - - - - WA24-0100 Rio Del Mar Water Main Upgrade - - 49,892 413,108 - - - - - - - - WA24-0200 North Kelly Road Water Main - - - 166,391 - - - - - - - - WA25-0100 Hanna Drive Water Main Repl. - - - - 653,227 - - - - - - - WA26-0100 Northampton Water Main Repl. - - - - - 799,016 - - - - - - NEW Water Treatment Plant Shop - - 83,154 - - - - - - - - - NEW WTP Filter Media Replacement and Underdrain Repair - - 388,051 - - - - - - - - - NEW Parks - Irrigation Controller Upgrade (RW) - - 221,744 - - - - - - - - - NEW Solids Handling at WTP - - 110,872 1,032,771 - - - - - - - - Master Plan Projects - Potable Water 3
W1 Zone 1 Storage $ - $ - $ 380,290 $ 393,600 $ 407,376 $ 421,635 $ - $ - $ - $ - $ - $ - W2 Annual Water Main Replacements - 1,606,838 1,613,185 1,141,785 1,128,302 1,044,867 1,908,419 1,975,214 2,044,346 2,115,898 2,189,955 2,266,603 W3 Annual Water Service Replacements 83,835 86,769 89,806 92,949 - - - - - - - - W4 High Pressure Zone System - 1,096,934 1,135,327 1,175,064 1,216,191 - - - - - - - W8 Replace Transmission Mains Near SR29 - - - - 232,787 240,934 249,367 258,095 267,128 276,477 286,154 296,169 W9 Replace Oat Hill Transmission Main - - - - 152,024 157,345 162,852 168,552 174,451 180,557 186,876 193,417 W11 Fire Flows in Hess Drive - - - - 93,827 97,111 100,510 104,028 107,669 111,437 115,338 119,374 W13 Main Zone Reliability Improvements - - - - 153,212 158,574 164,124 169,868 175,814 181,967 188,336 194,928 Estimated Future Projects
Future Projects4 - - - - - - - - - - - -
Total: CIP Program Costs (Future-Year Dollars) $ 251,795 $ 2,790,541 $ 6,197,733 $ 4,415,669 $ 4,036,946 $ 2,919,481 $ 2,585,271 $ 2,675,756 $ 2,769,407 $ 2,866,337 $ 2,966,658 $ 3,070,492 TABLE 14 : FORECASTING ASSUMPTIONS
Economic Variables FY 2021/22 FY 2022/23 FY 2023/24 FY 2024/25 FY 2025/26 FY 2026/27 FY 2027/28 FY 2028/29 FY 2029/30 FY 2030/31 FY 2031/32 FY 2032/33 Annual Construction Cost Inflation, Per Engineering News Record63.50% 3.50% 3.50% 3.50% 3.50% 3.50% 3.50% 3.50% 3.50% 3.50% 3.50% 3.50% Cumulative Construction Cost Multiplier from FY 2021/22 1.04 1.07 1.11 1.15 1.19 1.23 1.27 1.32 1.36 1.41 1.46 1.51

1. Capital project costs were provided by City Staff in source file: Water Projects.pdf.

2. Capital projects costs for FY 2021/22 and FY 2022/23 are from source files: 11. CIP Budget vs Expense Report FY 2021-2022 through Oct 2021.pdf & Water FY 2023-2027.xlsx .

3. The City's Water Master Plan projects were scheduled to begin in 2016; however, the study only includes costs from FY 2021/22 through FY 2034/35. Source file: 2016 Potable Water Master Plan.pdf , page 53.

4. Future project costs beyond FY 2034/35 are calculated based on the City's 10-year average.

5. Capital improvement projects are inflated to future year estimated costs with ENR CCI for the region. Source: Engineering News Record website (http://enr.construction.com ).

6. For reference purposes, the annual Construction Cost Inflation percentage is the 10-year average change in the Construction Cost Index for September 2012-2022 (3.5%). Source: Engineering News Record website (http://enr.construction.com).

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www.nbsgov.com | Toll-Free: 800.676.7516 Exhibit 2 (CIP), 15 of 48 173 CITY OF AMERICAN CANYON Exhibit 3 - Debt

WATER RATE STUDY
Debt Service
TABLE 15 : EXISTING DEBT OBLIGATIONS
EXISTING DEBT OBLIGATIONS Actuals Budget
Annual Repayment Schedules: FY 2021/22 FY 2022/23 FY 2023/24 FY 2024/25 FY 2025/26 FY 2026/27 FY 2027/28 FY 2028/29 FY 2029/30 FY 2030/31 FY 2031/32 FY 2032/33 SWRCB (California Department of Water Resources): Contract No. D-GLC 461 Principal Payment $ 70,382 $ 72,142 $ 73,946 $ 75,794 $ 77,689 $ 79,631 $ 53,204 $ - $ - $ - $ - $ - Interest Payment 24,084 22,324 20,521 18,672 16,777 14,835 12,844 - - - - - Subtotal: Annual Debt Service $ 94,466 $ 94,466 $ 94,466 $ 94,466 $ 94,466 $ 94,466 $ 66,048 $ - $ - $ - $ - $ - Coverage Requirement ($-Amnt above annual payment) $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - Reserve Requirement2$ 71,827 $ 72,068 $ 72,053 $ 71,580 $ 70,175 $ 66,417 $ 53,204 $ - $ - $ - $ - $ - Banc of America Public Capital Corp Agreement (ENGIE) - Loan Amount $5,209,2093 Principal Payment $ 5,520 $ 66,788 $ 63,992 $ 68,673 $ 73,583 $ 75,042 $ 82,720 $ 88,430 $ 78,658 $ 84,010 $ 89,620 $ 94,771 Interest Payment 23,749 22,854 21,682 20,498 19,229 17,900 16,494 14,966 13,463 12,011 10,462 8,815 Subtotal: Annual Debt Service $ 29,269 $ 89,642 $ 85,674 $ 89,171 $ 92,812 $ 92,941 $ 99,214 $ 103,396 $ 92,122 $ 96,021 $ 100,082 $ 103,586 Coverage Requirement ($-Amnt above annual payment) $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - Reserve Requirement (total fund balance) $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - Sites Reservoir Project - Debt Amount $20,586,0004
Principal Payment $ 400,000 $ 560,000 $ 640,000 $ 640,000 $ 1,281,000 $ 2,336,000 $ 2,849,000 $ 3,166,000 $ 3,195,000 $ 3,131,000 $ 3,028,000 $ - Interest Payment - - - - - - - - - - - -
Subtotal: Annual Debt Service $ 400,000 $ 560,000 $ 640,000 $ 640,000 $ 1,281,000 $ 2,336,000 $ 2,849,000 $ 3,166,000 $ 3,195,000 $ 3,131,000 $ 3,028,000 $ - Coverage Requirement ($-Amnt above annual payment) $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - Reserve Requirement (total fund balance) $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - Grand Total: Existing Annual Debt Service $ 523,735 $ 744,109 $ 820,140 $ 823,637 $ 1,468,278 $ 2,523,408 $ 3,014,261 $ 3,269,396 $ 3,287,122 $ 3,227,021 $ 3,128,082 $ 103,586 Grand Total: Existing Annual Coverage Requirement $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - Grand Total: Existing Debt Reserve Target $ 71,827 $ 72,068 $ 72,053 $ 71,580 $ 70,175 $ 66,417 $ 53,204 $ - $ - $ - $ - $ - 5-Year Projected Rate Period Projected
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WATER RATE STUDY
Debt Service
TABLE 16 : WATER UTILITY EXISTING DEBT OBLIGATIONS, cont.

EXISTING DEBT OBLIGATIONS Actuals Budget
Annual Repayment Schedules: FY 2021/22 FY 2022/23 FY 2023/24 FY 2024/25 FY 2025/26 FY 2026/27 FY 2027/28 FY 2028/29 FY 2029/30 FY 2030/31 FY 2031/32 FY 2032/33 Interfund Loans (For Information Only)
Water Operations to Water Capacity Fund
Advance from Water Operations 510 to Water Capacity 520 Original Loan Amount (June 1, 2008) $ 1,000,000
Accrued Interest (LAIF Rate + 2%) 132,325
Annual Debt Service5 $126,058 $ 126,058 $ 126,058 $ 126,058 $ 126,058 $ 126,058 $ 126,058 $ 126,058 $ 126,058 $ 126,058 $ - Water Operations to Recycled Water Fund
Advance from Water Operations 510 to Recycled Water Operations 580 Original Loan Amount (September 21, 2021) $ 128,189
Accrued Interest (LAIF Rate + 2%) 11,706
Annual Debt Service6 $ 5,421 $ 5,421 $ 5,421 $ 5,421 $ 5,421 $ 5,421 $ 5,421 $ 5,421 Water Operations to Recycled Water Fund
Advance from Water Operations 510 to Recycled Water Operations 580 Original Loan Amount (June 20, 2023) $ 1,136,140
Accrued Interest (LAIF Rate + 2%) 981
Annual Debt Service7 $44,061 $44,061 $44,061 $44,061 $44,061 $44,061 $44,061 $44,061 $44,061 $44,061

1. Construction loan issued by the State under the Davis-Grunsky Act. Source files: 5 - Debt Service Schedules.xlsx & 6 - Davis Grunsky Agreement $2,050,000 Loan Dec 9 1974.pdf .

2. The City is required to maintain a debt reserve fund equal to the average annual payment of the total outstanding loan balance. Source file: 6 - Davis Grunsky Agreement $2,050,000 Loan Dec 9 1974.pdf , pp. 11-12 .

3. Equipment lease/purchase loan issued by the Banc of America Public Capital Corp to cover energy efficiency projects to City facilities. Water utility portion is 24.64%, or $1,283,549.10 (Principal). Source file: 6 - ENGIE Closing Documents.pdf .

4. Debt service for the City's portion of costs related to the Sites Reservoir Project. Source files: Email from City staff dated 9-19-2022 & Sites-2021-Draft-Plan-of-Finance.pdf , Table 6A, page 27.

5. Funds advanced to purchase water rights. Repayment scheduled to begin FY 2022/23.

6. Funds advanced for Green Island Recycled Waterline Project. Repayment scheduled to begin FY 2025/26.

7. Funds advanced for the Recycled Water Expansion Project, Project no. RW17-0100. Repayment scheduled to begin FY 2023/24.

TABLE 17 : EXISTING ANNUAL DEBT OBLIGATIONS TO BE SATISFIED BY WATER RATES Annual Obligations FY 2021/22 FY 2022/23 FY 2023/24 FY 2024/25 FY 2025/26 FY 2026/27 FY 2027/28 FY 2028/29 FY 2029/30 FY 2030/31 FY 2031/32 FY 2032/33 Existing Annual Debt Service $ 523,735 $ 744,109 $ 820,140 $ 823,637 $ 1,468,278 $ 2,523,408 $ 3,014,261 $ 3,269,396 $ 3,287,122 $ 3,227,021 $ 3,128,082 $ 103,586 Existing Annual Coverage Requirement $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - Existing Debt Reserve Target $ 71,827 $ 72,068 $ 72,053 $ 71,580 $ 70,175 $ 66,417 $ 53,204 $ - $ - $ - $ - $ - 5-Year Projected Rate Period Projected
Prepared by NBS
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WATER RATE STUDY
Projected Water Rates Under Existing Rate Schedule
TABLE 18 : CURRENT WATER RATE SCHEDULE
Current Rates
Jan. 1, 2023
Monthly Fixed Service Charges
Residential Use $26.56
Multi-Family, Commercial and Landscape
< 1" meter $26.56
1" meter (Residential) $26.56
1" meter (Commercial) $44.42
1 1/2" meter $88.75
2" meter $141.99
3" meter $283.98
4" meter $443.74
6" meter $887.48
8" meter $1,420.06
Private Fire Protection $13.28
Temporary Hydrant Meters $283.98
Raw Water
1" meter $44.42
2" meter $141.99
4" meter $443.74
6" meter $887.48
Variable Charges for All Water Consumed (in $/hcf) 2
Residential Use
Tier 1 (0 - 10 units) $7.54
Tier 2 (> 10 units) $8.15
Multi-Family, Commercial and Landscape $7.72
Private Fire Protection $3.86
Temporary Hydrant Meters
Potable $7.72
Recycled $0.90
Raw Water $3.44

1. Rates available on the City website. Source: https://www.cityofamericancanyon.org .

2. HCF = hundred cubic feet (748 gallons).

Water Rate Schedule1
Prepared by NBS
www.nbsgov.com | Toll-Free: 800.676.7516 Exhibit 4 (Current Rates), 18 of 48176 CITY OF AMERICAN CANYON Functionalization & Classification

WATER RATE STUDY
Cost-of-Service Analysis & Rate Design
TABLE 19 : CLASSIFICATION OF EXPENSES FOR COST OF SERVICE ANALYSIS Classification of Expenses
FY 2023/24 (COM) (CAP) (CA) (FP) (COM) (CAP) (CA) (FP)
Fund 510 - Water Operations
560 - Water Treatment Plant
Wages - Full Time $ 612,238 $ 306,119 $ 223,160 $ 61,224 $ 21,736 50.0% 36.4% 10.0% 3.6% Wages - Overtime 9,000 4,500 3,280 900 320 50.0% 36.4% 10.0% 3.6% Health Insurance 95,546 47,773 34,826 9,555 3,392 50.0% 36.4% 10.0% 3.6% Health-In-Lieu 9,690 4,845 3,532 969 344 50.0% 36.4% 10.0% 3.6% Cafeteria Plan Section 125 24,587 12,294 8,962 2,459 873 50.0% 36.4% 10.0% 3.6% Social Security & Medicare 9,374 4,687 3,417 937 333 50.0% 36.4% 10.0% 3.6% Worker Comp Insurance 49,859 24,930 18,174 4,986 1,770 50.0% 36.4% 10.0% 3.6% Benefits - Other 1,106 553 403 111 39 50.0% 36.4% 10.0% 3.6% Info Tech Support Services 116,200 58,100 42,355 11,620 4,125 50.0% 36.4% 10.0% 3.6% Professional Services 366,400 183,200 133,552 36,640 13,008 50.0% 36.4% 10.0% 3.6% Misc Contractual Services 59,200 29,600 21,578 5,920 2,102 50.0% 36.4% 10.0% 3.6% General Repairs & Maint 53,800 26,900 19,610 5,380 1,910 50.0% 36.4% 10.0% 3.6% Advertising 6,000 3,000 2,187 600 213 50.0% 36.4% 10.0% 3.6% Postage/Mail/Copy/Printing Svc 2,000 1,000 729 200 71 50.0% 36.4% 10.0% 3.6% Membership Dues & Subscription 3,200 1,600 1,166 320 114 50.0% 36.4% 10.0% 3.6% Conferences - Training 13,500 6,750 4,921 1,350 479 50.0% 36.4% 10.0% 3.6% Rentals - Equipment/Space 3,700 1,850 1,349 370 131 50.0% 36.4% 10.0% 3.6% Office Supplies 25,000 12,500 9,112 2,500 888 50.0% 36.4% 10.0% 3.6% Operating Supplies 488,400 244,200 178,021 48,840 17,339 50.0% 36.4% 10.0% 3.6% Water Plant Membrane Filters - - - - - 50.0% 36.4% 10.0% 3.6% Utilities - Gas & Elec 73,000 36,500 26,608 7,300 2,592 50.0% 36.4% 10.0% 3.6% Util-Phonespgrsinternetcable 5,800 2,900 2,114 580 206 50.0% 36.4% 10.0% 3.6% Pers Retirement 60,588 30,294 22,084 6,059 2,151 50.0% 36.4% 10.0% 3.6% Subtotal - Water Treatment Plant $ 2,088,189 $ 1,044,094 $ 761,140 $ 208,819 $ 74,135 50.0% 36.4% 10.0% 3.6% Basis of Classification Budget Categories
Total Revenue
Requirements
Commodity Capacity Fire
Protection
Customer
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WATER RATE STUDY
Cost-of-Service Analysis & Rate Design
TABLE 20 : CLASSIFICATION OF EXPENSES FOR COST OF SERVICE ANALYSIS, cont.

Classification of Expenses
FY 2023/24 (COM) (CAP) (CA) (FP) (COM) (CAP) (CA) (FP)
Fund 510 - Water Operations
565 - Water Distribution
Wages - Full Time $ 544,808 $ 272,404 $ 198,581 $ 54,481 $ 19,342 50.0% 36.4% 10.0% 3.6% Wages - Overtime 3,000 1,500 1,093 300 107 50.0% 36.4% 10.0% 3.6% Health Insurance 110,792 55,396 40,384 11,079 3,933 50.0% 36.4% 10.0% 3.6% Cafeteria Plan Section 125 27,459 13,730 10,009 2,746 975 50.0% 36.4% 10.0% 3.6% Social Security & Medicare 8,298 4,149 3,025 830 295 50.0% 36.4% 10.0% 3.6% Worker Comp Insurance 58,411 29,205 21,291 5,841 2,074 50.0% 36.4% 10.0% 3.6% Benefits - Other 1,901 951 693 190 67 50.0% 36.4% 10.0% 3.6% Info Tech Support Services 84,600 42,300 30,837 8,460 3,003 50.0% 36.4% 10.0% 3.6% Professional Services 52,000 26,000 18,954 5,200 1,846 50.0% 36.4% 10.0% 3.6% Misc Contractual Services 9,300 4,650 3,390 930 330 50.0% 36.4% 10.0% 3.6% General Repairs & Maint 375,100 187,550 136,723 37,510 13,317 50.0% 36.4% 10.0% 3.6% Reimbursable Repairs 20,000 10,000 7,290 2,000 710 50.0% 36.4% 10.0% 3.6% Postage/Mail/Copy/Printing Svc 3,499 1,750 1,275 350 124 50.0% 36.4% 10.0% 3.6% Membership Dues & Subscription 3,200 1,600 1,166 320 114 50.0% 36.4% 10.0% 3.6% Conferences - Training 7,000 3,500 2,551 700 249 50.0% 36.4% 10.0% 3.6% Rentals - Equipment/Space 13,000 6,500 4,738 1,300 462 50.0% 36.4% 10.0% 3.6% Office Supplies 2,000 1,000 729 200 71 50.0% 36.4% 10.0% 3.6% Operating Supplies 33,200 16,600 12,101 3,320 1,179 50.0% 36.4% 10.0% 3.6% Water Meters 100,000 50,000 36,450 10,000 3,550 50.0% 36.4% 10.0% 3.6% Util-Phonespgrsinternetcable 4,100 2,050 1,494 410 146 50.0% 36.4% 10.0% 3.6% Pers Retirement 74,481 37,240 27,148 7,448 2,644 50.0% 36.4% 10.0% 3.6% Subtotal -Water Distribution $ 1,536,149 $ 768,074 $ 559,923 $ 153,615 $ 54,537 50.0% 36.4% 10.0% 3.6% Basis of Classification Budget Categories
Total Revenue
Requirements
Commodity Capacity Customer Fire
Protection
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WATER RATE STUDY
Cost-of-Service Analysis & Rate Design
TABLE 21 : CLASSIFICATION OF EXPENSES FOR COST OF SERVICE ANALYSIS, cont.

Classification of Expenses
FY 2023/24 (COM) (CAP) (CA) (FP) (COM) (CAP) (CA) (FP)
50 - Public Works
810 - Non Departmental
Wages - Full Time $ 128,293 $ 64,146 $ 46,762 $ 12,829 $ 4,555 50.0% 36.4% 10.0% 3.6% Allowances 1,920 960 700 192 68 50.0% 36.4% 10.0% 3.6%
Health Insurance 21,244 10,622 7,743 2,124 754 50.0% 36.4% 10.0% 3.6% Cafeteria Plan Section 125 4,312 2,156 1,572 431 153 50.0% 36.4% 10.0% 3.6% Social Security & Medicare 2,038 1,019 743 204 72 50.0% 36.4% 10.0% 3.6% Worker Comp Insurance 9,825 4,912 3,581 982 349 50.0% 36.4% 10.0% 3.6% Opeb 47,537 23,769 17,327 4,754 1,688 50.0% 36.4% 10.0% 3.6% Info Tech Support Services 33,414 16,707 12,179 3,341 1,186 50.0% 36.4% 10.0% 3.6% Professional Services 66,586 33,293 24,270 6,659 2,364 50.0% 36.4% 10.0% 3.6% Postage/Mail/Copy/Printing Svc 6,000 3,000 2,187 600 213 50.0% 36.4% 10.0% 3.6% Membership Dues & Subscription 2,600 1,300 948 260 92 50.0% 36.4% 10.0% 3.6% Services - Cash For Grass 30,000 15,000 10,935 3,000 1,065 50.0% 36.4% 10.0% 3.6% Services - Toilet Rebates 10,000 5,000 3,645 1,000 355 50.0% 36.4% 10.0% 3.6% Office Supplies 500 250 182 50 18 50.0% 36.4% 10.0% 3.6% Utilities - Water 2,500 1,250 911 250 89 50.0% 36.4% 10.0% 3.6% City Of Napa 278,000 278,000 - - - 100.0% 0.0% 0.0% 0.0% North Bay Aqueduct 3,203,000 3,203,000 - - - 100.0% 0.0% 0.0% 0.0% City Of Vallejo 121,218 121,218 - - - 100.0% 0.0% 0.0% 0.0% Transfer To Gen Fund Support Sv 1,124,203 562,102 409,770 112,420 39,912 50.0% 36.4% 10.0% 3.6% Transfer To General Fund - Oth 160,000 80,000 58,320 16,000 5,680 50.0% 36.4% 10.0% 3.6% Retiree Health Benefits 74,980 37,490 27,330 7,498 2,662 50.0% 36.4% 10.0% 3.6% Pers Retirement 16,257 8,128 5,926 1,626 577 50.0% 36.4% 10.0% 3.6% Isf - Bldg Maint 325,219 162,610 118,542 32,522 11,546 50.0% 36.4% 10.0% 3.6% Isf - Fleet 354,173 177,087 129,095 35,417 12,574 50.0% 36.4% 10.0% 3.6% Isf - Info Tech 54,709 27,355 19,941 5,471 1,942 50.0% 36.4% 10.0% 3.6% Isf - Legal Services 96,582 48,291 35,204 9,658 3,429 50.0% 36.4% 10.0% 3.6% Subtotal - Non Departmental $ 6,175,109 $ 4,888,664 $ 937,813 $ 257,289 $ 91,343 79.2% 15.2% 4.2% 1.5% Total: Water Operations Expenses $ 9,799,447 $ 6,700,833 $ 2,258,877 $ 619,723 $ 220,015 68.4% 23.1% 6.3% 2.2% TOTAL: WATER OPERATIONS EXPENSES $ 9,799,447 $ 6,700,833 $ 2,258,877 $ 619,723 $ 220,015 68.4% 23.1% 6.3% 2.2% Basis of Classification Budget Categories
Total Revenue
Requirements
Commodity Fire
Protection
Capacity Customer
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WATER RATE STUDY
Cost-of-Service Analysis & Rate Design
TABLE 22 : CLASSIFICATION OF EXPENSES FOR COST OF SERVICE ANALYSIS, cont.

Classification of Expenses, continued
FY 2023/24 (COM) (CAP) (CA) (FP) (COM) (CAP) (CA) (FP)
Debt Service Payments
Outstanding Debt $ 820,140 $ - $ 820,140 $ - $ - 0.0% 100.0% 0.0% 0.0% New Debt Issue - SRF Loan - - - - - 0.0% 100.0% 0.0% 0.0% New Debt Issue - Revenue Bond - - - - - 0.0% 100.0% 0.0% 0.0% Total Debt Service Payments $ 820,140 $ - $ 820,140 $ - $ - 0.0% 100.0% 0.0% 0.0% Capital Expenditures
Rate Funded Capital Expenses $ 4,566,877 $ - $ 4,566,877 $ - $ - 0.0% 100.0% 0.0% 0.0% TOTAL REVENUE REQUIREMENTS $ 15,186,464 $ 6,700,833 $ 7,645,894 $ 619,723 $ 220,015 44.1% 50.3% 4.1% 1.4% Less: Non-Rate Revenues
Other Revenue
Grant - State/Local $ - $ - $ - $ - $ - 44.1% 50.3% 4.1% 1.4% Interest Earnings (275,008) (121,344) (138,458) (11,222) (3,984) 44.1% 50.3% 4.1% 1.4% Miscellaneous Revenues (359,300) (158,537) (180,896) (14,662) (5,205) 44.1% 50.3% 4.1% 1.4% Late Penalties / Interest (114,300) (50,433) (57,546) (4,664) (1,656) 44.1% 50.3% 4.1% 1.4% Interfund Transfer In (Loan Repayment) (44,061) (19,441) (22,183) (1,798) (638) 44.1% 50.3% 4.1% 1.4% NET REVENUE REQUIREMENTS $ 14,393,795 $ 6,351,077 $ 7,246,811 $ 587,376 $ 208,531 Allocation of Revenue Requirements 100.0% 44.1% 50.3% 4.1% 1.4% TABLE 23 : ADJUSTMENT TO CLASSIFICATION OF EXPENSES FOR COST OF SERVICE ANALYSIS Classification of Expenses, continued
Adjustments to Classification of Expenses
Adjustment for Current Rate Level: Total (COM) (CAP) (CA) (FP) Test Year (FY 2023/24) Target Rate Rev. After Rate Increases $ 10,291,388 Projected Rate Revenue at Current Rates $ 9,441,640
Test Year (FY 2023/24) Projected Rate Adjustment 9.00%
Adjusted Net Revenue Req'ts $ 10,291,388 $ 4,540,943 $ 5,181,381 $ 419,967 $ 149,097 Percent of Revenue 100.0% 44.1% 50.3% 4.1% 1.4%
TABLE 24 : NET REVENUE REQUIREMENTS PER COSA RESULTS
SWP Raw Water
Treated
Water
Capacity
Related Costs
Customer
Related Costs
Fire
Protection
Related Costs
Rate-Design Adjustments to Fixed/Variable % 100.0% 50.3% 4.1% 1.4% Rate-Design Adjustments to Fixed/Variable ($) $10,291,388 $3,702,785 $515,708 $322,450 $5,181,381 $419,967 $149,097 Basis of Classification
Net Revenue Requirements - Per COSA Results
56% Fixed / 44% Variable
Fixed Costs
Budget Categories
Total Revenue
Requirements
Fire
Protection
Customer
Total Rate
Revenue
Requirements
FY 2023/24
(Excluding
Recycled Water)
Commodity Capacity
Commodity Related Costs

44.1%
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WATER RATE STUDY
Cost-of-Service Analysis & Rate Design
TABLE 25 : NET REVENUE REQUIREMENTS PER COSA RESULTS - ALTERNATIVE 1 Rate-Design Adjustments to Fixed/Variable % 100.0% 54.1% 4.4% 1.6% Rate-Design Adjustments to Fixed/Variable ($) $10,291,388 $3,356,730 $467,511 $292,314 $5,563,772 $450,961 $160,100 TABLE 26 : NET REVENUE REQUIREMENTS - (40% FIXED/60% VOLUMETRIC) - ALTERNATIVE 2 Rate-Design Adjustments to Fixed/Variable % 100.0% 36.0% 2.9% 1.0% Rate-Design Adjustments to Fixed/Variable ($) $10,291,388 $5,035,095 $701,267 $438,471 $3,709,181 $300,640 $106,734 TABLE 27 : NET REVENUE REQUIREMENTS - (20% FIXED/80% VOLUMETRIC) - ALTERNATIVE 3 Rate-Design Adjustments to Fixed/Variable % 100.0% 18.0% 1.5% 0.5% Rate-Design Adjustments to Fixed/Variable ($) $10,291,388 $6,713,459 $935,022 $584,629 $1,854,591 $150,320 $53,367

80.0%

40.0%

60.0%
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WATER RATE STUDY
Cost-of-Service Analysis & Rate Design
TABLE 28 : DEVELOPMENT OF THE COMMODITY ALLOCATION FACTOR Development of the Volumetric/Variable Allocation Factor1 Customer Class
FY 2021/22
Consumption
(hcf)
% Adjustment for
Conservation2
Est. FY 2021/22
Volume Adjusted
for Conservation
FY 2021/22
% of Total
Volume
Residential 507,339 20.0% 405,871 50.1%
Multi-Family 89,630 20.0% 71,704 8.8%
Commercial 318,808 20.0% 255,046 31.5%
Landscape 53,157 20.0% 42,526 5.2%
Private Fire Protection 22,831 20.0% 18,265 2.3%
Temporary Hydrant Meters 8,303 20.0% 6,642 0.8%
Raw Water 13,039 20.0% 10,431 1.3%
Total 1,013,107 810,486 100%

1. Consumption data is based on the City of American Canyon's billing data.

2. A conservation factor of 20% included in table above based on the "20 by 2020" law passed in 2009.

Source: https://www.ca-ilg.org .

Commodity Related Costs: Costs associated with the
total consumption (flow) of water over a specified period of time (e.g. annual).

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WATER RATE STUDY
Cost-of-Service Analysis & Rate Design
TABLE 29 : DEVELOPMENT OF THE CAPACITY ALLOCATION FACTORS Development of the CAPACITY Allocation Factors
Customer Class Meter Size1 No. of Meters
Hydraulic
Capacity Factors2
Total
Equivalent
Meters
% of EDUs
Residential 4,880 4,930 42.2%
< 1" meter 1,986 1.00 1,986
1" meter 2,875 1.00 2,875
1 1/2" meter 7 2.00 14
2" meter 9 3.20 29
3" meter 1 6.40 6
4" meter 2 10.00 20
Multi-Family 556 5,598 47.9%
1 1/2" meter 20 2.00 40
2" meter 201 3.20 643
3" meter 96 6.40 614
4" meter 48 10.00 480
6" meter 191 20.00 3,820
Commercial 343 698 6.0%
< 1" meter 102 1.00 102
1" meter 88 1.00 88
1 1/2" meter 54 2.00 108
2" meter 81 3.20 259
3" meter 11 6.40 70
4" meter 7 10.00 70
Landscape 73 122 1.0%
< 1" meter 13 1.00 13
1" meter 30 1.00 30
1 1/2" meter 14 2.00 28
2" meter 16 3.20 51
Private Fire Protection 245 245 2.1%
< 1" meter 245 1.00 245
Temporary Hydrant Meters 8 51 0.4%
3" meter 8 6.40 51
Raw Water 3 40 0.3%
4" meter 2 10.00 20
6" meter 1 20.00 20
Total 6,108 11,684 100%

1. Meter by class and size are based on June 2022 customer billing data.

2. Source: Principles of Water Rates, Fees, and Charges , Manual M1, AWWA, Table B-1.

Capacity Related Costs: Costs associated with the
maximum demand required at one point in time or the
maximum size of facilities required to meet this demand.

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WATER RATE STUDY
Cost-of-Service Analysis & Rate Design
TABLE 30 : DEVELOPMENT OF THE CUSTOMER ALLOCATION FACTORS Development of the Customer Allocation Factor
Customer Class
No. of
Meters/Account
s FY
2021/221
% of Total Meters
Residential 4,880 71.5%
Multi-Family21,273 18.7%
Commercial 343 5.0%
Landscape 73 1.1%
Private Fire Protection 245 3.6%
Temporary Hydrant Meters 8 0.1%
Raw Water 3 0.0%
Total 6,825 100.0%

1. Meter count data is based on the City's billing data for June 2022.

2. Multi-family residential customers are by dwelling units.

Customer Related Costs: Costs associated with having a
customer on the water system. These costs vary with the addition or deletion of customers on the system.

Examples: Meter-reading, Postage and billing.

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WATER RATE STUDY
Cost-of-Service Analysis & Rate Design
TABLE 31 : FY 2023/24 WATER SUPPLY BY SOURCE
In AF In HCF
SWP (Contracted Purchase) 3,590 1,563,804 81.5% $ 2,727,590 75.7% Vallejo Raw Water (Contracted Purchase) 500 217,800 11.4% 138,033 3.8% Treated Water (Contracted Purchase)1 313 136,181 7.1% 737,049 20.5% Totals 4,403 1,917,785 100.0% $ 3,602,672 100%

1. This includes Vallejo Treated Water and City of Napa Treat and Wheel. Source files: Water cost projections.xlsx .

TABLE 32 : UNIT COSTS BY SOURCE OF SUPPLY
Source of Supply Quantity (AF) Total Cost Rate ($/AF)
SWP (Tier 1) 3,590 $ 2,727,590 $ 760
Vallejo Raw Water (Tier 1) 500 138,033 $ 276
Treated Water (Tier 2) 313 737,049 $ 2,358
Total Water Supply (AF) 4,403 $ 3,602,672
Unit Costs ($/HCF) Quantity (HCF) Total Cost Rate ($/HCF) Tier 1 - SWP & Vallejo Raw Water 1,781,604 $ 1,129,112 $ 0.63 Tier 2 - Treated Water (Napa & Vallejo) 136,181 737,049 $ 5.41 Blended Cost (all water) per hcf $ 1.88
Total Estimated Quantity (hcf) 1,917,785 $ 1,866,161 810,486 Estimated Residential Consumption 405,871
Total FY 2023/24 % of Total Volume 50.1%
Source of Supply
Total Contracted Purchases Acre Feet as a
% of Total
Total Cost
(FY 2023/24)
Cost as a % of
Total Cost
Vallejo Raw
Water in AF
500
SWP in AF 3,590
Treated Water
Contracted in AF
313
0 500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
4,500
In AF
FY 2023/24 Source of Supply in
Acre Feet and % of Total

53.7%

69.9%

25.6%
Tier 1
Tier 2

49.9%

4.5%
Tier 2 - 7.1%
Tier 1 - Vallejo Raw
Water 11.4%
Tier 1 - SWP

81.5%
0%
20%
40%
60%
80%
100%
Source of Supply
Tier 1 - SWP Tier 1 - Vallejo Raw Water Tier 2 - Treated Water Prepared by NBS
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WATER RATE STUDY
Cost-of-Service Analysis & Rate Design
TABLE 33 : ALLOCATION OF WATER REVENUE REQUIREMENTS
Commodity-Related Costs $ 4,116,555 40.0% $ 6,174,833 60.0% $ 8,233,110 80.0% Capacity-Related Costs 5,563,772 54.1% 3,709,181 36.0% 1,854,591 18.0% Customer-Related Costs 450,961 4.4% 300,640 3.0% 150,320 1.5% Fire Protection-Related Costs 160,100 1.6% 106,734 1.0% 53,367 0.5% Net Revenue Requirement $ 10,291,388 100.0% $ 10,291,388 100.0% $ 10,291,388 100.0%

40.0% total variable 60.0% total variable 80.0% total variable

60.0% total fixed 40.0% total fixed 20.0% total fixed
100.0% 100.0% 100.0%
`
TABLE 34 : ALLOCATION OF UNADJUSTED NET REVENUE REQUIREMENTS - FY 2023/24 Net Revenue Requirements (ALTERNATIVE 1 - 60% Fixed / 40% Variable)

VARIABLE
Residential $ 2,061,469 $ 2,347,738 $ 322,445 $ - $ 4,731,653 46.0% Multi-Family 364,193 2,665,551 84,113 - 3,113,858 30.3% Commercial 1,295,412 332,194 22,664 - 1,650,269 16.0%
Landscape 215,993 58,191 4,823 - 279,007 2.7%
Private Fire Protection 92,769 116,668 16,188 160,100 385,726 3.7% Temporary Hydrant Meters 33,738 24,381 529 58,647 0.6%
Raw Water 52,981 19,048 198 - 72,227 0.7%
Total Net Revenue Requirement $ 4,116,555 $ 5,563,772 $ 450,961 $ 160,100 $ 10,291,388 100%

VARIABLE
$4,116,555 $6,174,833
FIXED
Classification Components
ALTERNATIVE 1
(50% Fixed / 50% Variable)
Cost-of-Service Net Revenue
Requirements (FY 2023/24)
Unadjusted Net Rev. Req'ts.

ALTERNATIVE 2
(40% Fixed / 60% Variable)
Cost-of-Service Net Revenue
Requirements (FY 2023/24)
Unadjusted Net Rev. Req'ts.

Customer Classes
Total Net Revenue Requirement
by Classification Component
Cost of Service
Net Rev. Req'ts
$10,291,388
% of COS Net
Revenue Req'ts
ALTERNATIVE 3
(20% Fixed / 80% Variable)
Cost-of-Service Net Revenue
Requirements (FY 2023/24)
Unadjusted Net Rev. Req'ts.

CapacityRelated Costs
Classification Components
CustomerRelated CostsFire ProtectionRelated CostsCommodityRelated Costs FIXED
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WATER RATE STUDY
Cost-of-Service Analysis & Rate Design
TABLE 35 : ALLOCATION OF UNADJUSTED NET REVENUE REQUIREMENTS - FY 2023/24 Net Revenue Requirements (ALTERNATIVE 2 - 40% Fixed / 60% Variable)

VARIABLE
$6,174,833
TABLE 36 : ALLOCATION OF UNADJUSTED NET REVENUE REQUIREMENTS - FY 2023/24 Net Revenue Requirements (ALTERNATIVE 3 - 20% Fixed / 80% Variable)

VARIABLE
Residential $ 4,122,938 $ 782,579 $ 107,482 $ - $ 5,013,000 48.7% Multi-Family 728,387 888,517 28,038 - 1,644,942 16.0%
Commercial 2,590,823 110,731 7,555 - 2,709,109 26.3%
Landscape 431,985 19,397 1,608 - 452,990 4.4%
Private Fire Protection 185,538 38,889 5,396 53,367 283,191 2.8% Temporary Hydrant Meters 67,475 8,127 176 75,778 0.7%
Raw Water 105,963 6,349 66 - 112,378 1.1%
Total Net Revenue Requirement $ 8,233,110 $ 1,854,591 $ 150,320 $ 53,367 $ 10,291,388 100%

VARIABLE
$8,233,110
Cost of Service
Fire Protection- Net Rev. Req'ts
Related Costs
Classification Components
Cost of Service
Net Rev. Req'ts
% of COS Net
Revenue Req'ts
FIXED
CommodityRelated CostsCapacityRelated CostsCustomerRelated CostsFire ProtectionRelated Costs FIXED $10,291,388
FIXED
% of COS Net
Revenue Req'ts
FIXED
CommodityRelated Costs
$10,291,388 $2,058,278
CapacityRelated CostsCustomerRelated Costs
Total Net Revenue Requirement
by Classification Component
Total Net Revenue Requirement
by Classification Component
Customer Classes
Customer Classes
$4,116,555
Classification Components
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WATER RATE STUDY
Cost-of-Service Analysis & Rate Design
TABLE 37 : COST-OF-SERVICE SUMMARY OF REVENUE REQUIREMENTS Residential $ 4,731,653 46.0% $ 4,872,326 47.3% $ 5,013,000 48.7% Multi-Family 3,113,858 30.3% 2,379,400 23.1% 1,644,942 16.0% Commercial 1,650,269 16.0% 2,179,689 21.2% 2,709,109 26.3% Landscape 279,007 2.7% 365,999 3.6% 452,990 4.4%
Private Fire Protection 385,726 3.7% 334,458 3.2% 283,191 2.8% Temporary Hydrant Meters 58,647 0.6% 67,213 0.7% 75,778 0.7% Raw Water 72,227 0.7% 92,303 0.9% 112,378 1.1%
Total $ 10,291,388 100% $ 10,291,388 100% $ 10,291,388 100% TABLE 38 : METER EQUIVALENCY FACTORS USED IN FIXED CHARGES CALCULATION 5/8 inch 20 1.00
3/4 inch 30 1.00
1 inch 50 1.00
1 1/2 inch 100 2.00
2 inch 160 3.20
3 inch 320 6.40
4 inch 500 10.00
6 inch 1,000 20.00
8 inch 1,600 32.00
10 inch 4,200 84.00
12 inch 5,300 106.00

1. Per AWWA, M1 Manual, Table B-1.

Alternative 3 - Allocated Costs
FY 2023/24 COS
Rev. Req't
Alternative 1 - Allocated Costs
% of COS
Rev. Req't.
% of COS
Rev. Req't.

Customer Class % of COS
Rev. Req't.

FY 2023/24 COS
Rev. Req't
Alternative 2 - Allocated Costs
FY 2023/24 COS
Rev. Req't
Compound Class I Meters
Turbine Class II Meters
Meter Capacity
(gpm)1
Meter Size Equivalency
to 1 inch
Displacement Meters
Standard Meters
Prepared by NBS
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WATER RATE STUDY
Cost-of-Service Analysis & Rate Design
TABLE 39 : CALCULATION OF MONTHLY FIXED METER SERVICE CHARGES FOR FY 2023/24 Net Revenue Requirements (ALTERNATIVE 2 - 40% Fixed / 60% Variable) < 1" meter 1" meter 1 1/2" meter 2" meter 3" meter 4" meter 6" meter 8" meter Residential 1,986 2,875 7 9 1 2 0 0 4,880
Multi-Family 0 0 20 201 96 48 191 0 556
Landscape 13 30 14 16 0 0 0 0 73
Commercial 102 88 54 81 11 7 0 0 343
Private Fire Protection 245 0 0 0 0 0 0 0 245
Temporary Hydrant Meters 0 0 0 0 8 0 0 0 8
Raw Water 0 0 0 0 0 2 1 0 3
Total Meters/Accounts 2,346 2,993 95 307 116 59 192 0 6,108 Hydraulic Capacity Factor 21.00 1.00 2.00 3.20 6.40 10.00 20.00 32.00 Total Equivalent Meters 2,346 2,993 190 982 742 590 3,840 0 11,684 < 1" meter 1" meter 1 1/2" meter 2" meter 3" meter 4" meter 6" meter 8" meter Monthly Fixed Service Charges
Customer Costs ($/Acct/month)3
$4.10 $4.10 $4.10 $4.10 $4.10 $4.10 $4.10 $4.10
Capacity Costs ($/Acct/month)4$27.22 $27.22 $54.43 $87.09 $174.19 $272.17 $544.33 $870.93 Total Monthly Meter Charge $31.32 $31.32 $58.53 $91.19 $178.29 $276.27 $548.43 $875.03 Annual Fixed Costs Allocated to Monthly Meter Charges
Customer Costs $ 300,640
Capacity Costs 3,815,915
Total Fixed Meter Costs $ 4,116,555
Annual Revenue from Monthly Meter Charges
Customer Charges $ 115,491 $ 147,298 $ 4,676 $ 15,111 $ 5,710 $ 2,904 $ 9,450 $ - $ 300,640 Capacity Charges $ 766,330 $ 977,381 $ 62,054 $ 320,851 $ 242,467 $ 192,693 $ 1,254,139 $ - $ 3,815,915 Total Revenue from Monthly Meter Charges $ 881,821 $ 1,124,680 $ 66,730 $ 335,961 $ 248,177 $ 195,597 $ 1,263,590 $ - $ 4,116,555

1. Meter by Class and Size are based on June 2022 customer billing data.

2. Source: Principles of Water Rates, Fees, and Charges , Manual M1, AWWA, Table B-1.

3. Customer costs are allocated to each customer by dividing the total customer costs by the total number of customers.

4. Capacity costs are allocated by meter size and the hydraulic capacity of the meter.

Number of Meters by Class and Size1 FY 2023/24 Total
Number of Meters by Class and Size Total 1 FY 2023/24
Prepared by NBS
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WATER RATE STUDY
Cost-of-Service Analysis & Rate Design
TABLE 40 : FIXED CHARGES REVENUE CHECK
< 1" 1" 1 1/2" 2" 3" 4" 6" 8"
Potable Water
Residential 1,986 2,875 7 9 1 2 0 0 4,880
Multi-Family 0 0 20 201 96 48 191 0 556
Commercial 102 88 54 81 11 7 0 0 343
Landscape 13 30 14 16 0 0 0 0 73
Private Fire 245 0 0 0 0 0 0 0 245
Temp Meter 0 0 0 0 8 0 0 0 8
Raw Water 0 0 0 0 0 2 1 0 3
Recycled Water
Recycled Water 2 13 14 28 13 6 0 0 76
Total Meters/Accounts 2,348 3,006 109 335 129 65 192 0 6,184 TABLE 41 : PROJECTED FIXED REVENUE CHECK
< 1" 1" 1 1/2" 2" 3" 4" 6" 8"
All Customers by Meter Size $31.32 $31.32 $58.53 $91.19 $178.29 $276.27 $548.43 $875.03 Revenue from Fixed Charges
Potable Water
Residential $ 746,526 $ 1,080,333 $ 4,917 $ 9,849 $ 2,139 $ 6,630 $ - $ - $ 1,850,395 Multi-Family - - 14,048 219,962 205,387 159,130 1,257,008 - 1,855,536 Commercial 38,334 33,072 37,931 88,641 23,534 23,206 - - 244,718 Landscape 4,886 11,275 9,834 17,509 - - - - 43,503
Private Fire 92,076 - - - - - - - 92,076
Temp Meter - - - - 17,116 - - - 17,116
Raw Water - - - - - 6,630 6,581 - 13,212
Total Revenue - Fixed Charges $ 4,116,555
Number of Meters by Class and Size Total
Projected Revenue From Fixed Charges
by Customer Class
FY 2023/24
FY 2023/24
Net Revenue Requirements (ALTERNATIVE 2 - 40% Fixed / 60% Variable) Prepared by NBS
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WATER RATE STUDY
Cost-of-Service Analysis & Rate Design
TABLE 42 : PROJECTED FIXED REVENUE CHECK
Potable Water
Residential $ - $ 1,850,395 $ 1,850,395
Multi-Family - 1,855,536 1,855,536
Commercial - 244,718 244,718
Landscape - 43,503 43,503
Private Fire - 92,076 92,076
Temp Meter - 17,116 17,116
Raw Water - 13,212 13,212
Total $ - $ 4,116,555 $ 4,116,555
Customer Class
Net Revenue Requirements
(ALTERNATIVE 2 - 40% Fixed / 60%
COS
Rev. Req't
Expected
Revenue
Over/(Under)
Collected
Prepared by NBS
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WATER RATE STUDY
Cost-of-Service Analysis & Rate Design
TABLE 43 : PROPOSED VOLUMETRIC CHARGES FOR FY 2023/24
Net Revenue Requirements (ALTERNATIVE 2 - 40% Fixed / 60% Variable) Customer Classes
Number of
Meters1
Water
Consumption
(hcf/yr)2
Total Target
Rev. Req't from
Vol. Charges
% of Total Rate
Revenue
Uniform
Commodity
Rates ($/hcf)
Proposed Rate
Structure
Residential 4,880 405,871 $ 3,092,204 30.0% n/a 2 Tiers Multi-Family 1,273 71,704 546,290 5.3% $7.619 Uniform
Commercial 343 255,046 1,943,118 18.9% $7.619 Uniform
Landscape 73 42,526 323,989 3.1% $7.619 Uniform
Private Fire Protection 245 18,265 139,154 1.4% $7.619 Uniform Temporary Hydrant Meters 8 6,642 50,606 0.5% $7.619 Uniform Raw Water 3 10,431 79,472 0.8% $7.619 Uniform
Total Potable Water 6,825 810,486 $ 6,174,833 60%

1. Consumption data is based on the City of American Canyon's billing data.

2. Water consumption is actual consumption for FY 2021/22 and includes an adjustment of 20% for conservation. See Table 28.

TABLE 44 : RESIDENTIAL & MOBILE HOME TIER BREAK ADJUSTMENTS Tier 1 - SWP & Vallejo Raw Water 322,836 79.5%
Tier 2 - Treated Water (Napa & Vallejo) 83,035 20.5%
Total 405,871 100.0% 7.0

1. SWP & Vallejo raw water are included in Tier 1 and all treated water (Napa & Vallejo) is in Tier 2. The FY 2021/22 consumption data are actuals and includes a 20% conservation factor. See Allocation Factors Tab, Table 28.

2. See Source of Supply Tab for details on how the percentage of consumption was calculated.

3. Annual residential consumption divided by total residential meters divided by 12 months.

4. Tier 2 breakpoint is the percentage of Tier 1 consumption times the Avg. Monthly Consumption , rounded to the nearest integer in hcf.

TABLE 45 : ALLOCATION OF SOURCE OF SUPPLY COSTS TO SINGLE FAMILY TIERED RATES Source of Supply
Water Supply by
Source (hcf)1
% Alloc. by
Class2 Cost ($/hcf)3 Total Supply
Costs
Residential
Share of Supply
Residential 892,183 50.1% $0.63 $ 565,431 $ 565,431
All Other Classes 889,421 49.9% $0.63 563,680 N.A.
1,781,604 100.0% N.A. $ 1,129,112 N.A.

Residential 68,196 50.1% $5.41 $ 369,096 $ 369,096
All Other Classes 67,985 49.9% $5.41 367,953 N.A.
136,181 100.0% N.A. $ 737,049 N.A.

Grand Total 1,917,785 $ 1,866,161 $ 934,527

1. Total Contracted Supply Purchase Costs are from the Source of Supply Tab, Table 31.

2. Residential consumption for FY 2021/22 is from the Allocation Factors Tab, Table 28.

3. Contracted Supply Costs are from the Source of Supply Tab, Table 32.

Tier Breakpoint
(hcf)4

6.00 Tier 2 - Treated Water (Napa & Vallejo)
Total SWP & Vallejo Raw Water
Total Treated Water (Napa & Vallejo)
Residential Tiers1 % of
Consumption2
Consumption
Avg. Monthly
Consumption FY
2020/21 (hcf)3
Tier 1 - SWP & Vallejo Raw Water
Prepared by NBS
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WATER RATE STUDY
Cost-of-Service Analysis & Rate Design
TABLE 46 : RESIDENTIAL TIERED RATES
Supply Costs
Allocated to
Residential
Tiered Rates1
Source of
Supply Costs2
Other Costs
Allocated to
Vol. Rates
Total Costs
Allocated3
FY 2020/21
Consumption4
Residential
Rates ($/HCF)5
Residential Tiered Rate Costs (1) (2) (3) (4) (5) (6)
Tier 1 - SWP & Vallejo Raw Water 79.5% $ 565,431 $ 1,716,250 $ 2,281,681 322,836 $7.07 Tier 2 - Treated Water (Napa & Vallejo) 20.5% 369,096 441,426 810,523 83,035 $9.76 Total Residential Tiered Rate Costs 100.0% $ 934,527 $ 2,157,676 $ 3,092,204 405,871

1. Percentage of annual supply based on contracted purchases from Source of Supply Tab, Table 31.

2. See Table 45.

3. Total Variable Costs allocated to residential customers (Proposed Fixed Charges Tab, Table 33) less their Source of Supply Costs. NBS assumed these other costs are proportionally allocated to Tier 1 and Tier 2.

4. FY 2021/22 volume adjusted for conservation is from the Allocation Factors Tab, Table 28.

TABLE 47 : ESTIMATED VOLUMETRIC REVENUE BY CUSTOMER CLASS Potable Water
Residential
Tier 1 - SWP & Vallejo Raw Water 322,836 $ 2,459,588 40% $ 1,471,833 $ 3,931,421 $ 3,875,526 Tier 2 - Treated Water (Napa & Vallejo) 83,035 632,616 10% 378,561 1,011,177 996,800 Multi-Family 71,704 546,290 9% 1,855,536 2,401,826 2,379,400 Commercial 255,046 1,943,118 31% 244,718 2,187,836 2,179,689 Landscape 42,526 323,989 5% 43,503 367,493 365,999
Private Fire Protection 18,265 139,154 2% 92,076 231,229 334,458 Temporary Hydrant Meters 6,642 50,606 1% 17,116 67,722 67,213 Raw Water 10,431 79,472 1% 13,212 92,684 92,303
Grand Total 810,486 $ 6,174,833 100% $ 4,116,555 $ 10,291,388 $ 10,291,388 Customer Class
Estimated
Consumption
(hcf)
Source of Supply
Cost of Service
Net Revenue
Req'ts
Estimated
Fixed
Revenue
% of Variable
Rate Revenue
Total
Estimated
Revenue
Estimated
Variable Revenue
Prepared by NBS
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WATER RATE STUDY
Cost-of-Service Analysis & Rate Design
TABLE 48 : ASSUMPTIONS USED IN DROUGHT RATE ANALYSIS
Shortage Level Percent Shortage Range Potable Water
Consumption (AF/yr.)
Potable Water
Consumption
(hcf/yr.)
Difference to
Baseline (hcf)
Baseline Consumption2
1,861 810,486 0
1 Up to 10% Voluntary Conservation 1,675 729,437 (81,049) 2 Up to 20% Water Alert 1,488 648,388 (162,097)
3 Up to 30% Water Emergency 1,302 567,340 (243,146)
4 Up to 40% Critical Water Emergency 1,116 486,291 (324,194) 5 Up to 50% Severe Water Emergency 930 405,243 (405,243) 6 >50% Catastrophic Interruption of Water Supplies 744 324,194 (486,291)

2. This represents the baseline consumption for FY 2021/22 consumption (excludes recycled water). Conservation percentage for each drought stage is relative to the baseline consumption.

TABLE 49 : EXPENSES DIRECTLY IMPACTED BY FUTURE MANDATED WATER USE REDUCTION Expenses Directly Effected By Consumption Changes
FY 2023/24 FY 2024/25 FY 2025/26 FY 2026/27 FY 2027/28
City of Napa $ 278,000 $ 283,560 $ 289,231 $ 295,016 $ 300,916 North Bay Aqueduct 3,203,000 3,267,060 3,332,401 3,399,049 3,467,030 City of Vallejo 121,218 123,642 126,115 128,638 131,210 Total: $ 3,602,218 $ 3,674,262 $ 3,747,748 $ 3,822,703 $ 3,899,157 TABLE 50 : CALCULATION OF DROUGHT RATES FOR FY 2023/24
Proposed Alternative - (40% Fixed / 60% Variable)
Conservation
Goal
Water Consumption
(hcf/yr.)
Baseline Rev. Req't
from Vol. Charges
Cost Reduction Due
to Conservation1
Target Rev. Req't
from Vol. Charges
Drought Surcharge
($/hcf)
Uniform
Commodity Rates
($/hcf)
0% 810,486 $ 6,174,833 $ - $ 6,174,833 $0.00 $7.62
Up to 10% 729,437 6,174,833 (360,222) 5,814,611 $0.35 $7.97 Up to 20% 648,388 6,174,833 (720,444) 5,454,389 $0.79 $8.41 Up to 30% 567,340 6,174,833 (1,080,665) 5,094,167 $1.36 $8.98 Up to 40% 486,291 6,174,833 (1,440,887) 4,733,945 $2.12 $9.73 Up to 50% 405,243 6,174,833 (1,801,109) 4,373,724 $3.17 $10.79 >50% 324,194 6,174,833 (2,161,331) 4,013,502 $4.76 $12.38

1. Cost reduction equals the conservation goal percentage multiplied by expenses directly effected by consumption charges.

Description Commodity-Related Costs
Shortage Response Action
2021/22 Consumption Assumptions1
Prepared by NBS
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WATER RATE STUDY
Cost-of-Service Analysis & Rate Design
TABLE 51 : CALCULATION OF DROUGHT RATES FOR FY 2024/25
Proposed Alternative - (40% Fixed / 60% Variable)
Conservation
Goal
Water Consumption
(hcf/yr.)
Baseline Rev. Req't
from Vol. Charges
Cost Reduction Due
to Conservation1
Target Rev. Req't
from Vol. Charges
Drought Surcharge
($/hcf)
Uniform
Commodity Rates
($/hcf)
0% 810,486 $ 6,851,718 $ - $ 6,851,718 $0.00 $8.45
Up to 10% 729,437 6,851,718 (367,426) 6,484,291 $0.44 $8.89 Up to 20% 648,388 6,851,718 (734,852) 6,116,865 $0.98 $9.43 Up to 30% 567,340 6,851,718 (1,102,279) 5,749,439 $1.68 $10.13 Up to 40% 486,291 6,851,718 (1,469,705) 5,382,013 $2.61 $11.07 Up to 50% 405,243 6,851,718 (1,837,131) 5,014,587 $3.92 $12.37 >50% 324,194 6,851,718 (2,204,557) 4,647,160 $5.88 $14.33

1. Cost reduction equals the conservation goal percentage multiplied by expenses directly effected by consumption charges.

TABLE 52 : CALCULATION OF DROUGHT RATES FOR FY 2025/26
Proposed Alternative - (40% Fixed / 60% Variable)
Conservation
Goal
Water Consumption
(hcf/yr.)
Baseline Rev. Req't
from Vol. Charges
Cost Reduction Due
to Conservation1
Target Rev. Req't
from Vol. Charges
Drought Surcharge
($/hcf)
Uniform
Commodity Rates
($/hcf)
0% 810,486 $ 7,595,335 $ - $ 7,595,335 $0.00 $9.37
Up to 10% 729,437 7,595,335 (374,775) 7,220,560 $0.53 $9.90 Up to 20% 648,388 7,595,335 (749,550) 6,845,785 $1.19 $10.56 Up to 30% 567,340 7,595,335 (1,124,324) 6,471,010 $2.03 $11.41 Up to 40% 486,291 7,595,335 (1,499,099) 6,096,236 $3.16 $12.54 Up to 50% 405,243 7,595,335 (1,873,874) 5,721,461 $4.75 $14.12 >50% 324,194 7,595,335 (2,248,649) 5,346,686 $7.12 $16.49

1. Cost reduction equals the conservation goal percentage multiplied by expenses directly effected by consumption charges.

TABLE 53 : CALCULATION OF DROUGHT RATES FOR FY 2026/27
Proposed Alternative - (40% Fixed / 60% Variable)
Conservation
Goal
Water Consumption
(hcf/yr.)
Baseline Rev. Req't
from Vol. Charges
Cost Reduction Due
to Conservation1
Target Rev. Req't
from Vol. Charges
Drought Surcharge
($/hcf)
Uniform
Commodity Rates
($/hcf)
0% 810,486 $ 8,033,434 $ - $ 8,033,434 $0.00 $9.91
Up to 10% 729,437 8,033,434 (382,270) 7,651,163 $0.58 $10.49 Up to 20% 648,388 8,033,434 (764,541) 7,268,893 $1.30 $11.21 Up to 30% 567,340 8,033,434 (1,146,811) 6,886,623 $2.23 $12.14 Up to 40% 486,291 8,033,434 (1,529,081) 6,504,353 $3.46 $13.38 Up to 50% 405,243 8,033,434 (1,911,351) 6,122,082 $5.20 $15.11 >50% 324,194 8,033,434 (2,293,622) 5,739,812 $7.79 $17.70

1. Cost reduction equals the conservation goal percentage multiplied by expenses directly effected by consumption charges.

Prepared by NBS
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WATER RATE STUDY
Cost-of-Service Analysis & Rate Design
TABLE 54 : CALCULATION OF DROUGHT RATES FOR FY 2027/28
Proposed Alternative - (40% Fixed / 60% Variable)
Conservation
Goal
Water Consumption
(hcf/yr.)
Baseline Rev. Req't
from Vol. Charges
Cost Reduction Due
to Conservation1
Target Rev. Req't
from Vol. Charges
Drought Surcharge
($/hcf)
Uniform
Commodity Rates
($/hcf)
0% 810,486 $ 8,415,102 $ - $ 8,415,102 $0.00 $10.38
Up to 10% 729,437 8,415,102 (389,916) 8,025,186 $0.62 $11.00 Up to 20% 648,388 8,415,102 (779,831) 7,635,271 $1.39 $11.78 Up to 30% 567,340 8,415,102 (1,169,747) 7,245,355 $2.39 $12.77 Up to 40% 486,291 8,415,102 (1,559,663) 6,855,439 $3.71 $14.10 Up to 50% 405,243 8,415,102 (1,949,578) 6,465,524 $5.57 $15.95 >50% 324,194 8,415,102 (2,339,494) 6,075,608 $8.36 $18.74

1. Cost reduction equals the conservation goal percentage multiplied by expenses directly effected by consumption charges.

Prepared by NBS
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WATER RATE STUDY
Cost-of-Service Analysis & Rate Design
TABLE 55 : CURRENT VS. PROPOSED WATER RATES - FIXED CHARGES FY 2023/24 FY 2024/25 FY 2025/26 FY 2026/27 FY 2027/28
Projected Increase in Rate Revenue per Financial Plan: 9.00% 9.00% 9.00% 4.00% 3.00% Monthly Fixed Service Charges (in $/mo)
Residential Use
< 1" meter $26.56 $31.32 $34.14 $37.21 $38.70 $39.86
1" meter $26.56 $31.32 $34.14 $37.21 $38.70 $39.86
1 1/2" meter $26.56 $58.53 $63.80 $69.55 $72.33 $74.50
2" meter $26.56 $91.19 $99.40 $108.35 $112.68 $116.06
3" meter $26.56 $178.29 $194.33 $211.82 $220.30 $226.91 4" meter $26.56 $276.27 $301.13 $328.23 $341.36 $351.60 6" meter $26.56 $548.43 $597.79 $651.59 $677.66 $697.99 8" meter $26.56 $875.03 $953.78 $1,039.63 $1,081.21 $1,113.65 Multi-Family, Commercial and Landscape
< 1" meter $26.56 $31.32 $34.14 $37.21 $38.70 $39.86
1" meter (Residential) $26.56 $31.32 $34.14 $37.21 $38.70 $39.86 1" meter (Commercial) $44.42 $31.32 $34.14 $37.21 $38.70 $39.86 1 1/2" meter $88.75 $58.53 $63.80 $69.55 $72.33 $74.50
2" meter $141.99 $91.19 $99.40 $108.35 $112.68 $116.06
3" meter $283.98 $178.29 $194.33 $211.82 $220.30 $226.91 4" meter $443.74 $276.27 $301.13 $328.23 $341.36 $351.60 6" meter $887.48 $548.43 $597.79 $651.59 $677.66 $697.99 8" meter $1,420.06 $875.03 $953.78 $1,039.63 $1,081.21 $1,113.65 Private Fire Protection
< 1" meter $13.28 $31.32 $34.14 $37.21 $38.70 $39.86
1" meter $13.28 $31.32 $34.14 $37.21 $38.70 $39.86
1 1/2" meter $13.28 $58.53 $63.80 $69.55 $72.33 $74.50
2" meter $13.28 $91.19 $99.40 $108.35 $112.68 $116.06
3" meter $13.28 $178.29 $194.33 $211.82 $220.30 $226.91 4" meter $13.28 $276.27 $301.13 $328.23 $341.36 $351.60 6" meter $13.28 $548.43 $597.79 $651.59 $677.66 $697.99 8" meter $13.28 $875.03 $953.78 $1,039.63 $1,081.21 $1,113.65 Temporary Hydrant Meters
< 1" meter $283.98 $31.32 $34.14 $37.21 $38.70 $39.86
1" meter $283.98 $31.32 $34.14 $37.21 $38.70 $39.86
1 1/2" meter $283.98 $58.53 $63.80 $69.55 $72.33 $74.50 2" meter $283.98 $91.19 $99.40 $108.35 $112.68 $116.06
3" meter $283.98 $178.29 $194.33 $211.82 $220.30 $226.91 4" meter $283.98 $276.27 $301.13 $328.23 $341.36 $351.60 6" meter $283.98 $548.43 $597.79 $651.59 $677.66 $697.99 8" meter $283.98 $875.03 $953.78 $1,039.63 $1,081.21 $1,113.65 Raw Water
< 1" meter n/a $31.32 $34.14 $37.21 $38.70 $39.86
1" meter $44.42 $31.32 $34.14 $37.21 $38.70 $39.86
1 1/2" meter n/a $58.53 $63.80 $69.55 $72.33 $74.50
2" meter $141.99 $91.19 $99.40 $108.35 $112.68 $116.06
3" meter n/a $178.29 $194.33 $211.82 $220.30 $226.91
4" meter $443.74 $276.27 $301.13 $328.23 $341.36 $351.60 6" meter $887.48 $548.43 $597.79 $651.59 $677.66 $697.99 8" meter n/a $875.03 $953.78 $1,039.63 $1,081.21 $1,113.65 Net Revenue Requirements (ALTERNATIVE 2 - 40% Fixed / 60% Variable) Water Rate Schedule
Proposed Rates Current
Rates
Prepared by NBS
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WATER RATE STUDY
Cost-of-Service Analysis & Rate Design
TABLE 56 : CURRENT VS. PROPOSED WATER RATES - VARIABLE CHARGES FY 2023/24 FY 2024/25 FY 2025/26 FY 2026/27 FY 2027/28
Projected Increase in Rate Revenue per Financial Plan: 9.00% 9.00% 9.00% 4.00% 3.00% Residential Use
Tier 1 (0 - 6 units) $7.54 $7.07 $7.70 $8.40 $8.73 $8.99 Tier 2 (> 6 units) $8.15 $9.76 $10.64 $11.60 $12.06 $12.42 Multi-Family, Commercial and Landscape $7.72 $7.62 $8.30 $9.05 $9.41 $9.70 Private Fire Protection $3.86 $7.62 $8.30 $9.05 $9.41 $9.70 Temporary Hydrant Meters
Potable $7.72 $7.62 $8.30 $9.05 $9.41 $9.70
Recycled $0.90 $6.69 $7.36 $8.10 $8.50 $8.93
Raw Water $3.44 $7.62 $8.30 $9.05 $9.41 $9.70
TABLE 57 : CURRENT VS. PROPOSED DROUGHT RATES
Drought Rate Schedule (in $/hcf) Current
Rates
FY 2023/24 FY 2024/25 FY 2025/26 FY 2026/27 FY 2027/28
10% Conservation n/a $7.97 $8.89 $9.90 $10.49 $11.00
20% Conservation n/a $8.41 $9.43 $10.56 $11.21 $11.78
30% Conservation n/a $8.98 $10.13 $11.41 $12.14 $12.77
40% Conservation n/a $9.73 $11.07 $12.54 $13.38 $14.10
50% Conservation n/a $10.79 $12.37 $14.12 $15.11 $15.95 60% Conservation n/a $12.38 $14.33 $16.49 $17.70 $18.74 Net Revenue Requirements (ALTERNATIVE 2 - 40% Fixed / 60% Variable) Variable Charges for All Water Consumed (in $/hcf)
Water Rate Schedule Current
Rates
Proposed Rates
Net Revenue Requirements (ALTERNATIVE 2 - 40% Fixed / 60% Variable) Prepared by NBS
www.nbsgov.com | Toll-Free: 800.676.7516 Current & Proposed Rates, 40 of 48198 CITY OF AMERICAN CANYON Current vs. Proposed Rates

WATER RATE STUDY
Cost-of-Service Analysis & Rate Design
TABLE 58 : RATES AND DROUGHT SURCHARGE FOR EACH DROUGHT STAGE Drought Rate Schedule1
Uniform Rate for All Customers
No Conservation $0.00 $7.62 $0.00 $8.45 $0.00 $9.37 $0.00 $9.91 $0.00 $10.38 Up to 10% $0.35 $7.97 $0.44 $8.89 $0.53 $9.90 $0.58 $10.49 $0.62 $11.00 Up to 20% $0.79 $8.41 $0.98 $9.43 $1.19 $10.56 $1.30 $11.21 $1.39 $11.78 Up to 30% $1.36 $8.98 $1.68 $10.13 $2.03 $11.41 $2.23 $12.14 $2.39 $12.77 Up to 40% $2.12 $9.73 $2.61 $11.07 $3.16 $12.54 $3.46 $13.38 $3.71 $14.10 Up to 50% $3.17 $10.79 $3.92 $12.37 $4.75 $14.12 $5.20 $15.11 $5.57 $15.95 >50% $4.76 $12.38 $5.88 $14.33 $7.12 $16.49 $7.79 $17.70 $8.36 $18.74

1. ACTIVATION - The Drought Surcharge will NOT be added on water bills unless approved by the City Council. If the surcharge is activated, it will remain in effect as necessary and will be reviewed by the City Council at least monthly for a determination of necessity until the surcharge is deactivated.

2. Baseline water consumption is based on water usage for FY 2020/21, the same assumption used in the proposed volumetric rates.

3. Drought Surcharge is added to the Uniform Rate on a per unit basis to cover the cost of water service during times of State mandated conservation and/or extreme water supply shortage, resulting in water consumption below the established baseline.

4. The Drought Rate equals the Volumetric Rate plus Volumetric Surcharge. This does not include pumping charges which will apply where applicable. 810,486 hcf 810,486 hcf
Conservation Target
Drought
Surcharge 3 Drought Rate 4
Drought
Surcharge 3 Drought Rate 4
Drought
Surcharge 3 Drought Rate 4
Drought
Surcharge 3 Drought Rate 4
Drought
Surcharge 3 Drought Rate 4
Water Consumption
Baseline (hcf/yr)2
810,486 hcf
Proposed Drought Rates
FY 2023/24 FY 2024/25 FY 2025/26 FY 2026/27 FY 2027/28
$7.62 $8.30 $9.05 $9.41 $9.70
810,486 hcf 810,486 hcf
Prepared by NBS
www.nbsgov.com | Toll-Free: 800.676.7516 Current & Proposed Rates, 41 of 48199 Prepared by NBS
www.nbsgov.com | Toll-Free: 800.676.7516 Regional Bill Comp #1, Page 42 of 48 $655.33 $660.24 $784.38$959.40 $1,001.82 $1,020.48$1,275.01 $1,316.16 $1,394.94 $1,884.48 $0
$250
$500
$750
$1,000
$1,250
$1,500
$1,750
$2,000
City of Napa City of
Petaluma
City of
Benicia
City of
American
Canyon
(Current)
City of
American
Canyon
(Proposed -
Year 1)
City of Vallejo City of
American
Canyon
(Proposed -
Year 5)
City of St.

Helena
Town of
Yountville
City of
Calistoga
City of American Canyon (Year 1)
Annual Water Bill Comparison - Single Family Accounts
200
Prepared by NBS
www.nbsgov.com | Toll-Free: 800.676.7516 Regional Bill Comp #2, Page 43 of 48 $54.61 $55.02 $65.37$79.95 $83.49 $85.04$106.25 $109.68 $116.25 $157.04 $0
$25
$50
$75
$100
$125
$150
$175
$200
City of Napa City of
Petaluma
City of
Benicia
City of
American
Canyon
(Current)
City of
American
Canyon
(Proposed -
Year 1)
City of Vallejo City of
American
Canyon
(Proposed -
Year 5)
City of St.

Helena
Town of
Yountville
City of
Calistoga
City of American Canyon (Year 1 & 5)
Monthly Water Bill Comparison - Single Family Accounts
201
Prepared by NBS
www.nbsgov.com | Toll-Free: 800.676.7516 Regional Bill Comp #3, Page 44 of 48 $60.58$77.70 $78.50 $79.95 $83.49 $85.04$106.25 $116.25 $174.99 $217.53 $0
$25
$50
$75
$100
$125
$150
$175
$200
$225
$250
City of
Petaluma
(July 2027)
City of
Benicia
(January
2026)
City of Napa
(October
2027)
City of
American
Canyon
(Current)
City of
American
Canyon
(Proposed -
Year 1)
City of Vallejo
(July 2023)
City of
American
Canyon
(Proposed -
Year 5)
Town of
Yountville
(January
2027)
City of St.

Helena
(July 2027)
City of
Calistoga
(January
2028)
City of American Canyon (Year 1 & 5)
Monthly Water Bill Comparison - Single Family Accounts
202
Prepared by NBS
www.nbsgov.com | Toll-Free: 800.676.7516 SFR Bill Comp Tiers, 45 of 48 $47.35 $63.65 $79.95 $96.25$120.70 $185.90 $226.65 $44.44$63.96$83.49 $103.01$132.29 $210.38 $259.19 $0
$25
$50
$75
$100
$125
$150
$175
$200
$225
$250
$275
$300
3 5 7 9 12 20 25
Monthly Bill
Monthly Water Consumption (HCF)
Single-Family Residential Water Bill Comparison
Current vs. Proposed FY 2023/24 Rates (1" Meter)
Residential Bill - Current Rates
Residential Bill - Proposed Rates
Average
ANNUAL Bill
(9 hcf/mo.)
Average
WINTER Bill
(7 hcf/mo.)
Average
SUMMER Bill
(12 hcf/mo.)
203
Prepared by NBS
www.nbsgov.com | Toll-Free: 800.676.7516 MFR Bill Comp, 46 of 48 $111.91 $119.63 $127.35 $135.07 $142.79$165.95 $204.55 $81.39 $89.01 $96.63 $104.25 $111.87$134.72 $172.82 $0
$25
$50
$75
$100
$125
$150
$175
$200
$225
$250
3 4 5 6 7 10 15
Monthly Bill
Monthly Water Consumption (CCF)
Multi-Family Residential Water Bill Comparison
Current vs. Proposed FY 2023/24 Rates (1.5" Meter)
Multi-Family Residential Bill - Current Rates
Multi-Family Residential Bill - Proposed Rates
Average
ANNUAL Bill
Average (6 hcf/mo.)
WINTER Bill
(5 hcf/mo.)
Average
SUMMER Bill
(7 hcf/mo.)
204
Prepared by NBS
www.nbsgov.com | Toll-Free: 800.676.7516 Commercial Bill Comp, 47 of 48 $334.99$527.99 $620.63 $736.43 $875.39$1,106.99 $1,299.99 $281.66$472.13 $563.55 $677.83 $814.97$1,043.53 $1,234.00 $0
$200
$400
$600
$800
$1,000
$1,200
$1,400
$1,600
$1,800
$2,000
25 50 62 77 95 125 150
Monthly Bill
Monthly Water Consumption (CCF)
Commercial Water Bill Comparison
Current vs. Proposed FY 2023/24 Rates (2" Meter)
Commercial Bill - Current Rates
Commercial Bill - Proposed Rates
Average
WINTER Bill
(62 hcf/mo.)
Average
ANNUAL Bill
(77 hcf/mo.)
Average
SUMMER Bill
(95 hcf/mo.)
205
Prepared by NBS
www.nbsgov.com | Toll-Free: 800.676.7516 Commercial Bill Comp (2), 48 of 48 $1,080.48 $1,273.48 $1,366.12 $1,481.92 $1,620.88 $1,852.48 $2,045.48 $738.90$929.37 $1,020.79 $1,135.07 $1,272.21 $1,500.77 $1,691.24 $0
$250
$500
$750
$1,000
$1,250
$1,500
$1,750
$2,000
$2,250
$2,500
25 50 62 77 95 125 150
Monthly Bill
Monthly Water Consumption (CCF)
Commercial Water Bill Comparison
Current vs. Proposed FY 2023/24 Rates (6" Meter)
Commercial Bill - Current Rates
Commercial Bill - Proposed Rates
Average
ANNUAL Bill
(77 hcf/mo.)
206
Enterprise Rate Study – City of American Canyon
Prepared by NBS – January 2024 87
Appendix B. Recycled Water Rate Study Tables and Figures 207
CITY OF AMERICAN CANYON Financial Plan & Reserve Summary

RECYCLED WATER RATE STUDY
Financial Plan and Reserve Projections
TABLE 1 : FINANCIAL PLAN AND SUMMARY OF REVENUE REQUIREMENTS Actuals Budget
FY 2021/22 FY 2022/23 FY 2023/24 FY 2024/25 FY 2025/26 FY 2026/27 FY 2027/28 FY 2028/29 FY 2029/30 FY 2030/31 FY 2031/32 FY 2032/33 Sources of Water Funds
Rate Revenue: 1
Water Sales - Recycled Water Charges $ 151,038 $ 203,365 $ 207,000 $ 210,726 $ 214,308 $ 217,952 $ 221,657 $ 225,425 $ 229,257 $ 232,925 $ 236,652 $ 240,439 Non-Rate Revenue:

Interest Earnings2
4,101 3,468 22,343 2,195 7,873 4,912 2,640 842 - - - -
Total Sources of Funds $ 155,140 $ 206,833 $ 229,343 $ 212,921 $ 222,182 $ 222,864 $ 224,297 $ 226,267 $ 229,257 $ 232,925 $ 236,652 $ 240,439 Uses of Water Funds
Operating Expenses: 1
Water Operations:

Fund 580 - Recycled Water Operations $ 272,644 $ 874,700 $ 893,163 $ 797,921 $ 823,477 $ 849,857 $ 877,086 $ 905,193 $ 934,206 $ 964,155 $ 995,069 $ 1,026,980 Other Expenditures:

Existing Debt Service $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - Interfund Loan Repayment3
- - 198,566 198,566 267,497 267,497 267,497 267,497 267,497 267,497 267,497 267,497 Rate-Funded Capital Expenses - - - - - - - - - - - -
Subtotal: Other Expenditures $ - $ - $ 198,566 $ 198,566 $ 267,497 $ 267,497 $ 267,497 $ 267,497 $ 267,497 $ 267,497 $ 267,497 $ 267,497 Total Uses of Water Funds $ 272,644 $ 874,700 $ 1,091,728 $ 996,487 $ 1,090,974 $ 1,117,354 $ 1,144,583 $ 1,172,690 $ 1,201,703 $ 1,231,652 $ 1,262,566 $ 1,294,477 plus: Revenue from Rate Increases4 - - 129,375 563,692 652,033 728,149 788,637 827,104 841,165 854,623 868,297 882,190 Annual Surplus/(Deficit) $ (117,504) $ (667,867) $ (733,011) $ (219,874) $ (216,759) $ (166,341) $ (131,650) $ (119,320) $ (131,281) $ (144,103) $ (157,617) $ (171,849) Net Revenue Req't. (Total Uses less Non-Rate Revenue) $ 268,543 $ 871,232 $ 1,069,386 $ 994,292 $ 1,083,101 $ 1,112,441 $ 1,141,943 $ 1,171,848 $ 1,201,703 $ 1,231,652 $ 1,262,566 $ 1,294,477

1. Revenue and expenses for FY 2021/22 through FY 2023/24 provided by the City.

Revenues and expenses for all other years are escalated based on the forecasting assumptions located in Table 67.

Source files: Fund 580 Recycled Water Operations.xlsx & FY2023-24 Exp Budget Recycled Water.xlsx .

2. Interest earnings for FY 2021/22 and FY 2022/23 are from the City's Budget. For all other years, it is calculated based on historical LAIF returns.

3. Repayment of interfund loans advanced by Wastewater Capacity 550 to Recycled Water Operations 540 for various project. See Exhibit 3 (Debt) for more details.

4. Revenue from rate increases assumes an implementation date of April 1, 2024 for new rates. For each year thereafter, the assumption is that new rates will be implemented on January 1st of each year. 1 <-- Select Financial Plan Scenario Here
Financial Plan Alternatives FY 2021/22 FY 2022/23 FY 2023/24 FY 2024/25 FY 2025/26 FY 2026/27 FY 2027/28 FY 2028/29 FY 2029/30 FY 2030/31 FY 2031/32 FY 2032/33 1 Alternative 1 - Full Cost Recovery Rate Increases1

0.00% 0.00% 250.00% 10.00% 10.00% 5.00% 5.00% 0.00% 0.00% 0.00% 0.00% 0.00% 2 Alternative 2 - Phased-in Rate Increases2

0.00% 0.00% 20.00% 20.00% 5.00% 2.00% 2.00% 0.00% 0.00% 0.00% 0.00% 0.00% 3 Alternative 3 - Minimal Rate Increases3

0.00% 0.00% 15.00% 15.00% 10.00% 5.00% 5.00% 0.00% 0.00% 0.00% 0.00% 0.00% 4 Alternative 4 - No Rate Increases 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%

1. Alternative 1: Scenario 1 - Rates needed to meet all revenue requirements and meet the target reserve levels (Large increase followed by smaller increases).

2. Alternative 2: Scenario 2 - Large increases phased In over two years, followed by smaller increases (Reserves drop below target level).

3. Alternative 3: Scenario 3 - Smaller increases (Reserves drop below target level).

RATE REVENUE REQUIREMENTS SUMMARY
5-Year Projected Rate Period Projected
Prepared by NBS
www.nbsgov.com | Toll-free: 800.676.7516 RW - Financial Plan, Page 1 of 21 208 CITY OF AMERICAN CANYON Financial Plan & Reserve Summary

RECYCLED WATER RATE STUDY
Financial Plan and Reserve Projections
TABLE 2 : RESERVE FUND SUMMARY
Actuals Projected
FY 2021/22 FY 2022/23 FY 2023/24 FY 2024/25 FY 2025/26 FY 2026/27 FY 2027/28 FY 2028/29 FY 2029/30 FY 2030/31 FY 2031/32 FY 2032/33 Unrestricted Reserve:

Total Beginning Cash1
$ 105,383 $ 549,510
Operating Reserve
Beginning Reserve Balance $ 105,383 $ 549,510 $ 650,000 $ (83,011) $ (302,885) $ (519,644) $ (685,985) $ (817,634) $ (936,954) $ (1,068,236) $ (1,212,339) $ (1,369,955) Plus: Net Cash Flow (After Rate Increases) (117,504) (667,867) (733,011) (219,874) (216,759) (166,341) (131,650) (119,320) (131,281) (144,103) (157,617) (171,849) Plus: Transfer in from Capital and Infrastructure Reserve - - - - - - - - - - - - Less: Transfer out to Capital and Infrastructure Reserve - - - - - - - - - - - - Ending Operating Reserve Balance $ (12,121) $ (118,357) $ (83,011) $ (302,885) $ (519,644) $ (685,985) $ (817,634) $ (936,954) $ (1,068,236) $ (1,212,339) $ (1,369,955) $ (1,541,804) Target Ending Balance (90-days of O&M) 2
$ 68,000 $ 219,000 $ 223,000 $ 199,000 $ 206,000 $ 212,000 $ 219,000 $ 226,000 $ 234,000 $ 241,000 $ 249,000 $ 257,000 Capital Rehabilitation & Replacement Reserve
Beginning Reserve Balance $ - $ - $ 243,704 $ 243,704 $ 879,258 $ 879,258 $ 879,258 $ 879,258 $ 879,258 $ 879,258 $ 879,258 $ 879,258 Plus: Transfer of Operating Reserve Surplus - - - - - - - - - - - - Less: Transfer out to Operating Reserve - - - - - - - - - - - - Less: Use of Reserves for Capital Projects - - - - - - - - - - - - Ending Capital and Infrastructure Reserve Balance $ - $ 243,704 $ 243,704 $ 879,258 $ 879,258 $ 879,258 $ 879,258 $ 879,258 $ 879,258 $ 879,258 $ 879,258 $ 879,258 Target Ending Balance (3% of net assets) 3
$ 1,420,700 $ 1,548,600 $ 1,870,900 $ 2,079,900 $ 2,260,500 $ 2,370,700 $ 2,458,100 $ 2,548,200 $ 2,641,000 $ 2,736,700 $ 2,835,300 $ 2,937,000 Ending Balance - Excl. Restricted Reserves $ (12,121) $ 125,346 $ 160,693 $ 576,373 $ 359,614 $ 193,273 $ 61,624 $ (57,696) $ (188,977) $ (333,081) $ (490,697) $ (662,546) Min. Target Ending Balance -Excl. Restricted Reserves $ 1,488,700 $ 1,767,600 $ 2,093,900 $ 2,278,900 $ 2,466,500 $ 2,582,700 $ 2,677,100 $ 2,774,200 $ 2,875,000 $ 2,977,700 $ 3,084,300 $ 3,194,000 Ending Surplus/(Deficit) Compared to Reserve Targets $ (1,500,821) $ (1,642,254) $ (1,933,207) $ (1,702,527) $ (2,106,886) $ (2,389,427) $ (2,615,476) $ (2,831,896) $ (3,063,977) $ (3,310,781) $ (3,574,997) $ (3,856,546) Annual Interest Earnings Rate 4

1.37% 2.50% 2.50% 1.37% 1.37% 1.37% 1.37% 1.37% 1.37% 1.37% 1.37% 1.37%

1. Beginning cash balances provided by City staff for Fund 580 - Recycled Water Operations. Source file: 4 - Current Cash and Fund Balance - Recycled Water 12062021.xlsx , Beg Fund Balance FY23- Water.xls , & Beg Fund Balance FY23- Recycled Water.xls .

2. The target ending balance is set equal to 90-days of O&M expenses. Source file: 4 - Current Cash and Fund Balance - Water 12062021.xlsx .

3. The target ending balance is set equal to 3% of net capital assets. See Exhibit 2 (CIP) for details.

4. Historical interest earning rates are per the average annual yields for funds invested in LAIF (2017-2021). The source is the California State Treasurer's website: https://www.treasurer.ca.gov/pmia-laif/historical/annual.asp .

SUMMARY OF CASH ACTIVITY
5-Year Projected Rate Period Projected
Prepared by NBS
www.nbsgov.com | Toll-free: 800.676.7516 RW - Financial Plan, Page 2 of 21 209 CITY OF AMERICAN CANYON Charts & Tables

RECYCLED WATER RATE STUDY
Rate Adjustment Charts and Report Tables
CHART 1
$.0 Mil.
$.2 Mil.
$.4 Mil.
$.6 Mil.
$.8 Mil.
$1.0 Mil.
$1.2 Mil.
$1.4 Mil.
$1.6 Mil.
$1.8 Mil.
$2.0 Mil.
2022 2023 2024 2025 2026 2027 2028
Annual Obligations
Fiscal Year Ending June 30
Water Revenue Requirements vs.

Revenue Under Existing and Increased Rates
Interfund Loan Repayment
O&M Expenses
Revenues under Existing Rates
Revenues under Increased Rates
Prepared by NBS
www.nbsgov.com | Toll-free: 800.676.7516 RW - Charts and Tables, 3 of 21210 CITY OF AMERICAN CANYON Charts & Tables

RECYCLED WATER RATE STUDY
Rate Adjustment Charts and Report Tables
CHART 2
$.0 Mil.
$.5 Mil.
$1.0 Mil.
$1.5 Mil.
$2.0 Mil.
$2.5 Mil.
$3.0 Mil.
$3.5 Mil.
$4.0 Mil.
$4.5 Mil.
$5.0 Mil.
2022 2023 2024 2025 2026 2027 2028
Fiscal Year Ending June 30
Ending Cash Balances vs.

Recommended Reserve Targets
Ending Cash Balance (Unrestricted Reserves) Minimum Target Reserve Balance Prepared by NBS
www.nbsgov.com | Toll-free: 800.676.7516 RW - Charts and Tables, 4 of 21211 CITY OF AMERICAN CANYON Charts & Tables

RECYCLED WATER RATE STUDY
Rate Adjustment Charts and Report Tables
CHART 3
250.0%

10.0% 10.0% 5.0% 5.0%
0%
50%
100%
150%
200%
250%
300%
2024 2025 2026 2027 2028
Fiscal Year Ending June 30
Projected Increases to Rate Revenue
Prepared by NBS
www.nbsgov.com | Toll-free: 800.676.7516 RW - Charts and Tables, 5 of 21212 CITY OF AMERICAN CANYON Exhibit 1 - O&M

RECYCLED WATER RATE STUDY
Operating Revenue and Expenses
TABLE 3 : REVENUE FORECAST1
Actuals Budget
FY 2021/22 FY 2022/23 FY 2023/24 FY 2024/25 FY 2025/26 FY 2026/27 FY 2027/28 FY 2028/29 FY 2029/30 FY 2030/31 FY 2031/32 FY 2032/33 Rate Revenue
Water Service Charge - Recycled Water 1 $ 151,038 $ 203,365 $ 207,000 $ 210,726 $ 214,308 $ 217,952 $ 221,657 $ 225,425 $ 229,257 $ 232,925 $ 236,652 $ 240,439 Other Revenue
Interest Earnings See FP 4,101 3,468 - - - - - - - - - - TOTAL: REVENUE $ 155,140 $ 206,833 $ 207,000 $ 210,726 $ 214,308 $ 217,952 $ 221,657 $ 225,425 $ 229,257 $ 232,925 $ 236,652 $ 240,439 TABLE 4 : OPERATING EXPENSE FORECAST1
Actuals Budget
FY 2021/22 FY 2022/23 FY 2023/24 FY 2024/25 FY 2025/26 FY 2026/27 FY 2027/28 FY 2028/29 FY 2029/30 FY 2030/31 FY 2031/32 FY 2032/33 Fund 580 - Recycled Water Operations
Wages - Full time 3 $ - $ 24,231 $ 209,085 $ 216,403 $ 223,977 $ 231,816 $ 239,930 $ 248,327 $ 257,019 $ 266,015 $ 275,325 $ 284,961 Health Insurance 3 - 5,720 35,576 36,821 38,109 39,443 40,824 42,253 43,731 45,262 46,846 48,486 Health-In_Lieu 3 - - 2,280 2,360 2,442 2,528 2,616 2,708 2,803 2,901 3,002 3,107 Cafeteria Plan Section 125 3 - 1,120 9,599 9,935 10,282 10,642 11,015 11,400 11,799 12,212 12,640 13,082 PERS Retirement 3 - 1,982 26,843 27,782 28,755 29,761 30,803 31,881 32,997 34,152 35,347 36,584 Benefits - Other 3 - - 471 488 505 522 541 560 579 599 620 642 Social Security & Medicare 3 - 368 3,204 3,316 3,432 3,552 3,677 3,805 3,938 4,076 4,219 4,367 Worker Comp Insurance 3 - 532 22,467 23,254 24,067 24,910 25,782 26,684 27,618 28,585 29,585 30,621 Info Tech Support Services 2 - - 54,000 55,620 57,289 59,007 60,777 62,601 64,479 66,413 68,406 70,458 Professional Services 2 13,511 44,997 51,000 52,530 54,106 55,729 57,401 59,123 60,897 62,724 64,605 66,543 Misc Contractual Services 2 - 300,000 2,000 2,060 2,122 2,185 2,251 2,319 2,388 2,460 2,534 2,610 Temp Agency Services 2 - - - - - - - - - - - -
General Repairs & Maint 2 - 20,000 20,000 20,600 21,218 21,855 22,510 23,185 23,881 24,597 25,335 26,095 Postage/Mail/Copy/Printing Svc 2 - 1,000 5,000 5,150 5,305 5,464 5,628 5,796 5,970 6,149 6,334 6,524 Membership Dues & Subscription 2 - 500 1,000 1,030 1,061 1,093 1,126 1,159 1,194 1,230 1,267 1,305 Conferences - Training 2 - 1,600 2,000 2,060 2,122 2,185 2,251 2,319 2,388 2,460 2,534 2,610 Office Supplies 2 - 500 500 515 530 546 563 580 597 615 633 652 Operating Supplies 2 - 42,000 123,000 126,690 130,491 134,405 138,438 142,591 146,868 151,274 155,813 160,487 AC Recycled Water 2 36,360 150,000 - - - - - - - - - -
Depreciation 2 222,773 - - - - - - - - - - -
Depreciation - Infrastructure 2 - - - - - - - - - - - - Vehicles 2 - 100,000 - - - - - - - - - -
Major Equipment 8 - 70,000 70,000 - - - - - - - - -
Transfers Out To Other Funds 8 - 60,000 50,000 - - - - - - - - - Retiree Health Benefits 3 - 112 1,973 2,042 2,114 2,188 2,264 2,344 2,426 2,510 2,598 2,689 OPEB 3 - 84 1,251 1,295 1,340 1,387 1,436 1,486 1,538 1,592 1,647 1,705 ISF - Bldg Maint 2 - 26,927 39,873 41,069 42,301 43,570 44,877 46,224 47,610 49,039 50,510 52,025 ISF - Legal Services 2 - 518 23,705 24,416 25,149 25,903 26,680 27,481 28,305 29,154 30,029 30,930 Capital Outlay-Contra Account 8 - - - - - - - - - - - - Transfer to Gen Fnd Support Sv 2 - 22,510 138,336 142,486 146,761 151,163 155,698 160,369 165,180 170,136 175,240 180,497 Interest Payments for Internal Loans See Exh. 3 - - - - - - - - - - - - TOTAL: RECYCLED WATER OPERATIONS EXPENSES $ 272,644 $ 874,700 $ 893,163 $ 797,921 $ 823,477 $ 849,857 $ 877,086 $ 905,193 $ 934,206 $ 964,155 $ 995,069 $ 1,026,980 DESCRIPTION Basis
5-Year Projected Rate Period Projected
DESCRIPTION Basis
5-Year Projected Rate Period Projected
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RECYCLED WATER RATE STUDY
Operating Revenue and Expenses
TABLE 5 : FORECASTING ASSUMPTIONS
Basis 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 Customer Growth31 -- 1.80% 1.80% 1.80% 1.70% 1.70% 1.70% 1.70% 1.70% 1.60% 1.60% 1.60% General Cost Inflation42 -- 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% Labor Cost Inflation53 -- 3.50% 3.50% 3.50% 3.50% 3.50% 3.50% 3.50% 3.50% 3.50% 3.50% 3.50% Energy64 -- 7.44% 7.44% 7.44% 7.44% 7.44% 7.44% 7.44% 7.44% 7.44% 7.44% 7.44% Electricty75 -- 5.64% 5.64% 5.64% 5.64% 5.64% 5.64% 5.64% 5.64% 5.64% 5.64% 5.64% Fuel & Utilities86 -- 5.24% 5.24% 5.24% 5.24% 5.24% 5.24% 5.24% 5.24% 5.24% 5.24% 5.24% Construction Cost Inflation97 -- 3.50% 3.50% 3.50% 3.50% 3.50% 3.50% 3.50% 3.50% 3.50% 3.50% 3.50% No Escalation 8 -- 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%

2. Expenses are inflated each year by the following annual inflation factor categories.

3. Customer growth is based on service area population growth through FY 2039/40. Source file: American Canyon 2015 UWMP.pdf , page 26.

4. General cost inflation is based on the 5-year average annual change in the Consumer Price Index for all Urban Consumers in the San Francisco-Oakland-Hayward, CA area.

5. Labor cost inflation is based on the 5-year average annual change in the Quarterly Census of Employment and Wages for San Francisco County, CA.

6. Energy cost inflation is based on the 5-year average annual change in the Consumer Price Index for all Urban Consumers in the San Francisco-Oakland-Hayward, CA area.

7. Electricity cost inflation is based on the 5-year average change in the Consumer Price Index for San Francisco County.

9. Construction cost Inflation is the 10-year average change in the Construction Cost Index for 2012-2022. Source: Engineering News Record website (http://enr.construction.com ).

INFLATION FACTORS2
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RECYCLED WATER RATE STUDY
Capital Improvement Plan Expenditures
TABLE 6 : CAPITAL FUNDING SUMMARY
CAPITAL FUNDING FORECAST Actuals Budget
FY 2021/22 FY 2022/23 FY 2023/24 FY 2024/25 FY 2025/26 FY 2026/27 FY 2027/28 FY 2028/29 FY 2029/30 FY 2030/31 FY 2031/32 FY 2032/33 Grants1$ 235,463 $ 243,704 $ 385,279 $ 635,554 $ - $ - $ - $ - $ - $ - $ - $ - Use of Capacity Fee Reserves - - - 16,812 1,989,375 2,059,003 2,131,068 1,756,623 1,818,105 1,881,739 1,947,600 2,015,766 SRF Loan Funding - - - - - - - - - - - -
Use of New Revenue Bond Proceeds - - - - - - - - - - - - Use of Capital Rehabilitation and Replacement Reserve - - - - - - - - - - - - Rate Revenue - - - - - - - - - - - -
Total Sources of Capital Funds $ 235,463 $ 243,704 $ 385,279 $ 652,367 $ 1,989,375 $ 2,059,003 $ 2,131,068 $ 1,756,623 $ 1,818,105 $ 1,881,739 $ 1,947,600 $ 2,015,766 Uses of Capital Funds:

Total Project Costs $ 235,463 $ 243,704 $ 385,279 $ 652,367 $ 1,989,375 $ 2,059,003 $ 2,131,068 $ 1,756,623 $ 1,818,105 $ 1,881,739 $ 1,947,600 $ 2,015,766 Capital Funding Surplus (Deficiency) $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -

1. Grant from American Rescue Plan Act (ARPA) Funds through Napa County for the Recycled Water System Expansion Project (RW17-0100). Source file: RESOLUTION 2022-58.pdf .

CAPITAL IMPROVEMENT PROGRAM FUNDING OPTIONS
Capital Improvement Program Funding Choice FY 2021/22 FY 2022/23 FY 2023/24 FY 2024/25 FY 2025/26 FY 2026/27 FY 2027/28 FY 2028/29 FY 2029/30 FY 2030/31 FY 2031/32 FY 2032/33 Effective Annual Funding Amount $ 235,463 $ 243,704 $ 385,279 $ 652,367 $ 1,989,375 $ 2,059,003 $ 2,131,068 $ 1,756,623 $ 1,818,105 $ 1,881,739 $ 1,947,600 $ 2,015,766

CAPITAL IMPROVEMENT PROGRAM
TABLE 7 : CAPITAL IMPROVEMENT PROGRAM COSTS (in Current-Year Dollars) 1 Project No. Description FY 2021/22 FY 2022/23 FY 2023/24 FY 2024/25 FY 2025/26 FY 2026/27 FY 2027/28 FY 2028/29 FY 2029/30 FY 2030/31 FY 2031/32 FY 2032/33 Capital Projects 2
NEW Recycled Water Fill Stations $ - $ - $ 120,000 $ - $ - $ - $ - $ - $ - $ - $ - $ - Master Plan Projects - Recycled Water 3
RW1 Tower / Devlin / South Kelly Road $ 137,500 $ 137,500 $ 137,500 $ 137,500 $ - $ - $ - $ - $ - $ - $ - $ - RW2 Spikerush Circle 31,000 31,000 31,000 31,000 - - - - - - - - RW3 Benton Way 59,000 59,000 59,000 59,000 - - - - - - - - RW4 Pelleria Drive - - - 32,000 32,000 32,000 32,000 - - - - - RW5 Jim Oswald Way / Mezzetta Court / Green Island Road - - - 121,000 121,000 121,000 121,000 - - - - - RW6 Hanna Drive - - - 76,000 76,000 76,000 76,000 - - - - - RW7 Dodd / Klamath Court - - - 24,000 24,000 24,000 24,000 - - - - - RW8 Lombard / Hess Road - - - 88,000 88,000 88,000 88,000 - - - - - RW9 Watson Lane - - - - 135,000 135,000 135,000 135,000 135,000 135,000 135,000 135,000 RW10 Main / South Napa Junction Road - - - - 299,000 299,000 299,000 299,000 299,000 299,000 299,000 299,000 RW11 Newell Drive - - - - 205,000 205,000 205,000 205,000 205,000 205,000 205,000 205,000 RW12 PS Upgrade - - - - 80,000 80,000 80,000 80,000 80,000 80,000 80,000 80,000 RW13 Paoli Loop Road / Northern Vineyards - - - - 140,000 140,000 140,000 140,000 140,000 140,000 140,000 140,000 RW14 Eucalyptus Drive - - - - 128,000 128,000 128,000 128,000 128,000 128,000 128,000 128,000 RW15 Broadway / Donaldson Way - - - - 347,000 347,000 347,000 347,000 347,000 347,000 347,000 347,000 Estimated Future Projects
Future Projects4 - - - - - - - - - - - -
Total: CIP Program Costs (Future-Year Dollars) $ 227,500 $ 227,500 $ 347,500 $ 568,500 $ 1,675,000 $ 1,675,000 $ 1,675,000 $ 1,334,000 $ 1,334,000 $ 1,334,000 $ 1,334,000 $ 1,334,000 5-Year Projected Rate Period Projected
Funding Sources:

Prepared by NBS
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RECYCLED WATER RATE STUDY
Capital Improvement Plan Expenditures
TABLE 8 : CAPITAL IMPROVEMENT PROGRAM COSTS (in Future-Year Dollars) 5 Project No. Description FY 2021/22 FY 2022/23 FY 2023/24 FY 2024/25 FY 2025/26 FY 2026/27 FY 2027/28 FY 2028/29 FY 2029/30 FY 2030/31 FY 2031/32 FY 2032/33 Capital Projects 2
NEW Recycled Water Fill Stations $ - $ - $ 133,046 $ - $ - $ - $ - $ - $ - $ - $ - $ - Master Plan Projects - Recycled Water 3
RW1 Tower / Devlin / South Kelly Road $ 142,313 $ 147,293 $ 152,449 $ 157,784 $ - $ - $ - $ - $ - $ - $ - $ - RW2 Spikerush Circle 32,085 33,208 34,370 35,573 - - - - - - - - RW3 Benton Way 61,065 63,202 65,414 67,704 - - - - - - - - RW4 Pelleria Drive - - - 36,721 38,006 39,336 40,713 - - - - - RW5 Jim Oswald Way / Mezzetta Court / Green Island Road - - - 138,850 143,710 148,740 153,946 - - - - - RW6 Hanna Drive - - - 87,212 90,264 93,423 96,693 - - - - - RW7 Dodd / Klamath Court - - - 27,541 28,504 29,502 30,535 - - - - - RW8 Lombard / Hess Road - - - 100,982 104,516 108,174 111,961 - - - - - RW9 Watson Lane - - - - 160,338 165,949 171,758 177,769 183,991 190,431 197,096 203,994 RW10 Main / South Napa Junction Road - - - - 355,118 367,547 380,411 393,726 407,506 421,769 436,531 451,810 RW11 Newell Drive - - - - 243,476 251,997 260,817 269,946 279,394 289,173 299,294 309,769 RW12 PS Upgrade - - - - 95,015 98,340 101,782 105,345 109,032 112,848 116,798 120,885 RW13 Paoli Loop Road / Northern Vineyards - - - - 166,276 172,096 178,119 184,353 190,806 197,484 204,396 211,550 RW14 Eucalyptus Drive - - - - 152,024 157,345 162,852 168,552 174,451 180,557 186,876 193,417 RW15 Broadway / Donaldson Way - - - - 412,127 426,552 441,481 456,933 472,925 489,478 506,609 524,341 Estimated Future Projects
Future Projects4 - - - - - - - - - - - -
Total: CIP Program Costs (Future-Year Dollars) $ 235,463 $ 243,704 $ 385,279 $ 652,367 $ 1,989,375 $ 2,059,003 $ 2,131,068 $ 1,756,623 $ 1,818,105 $ 1,881,739 $ 1,947,600 $ 2,015,766 TABLE 9 : FORECASTING ASSUMPTIONS
Economic Variables FY 2021/22 FY 2022/23 FY 2023/24 FY 2024/25 FY 2025/26 FY 2026/27 FY 2027/28 FY 2028/29 FY 2029/30 FY 2030/31 FY 2031/32 FY 2032/33 Annual Construction Cost Inflation, Per Engineering News Record63.50% 3.50% 3.50% 3.50% 3.50% 3.50% 3.50% 3.50% 3.50% 3.50% 3.50% 3.50% Cumulative Construction Cost Multiplier from FY 2021/22 1.04 1.07 1.11 1.15 1.19 1.23 1.27 1.32 1.36 1.41 1.46 1.51

1. Capital project costs were provided by City Staff in source file: Water Projects.pdf.

2. Capital projects costs for FY 2021/22 and FY 2022/23 are from source files: 11. CIP Budget vs Expense Report FY 2021-2022 through Oct 2021.pdf .

3. The City's Recycled Water Master Plan projects were scheduled to begin in 2016; however, the study only includes costs from FY 2021/22 through FY 2034/35. Source file: 2016 Recycled Water Master Plan.pdf , page 63.

4. Future project costs beyond FY 2034/35 are calculated based on the City's 10-year average.

5. Capital improvement projects are inflated to future year estimated costs with ENR CCI for the region. Source: Engineering News Record website (http://enr.construction.com ).

Prepared by NBS
www.nbsgov.com | Toll-Free: 800.676.7516 RW - Exhibit 2 (CIP), 9 of 21 216 CITY OF AMERICAN CANYON Exhibit 3 - Debt

RECYCLED WATER RATE STUDY
Debt Service
TABLE 10 : EXISTING DEBT OBLIGATIONS
EXISTING DEBT OBLIGATIONS Actuals Budget
Annual Repayment Schedules: FY 2021/22 FY 2022/23 FY 2023/24 FY 2024/25 FY 2025/26 FY 2026/27 FY 2027/28 FY 2028/29 FY 2029/30 FY 2030/31 FY 2031/32 FY 2032/33 Interfund Loans
Water Operations to Recycled Water Fund
Advance from Water Operations 510 to Recycled Water Operations 580 Original Loan Amount (June 20, 2023) $ 1,136,140
Accrued Interest (LAIF Rate + 2%) 981
Annual Debt Service1
$44,061 $44,061 $44,061 $44,061 $44,061 $44,061 $44,061 $44,061 $44,061 $44,061 Water Operations to Recycled Water Fund
Advance from Water Operations 510 to Recycled Water Operations 580 Original Loan Amount (September 21, 2021) $ 128,189
Accrued Interest (LAIF Rate + 2%) 11,706
Annual Debt Service2
$ 5,421 $ 5,421 $ 5,421 $ 5,421 $ 5,421 $ 5,421 $ 5,421 $ 5,421 Wastewater Capacity to Recycled Water Fund
Advance from WW Capacity 550 to Recycled Water Operations 580 Original Loan Amount (March 17, 2011) $ 1,070,000
Accrued Interest (LAIF Rate + 2%) 205,869
Annual Debt Service3
$ 49,438 $ 49,438 $ 49,438 $ 49,438 $ 49,438 $ 49,438 $ 49,438 $ 49,438 Wastewater Capacity to Recycled Water Fund
Advance from WW Capacity 550 to Recycled Water Operations 580 Original Loan Amount (December 15, 2009) $ 304,614
Accrued Interest (LAIF Rate + 2%) 58,577
Annual Debt Service4
$ 14,073 $ 14,073 $ 14,073 $ 14,073 $ 14,073 $ 14,073 $ 14,073 $ 14,073 Wastewater Capacity to Recycled Water Fund
Advance from WW Capacity 550 to Recycled Water Operations 580 Original Loan Amount (December 15, 2009) $ 3,532,410
Accrued Interest (LAIF Rate + 2%) 454,994
Annual Debt Service5
$ 154,504 $ 154,504 $ 154,504 $ 154,504 $ 154,504 $ 154,504 $ 154,504 $ 154,504 $ 154,504 $ 154,504

1. Funds advanced for the Recycled Water Expansion Project. Repayment scheduled to begin FY 2023/24.

2. Funds advanced for Green Island Recycled Waterline Project. Repayment scheduled to begin FY 2025/26.

3. Funds advanced for the Green Island Road Recycled Waterline Project. Repayment scheduled to begin FY 2025/26.

4. Funds advanced for the Recycled Water Pump Station Upgrade. Repayment scheduled to begin FY 2025/26.

5. Funds advance for various CIP projects. Repayment scheduled to begin FY 2025/26.

TABLE 11 : EXISTING ANNUAL DEBT OBLIGATIONS TO BE SATISFIED BY WATER RATES Annual Obligations FY 2021/22 FY 2022/23 FY 2023/24 FY 2024/25 FY 2025/26 FY 2026/27 FY 2027/28 FY 2028/29 FY 2029/30 FY 2030/31 FY 2031/32 FY 2032/33 Existing Interfund Loan Repayment $ - $ - $ 198,566 $ 198,566 $ 267,497 $ 267,497 $ 267,497 $ 267,497 $ 267,497 $ 267,497 $ 267,497 $ 267,497 5-Year Projected Rate Period Projected
Prepared by NBS
www.nbsgov.com | Toll-Free: 800.676.7516 RW - Exhibit 3 (Debt), 10 of 21 217 CITY OF AMERICAN CANYON Exhibit 4 - Current Rates

RECYCLED WATER RATE STUDY
Projected Water Rates Under Existing Rate Schedule
TABLE 12 : CURRENT RECYCLED WATER RATE SCHEDULE
Current Rates
Jan. 1, 2023
Monthly Fixed Service Charges
Recycled Water2
< 1" meter $26.56
1" meter $44.42
1 1/2" meter $88.75
2" meter $141.99
3" meter $283.98
4" meter $443.74
6" meter $887.48
8" meter $1,420.06
Variable Charges for All Water Consumed (in $/hcf) 3
Recycled Water $0.90

1. Rates available on the City website. Source: https://www.cityofamericancanyon.org .

2. Green Island Vineyard is charged different rates based on contract terms.

3. HCF = hundred cubic feet (748 gallons).

Recycled Water Rate Schedule1
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RECYCLED WATER RATE STUDY
Cost-of-Service Analysis & Rate Design
TABLE 13 : CLASSIFICATION OF EXPENSES FOR COST OF SERVICE ANALYSIS Classification of Expenses
FY 2023/24 (COM) (CAP) (CA) (COM) (CAP) (CA)
Fund 580 - Recycled Water Operations
Wages - Full time $ 209,085 $ 104,543 $ 83,634 $ 20,909 50.0% 40.0% 10.0% Health Insurance 35,576 17,788 14,230 3,558 50.0% 40.0% 10.0% Health-In_Lieu 2,280 1,140 912 228 50.0% 40.0% 10.0%
Cafeteria Plan Section 125 9,599 4,799 3,839 960 50.0% 40.0% 10.0% PERS Retirement 26,843 13,421 10,737 2,684 50.0% 40.0% 10.0% Benefits - Other 471 236 188 47 50.0% 40.0% 10.0%
Social Security & Medicare 3,204 1,602 1,282 320 50.0% 40.0% 10.0% Worker Comp Insurance 22,467 11,234 8,987 2,247 50.0% 40.0% 10.0% Info Tech Support Services 54,000 27,000 21,600 5,400 50.0% 40.0% 10.0% Professional Services 51,000 25,500 20,400 5,100 50.0% 40.0% 10.0% Misc Contractual Services 2,000 1,000 800 200 50.0% 40.0% 10.0% General Repairs & Maint 20,000 10,000 8,000 2,000 50.0% 40.0% 10.0% Postage/Mail/Copy/Printing Svc 5,000 2,500 2,000 500 50.0% 40.0% 10.0% Membership Dues & Subscription 1,000 500 400 100 50.0% 40.0% 10.0% Conferences - Training 2,000 1,000 800 200 50.0% 40.0% 10.0% Office Supplies 500 250 200 50 50.0% 40.0% 10.0%
Operating Supplies 123,000 61,500 49,200 12,300 50.0% 40.0% 10.0% Major Equipment 70,000 35,000 28,000 7,000 50.0% 40.0% 10.0% Transfers Out To Other Funds 50,000 25,000 20,000 5,000 50.0% 40.0% 10.0% Retiree Health Benefits 1,973 987 789 197 50.0% 40.0% 10.0% OPEB 1,251 625 500 125 50.0% 40.0% 10.0%
ISF - Bldg Maint 39,873 19,937 15,949 3,987 50.0% 40.0% 10.0% ISF - Legal Services 23,705 11,853 9,482 2,371 50.0% 40.0% 10.0% Transfer to Gen Fnd Support Sv 138,336 69,168 55,334 13,834 50.0% 40.0% 10.0% Total: Recycled Water Operations Expenses $ 893,163 $ 446,581 $ 357,265 $ 89,316 50.0% 40.0% 10.0% Total: Recycled Water Operations Expenses $ 893,163 $ 446,581 $ 357,265 $ 89,316 50.0% 40.0% 10.0% Total: Operations Expenses - Delivered1
$ 732,393 $ 366,197 $ 292,957 $ 73,239 50.0% 40.0% 10.0% Total: Operations Expenses - Self-Haul1
$ 160,769 $ 80,385 $ 64,308 $ 16,077 50.0% 40.0% 10.0%

1. Delivered and self-haul recycled water rates based on direction provided by City staff; that is, 82 % of O&M costs attributed to delivered water and 18% to self-haul.

TABLE 14 : CLASSIFICATION OF EXPENSES FOR COST OF SERVICE ANALYSIS, cont.

Classification of Expenses, continued
FY 2023/24 (COM) (CAP) (CA) (COM) (CAP) (CA)
Debt Service Payments
Outstanding Debt $ - $ - $ - $ - 0.0% 100.0% 0.0%
Interfund Loan Repayment 198,566 - 198,566 - 0.0% 100.0% 0.0% Total Debt Service Payments $ 198,566 $ - $ 198,566 $ - 0.0% 100.0% 0.0% Total Debt Service Payments - Delivered $ 99,283 $ - $ 99,283 $ - 0.0% 100.0% 0.0% Total Debt Service Payments - Self-Haul $ 99,283 $ - $ 99,283 $ - 0.0% 100.0% 0.0% Capital Expenditures
Rate Funded Capital Expenses $ - $ - $ - $ - 0.0% 100.0% 0.0% Total Capital Expenditures - Delivered $ - $ - $ - $ - 0.0% 100.0% 0.0% TotalCapital Expenditures - Self-Haul $ - $ - $ - $ - 0.0% 100.0% 0.0% TOTAL REVENUE REQUIREMENTS $ 1,091,728 $ 446,581 $ 555,831 $ 89,316 40.9% 50.9% 8.2% Basis of Classification Budget Categories
Total Revenue
Requirements
Commodity Capacity Customer
Budget Categories
Total Revenue
Requirements
Commodity Capacity Customer Basis of Classification
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RECYCLED WATER RATE STUDY
Cost-of-Service Analysis & Rate Design
TOTAL REVENUE REQUIREMENTS - Delivered $ 831,676 $ 366,197 $ 392,240 $ 73,239 44.0% 47.2% 8.8% TOTAL REVENUE REQUIREMENTS - Self-Haul $ 260,052 $ 80,385 $ 163,591 $ 16,077 30.9% 62.9% 6.2% Less: Non-Rate Revenues
Other Revenue
Interest Earnings (22,343) (9,139) (11,375) (1,828) 40.9% 50.9% 8.2% NET REVENUE REQUIREMENTS $ 1,069,386 $ 437,442 $ 544,455 $ 87,488 Allocation of Revenue Requirements 100.0% 40.9% 50.9% 8.2% NET REVENUE REQUIREMENTS - Delivered $ 813,355 $ 358,702 $ 382,912 $ 71,740 44.1% 47.1% 8.8% NET REVENUE REQUIREMENTS - Self-Haul $ 256,030 $ 78,740 $ 161,543 $ 15,748 9.7% 19.9% 1.9% Prepared by NBS
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RECYCLED WATER RATE STUDY
Cost-of-Service Analysis & Rate Design
TABLE 15 : ADJUSTMENT TO CLASSIFICATION OF EXPENSES FOR COST OF SERVICE ANALYSIS Classification of Expenses, continued
Adjustments to Classification of Expenses
Adjustment for Current Rate Level: Total (COM) (CAP) (CA) Test Year (FY 2023/24) Target Rate Rev. After Rate Increases$ 1,069,386 Projected Rate Revenue at Current Rates $ 207,000
Test Year (FY 2023/24) Projected Rate Adjustment 417%
Adjusted Net Revenue Req'ts $ 1,069,386 $ 437,442 $ 544,455 $ 87,488 Percent of Revenue 100.0% 40.9% 50.9% 8.2%
TABLE 16 : NET REVENUE REQUIREMENTS PER COSA RESULTS
Total Rate
Revenue
Requirements
FY 2023/24
Commodity
Related Costs
Capacity
Related Costs
Customer
Related Costs
Rate-Design Adjustments to Fixed/Variable % 100.0% 40.9% 50.9% 8.2% Rate-Design Adjustments to Fixed/Variable ($) $1,069,386 $437,442 $544,455 $87,488 TABLE 17 : REVISED NET REVENUE REQUIREMENTS PER COSA RESULTS - ALTERNATIVE 1 Rate-Design Adjustments to Fixed/Variable % 100.0% 40.9% 50.9% 8.2% Rate-Design Adjustments to Fixed/Variable ($) $1,069,386 $437,442 $544,455 $87,488 TABLE 18 : REVISED NET REVENUE REQUIREMENTS - (40% FIXED/60% VOLUMETRIC) - ALTERNATIVE 2 Rate-Design Adjustments to Fixed/Variable % 100.0% 60.0% 34.5% 5.5% Rate-Design Adjustments to Fixed/Variable ($) $1,069,386 $641,631 $368,535 $59,220 TABLE 19 : REVISED NET REVENUE REQUIREMENTS - (20% FIXED/80% VOLUMETRIC) - ALTERNATIVE 3 Rate-Design Adjustments to Fixed/Variable % 100.0% 80.0% 17.2% 2.8% Rate-Design Adjustments to Fixed/Variable ($) $1,069,386 $855,509 $184,267 $29,610 Net Revenue Requirements - Per COSA Results
59% Fixed / 41% Variable
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RECYCLED WATER RATE STUDY
Cost-of-Service Analysis & Rate Design
TABLE 20 : ALLOCATION OF RECYCLED WATER REVENUE REQUIREMENTS Net Revenue Requirements (ALTERNATIVE 3 - 20% Fixed / 80% Variable) Variable (Collected from Vol. Rates) $ 855,509 80%
Fixed (Collected from Fixed Charges) 213,877 20%
Net Revenue Requirement $ 1,069,386 100%

1. For calculation, see the RW - Funct. & Classification tab.

TABLE 21 : ALLOCATION OF NET REVENUE REQUIREMENTS - FY 2023/24 Net Revenue Requirements (ALTERNATIVE 3 - 20% Fixed / 80% Variable) Recycled Water
Recycled Water 127,857 458 100.0% $ 855,509 $ 213,877 $ 1,069,386 $6.69 $38.89 Total Net Revenue Requirement 127,857 458 100.0% $ 855,509 $ 213,877 $ 1,069,386 -- --

1. Number of meters by size times the hydraulic capacity factor for each meter size. Source: AWWA, Manual M1, Table B-1 & AWWA, Manual M6, Table 5-3.

2. Total Variable Costs times the proportional share of annual RW consumption.

3. Fixed costs times the percent of equivalent meters.

4. Total Variable Costs divided by Total Annual RW Consumption.

5. Total Fixed Costs divided by total Equivalent Meters. This provides the basis for monthly fixed charges for each meter size.

TABLE 22 : CALCULATION OF MONTHLY FIXED METER SERVICE CHARGES FOR FY 2023/24 Net Revenue Requirements (ALTERNATIVE 3 - 20% Fixed / 80% Variable) Total
< 1" meter 1" meter 1 1/2" meter 2" meter 3" meter 4" meter 6" meter 8" meter Recycled Water
Recycled Water 2 13 14 28 13 6 0 0 76
Total Meters/Accounts 2 13 14 28 13 6 0 0 76
Hydraulic Capacity Factor 21.00 1.67 3.33 5.33 10.67 16.67 33.33 53.33 Total Equivalent Meters 2 22 47 149 139 100 0 0 458
Monthly Fixed Service Charges
Fixed Charge ($/EM/month)3
$38.89 $38.89 $38.89 $38.89 $38.89 $38.89 $38.89 $38.89 Fixed Monthly Charge $38.89 $64.81 $129.62 $207.40 $414.79 $648.11 $1,296.23 $2,073.96 Annual Fixed Costs Allocated to Monthly Meter Charges
Total Revenue from RW Meter Charges $ 933 $ 10,111 $ 21,777 $ 69,685 $ 64,708 $ 46,664 $ - $ - $ 213,877

1. Meter by Class and Size are based on June 2022 customer billing data.

2. Source: Principles of Water Rates, Fees, and Charges , Manual M1, AWWA, Table B-1.

3. Cost per month per equivalent meter. Monthly fixed charges are set for each meter size using the hydraulic capacity factors and total equivalent meters.

RW Fixed
Charges
($/Eq. Meter/
Month) 5
RW
Volumetric
Rate ($/hcf) No. of Equiv. 4
Meters
Recycled Water
Classification Components
Number of RW Meters
by Class and Size1
Cost-of-Service Net Revenue
Requirements (2023/24)
Equivalent Meters1
% of Equiv.

Meters
FY 2023/24
Recycled Water Customers
Cost Allocation Factors
Net Revenue
Req'ts
Annual RW
Consumption
Fixed
Costs3
Variable
Costs2
Cost Classifications
Prepared by NBS
www.nbsgov.com | Toll-Free: 800.676.7516 RW- COSA, 15 of 21222 CITY OF AMERICAN CANYON Cost-of-Service Analysis

RECYCLED WATER RATE STUDY
Cost-of-Service Analysis & Rate Design
TABLE 23 : METER EQUIVALENCY FACTORS USED IN FIXED CHARGES CALCULATION Meter
Capacity
Equivalency
to 3/4 inch
5/8 inch 20 1.00
3/4 inch 30 1.00
1 inch 50 1.67

1.5 inch 100 3.33
2 inch 160 5.33
3 inch 320 10.67
4 inch 500 16.67
6 inch 1,000 33.33
8 inch 1,600 53.33
10 inch 4,200 140.00
12 inch 5,300 176.67

1. Per AWWA, M1 Manual, Table B-1.

Turbine Class II Meters
Meter Size
Standard Meters
Displacement Meters
Compound Class I Meters
Prepared by NBS
www.nbsgov.com | Toll-Free: 800.676.7516 RW- COSA, 16 of 21223 CITY OF AMERICAN CANYON Cost-of-Service Analysis

RECYCLED WATER RATE STUDY
Cost-of-Service Analysis & Rate Design
TABLE 24 : ALLOCATION OF RECYCLED WATER REVENUE REQUIREMENTS Variable (Collected from Vol. Rates) $ 437,442 $ 569,349 70% $ 256,030 100% Fixed (Collected from Fixed Charges) 631,944 244,007 30% - 0% Net Revenue Requirement $ 1,069,386 $ 813,355 100% $ 256,030 100%

1. For calculation, see the RW - Funct. & Classification tab.

TABLE 25 : ALLOCATION OF NET REVENUE REQUIREMENTS - FY 2023/24 Recycled Water
Delivered 63,929 458 100.0% $ 569,349 $ 244,007 $ 813,355 $8.91 $44.36 Self-Haul 63,929 0 0.0% 256,030 - 256,030 $4.00 n/a
Total Net Revenue Requirement 127,857 458 0.0% $ 256,030 $ - $ 256,030 -- --

1. Number of meters by size times the hydraulic capacity factor for each meter size. Source: AWWA, Manual M1, Table B-1 & AWWA, Manual M6, Table 5-3.

2. Total Variable Costs times the proportional share of annual RW consumption.

3. Fixed costs times the percent of equivalent meters.

4. Total Variable Costs divided by Total Annual RW Consumption.

5. Total Fixed Costs divided by total Equivalent Meters. This provides the basis for monthly fixed charges for each meter size.

TABLE 26 : CALCULATION OF MONTHLY FIXED METER SERVICE CHARGES FOR FY 2023/24 Total
< 1" meter 1" meter 1 1/2" meter 2" meter 3" meter 4" meter 6" meter 8" meter Recycled Water
Delivered 2 13 14 28 13 6 0 0 76
Total Meters/Accounts 2 13 14 28 13 6 0 0 76
Hydraulic Capacity Factor 21.00 1.67 3.33 5.33 10.67 16.67 33.33 53.33 Total Equivalent Meters 2 22 47 149 139 100 0 0 458
Monthly Fixed Service Charges
Fixed Charge ($/EM/month)3
$44.36 $44.36 $44.36 $44.36 $44.36 $44.36 $44.36 $44.36 Fixed Monthly Charge $44.36 $73.94 $147.88 $236.61 $473.22 $739.41 $1,478.83 $2,366.12 Annual Fixed Costs Allocated to Monthly Meter Charges
Total Revenue from RW Meter Charges $ 1,065 $ 11,535 $ 24,844 $ 79,502 $ 73,823 $ 53,238 $ - $ - $ 244,007

1. Meter by Class and Size are based on June 2022 customer billing data.

2. Source: Principles of Water Rates, Fees, and Charges , Manual M1, AWWA, Table B-1.

3. Cost per month per equivalent meter. Monthly fixed charges are set for each meter size using the hydraulic capacity factors and total equivalent meters.

Recycled Water Customers
Cost Allocation Factors Cost Classifications
Net Revenue Requirements -
Delivered (2023/24)
Net Revenue Requirements -
Self-Haul(2023/24) Total
Recycled Water 1
Classification Components
Number of RW Meters
by Class and Size1
FY 2023/24
RW Fixed
Charges
($/Eq. Meter/
Month) 5
Annual RW
Consumption
Equivalent Meters1
Variable
Costs2
Fixed
Costs3
Net Revenue
Req'ts No. of Equiv.

Meters
% of Equiv.

Meters
RW
Volumetric
Rate ($/hcf)4
Prepared by NBS
www.nbsgov.com | Toll-Free: 800.676.7516 RW- COSA (2), 17 of 21224 CITY OF AMERICAN CANYON Cost-of-Service Analysis

RECYCLED WATER RATE STUDY
Cost-of-Service Analysis & Rate Design
TABLE 27 : METER EQUIVALENCY FACTORS USED IN FIXED CHARGES CALCULATION Meter
Capacity
Equivalency
to 3/4 inch
5/8 inch 20 1.00
3/4 inch 30 1.00
1 inch 50 1.67

1.5 inch 100 3.33
2 inch 160 5.33
3 inch 320 10.67
4 inch 500 16.67
6 inch 1,000 33.33
8 inch 1,600 53.33
10 inch 4,200 140.00
12 inch 5,300 176.67

1. Per AWWA, M1 Manual, Table B-1.

Turbine Class II Meters
Meter Size
Standard Meters
Displacement Meters
Compound Class I Meters
Prepared by NBS
www.nbsgov.com | Toll-Free: 800.676.7516 RW- COSA (2), 18 of 21225 CITY OF AMERICAN CANYON Current vs. Proposed Rates

RECYCLED WATER RATE STUDY
Cost-of-Service Analysis & Rate Design
TABLE 28 : CURRENT VS. PROPOSED RATES
FY 2023/24 FY 2024/25 FY 2025/26 FY 2026/27 FY 2027/28
Projected Increase in Rate Revenue per Financial Plan: 250.00% 10.00% 10.00% 5.00% 5.00% Monthly Fixed Service Charges (in $/mo) - Delivered Only < 1" meter $26.56 $44.36 $48.80 $53.68 $56.37 $59.18
1" meter $44.42 $73.94 $81.34 $89.47 $93.94 $98.64
1 1/2" meter $88.75 $147.88 $162.67 $178.94 $187.89 $197.28 2" meter $141.99 $236.61 $260.27 $286.30 $300.62 $315.65 3" meter $283.98 $473.22 $520.55 $572.60 $601.23 $631.29 4" meter $443.74 $739.41 $813.36 $894.69 $939.43 $986.40 6" meter $887.48 $1,478.83 $1,626.71 $1,789.38 $1,878.85 $1,972.79 8" meter $1,420.06 $2,366.12 $2,602.74 $2,863.01 $3,006.16 $3,156.47 Commodity Charges for All Water Consumed (in $/hcf)
Variable Charge - Delivered $0.90 $8.91 $9.80 $10.78 $11.32 $11.88 Variable Charge - Self-Haul n/a $4.00 $4.41 $4.85 $5.09 $5.34 Net Revenue Requirements (ALTERNATIVE 3 - 20% Fixed / 80% Variable) Recycled Water Rate Schedule Current
Rates
Proposed Rates
Prepared by NBS
www.nbsgov.com | Toll-Free: 800.676.7516 RW - Current & Prop. Rates (2), 19 of 21226 CITY OF AMERICAN CANYON Current vs. Proposed Rates

RECYCLED WATER RATE STUDY
Cost-of-Service Analysis & Rate Design
TABLE 29 : CURRENT VS. PROPOSED RATES
FY 2023/24 FY 2024/25 FY 2025/26 FY 2026/27 FY 2027/28
Projected Increase in Rate Revenue per Financial Plan: 250.00% 10.00% 10.00% 5.00% 5.00% Monthly Fixed Service Charges (in $/mo)
< 1" meter $26.56 $38.89 $42.78 $47.05 $49.41 $51.88
1" meter $44.42 $64.81 $71.29 $78.42 $82.34 $86.46
1 1/2" meter $88.75 $129.62 $142.58 $156.84 $164.69 $172.92 2" meter $141.99 $207.40 $228.14 $250.95 $263.50 $276.67 3" meter $283.98 $414.79 $456.27 $501.90 $526.99 $553.34 4" meter $443.74 $648.11 $712.92 $784.22 $823.43 $864.60 6" meter $887.48 $1,296.23 $1,425.85 $1,568.43 $1,646.85 $1,729.20 8" meter $1,420.06 $2,073.96 $2,281.36 $2,509.49 $2,634.97 $2,766.71 Commodity Charges for All Water Consumed (in $/hcf)
Variable Charge $0.90 $6.69 $7.36 $8.10 $8.50 $8.93
Variable Charge - Self-Haul n/a $4.00 $4.41 $4.85 $5.09 $5.34 Recycled Water Rate Schedule Current
Rates
Proposed Rates
Net Revenue Requirements (ALTERNATIVE 3 - 20% Fixed / 80% Variable) Prepared by NBS
www.nbsgov.com | Toll-Free: 800.676.7516 RW - Current & Proposed Rates, 20 of 21227 Prepared by NBS
www.nbsgov.com | Toll-Free: 800.676.7516 Recycled Water Bill Comp, 21 of 21 $146.49 $155.49 $168.99 $267.99 $343.59 $366.99 $240.85 $307.76 $408.13 $1,144.16 $1,706.21 $1,880.18 $0
$250
$500
$750
$1,000
$1,250
$1,500
$1,750
$2,000
$2,250
5 15 30 140 224 250
Monthly Bill
Monthly Water Consumption (CCF)
Recycled Water Bill Comparison
Current vs. Proposed FY 2023/24 Rates (2" Meter)
Recycled Water Bill - Current Rates
Recycled Water Bill - Proposed Rates
Average
ANNUAL Bill
(140 ccf/mo.)
Average
WINTER Bill
(30 ccf/mo.)
Average
SUMMER Bill
(224 ccf/mo.)
228
Enterprise Rate Study – City of American Canyon
Prepared by NBS – January 2024 109
Appendix C. Sewer Rate Study Tables and Figures
229
CITY OF AMERICAN CANYON Financial Plan & Reserve Summary

SEWER RATE STUDY
Financial Plan and Reserve Projections
TABLE 1 : FINANCIAL PLAN AND SUMMARY OF REVENUE REQUIREMENTS Projected
FY 2022/23 FY 2023/24 FY 2024/25 FY 2025/26 FY 2026/27 FY 2027/28 FY 2028/29 FY 2029/30 FY 2030/31 FY 2031/32 FY 2032/33 Sources of Funds 1
Rate Revenue:

Sewer Rate Revenue $ 4,953,527 $ 5,042,690 $ 5,128,416 $ 5,215,599 $ 5,304,264 $ 5,394,436 $ 5,486,142 $ 5,573,920 $ 5,663,103 $ 5,753,713 $ 5,845,772 Other Revenue 96,850 98,593 100,269 101,974 103,707 105,470 107,263 108,979 110,723 112,495 114,295 Interest Earnings 18,883 120,000 22,911 22,211 24,657 21,576 24,547 25,380 26,255 27,142 28,071 Total: Sources of Funds $ 5,069,260 $ 5,261,283 $ 5,251,596 $ 5,339,784 $ 5,432,629 $ 5,521,483 $ 5,617,952 $ 5,708,280 $ 5,800,081 $ 5,893,350 $ 5,988,138 Uses of Water Funds
Operating Expenses:
570 - Wastewater Treatment Plant $ 2,454,443 $ 1,952,137 $ 2,041,362 $ 2,121,194 $ 4,663,008 $ 2,291,046 $ 2,381,374 $ 2,475,521 $ 2,573,662 $ 2,675,976 $ 2,782,656 575 - Wastewater Collections 1,245,337 835,861 873,335 902,822 933,308 964,830 997,421 1,031,118 1,065,960 1,101,985 1,139,234 585 - Wastewater Environmental Compliance 822,321 856,655 887,901 915,994 944,981 974,890 1,005,750 1,037,594 1,070,451 1,104,354 1,139,337 810 - Non Departmental 2,201,796 2,615,743 2,700,825 2,783,879 2,869,503 2,957,779 3,048,788 3,142,618 3,239,356 3,339,093 3,441,923 Subtotal: Operating Expenses $ 6,723,898 $ 6,260,396 $ 6,503,425 $ 6,723,889 $ 9,410,800 $ 7,188,544 $ 7,433,334 $ 7,686,851 $ 7,949,428 $ 8,221,408 $ 8,503,149 Other Expenditures:

Existing Debt Service $ 206,640 $ 215,074 $ 223,856 $ 224,168 $ 239,297 $ 249,385 $ 222,191 $ 231,597 $ 241,391 $ 249,843 $ 259,060 Future Debt Service - - - - - - - - - - -
Rate-Funded Capital Expenses 3,201,161 2,573,447 197,942 1,111,368 14,992 2,230,867 1,406,839 332,901 - - - Subtotal: Other Expenditures $ 3,407,800 $ 2,788,521 $ 421,799 $ 1,335,536 $ 254,288 $ 2,480,251 $ 1,629,030 $ 564,498 $ 241,391 $ 249,843 $ 259,060 Total: Uses of Funds $ 10,131,698 $ 9,048,917 $ 6,925,223 $ 8,059,425 $ 9,665,088 $ 9,668,795 $ 9,062,364 $ 8,251,349 $ 8,190,819 $ 8,471,251 $ 8,762,209 Plus: Revenue from Rate Increases2 - 630,336 1,923,156 3,077,203 4,141,569 4,755,735 4,836,583 4,913,968 4,992,591 5,072,473 5,153,633 Annual Surplus/(Deficit) $ (5,062,438) $ (3,157,298) $ 249,528 $ 357,562 $ (90,890) $ 608,423 $ 1,392,171 $ 2,370,899 $ 2,601,853 $ 2,494,572 $ 2,379,561 Net Revenue Reqt. (Total Uses less Non-Rate Revenue) $ 10,015,965 $ 8,830,324 $ 6,802,043 $ 7,935,240 $ 9,536,723 $ 9,541,748 $ 8,930,554 $ 8,116,989 $ 8,053,841 $ 8,331,613 $ 8,619,843

1. Revenue and expenses for FY 2021/22 through FY 2023/24 provided by the City.

Source files: Fund 540 Wastewater Operations & Fund 510 - 580 FY 23-24 Budget Status as of 09-19-2023.

2. Revenue from rate increases assumes an implementation date of January 1, 2024.

For each year thereafter, the assumption is that new rates will be implemented on January 1st of each year.

Selection of Financial Plan Alternative
Financial Plan Alternatives FY 2022/23 FY 2023/24 FY 2024/25 FY 2025/26 FY 2026/27 FY 2027/28 FY 2028/29 FY 2029/30 FY 2030/31 FY 2031/32 FY 2032/33 1 Alternative 1 - Full Cost Recovery Rates10.00% 25.00% 20.00% 12.00% 12.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 2 Alternative 2 - Phased-in Rate Increases20.00% 15.00% 15.00% 15.00% 15.00% 10.00% 0.00% 0.00% 0.00% 0.00% 0.00% 3 Alternative 3 - Minimal Rate Increases30.00% 5.00% 5.00% 5.00% 5.00% 5.00% 0.00% 0.00% 0.00% 0.00% 0.00% 4 No Rate Increases 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%

1. Alternative 1: Scenario 1 - Rates needed to meet all revenue requirements and meet the target reserve levels (Large increase followed by smaller increases).

2. Alternative 2: Scenario 2 - Large increases phased In over two years, followed by smaller increases (Reserves drop below target level).

3. Alternative 3: Scenario 3 - Smaller increases (Reserves drop below target level).

RATE REVENUE REQUIREMENTS SUMMARY
5-Year Projected Rate Period Projected
Prepared by NBS
www.nbsgov.com | Toll-Free: 800.676.7516 Financial Plan, 1 of 47 230 CITY OF AMERICAN CANYON Financial Plan & Reserve Summary

SEWER RATE STUDY
Financial Plan and Reserve Projections
TABLE 2 : EXCLUDED PLEDGE SUMMARY RESERVE FUND SUMMARY
Projected
FY 2022/23 FY 2023/24 FY 2024/25 FY 2025/26 FY 2026/27 FY 2027/28 FY 2028/29 FY 2029/30 FY 2030/31 FY 2031/32 FY 2032/33 Total Beginning Cash1
Unrestricted Reserves:

Operating Reserve
Beginning Reserve Balance $ 7,733,712 $ 5,200,513 $ 1,677,226 $ 1,626,000 $ 1,805,087 $ 1,579,529 $ 1,797,000 $ 1,858,000 $ 1,922,000 $ 1,987,000 $ 2,055,000 Plus: Net Cash Flow (After Rate Increases) (5,062,438) (3,157,298) 249,528 357,562 (90,890) 608,423 1,392,171 2,370,899 2,601,853 2,494,572 2,379,561 Plus: Transfer of Debt Reserve Surplus - - - - - - - - - - - Plus: Interest Earnings 193,343 130,013 22,911 22,211 24,657 21,576 24,547 25,380 26,255 27,142 28,071 Less: Transfer out to Capacity Fee Reserve (Interfund Loan) (159,325) (159,325) (159,325) (159,325) (159,325) (159,325) (159,325) (159,325) (159,325) (159,325) - Less: Transfer Out to Capital Replacement Reserve (717,004) (336,678) (164,341) (41,362) - (253,205) (1,196,393) (2,172,955) (2,403,783) (2,294,390) (2,336,632) Ending Operating Reserve Balance $ 1,988,288 $ 1,677,226 $ 1,626,000 $ 1,805,087 $ 1,579,529 $ 1,797,000 $ 1,858,000 $ 1,922,000 $ 1,987,000 $ 2,055,000 $ 2,126,000 Target Ending Balance (90 days of O&M) 2 $ 1,681,000 $ 1,565,000 $ 1,626,000 $ 1,681,000 $ 2,353,000 $ 1,797,000 $ 1,858,000 $ 1,922,000 $ 1,987,000 $ 2,055,000 $ 2,126,000 Capital Rehabilitation & Replacement Reserve
Beginning Reserve Balance $ 145,027 $ 546,284 $ 882,962 $ 1,047,302 $ 1,088,664 $ 1,088,664 $ 1,341,869 $ 2,527,393 $ 3,580,955 $ 4,447,200 $ 5,116,353 Plus: Grant Proceeds - - - - - - - - - - -
Plus: Transfer of Operating Reserve Surplus 717,004 336,678 164,341 41,362 - 253,205 1,196,393 2,172,955 2,403,783 2,294,390 2,336,632 Less: Use of Reserves for Capital Projects - - - - - - (10,869) (1,119,393) (1,537,538) (1,625,237) (1,715,751) Ending Capital Rehab & Replacement Reserve Balance $ 862,031 $ 882,962 $ 1,047,302 $ 1,088,664 $ 1,088,664 $ 1,341,869 $ 2,527,393 $ 3,580,955 $ 4,447,200 $ 5,116,353 $ 5,737,234 Target Ending Balance (3% of Assets) 3 $ 852,000 $ 936,000 $ 968,000 $ 1,060,000 $ 1,156,000 $ 1,255,000 $ 1,331,000 $ 1,408,000 $ 1,487,000 $ 1,569,000 $ 1,655,000 Ending Cash Balance - Excl. Restricted Reserves $ 2,850,319 $ 2,560,188 $ 2,673,302 $ 2,893,751 $ 2,668,194 $ 3,138,869 $ 4,385,393 $ 5,502,955 $ 6,434,200 $ 7,171,353 $ 7,863,234 Min. Target Ending Cash Balance -Excl. Restricted Reserves $ 2,533,000 $ 2,501,000 $ 2,594,000 $ 2,741,000 $ 3,509,000 $ 3,052,000 $ 3,189,000 $ 3,330,000 $ 3,474,000 $ 3,624,000 $ 3,781,000 Ending Surplus/(Deficit) Compared to Reserve Targets $ 317,319 $ 59,188 $ 79,302 $ 152,751 $ (840,806) $ 86,869 $ 1,196,393 $ 2,172,955 $ 2,960,200 $ 3,547,353 $ 4,082,234 Days Cash on Hand 105 106 146 135 104 122 182 251 296 319 338 Annual Interest Earnings Rate 4 2.50% 2.50% 1.37% 1.37% 1.37% 1.37% 1.37% 1.37% 1.37% 1.37% 1.37%

1. Beginning cash balance for FY 2021/22 and FY 2022/23 provided by City staff. Source file: Cash Balances - Enterprise Funds.xlsx .

2. The Operating Reserve target is set equal to 3 months, or 90 days, of operating expenditures.

3. The Capital Rehabilitation & Replacement Reserve target is set to 3% of net assets. Source files: 8 - City of American Canyon Annual Report FYE 2021.pdf , page 51.

SUMMARY OF CASH ACTIVITY

SEWER FUND RESERVES
5-Year Projected Rate Period Projected
Prepared by NBS
www.nbsgov.com | Toll-Free: 800.676.7516 Financial Plan, 2 of 47 231 CITY OF AMERICAN CANYON Charts & Tables

SEWER RATE STUDY
Financial Plan Charts
CHART 1
$.0 Mil
$2.0 Mil
$4.0 Mil
$6.0 Mil
$8.0 Mil
$10.0 Mil
$12.0 Mil
2022 2023 2024 2025 2026 2027 2028
Annual Obligations
Fiscal Year Ending June 30
Sewer Revenue Requirements vs.

Revenue Under Existing and Increased Rates
Debt Service
Rate Funded Capital Expenses
Reserve Funded Capital Expenses
O&M Expenses
Revenues under Existing Rates
Revenues under Increased Rates
Prepared by NBS
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Charts and Tables, 3 of 47232
CITY OF AMERICAN CANYON Charts & Tables

SEWER RATE STUDY
Financial Plan Charts
CHART 2
$.0 Mil
$1.0 Mil
$2.0 Mil
$3.0 Mil
$4.0 Mil
$5.0 Mil
$6.0 Mil
$7.0 Mil
2022 2023 2024 2025 2026 2027 2028
Fiscal Year Ending June 30
Ending Cash Balances vs.

Recommended Reserve Targets
Sewer Fund - Unrestricted Reserves
Ending Cash Balance Minimum Target Reserve Balance
Prepared by NBS
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Charts and Tables, 4 of 47233
CITY OF AMERICAN CANYON Charts & Tables

SEWER RATE STUDY
Financial Plan Charts
CHART 3

25.00%

20.00%

12.00% 12.00%

0.00%
0%
5%
10%
15%
20%
25%
30%
2024 2025 2026 2027 2028
Fiscal Year Ending June 30
Projected Increases to Rate Revenue
Prepared by NBS
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Charts and Tables, 5 of 47234
CITY OF AMERICAN CANYON Charts & Tables

SEWER RATE STUDY
Financial Plan Charts
CHART 4
$2.9 Mil
$1.1 Mil
$3.2 Mil
$3.3 Mil
$3.4 Mil
$2.6 Mil
$2.6 Mil
$2.7 Mil
$2.8 Mil
$2.9 Mil
$.0 Mil.
$.5 Mil.
$1.0 Mil.
$1.5 Mil.
$2.0 Mil.
$2.5 Mil.
$3.0 Mil.
$3.5 Mil.
$4.0 Mil.
$4.5 Mil.
$5.0 Mil.
2024 2025 2026 2027 2028 2029 2030 2031 2032 2033
City of American Canyon
Capital Improvement Projects
5-Year Project Rate Period
Prepared by NBS
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Charts and Tables, 6 of 47235
CITY OF AMERICAN CANYON Exhibit 1 - O&M

SEWER RATE STUDY
Operating Revenue and Expenses
TABLE 3 : REVENUE FORECAST1
Actuals Projected
FY 2021/22 FY 2022/23 FY 2023/24 FY 2024/25 FY 2025/26 FY 2026/27 FY 2027/28 FY 2028/29 FY 2029/30 FY 2030/31 FY 2031/32 FY 2032/33 Rate Revenue
Sewer Service Charge 1 $ 4,824,937 $ 4,953,527 $ 5,042,690 $ 5,128,416 $ 5,215,599 $ 5,304,264 $ 5,394,436 $ 5,486,142 $ 5,573,920 $ 5,663,103 $ 5,753,713 $ 5,845,772 Other Revenue
Misc. Revenues - Other 1 17,936 22,500 8,593 8,739 8,888 9,039 9,192 9,349 9,498 9,650 9,805 9,961 Late Penalties / Interest 1 64,931 74,350 90,000 91,530 93,086 94,668 96,278 97,915 99,481 101,073 102,690 104,333 Interest Income See FP 28,277 18,883 120,000 - - - - - - - - - Capacity Fee Revenue
Capacity Fees 1 573,335 235,879 835,413 4,563,228 508,500 517,145 525,936 534,877 543,435 552,130 560,964 569,939 Interfund Transfer In (Loan Repayment) 8 - - - - 453,816 453,816 453,816 453,816 453,816 453,816 453,816 453,816 Interest Income See FP 26,256 158,013 136,186 198,000 - - - - - - - - TOTAL: REVENUE $ 5,535,672 $ 5,463,152 $ 6,232,882 $ 9,989,913 $ 6,279,888 $ 6,378,931 $ 6,479,658 $ 6,582,098 $ 6,680,150 $ 6,779,771 $ 6,880,987 $ 6,983,822 TABLE 4 : REVENUE SUMMARY
Actuals Projected
FY 2021/22 FY 2022/23 FY 2023/24 FY 2024/25 FY 2025/26 FY 2026/27 FY 2027/28 FY 2028/29 FY 2029/30 FY 2030/31 FY 2031/32 FY 2032/33 Rate Revenue
Sewer Service Charge $ 4,824,937 $ 4,953,527 $ 5,042,690 $ 5,128,416 $ 5,215,599 $ 5,304,264 $ 5,394,436 $ 5,486,142 $ 5,573,920 $ 5,663,103 $ 5,753,713 $ 5,845,772 Other Revenue
Interest Income 28,277 18,883 120,000 - - - - - - - - - Other Revenue 82,867 96,850 98,593 100,269 101,974 103,707 105,470 107,263 108,979 110,723 112,495 114,295 Capacity Fee Revenue
Capacity Fees 573,335 235,879 835,413 4,563,228 508,500 517,145 525,936 534,877 543,435 552,130 560,964 569,939 Interfund Transfer In (Loan Repayment) - - - - 453,816 453,816 453,816 453,816 453,816 453,816 453,816 453,816 Interest Income 26,256 158,013 136,186 198,000 - - - - - - - - TOTAL: REVENUE $ 5,535,672 $ 5,463,152 $ 6,232,882 $ 9,989,913 $ 6,279,888 $ 6,378,931 $ 6,479,658 $ 6,582,098 $ 6,680,150 $ 6,779,771 $ 6,880,987 $ 6,983,822 Projected
5-Year Projected Rate Period
5-Year Projected Rate Period
Basis Projected DESCRIPTION
DESCRIPTION Basis
Prepared by NBS
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Exhibit 1 (O&M), 7 of 47 236
CITY OF AMERICAN CANYON Exhibit 1 - O&M

SEWER RATE STUDY
Operating Revenue and Expenses
TABLE 5 : OPERATING EXPENSE FORECAST1
Actuals Projected
FY 2021/22 FY 2022/23 FY 2023/24 FY 2024/25 FY 2025/26 FY 2026/27 FY 2027/28 FY 2028/29 FY 2029/30 FY 2030/31 FY 2031/32 FY 2032/33 Fund 540 - Wastewater Operations
570 - Wastewater Treatment Plant
Wages - Full time 3 $ 495,550 $ 564,273 $ 602,884 $ 633,028 $ 655,184 $ 678,115 $ 701,849 $ 726,414 $ 751,839 $ 778,153 $ 805,388 $ 833,577 Wages - Overtime 3 13,725 8,000 - - - - - - - - - -
Health Insurance 3 58,890 70,569 77,250 81,112 83,951 86,889 89,931 93,078 96,336 99,708 103,197 106,809 Health-In-Lieu 3 3,200 4,800 6,840 7,182 7,433 7,694 7,963 8,242 8,530 8,829 9,138 9,457 Cafeteria Plan Section 125 3 18,409 17,960 21,712 22,798 23,596 24,422 25,277 26,161 27,077 28,025 29,006 30,021 Social Security & Medicare 3 8,120 8,512 9,156 9,614 9,950 10,298 10,659 11,032 11,418 11,818 12,231 12,659 Worker Comp Insurance 3 32,204 30,111 39,875 41,869 43,334 44,851 46,421 48,045 49,727 51,467 53,269 55,133 Benefits - Other 3 - 813 1,135 1,192 1,233 1,276 1,321 1,367 1,415 1,465 1,516 1,569 Info Tech Support Services 2 7,478 32,500 73,500 75,705 77,976 80,315 82,725 85,207 87,763 90,396 93,108 95,901 Professional Services 2 34,840 356,329 187,138 192,752 198,535 204,491 210,625 216,944 223,453 230,156 237,061 244,173 Misc. Contractual Services 2 8,911 30,000 17,900 18,437 18,990 19,560 20,147 20,751 21,374 22,015 22,675 23,355 General Repairs & Maint 2 307,866 817,832 201,500 207,545 213,771 220,184 226,790 233,594 240,602 247,820 255,254 262,912 Postage/Mail/Copy/Printing Svc 2 759 1,000 1,000 1,030 1,061 1,093 1,126 1,159 1,194 1,230 1,267 1,305 Membership Dues & Subscription 2 21,708 8,000 12,700 13,081 13,473 13,878 14,294 14,723 15,164 15,619 16,088 16,571 Conferences - Training 2 3,357 12,300 14,500 14,935 15,383 15,845 16,320 16,809 17,314 17,833 18,368 18,919 Rentals - Equipment/Space 2 4,193 11,400 11,600 11,948 12,306 12,676 13,056 13,448 13,851 14,267 14,695 15,135 Office Supplies 2 4,298 4,000 4,000 4,120 4,244 4,371 4,502 4,637 4,776 4,919 5,067 5,219 Operating Supplies 2 52,947 43,900 56,000 57,680 59,410 61,193 63,028 64,919 66,867 68,873 70,939 73,067 WW Treatment Plant Membranes 2 - - - - - $2,458,636 - - - - - - Utilities - Gas & Elec 5 330,471 300,287 484,200 511,504 540,348 570,818 603,006 637,010 672,931 710,877 750,964 793,311 Util-PhonesPgrsInternetCable 5 16,694 17,588 19,000 20,071 21,203 22,399 23,662 24,996 26,406 27,895 29,468 31,129 Depreciation 2 1,561,144 - - - - - - - - - - -
Major Equipment 2 19,460 - - - - - - - - - - -
Capital Outlay-Contra Account 2 (31,535) - - - - - - - - - - - PERS Retirement 3 103,159 114,269 110,247 115,760 119,811 124,005 128,345 132,837 137,486 142,298 147,279 152,433 Subtotal - Wastewater Treatment Plant $ 3,075,847 $ 2,454,443 $ 1,952,137 $ 2,041,362 $ 2,121,194 $ 4,663,008 $ 2,291,046 $ 2,381,374 $ 2,475,521 $ 2,573,662 $ 2,675,976 $ 2,782,656 5-Year Projected Rate Period Projected DESCRIPTION Basis Prepared by NBS
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Exhibit 1 (O&M), 8 of 47 237
CITY OF AMERICAN CANYON Exhibit 1 - O&M

SEWER RATE STUDY
Operating Revenue and Expenses
TABLE 6 : OPERATING EXPENSE FORECAST1
Actuals Projected
FY 2021/22 FY 2022/23 FY 2023/24 FY 2024/25 FY 2025/26 FY 2026/27 FY 2027/28 FY 2028/29 FY 2029/30 FY 2030/31 FY 2031/32 FY 2032/33 575 - Wastewater Collections
Wages - Full time 3 $ 268,022 $ 388,002 $ 411,834 $ 432,425 $ 447,560 $ 463,225 $ 479,438 $ 496,218 $ 513,586 $ 531,561 $ 550,166 $ 569,422 Wages - Overtime 3 7,125 5,000 5,000 5,250 5,434 5,624 5,821 6,024 6,235 6,454 6,679 6,913 Health Insurance 3 41,952 38,136 46,756 49,094 50,812 52,591 54,432 56,337 58,308 60,349 62,461 64,648 Health-In-Lieu 3 4,800 12,000 14,250 14,963 15,486 16,028 16,589 17,170 17,771 18,393 19,036 19,703 Cafeteria Plan Section 125 3 12,646 17,490 19,245 20,208 20,915 21,647 22,404 23,189 24,000 24,840 25,710 26,609 Social Security & Medicare 3 4,244 6,054 6,457 6,780 7,017 7,263 7,517 7,780 8,053 8,335 8,626 8,928 Worker Comp Insurance 3 30,604 33,220 36,753 38,591 39,941 41,339 42,786 44,283 45,833 47,438 49,098 50,816 Benefits - Other 3 1,319 1,845 1,918 2,014 2,084 2,157 2,233 2,311 2,392 2,475 2,562 2,652 Info Tech Support Services 2 302 53,150 94,600 97,438 100,361 103,372 106,473 109,667 112,957 116,346 119,836 123,432 Professional Services 2 - 6,450 20,000 20,600 21,218 21,855 22,510 23,185 23,881 24,597 25,335 26,095 Misc. Contractual Services 2 3,852 5,400 5,600 5,768 5,941 6,119 6,303 6,492 6,687 6,887 7,094 7,307 General Repairs & Maint 2 35,466 6,600 24,000 24,720 25,462 26,225 27,012 27,823 28,657 29,517 30,402 31,315 Membership Dues & Subscription 2 2,165 2,900 4,900 5,047 5,198 5,354 5,515 5,680 5,851 6,026 6,207 6,393 Conferences - Training 2 2,303 14,000 5,200 5,356 5,517 5,682 5,853 6,028 6,209 6,395 6,587 6,785 Rentals - Equipment/Space 2 - 5,000 5,000 5,150 5,305 5,464 5,628 5,796 5,970 6,149 6,334 6,524 Office Supplies 2 1,121 1,000 15,000 15,450 15,914 16,391 16,883 17,389 17,911 18,448 19,002 19,572 Operating Supplies 2 27,795 23,000 42,100 43,363 44,664 46,004 47,384 48,805 50,270 51,778 53,331 54,931 Util-PhonesPgrsInternetCable 5 1,498 2,062 1,500 1,585 1,674 1,768 1,868 1,973 2,085 2,202 2,326 2,458 Major Equipment 2 19,460 558,117 - - - - - - - - - -
PERS Retirement 3 44,845 65,912 75,748 79,535 82,319 85,200 88,182 91,268 94,463 97,769 101,191 104,733 Subtotal - Wastewater Collections $ 509,518 $ 1,245,337 $ 835,861 $ 873,335 $ 902,822 $ 933,308 $ 964,830 $ 997,421 $ 1,031,118 $ 1,065,960 $ 1,101,985 $ 1,139,234 DESCRIPTION Basis 5-Year Projected Rate Period Projected Prepared by NBS
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Exhibit 1 (O&M), 9 of 47 238
CITY OF AMERICAN CANYON Exhibit 1 - O&M

SEWER RATE STUDY
Operating Revenue and Expenses
TABLE 7 : OPERATING EXPENSE FORECAST, cont.1
Actuals Projected
FY 2021/22 FY 2022/23 FY 2023/24 FY 2024/25 FY 2025/26 FY 2026/27 FY 2027/28 FY 2028/29 FY 2029/30 FY 2030/31 FY 2031/32 FY 2032/33 585 - Wastewater Environmental Compliance
Wages - Full time 3 $ 175,790 $ 219,602 $ 194,374 $ 204,093 $ 211,236 $ 218,630 $ 226,282 $ 234,202 $ 242,399 $ 250,883 $ 259,664 $ 268,752 Wages - Overtime 3 - 500 500 525 543 562 582 602 624 645 668 691 Health Insurance 3 16,273 21,626 23,378 24,547 25,406 26,296 27,216 28,168 29,154 30,175 31,231 32,324 Health-In-Lieu 3 3,200 4,800 2,280 2,394 2,478 2,565 2,654 2,747 2,843 2,943 3,046 3,152 Cafeteria Plan Section 125 3 6,651 14,556 8,828 9,270 9,594 9,930 10,277 10,637 11,009 11,395 11,794 12,206 Social Security & Medicare 3 2,685 5,568 2,980 3,128 3,238 3,351 3,469 3,590 3,716 3,846 3,980 4,120 Worker Comp Insurance 3 5,101 11,964 18,594 19,524 20,208 20,915 21,647 22,404 23,189 24,000 24,840 25,710 Benefits - Other 3 - - 641 673 696 721 746 772 799 827 856 886 Info Tech Support Services 2 368 5,000 59,650 61,440 63,283 65,181 67,137 69,151 71,225 73,362 75,563 77,830 Professional Services 2 115,883 263,000 253,000 260,590 268,408 276,460 284,754 293,296 302,095 311,158 320,493 330,108 General Repairs & Maint 2 8,426 10,000 10,000 10,300 10,609 10,927 11,255 11,593 11,941 12,299 12,668 13,048 Postage/Mail/Copy.Printing Svc 2 103 10,000 13,000 13,390 13,792 14,205 14,632 15,071 15,523 15,988 16,468 16,962 Membership Dues & Subscription 2 822 32,800 12,600 12,978 13,367 13,768 14,181 14,607 15,045 15,496 15,961 16,440 Conferences - Training 2 275 11,600 21,800 22,454 23,128 23,821 24,536 25,272 26,030 26,811 27,616 28,444 Regulatory Compliance Permits 2 32,062 113,900 157,300 162,019 166,880 171,886 177,043 182,354 187,824 193,459 199,263 205,241 Operating Supplies 2 14,672 32,000 27,000 27,810 28,644 29,504 30,389 31,300 32,239 33,207 34,203 35,229 Major Equipment 2 - 15,000 25,000 25,750 26,523 27,318 28,138 28,982 29,851 30,747 31,669 32,619 Intra-fund Transfer Out Wastewater 2 - - - - - - - - - - - - PERS Retirement 3 31,779 50,405 25,730 27,016 27,962 28,941 29,953 31,002 32,087 33,210 34,372 35,575 Subtotal - Wastewater Environmental Compliance $ 414,090 $ 822,321 $ 856,655 $ 887,901 $ 915,994 $ 944,981 $ 974,890 $ 1,005,750 $ 1,037,594 $ 1,070,451 $ 1,104,354 $ 1,139,337 DESCRIPTION Basis 5-Year Projected Rate Period Projected Prepared by NBS
www.nbsgov.com | Toll-Free: 800.676.7516
Exhibit 1 (O&M), 10 of 47 239
CITY OF AMERICAN CANYON Exhibit 1 - O&M

SEWER RATE STUDY
Operating Revenue and Expenses
TABLE 8 : OPERATING EXPENSE FORECAST, cont.1
Actuals Projected
FY 2021/22 FY 2022/23 FY 2023/24 FY 2024/25 FY 2025/26 FY 2026/27 FY 2027/28 FY 2028/29 FY 2029/30 FY 2030/31 FY 2031/32 FY 2032/33 Fund 80 - Non Departmental
810 - Non Departmental
Wages - Full time 3 $ 113,357 $ 122,711 $ 128,293 $ 134,707 $ 139,422 $ 144,302 $ 149,352 $ 154,580 $ 159,990 $ 165,590 $ 171,385 $ 177,384 Wages - Overtime 3 954 - - - - - - - - - - -
Allowances 3 1,811 1,920 1,920 2,016 2,087 2,160 2,235 2,313 2,394 2,478 2,565 2,655 Health Insurance 3 18,856 19,929 21,244 22,306 23,087 23,895 24,731 25,596 26,492 27,420 28,379 29,373 Cafeteria Plan Section 125 3 4,228 3,919 4,312 4,528 4,686 4,850 5,020 5,196 5,378 5,566 5,761 5,962 Social Security & Medicare 3 1,747 1,864 2,038 2,139 2,214 2,292 2,372 2,455 2,541 2,630 2,722 2,817 Worker Comp Insurance 3 7,901 7,179 9,825 10,316 10,677 11,051 11,438 11,838 12,252 12,681 13,125 13,584 OPEB 3 44,764 36,095 49,726 52,213 54,040 55,931 57,889 59,915 62,012 64,183 66,429 68,754 Pension Expense 3 (163,418) - - - - - - - - - - -
Benefits - Other 3 1,371 - - - - - - - - - - -
Professional Services 2 - 100,000 100,000 103,000 106,090 109,273 112,551 115,927 119,405 122,987 126,677 130,477 Temp Agency Services 2 - - 6,000 6,180 6,365 6,556 6,753 6,956 7,164 7,379 7,601 7,829 Bad Debt Expense 2 (13,591) - - - - - - - - - - -
Membership Dues & Subscription 2 197 2,100 1,400 1,442 1,485 1,530 1,576 1,623 1,672 1,722 1,773 1,827 Conferences - Training 2 30 5,000 5,000 5,150 5,305 5,464 5,628 5,796 5,970 6,149 6,334 6,524 Office Supplies 2 - 1,000 1,000 1,030 1,061 1,093 1,126 1,159 1,194 1,230 1,267 1,305 Utilities - Water 5 11,868 6,998 14,000 14,789 15,623 16,504 17,435 18,418 19,457 20,554 21,713 22,938 Intra-fund Transfer Out Wastewater 2 605,656 281,641 290,090 298,793 307,757 316,989 326,499 336,294 346,383 356,774 367,478 378,502 Transfer to Gen Fnd Support Sv 2 763,512 958,429 1,123,854 1,157,570 1,192,297 1,228,066 1,264,908 1,302,855 1,341,940 1,382,199 1,423,665 1,466,375 Transfer To General Fund - Other 2 2,394 80,000 - - - - - - - - - - Services - Other 2 20,296 - - - - - - - - - - -
Retiree Health Benefits 3 60,317 54,994 78,433 82,355 85,238 88,221 91,309 94,504 97,812 101,235 104,779 108,446 PERS Retirement 3 17,037 16,089 16,257 17,070 17,667 18,286 18,926 19,588 20,274 20,983 21,717 22,478 ISF - Bldg Maint 2 59,800 176,556 262,206 270,072 278,174 286,520 295,115 303,969 313,088 322,480 332,155 342,119 ISF - Fleet 2 138,950 106,876 163,573 168,480 173,535 178,741 184,103 189,626 195,315 201,174 207,209 213,426 ISF - Info Tech 2 93,500 194,152 237,073 244,185 251,511 259,056 266,828 274,833 283,078 291,570 300,317 309,326 ISF - Legal Services 2 28,800 24,345 99,499 102,484 105,558 108,725 111,987 115,347 118,807 122,371 126,042 129,824 Subtotal - Non Departmental $ 1,820,335 $ 2,201,796 $ 2,615,743 $ 2,700,825 $ 2,783,879 $ 2,869,503 $ 2,957,779 $ 3,048,788 $ 3,142,618 $ 3,239,356 $ 3,339,093 $ 3,441,923 GRAND TOTAL: SEWER EXPENSES $ 5,819,790 $ 6,723,898 $ 6,260,396 $ 6,503,425 $ 6,723,889 $ 9,410,800 $ 7,188,544 $ 7,433,334 $ 7,686,851 $ 7,949,428 $ 8,221,408 $ 8,503,149 5-Year Projected Rate Period Projected DESCRIPTION Basis Prepared by NBS
www.nbsgov.com | Toll-Free: 800.676.7516
Exhibit 1 (O&M), 11 of 47 240
CITY OF AMERICAN CANYON Exhibit 1 - O&M

SEWER RATE STUDY
Operating Revenue and Expenses
TABLE 9 : FORECASTING ASSUMPTIONS
Basis FY 2021/22 FY 2022/23 FY 2023/24 FY 2024/25 FY 2025/26 FY 2026/27 FY 2027/28 FY 2028/29 FY 2029/30 FY 2030/31 FY 2031/32 FY 2032/33 Customer Growth41 -- 1.80% 1.80% 1.70% 1.70% 1.70% 1.70% 1.70% 1.60% 1.60% 1.60% 1.60% General Cost Inflation52 -- 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% Labor Cost Inflation63 -- 3.50% 5.00% 5.00% 3.50% 3.50% 3.50% 3.50% 3.50% 3.50% 3.50% 3.50% Energy74 -- 7.44% 7.44% 7.44% 7.44% 7.44% 7.44% 7.44% 7.44% 7.44% 7.44% 7.44% Electricty85 -- 5.64% 5.64% 5.64% 5.64% 5.64% 5.64% 5.64% 5.64% 5.64% 5.64% 5.64% Fuel & Utilities96 -- 5.24% 5.24% 5.24% 5.24% 5.24% 5.24% 5.24% 5.24% 5.24% 5.24% 5.24% Construction Cost Inflation10 7 -- 3.50% 3.50% 3.50% 3.50% 3.50% 3.50% 3.50% 3.50% 3.50% 3.50% 3.50% No Escalation 8 -- 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%

1. Revenue and expenses for FY 2021/22 through FY 2023/24 provided by the City. Revenues and expenses for all other years are escalated based on the forecasting assumptions located in Table 9 above . Source files: Fund 540 Wastewater Operations Fund 510 - 580 FY 23-24 Budget Status as of 09-19-2023 , FY 22 Fund 550 Wastewater Cap Revenue Detail Trial Balance , & FY 23 Fund 550 Wastewater Cap Revenue Detail Trial Balance.

2. Expenses are inflated each year by the following annual inflation factor categories.

3. Customer growth is based on service area population growth through FY 2039/40. Source file: American Canyon 2015 UWMP.pdf , page 26.

4. General cost inflation is based on the 5-year average annual change in the Consumer Price Index for all Urban Consumers in the San Francisco-Oakland-Hayward, CA area.

5. Labor cost inflation is based on the 5-year average annual change in the Quarterly Census of Employment and Wages for San Francisco County, CA.

6. Energy cost inflation is based on the 5-year average annual change in the Consumer Price Index for all Urban Consumers in the San Francisco-Oakland-Hayward, CA area.

7. Electricity cost inflation is based on the 5-year average change in the Consumer Price Index for San Francisco County.

9. Construction cost Inflation is the 10-year average change in the Construction Cost Index for 2012-2022. Source: Engineering News Record website (http://enr.construction.com ).

INFLATION FACTORS3
Prepared by NBS
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Exhibit 1 (O&M), 12 of 47 241
CITY OF AMERICAN CANYON Exhibit 2 - CIP

SEWER RATE STUDY
Capital Improvement Plan Expenditures
TABLE 10 : CAPITAL FUNDING SUMMARY
CAPITAL FUNDING FORECAST Actuals Projected
FY 2021/22 FY 2022/23 FY 2023/24 FY 2024/25 FY 2025/26 FY 2026/27 FY 2027/28 FY 2028/29 FY 2029/30 FY 2030/31 FY 2031/32 FY 2032/33 Grants $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
Use of Capacity Fee Reserves - - 291,480 897,942 2,070,444 3,278,183 1,177,570 1,181,673 1,187,638 1,194,792 1,202,725 1,211,189 SRF Loan Funding - - - - - - - - - - - -
Use of Future Revenue Bond Proceeds - - - - - - - - - - - - Use of Capital Rehabilitation and Replacement Reserve - - - - - - - 10,869 1,119,393 1,537,538 1,625,237 1,715,751 Rate Revenue 345,549 3,201,161 2,573,447 197,942 1,111,368 14,992 2,230,867 1,406,839 332,901 - - - Total Sources of Capital Funds $ 345,549 $ 3,201,161 $ 2,864,927 $ 1,095,884 $ 3,181,812 $ 3,293,175 $ 3,408,436 $ 2,599,381 $ 2,639,932 $ 2,732,330 $ 2,827,961 $ 2,926,940 Uses of Capital Funds:

Total Project Costs $ 345,549 $ 3,201,161 $ 2,864,927 $ 1,095,884 $ 3,181,812 $ 3,293,175 $ 3,408,436 $ 2,599,381 $ 2,639,932 $ 2,732,330 $ 2,827,961 $ 2,926,940 Capital Funding Surplus (Deficiency) $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -

CAPITAL IMPROVEMENT PROGRAM FUNDING OPTIONS
Capital Improvement Program Funding Choice 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 Effective Annual Funding Amount $ 345,549 $ 3,201,161 $ 2,864,927 $ 1,095,884 $ 3,181,812 $ 3,293,175 $ 3,408,436 $ 2,599,381 $ 2,639,932 $ 2,732,330 $ 2,827,961 $ 2,926,940 TABLE 11 : CAPITAL IMPROVEMENT PROGRAM COSTS (in Current-Year Dollars ) 1 Project Description FY 2021/22 FY 2022/23 FY 2023/24 FY 2024/25 FY 2025/26 FY 2026/27 FY 2027/28 FY 2028/29 FY 2029/30 FY 2030/31 FY 2031/32 FY 2032/33 Capital Projects
2020 Annual Pavement Management Project $ 42,008 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - TR24-0300 ARPA Rancho Del Mar Paving and Utility Improvements - - 1,334,000 - - - - - - - - - WW16-0300 SCADA Improvements - 250,000 250,000 - - - - - - - - - WW20-0100 SS4 Broadway Sewer Rehabilitation (Crawford to Poco) - 375,000 1,000,000 250,000 - - - - - - - - WW22-0100 UV Disinfection - 500,000 - - - - - - - - - - WW22-0200 Blower Replacement - 500,000 - - - - - - - - - - WW21-0400 Sanitary Sewer Manhole Rehab - 100,000 - - - - - - - - - - UM20-0100 Engie Energy Services Contract 291,856 122,618 - - - - - - - - - - Master Plan Projects - Wastewater Collection System 2
SS1 Rio Del Mar Basin $ - $ - $ - $ 500,000 $ 500,000 $ 500,000 $ 500,000 $ - $ - $ - $ - $ - SS2 Napa Logistics and Green Island Pump Station - 1,140,700 - - - - - - - - - - SS3 Huntington Way (Rio Del Mar to W American Canyon Road) - - - - 458,000 458,000 458,000 458,000 458,000 458,000 458,000 458,000 SS5 Summerfield Project - - - - 37,000 37,000 37,000 37,000 - - - - SS6 Theresa Avenue and Los Altos Drive - - - 205,000 205,000 205,000 205,000 - - - - - SS7 Main Basin Pump Station - - - - 1,199,000 1,199,000 1,199,000 1,199,000 1,199,000 1,199,000 1,199,000 1,199,000 SS8 Broadway, Cartagena Way to Mobile Home Park Entrance - - - - 68,000 68,000 68,000 68,000 68,000 68,000 68,000 68,000 SS9 Elliott Drive south of Northampton - - - - 109,000 109,000 109,000 109,000 109,000 109,000 109,000 109,000 SS10 Broadway north of Rio Del Mar - - - - 103,000 103,000 103,000 103,000 103,000 103,000 103,000 103,000 Estimated Future Projects
Future Projects3 - - - - - -
Total: Capital Improvement Program Costs (Current-Year Dollars) $ 333,864 $ 2,988,318 $ 2,584,000 $ 955,000 $ 2,679,000 $ 2,679,000 $ 2,679,000 $ 1,974,000 $ 1,937,000 $ 1,937,000 $ 1,937,000 $ 1,937,000 5-Year Projected Rate Period Projected
Funding Sources:

Prepared by NBS
www.nbsgov.com | Toll-Free: 800.676.7516
Exhibit 2 (CIP), 13 of 47 242
CITY OF AMERICAN CANYON Exhibit 2 - CIP

SEWER RATE STUDY
Capital Improvement Plan Expenditures
TABLE 12 : CAPITAL IMPROVEMENT PROGRAM COSTS (in Future-Year Dollars ) 4 Project Description FY 2021/22 FY 2022/23 FY 2023/24 FY 2024/25 FY 2025/26 FY 2026/27 FY 2027/28 FY 2028/29 FY 2029/30 FY 2030/31 FY 2031/32 FY 2032/33 Capital Projects
2020 Annual Pavement Management Project $ 43,478 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - TR24-0300 ARPA Rancho Del Mar Paving and Utility Improvements - - 1,479,030 - - - - - - - - - WW16-0300SCADA Improvements - 267,806 277,179 - - - - - - - - - WW20-0100SS4 Broadway Sewer Rehabilitation - 401,709 1,108,718 286,881 - - - - - - - - WW22-0100UV Disinfection - 535,613 - - - - - - - - - -
WW22-0200Blower Replacement - 535,613 - - - - - - - - - - WW21-0400Sanitary Sewer Manhole Rehab - 107,123 - - - - - - - - - - UM20-0100 Engie Energy Services Contract 302,071 131,351 - - - - - - - - - - Master Plan Projects - Wastewater Collection System 2
SS1 Rio Del Mar Basin $ - $ - $ - $ 573,762 $ 593,843 $ 614,628 $ 636,140 $ - $ - $ - $ - $ - SS2 Napa Logistics and Green Island Pump Station - 1,221,946 - - - - - - - - - - SS3 Huntington Way - - - - 543,960 562,999 582,704 603,099 624,207 646,054 668,666 692,069 SS5 Summerfield Project - - - - 43,944 45,482 47,074 48,722 - - - - SS6 Theresa Avenue and Los Altos Drive - - - 235,242 243,476 251,997 260,817 - - - - - SS7 Main Basin Pump Station - - - - 1,424,036 1,473,877 1,525,463 1,578,854 1,634,114 1,691,308 1,750,504 1,811,771 SS8 Broadway, Cartagena Way to Mobile Home Park Entrance - - - - 80,763 83,589 86,515 89,543 92,677 95,921 99,278 102,753 SS9 Elliott Drive south of Northampton - - - - 129,458 133,989 138,678 143,532 148,556 153,755 159,137 164,706 SS10 Broadway north of Rio Del Mar - - - - 122,332 126,613 131,045 135,631 140,378 145,292 150,377 155,640 Estimated Future Projects
Future Projects3 - - - - - - - - - - - -
Total: Capital Improvement Program Costs (Future-Year Dollars) $ 345,549 $ 3,201,161 $ 2,864,927 $ 1,095,884 $ 3,181,812 $ 3,293,175 $ 3,408,436 $ 2,599,381 $ 2,639,932 $ 2,732,330 $ 2,827,961 $ 2,926,940 TABLE 13 : FORECASTING ASSUMPTIONS
Economic Variables FY 2021/22 FY 2022/23 FY 2023/24 FY 2024/25 FY 2025/26 FY 2026/27 FY 2027/28 FY 2028/29 FY 2029/30 FY 2030/31 FY 2031/32 FY 2032/33

3.50% 3.50% 3.50% 3.50% 3.50% 3.50% 3.50% 3.50% 3.50% 3.50% 3.50% 3.50% Cumulative Construction Cost Multiplier from FY 2021/22 1.04 1.07 1.11 1.15 1.19 1.23 1.27 1.32 1.36 1.41 1.46 1.51

1. Capital project costs were provided by City staff. Source files: 11. CIP Budget vs Expense Report FY 2021-2022 through Oct 2021.pdf & Wastewater FY 2023-2027.xlsx .

2. The City's Wastewater Collection System Master Plan projects were scheduled to begin in 2016; however, the study only includes costs from FY 2021/22 through FY 2034/35. Source file: 2016 Sewer Master Plan.pdf , page 52.

3. Future project costs beyond FY 2034/35 are calculated based on the City's 10-year average.

4. Capital improvement projects are inflated to future year estimated costs with ENR CCI for the region. Source: Engineering News Record website (http://enr.construction.com ).

5. For reference purposes, the annual Construction Cost Inflation percentage is the 10-year average change in the Construction Cost Index for September 2012-2022 (3.50%). Source: Engineering News Record website (http://enr.construction.com).

Annual Construction Cost Inflation, Per Engineering News Record5 Prepared by NBS
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Exhibit 2 (CIP), 14 of 47 243
CITY OF AMERICAN CANYON Exhibit 3 - Debt

SEWER RATE STUDY
Debt Service
TABLE 14 : SEWER UTILITY EXISTING DEBT OBLIGATIONS
EXISTING DEBT OBLIGATIONS Actuals Projected
Annual Repayment Schedules: FY 2021/22 FY 2022/23 FY 2023/24 FY 2024/25 FY 2025/26 FY 2026/27 FY 2027/28 FY 2028/29 FY 2029/30 FY 2030/31 FY 2031/32 FY 2032/33 City National Bank - Loan Amount $2,004,2001
Principal Payment $ 155,243 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - Interest Payment 1,979 - - - - - - - - - - -
Subtotal: Annual Debt Service $ 157,222 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - Coverage Requirement ($-Amnt above annual payment)2 $ 180,805 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - Reserve Requirement (total fund balance)2$ 157,222 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - SWRCB: Project No. C-06-4666-110 & Agreement No. 99819-550-03 Principal Payment $ 722,377 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - Interest Payment - - - - - - - - - - - -
Other Charges 19,504 - - - - - - - - - - -
Subtotal: Annual Debt Service $ 741,881 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - Coverage Requirement ($-Amnt above annual payment) $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - Reserve Requirement (total fund balance) $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - Bank of America Public Capital Corp Agreement (ENGIE) - Loan Amount $5,209,2094 Principal Payment $ 161,088 $ 154,345 $ 165,634 $ 177,478 $ 180,996 $ 199,515 $ 213,287 $ 189,719 $ 202,626 $ 216,158 $ 228,580 $ 241,999 Interest Payment 55,123 52,295 49,440 46,378 43,173 39,781 36,097 32,472 28,971 25,233 21,262 17,061 Subtotal: Annual Debt Service $ 216,211 $ 206,640 $ 215,074 $ 223,856 $ 224,168 $ 239,297 $ 249,385 $ 222,191 $ 231,597 $ 241,391 $ 249,843 $ 259,060 Coverage Requirement ($-Amnt above annual payment) $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - Reserve Requirement (total fund balance) $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - Grand Total: Existing Annual Debt Service $ 1,115,315 $ 206,640 $ 215,074 $ 223,856 $ 224,168 $ 239,297 $ 249,385 $ 222,191 $ 231,597 $ 241,391 $ 249,843 $ 259,060 Grand Total: Existing Annual Coverage Requirement $ 180,805 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - Grand Total: Existing Debt Reserve Target $ 157,222 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - 5-Year Projected Rate Period Projected
Prepared by NBS
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Exhibit 3 (Debt), 15 of 47 244
CITY OF AMERICAN CANYON Exhibit 3 - Debt

SEWER RATE STUDY
Debt Service
TABLE 15 : SEWER UTILITY EXISTING DEBT OBLIGATIONS, cont.

EXISTING DEBT OBLIGATIONS Actuals Projected
Annual Repayment Schedules: FY 2021/22 FY 2022/23 FY 2023/24 FY 2024/25 FY 2025/26 FY 2026/27 FY 2027/28 FY 2028/29 FY 2029/30 FY 2030/31 FY 2031/32 FY 2032/33 Interfund Loans (For information only )
Wastewater Capacity to Wastewater Fund
Advance from WW Capacity 550 to Wastewater Operations 540 Original Loan Amount (December 1, 2008) $ 1,285,000
Interest (for budget purposes only) 146,147
Annual Debt Service5 $159,325 $159,325 $159,325 $159,325 $159,325 $159,325 $159,325 $159,325 $159,325 $159,325 $ - Wastewater Capacity to Recycled Water Fund
Advance from WW Capacity 550 to Recycled Water Operations 580 Original Loan Amount (March 11, 2011) $ 1,070,000
Interest (for budget purposes only) 205,869
Annual Debt Service6 $ - $ - $ - $99,295 $99,295 $99,295 $99,295 $99,295 $99,295 $99,295 $99,295 Wastewater Capacity to Recycled Water Fund
Advance from WW Capacity 550 to Recycled Water Operations 580 Original Loan Amount (December 15, 2009) $ 304,614
Interest (for budget purposes only) 58,577
Annual Debt Service7 $ - $ - $ - $ 28,266 $ 28,266 $ 28,266 $ 28,266 $ 28,266 $ 28,266 $ 28,266 $ 28,266 Wastewater Capacity to Recycled Water Fund
Advance from WW Capacity 550 to Recycled Water Operations 580 Original Loan Amount (December 15, 2009) $ 3,532,410
Interest (for budget purposes only) 659,727
Annual Debt Service8 $ - $ - $ - $ 326,255 $ 326,255 $ 326,255 $ 326,255 $ 326,255 $ 326,255 $ 326,255 $ 326,255

1. Loan originally issued between Municipal Finance Corporation, City National Bank, and the City of American Canyon. Source files: 5 - Debt Service Schedules.xlsx & 6 - Wastewater Membrane Agreement.pdf .

2. Coverage and reserve requirements were provided by the City. Source files: 6 - Wastewater Membrane Agreement.pdf , pages 9 & 12.

3. State Revolving Fund Loan issued in September 1999 in that amount of $10,859,470. Source file: 6 - SWRCB Agreement 99-819-550-0 4666-110 Executed Amendment #2_11-12-14.pdf .

4. Equipment lease/purchase loan issued by Bank of America for equipment upgrades, replacements and installation to provide energy savings for the City. Sewer utility portion is 59.43%, or $3,095,832.91 (Principal).

Source file: 6 - ENGIE Closing Documents.pdf .

5. Funds advanced for capital projects. Repayment scheduled to begin FY 2022/23.

6. Funds advanced for Green Island Recycled Waterline Project. Repayment scheduled to begin FY 2025/26.

7. Funds advance for Recycled Water Pump Station Upgrade. Repayment scheduled to begin FY 2025/26.

8. Funds advanced for various CIP projects. Repayment scheduled to begin FY 2025/26.

TABLE 16 : EXISTING ANNUAL DEBT OBLIGATIONS TO BE SATISFIED BY SEWER RATES Annual Obligations 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 Existing Annual Debt Service $ 1,115,315 $ 206,640 $ 215,074 $ 223,856 $ 224,168 $ 239,297 $ 249,385 $ 222,191 $ 231,597 $ 241,391 $ 249,843 $ 259,060 Existing Annual Coverage Requirement $ 180,805 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - Existing Debt Reserve Target $ 157,222 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - 5-Year Projected Rate Period Projected
Prepared by NBS
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Exhibit 3 (Debt), 16 of 47 245
CITY OF AMERICAN CANYON Exhibit 4 - Current Rates

SEWER RATE STUDY
Projected Sewer Rates Under Existing Rate Schedule
TABLE 17 : CURRENT SEWER RATE SCHEDULE
Single-Family Residential - Monthly Fixed Service Charges Low Winter Water Use 4 units or less $56.79
Average Winter Water Use (Standard) 4.1 – 13 units $60.48 High Winter Water Use 13.01 units and above $62.65
All Other Monthly Fixed Service Charge
Multi-Family Residential Per Dwelling Unit $45.36
Commercial Whichever is greater $60.48 or $5.40 per unit

1. Sewer rates are set according to the average monthly water use for January to March of the previous calendar year. New customers are charged at the average winter use rate (standard) and adjusted the following year, if applicable.

Sewer Rate Schedule1 Current Rates
Jan. 1, 2023
Description
Prepared by NBS
www.nbsgov.com | Toll-Free: 800.676.7516 Exhibit 4 (Current Rates), 17 of 47246 CITY OF AMERICAN CANYON Functionalization & Classification

SEWER RATE STUDY
Cost-of-Service Analysis
TABLE 18 : CLASSIFICATION OF EXPENSES FOR COST OF SERVICE ANALYSIS Classification of Expenses
FY 2023/24 (VOL) (BOD) (TSS) (CA) (VOL) (BOD) (TSS) (CA) Fund 540 - Wastewater Operations
570 - Wastewater Treatment Plant
Wages - Full time $ 602,884 $ 307,471 $ 132,634 $ 132,634 $ 30,144 51% 22% 22% 5% Health Insurance 77,250 39,397 16,995 16,995 3,862 51% 22% 22% 5% Health-In-Lieu 6,840 3,488 1,505 1,505 342 51% 22% 22% 5% Cafeteria Plan Section 125 21,712 11,073 4,777 4,777 1,086 51% 22% 22% 5% Social Security & Medicare 9,156 4,669 2,014 2,014 458 51% 22% 22% 5% Worker Comp Insurance 39,875 20,336 8,772 8,772 1,994 51% 22% 22% 5% Benefits - Other 1,135 579 250 250 57 51% 22% 22% 5%
Info Tech Support Services 73,500 37,485 16,170 16,170 3,675 51% 22% 22% 5% Professional Services 187,138 95,440 41,170 41,170 9,357 51% 22% 22% 5% Misc. Contractual Services 17,900 9,129 3,938 3,938 895 51% 22% 22% 5% General Repairs & Maint 201,500 102,765 44,330 44,330 10,075 51% 22% 22% 5% Postage/Mail/Copy/Printing Svc 1,000 510 220 220 50 51% 22% 22% 5% Membership Dues & Subscription 12,700 6,477 2,794 2,794 635 51% 22% 22% 5% Conferences - Training 14,500 7,395 3,190 3,190 725 51% 22% 22% 5% Rentals - Equipment/Space 11,600 5,916 2,552 2,552 580 51% 22% 22% 5% Office Supplies 4,000 2,040 880 880 200 51% 22% 22% 5%
Operating Supplies 56,000 28,560 12,320 12,320 2,800 51% 22% 22% 5% WW Treatment Plant Membranes - - - - - 51% 22% 22% 5%
Utilities - Gas & Elec 484,200 246,942 106,524 106,524 24,210 51% 22% 22% 5% Util-PhonesPgrsInternetCable 19,000 9,690 4,180 4,180 950 51% 22% 22% 5% PERS Retirement 110,247 56,226 24,254 24,254 5,512 51% 22% 22% 5% Subtotal - Wastewater Treatment Plant $ 1,952,137 $ 995,590 $ 429,470 $ 429,470 $ 97,607 51% 22% 22% 5% Budget Categories
Total Revenue
Requirements
Flow Strength Customer Basis of Classification
Prepared by NBS
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Funct. & Classification, 18 of 47247
CITY OF AMERICAN CANYON Functionalization & Classification

SEWER RATE STUDY
Cost-of-Service Analysis
TABLE 19 : CLASSIFICATION OF EXPENSES FOR COST OF SERVICE ANALYSIS Classification of Expenses
FY 2023/24 (VOL) (BOD) (TSS) (CA) (VOL) (BOD) (TSS) (CA) Fund 540 - Wastewater Operations
575 - Wastewater Collections
Wages - Full time $ 411,834 $ 411,834 $ - $ - $ - 100% 0% 0% 0% Wages - Overtime 5,000 5,000 - - - 100% 0% 0% 0%
Health Insurance 46,756 46,756 - - - 100% 0% 0% 0%
Health-In-Lieu 14,250 14,250 - - - 100% 0% 0% 0%
Cafeteria Plan Section 125 19,245 19,245 - - - 100% 0% 0% 0% Social Security & Medicare 6,457 6,457 - - - 100% 0% 0% 0% Worker Comp Insurance 36,753 36,753 - - - 100% 0% 0% 0% Benefits - Other 1,918 1,918 - - - 100% 0% 0% 0%
Info Tech Support Services 94,600 94,600 - - - 100% 0% 0% 0% Professional Services 20,000 20,000 - - - 100% 0% 0% 0% Misc. Contractual Services 5,600 5,600 - - - 100% 0% 0% 0% General Repairs & Maint 24,000 24,000 - - - 100% 0% 0% 0% Membership Dues & Subscription 4,900 4,900 - - - 100% 0% 0% 0% Conferences - Training 5,200 5,200 - - - 100% 0% 0% 0%
Rentals - Equipment/Space 5,000 5,000 - - - 100% 0% 0% 0% Office Supplies 15,000 15,000 - - - 100% 0% 0% 0%
Operating Supplies 42,100 42,100 - - - 100% 0% 0% 0%
Util-PhonesPgrsInternetCable 1,500 1,500 - - - 100% 0% 0% 0% PERS Retirement 75,748 75,748 - - - 100% 0% 0% 0%
Subtotal - Wastewater Collections $ 835,861 $ 835,861 $ - $ - $ - 100% 0% 0% 0% Budget Categories
Total Revenue
Requirements
Flow Strength Customer Basis of Classification
Prepared by NBS
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Funct. & Classification, 19 of 47248
CITY OF AMERICAN CANYON Functionalization & Classification

SEWER RATE STUDY
Cost-of-Service Analysis
TABLE 20 : CLASSIFICATION OF EXPENSES FOR COST OF SERVICE ANALYSIS Classification of Expenses
FY 2023/24 (VOL) (BOD) (TSS) (CA) (VOL) (BOD) (TSS) (CA) Fund 540 - Wastewater Operations
585 - Wastewater Environmental Compliance
Wages - Full time $ 194,374 $ 99,131 $ 42,762 $ 42,762 $ 9,719 51% 22% 22% 5% Wages - Overtime 500 255 110 110 25 51% 22% 22% 5%
Health Insurance 23,378 11,923 5,143 5,143 1,169 51% 22% 22% 5% Health-In-Lieu 2,280 1,163 502 502 114 51% 22% 22% 5%
Cafeteria Plan Section 125 8,828 4,502 1,942 1,942 441 51% 22% 22% 5% Social Security & Medicare 2,980 1,520 655 655 149 51% 22% 22% 5% Worker Comp Insurance 18,594 9,483 4,091 4,091 930 51% 22% 22% 5% Benefits - Other 641 327 141 141 32 51% 22% 22% 5%
Info Tech Support Services 59,650 30,422 13,123 13,123 2,983 51% 22% 22% 5% Professional Services 253,000 129,030 55,660 55,660 12,650 51% 22% 22% 5% General Repairs & Maint 10,000 5,100 2,200 2,200 500 51% 22% 22% 5% Postage/Mail/Copy.Printing Svc 13,000 6,630 2,860 2,860 650 51% 22% 22% 5% Membership Dues & Subscription 12,600 6,426 2,772 2,772 630 51% 22% 22% 5% Conferences - Training 21,800 11,118 4,796 4,796 1,090 51% 22% 22% 5% Regulatory Compliance Permits 157,300 80,223 34,606 34,606 7,865 51% 22% 22% 5% Operating Supplies 27,000 13,770 5,940 5,940 1,350 51% 22% 22% 5% Major Equipment 25,000 12,750 5,500 5,500 1,250 51% 22% 22% 5% PERS Retirement 25,730 13,122 5,661 5,661 1,286 51% 22% 22% 5% Subtotal - Wastewater Environmental Compliance $ 856,655 $ 436,894 $ 188,464 $ 188,464 $ 42,833 51% 22% 22% 5% Budget Categories
Total Revenue
Requirements
Flow Strength Customer Basis of Classification
Prepared by NBS
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Funct. & Classification, 20 of 47249
CITY OF AMERICAN CANYON Functionalization & Classification

SEWER RATE STUDY
Cost-of-Service Analysis
TABLE 21 : CLASSIFICATION OF EXPENSES FOR COST OF SERVICE ANALYSIS Classification of Expenses
FY 2023/24 (VOL) (BOD) (TSS) (CA) (VOL) (BOD) (TSS) (CA) Fund 80 - Non Departmental
810 - Non Departmental
Wages - Full time $ 128,293 $ 65,429 $ 28,224 $ 28,224 $ 6,415 51% 22% 22% 5% Allowances 1,920 979 422 422 96 51% 22% 22% 5%
Health Insurance 21,244 10,834 4,674 4,674 1,062 51% 22% 22% 5% Cafeteria Plan Section 125 4,312 2,199 949 949 216 51% 22% 22% 5% Social Security & Medicare 2,038 1,039 448 448 102 51% 22% 22% 5% Worker Comp Insurance 9,825 5,011 2,161 2,161 491 51% 22% 22% 5% OPEB 49,726 25,360 10,940 10,940 2,486 51% 22% 22% 5%
Professional Services 100,000 51,000 22,000 22,000 5,000 51% 22% 22% 5% Temp Agency Services 6,000 3,060 1,320 1,320 300 51% 22% 22% 5% Membership Dues & Subscription 1,400 714 308 308 70 51% 22% 22% 5% Conferences - Training 5,000 2,550 1,100 1,100 250 51% 22% 22% 5% Office Supplies 1,000 510 220 220 50 51% 22% 22% 5%
Utilities - Water 14,000 7,140 3,080 3,080 700 51% 22% 22% 5% Intra-fund Transfer Out Wastewater 290,090 147,946 63,820 63,820 14,505 51% 22% 22% 5% Transfer to Gen Fnd Support Sv 1,123,854 573,166 247,248 247,248 56,193 51% 22% 22% 5% Retiree Health Benefits 78,433 40,001 17,255 17,255 3,922 51% 22% 22% 5% PERS Retirement 16,257 8,291 3,577 3,577 813 51% 22% 22% 5% ISF - Bldg Maint 262,206 133,725 57,685 57,685 13,110 51% 22% 22% 5% ISF - Fleet 163,573 83,422 35,986 35,986 8,179 51% 22% 22% 5% ISF - Info Tech 237,073 120,907 52,156 52,156 11,854 51% 22% 22% 5% ISF - Legal Services 99,499 50,744 21,890 21,890 4,975 51% 22% 22% 5% Subtotal - Non Department $ 2,615,743 $ 1,334,029 $ 575,463 $ 575,463 $ 130,787 51% 22% 22% 5% Total: Sewer Operations Expenses $ 6,260,396 $ 3,602,374 $ 1,193,398 $ 1,193,398 $ 271,227 58% 19% 19% 4% Budget Categories
Total Revenue
Requirements
Flow Strength Customer Basis of Classification
Prepared by NBS
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Funct. & Classification, 21 of 47250
CITY OF AMERICAN CANYON Functionalization & Classification

SEWER RATE STUDY
Cost-of-Service Analysis
TABLE 22 : CLASSIFICATION OF EXPENSES FOR COST OF SERVICE ANALYSIS Classification of Expenses, cont.

FY 2023/24 (VOL) (BOD) (TSS) (CA) (VOL) (BOD) (TSS) (CA) Debt Service Payments
Outstanding Debt 215,074 107,537 53,768 53,768 - 50% 25% 25% 0% New Debt Issue - SRF Loan - - - - - 50% 25% 25% 0%
New Debt Issue - Revenue Bond - - - - - 50% 25% 25% 0%
Total Debt Service Payments $ 215,074 $ 107,537 $ 53,768 $ 53,768 $ - 50% 25% 25% 0% Capital Expenditures
Rate Funded Capital Expenses $ 2,573,447 $ 1,286,724 $ 643,362 $ 643,362 $ - 50% 25% 25% 0% TOTAL REVENUE REQUIREMENTS $ 9,048,917 $ 4,996,634 $ 1,890,528 $ 1,890,528 $ 271,227 55% 21% 21% 3% Less: Non-Rate Revenues
Rate Revenue
Interest Income $ (120,000) $ (61,200) $ (26,400) $ (26,400) $ (6,000) 51% 22% 22% 5% Other Revenue (98,593) (50,282) (21,690) (21,690) (4,930) 51% 22% 22% 5% NET REVENUE REQUIREMENTS $ 8,830,324 $ 4,885,152 $ 1,842,438 $ 1,842,438 $ 260,297 Allocation of Revenue Requirements 100.0% 55.3% 20.9% 20.9% 2.9% TABLE 23 : ADJUSTMENT TO CLASSIFICATION OF EXPENSES FOR COST-OF-SERVICE ANALYSIS Adjustment to Current Rate Level: Total (VOL) (BOD) (TSS) (CA) FY 2023/24 Target Rate Rev. After Rate Increases $ 6,303,363 Projected Rate Revenue at Current Rates $ 5,042,690
FY 2023/24 Projected Rate Increase 25%
Adjusted Net Revenue Req'ts $ 6,303,363 $ 3,487,175 $ 1,315,190 $ 1,315,190 $ 185,808 Percent of Revenue 55.3% 20.9% 20.9% 2.9%
TABLE 24 : NET REVENUE REQUIREMENTS PER COSA RESULTS - ALTERNATIVE 1 Net Revenue Requirements (ALTERNATIVE 1 - 55% Fixed / 45% Variable) Rate-Design Adjustments to Percentages 100.0% 55.3% 20.9% 20.9% 2.9% Rate-Design Adjustments to Dollars $ 6,303,363 $ 3,487,175 $ 1,315,190 $ 1,315,190 $ 185,808 TABLE 25 : ADJUSTMENT TO COST OF SERVICE RATES 71.38%
Ratio of Targeted Rate Revenue to Net Revenue Requirements Total (VOL) (BOD) (TSS) (CA) Actual Total Fixed Costs $ 2,788,521 $ 1,394,261 $ 697,130 $ 697,130 $ - Adjusted Total Fixed Costs $ 1,990,534 $ 995,267 $ 497,633 $ 497,633 $ - Total Operating Costs $ 6,260,396 $ 3,602,374 $ 1,193,398 $ 1,193,398 $ 271,227 Less: Non Rate Revenue $ (218,593) $ (111,482) $ (48,090) $ (48,090) $ (10,930) Actual Net Operating Costs $ 6,041,803 $ 3,490,891 $ 1,145,307 $ 1,145,307 $ 260,297 Adjusted Net Operating Costs $ 4,312,829 $ 2,491,908 $ 817,556 $ 817,556 $ 185,808 Actual Net Revenue Requirements $ 8,830,324 $ 4,885,152 $ 1,842,438 $ 1,842,438 $ 260,297 Adjusted Net Revenue Requirements $ 6,303,363 $ 3,487,175 $ 1,315,190 $ 1,315,190 $ 185,808 Flow Budget Categories
Total Revenue
Requirements
Strength Customer Basis of Classification
Prepared by NBS
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Funct. & Classification, 22 of 47251
CITY OF AMERICAN CANYON Functionalization & Classification

SEWER RATE STUDY
Cost-of-Service Analysis
TABLE 26 : NET REVENUE REQUIREMENTS - (70% FIXED/30% VOLUMETRIC) - ALTERNATIVE 2 Net Revenue Requirements (ALTERNATIVE 2 - 70% Fixed / 30% Variable) Rate-Design Adjustments to Percentages 100.0% 30.0% 32.7% 32.7% 4.6% Rate-Design Adjustments to Dollars $ 6,303,363 $ 1,891,009 $ 2,060,616 $ 2,060,616 $ 291,121 TABLE 27 : ADJUSTMENT TO COST OF SERVICE RATES 71.38%
Ratio of Targeted Rate Revenue to Net Revenue Requirements Total (VOL) (BOD) (TSS) (CA) Actual Total Fixed Costs $ 2,788,521 $ 836,556 $ 975,982 $ 975,982 $ - Adjusted Total Fixed Costs $ 1,990,534 $ 597,160 $ 696,687 $ 696,687 $ - Total Operating Costs $ 6,260,396 $ 1,878,119 $ 2,046,570 $ 2,046,570 $ 289,137 Less: Non Rate Revenue $ (218,593) $ (65,578) $ (71,460) $ (71,460) $ (10,096) Actual Net Operating Costs $ 6,041,803 $ 1,812,541 $ 1,975,111 $ 1,975,111 $ 279,041 Adjusted Net Operating Costs $ 4,312,829 $ 1,293,849 $ 1,409,896 $ 1,409,896 $ 199,188 Actual Net Revenue Requirements $ - $ 2,649,097 $ 2,951,093 $ 2,951,093 $ 279,041 Adjusted Net Revenue Requirements $ 6,303,363 $ 1,891,009 $ 2,106,583 $ 2,106,583 $ 199,188 TABLE 28 : NET REVENUE REQUIREMENTS - (90% FIXED/10% VOLUMETRIC) - ALTERNATIVE 3 Net Revenue Requirements (ALTERNATIVE 3 - 90% Fixed / 10% Variable) Rate-Design Adjustments to Percentages 100.0% 10.0% 42.0% 42.0% 5.9% Rate-Design Adjustments to Dollars $ 6,303,363 $ 630,336 $ 2,649,364 $ 2,649,364 $ 374,299 TABLE 29 : ADJUSTMENT TO COST OF SERVICE RATES 71.38%
Ratio of Targeted Rate Revenue to Net Revenue Requirements Total (VOL) (BOD) (TSS) (CA) Actual Total Fixed Costs $ 2,788,521 $ 278,852 $ 1,254,834 $ 1,254,834 $ - Adjusted Total Fixed Costs $ 1,990,534 $ 199,053 $ 895,740 $ 895,740 $ - Total Operating Costs $ 6,260,396 $ 626,040 $ 2,631,305 $ 2,631,305 $ 371,747 Less: Non Rate Revenue $ (218,593) $ (21,859) $ (91,877) $ (91,877) $ (12,980) Actual Net Operating Costs $ 6,041,803 $ 604,180 $ 2,539,428 $ 2,539,428 $ 358,767 Adjusted Net Operating Costs $ 4,312,829 $ 431,283 $ 1,812,723 $ 1,812,723 $ 256,099 Actual Net Revenue Requirements $ 8,830,324 $ 883,032 $ 3,794,262 $ 3,794,262 $ 358,767 Adjusted Net Revenue Requirements $ 6,303,363 $ 630,336 $ 2,708,464 $ 2,708,464 $ 256,099 Prepared by NBS
www.nbsgov.com | Toll-Free: 800.676.7516
Funct. & Classification, 23 of 47252
CITY OF AMERICAN CANYON Allocation Factors

SEWER RATE STUDY
Cost-of-Service Analysis
TABLE 30 : DEVELOPMENT OF THE FLOW ALLOCATION FACTOR
Customer Class1
Number of
Dwelling Units
/ Accounts2
Consumption
(hcf/year)
Winter
Consumption
(Jan-Mar. '22)
Annualized
Winter
Consumptio
n (hcf)
Adjusted
Winter
Volume
(gallons)3
Flow
MGD
BOD
mg/l
TSS
mg/l
BOD
lbs/day
TSS
lbs/day
Flow
MG
BOD
mg/l4
BOD
lbs
% of
Total
BOD
TSS
mg/l4
TSS
lbs
% of
Total
TSS
Residential Customers
Single Family Residential 4,710 507,339 117,749 470,996 352,328,558 0.97 175 175 1,409 1,409 352 n/a 514,224 69.4% n/a 514,224 69.8% Multi-Family Residential 1,265 89,630 20,169 80,676 60,349,682 0.17 175 175 241 241 60 n/a 88,080 11.9% n/a 88,080 12.0% All Other Customers
Commercial 177 318,808 65,311 261,244 195,423,574 0.13 300 300 335 335 49 n/a 122,237 16.5% n/a 122,237 16.6% Industrial5
Hess Collection Winery n/a n/a n/a n/a n/a 0.01 50 30 4 2 4 8.6 260 0.0% 2.3 70 0.0% AmCan Beverage (Coca-Cola) n/a n/a n/a n/a n/a 0.13 200 220 209 229 46 23.1 8,782 1.2% 5.3 1,998 0.3% Mezzetta Processing Facility n/a n/a n/a n/a n/a 0.04 150 220 51 74 15 61.7 7,631 1.0% 81.2 10,035 1.4% Total: 6,152 915,777 203,229 812,916 608,101,814 1.44 2,248 2,291 526 741,214 100.0% 736,644 100.0%

1. Customer data provided by the City for FY 2021/22. Source file: FY 2021-22 Summary by Rate Code - Detailed v2.xlsx .

2. SFR, MFR, and Industrial customers are based on the number of dwelling units and all other customers are based on the number of accounts.

3. Annual consumption for all customer classes based on average winter water consumption.

4. Annual volume and strength factors provided by the City. Source file: SIU 2 year data.xlsx .

TABLE 31 : DEVELOPMENT OF THE CUSTOMER ALLOCATION FACTOR Customer Class
Number of
Dwelling Units
/ Accounts1
Percent
of Total
Residential Customers
Single Family Residential 4,710 76.5%
Multi-Family Residential 1,265 20.6%
All Other Customers
Commercial 177 2.9%
Industrial1
Hess Collection Winery 1 0.0%
AmCan Beverage (Coca-Cola) 1 0.0%
Mezzetta Processing Facility 1 0.0%
Total: 6,155 100.0%

1. SFR, MFR, and Industrial customers are based on the number of dwelling units and all other customers are based on the number of accounts.

TABLE 32 : ESTIMATED FLOW PER DWELLING UNIT
Customer Class
Est. Annual
Wastewater
Flow (hcf)
Est.

Flow/DU/
Day (gallons)
Percent
of Total
Residential Customers
Single Family Residential 470,996 205 --
Multi-Family Residential 80,676 131 63.78%
Design Capacity Total Annual Volume
Prepared by NBS
www.nbsgov.com | Toll-Free: 800.676.7516
Allocation Factors, 24 of 47 253
CITY OF AMERICAN CANYON COSA - Sewer Rates

SEWER RATE STUDY
Cost-of-Service Analysis
ALTERNATIVE 1 - 55% Fixed / 45% Variable
TABLE 33 : ALLOCATION OF SEWER REVENUE REQUIREMENTS Total (FLOW) (BOD) (TSS) (CA) Total Fixed Costs $ 1,990,534 $ 995,267 $ 497,633 $ 497,633 $ - Net Operating Costs $ 4,312,829 $ 2,491,908 $ 817,556 $ 817,556 $ 185,808 Net Revenue Requirements $ 6,303,363 $ 3,487,175 $ 1,315,190 $ 1,315,190 $ 185,808 Capacity Charges to recover Fixed Costs Flow ($/MGD) BOD ($/lbs/day) TSS ($/lbs/day) Fixed Costs $ 995,267 $ 497,633 $ 497,633
Design Capacity 1.44 2,248 2,291
$ 691,132 $ 221.32 $ 217.18
User Charges Flow ($/MG) BOD ($/lb) TSS ($/lb)
Net operating Costs $ 2,491,908 $ 817,556 $ 817,556
Annual Volumes 526 741,214 736,644
$ 4,741 $ 1.10 $ 1.11
Acct. Charge ($/yr)
Customer Costs $ 185,808
Number of Accounts 6,155
$ 30.19
TABLE 34 : ALLOCATION OF SEWER REVENUE REQUIREMENTS
Development of Allocation Factors
Customer Class Total Volume BOD TSS Customer
Residential Customers
Single Family Residential $ 1,284,903 $ 667,139 $ 311,800 $ 305,964 $ - Multi-Family Residential 220,089 114,273 53,408 52,408 - All Other Customers
Commercial $ 239,360 $ 92,509 $ 74,119 $ 72,731 $ -
Industrial
Hess Collection Winery $ 8,355 $ 6,892 $ 920 $ 542 $ -
AmCan Beverage (Coca-Cola) 182,346 86,392 46,145 49,809 - Mezzetta Processing Facility 55,483 28,062 11,242 16,179 - Total: $ 1,990,534 $ 995,267 $ 497,633 $ 497,633 $ -
TABLE 35 : ALLOCATION OF SEWER REVENUE REQUIREMENTS
Development of Allocation Factors
Customer Class Total Volume BOD TSS Customer
Residential Customers
Single Family Residential $ 2,808,246 $ 1,670,355 $ 567,186 $ 570,705 $ - Multi-Family Residential 481,019 286,112 97,152 97,755 - All Other Customers
Commercial $ 502,112 $ 231,621 $ 134,827 $ 135,664 $ -
Industrial
Hess Collection Winery $ 17,621 $ 17,257 $ 286 $ 78 $ - AmCan Beverage (Coca-Cola) 228,207 216,304 9,687 2,217 - Mezzetta Processing Facility 89,814 70,260 8,417 11,137 - Total: $ 4,127,020 $ 2,491,908 $ 817,556 $ 817,556 $ -
Net Revenue Requirements - Design Capacity
Net Revenue Requirements - Operating Costs
Prepared by NBS
www.nbsgov.com | Toll-Free: 800.676.7516
COSA - Sewer Rates, 25 of 47254
CITY OF AMERICAN CANYON COSA - Sewer Rates

SEWER RATE STUDY
Cost-of-Service Analysis
TABLE 36 : ALLOCATION OF SEWER REVENUE REQUIREMENTS
Development of Allocation Factors
Customer Class Total Volume BOD TSS Customer
Residential Customers
Single Family Residential $ 142,186 $ - $ - $ - $ 142,186 Multi-Family Residential 38,188 - - - 38,188
All Other Customers
Commercial $ 5,343 $ - $ - $ - $ 5,343
Industrial
Hess Collection Winery $ 30 $ - $ - $ - $ 30
AmCan Beverage (Coca-Cola) 30 - - - 30
Mezzetta Processing Facility 30 - - - 30
Total: $ 185,808 $ - $ - $ - $ 185,808
Grand Total: $ 6,303,363 $ 3,487,175 $ 1,315,190 $ 1,315,190 $ 185,808 TABLE 37 : ALLOCATION OF NET REVENUE REQUIREMENTS TO CUSTOMER CLASSES - ALTERNATIVE 1 Volume BOD TSS Customer
Net Revenue Requirements 1
$ 3,487,175 $ 1,315,190 $ 1,315,190 $ 185,808 $ 6,303,363 --

55.3% 20.9% 20.9% 2.9% 100.0%
Residential Customers
Single Family Residential $ 2,337,493 $ 878,986 $ 876,669 $ 142,186 $ 4,235,335 67.2% Multi-Family Residential 400,385 150,560 150,163 38,188 739,296 11.7% All Other Customers
Commercial $ 324,130 $ 208,946 $ 208,395 $ 5,343 $ 746,815 11.8% Industrial
Hess Collection Winery $ 24,149 $ 1,207 $ 620 $ 30 $ 26,006 0.4% AmCan Beverage (Coca-Cola) 302,695 55,832 52,026 30 410,583 6.5% Mezzetta Processing Facility 98,322 19,659 27,316 30 145,327 2.3% Total: $ 3,487,175 $ 1,315,190 $ 1,315,190 $ 185,808 $ 6,303,363 100%

1. Revenue requirement for each customer class is determined by multiplying the revenue requirement from each cost classification by the allocation factors for each customer class.

TABLE 38 : CALCULATION OF PROPOSED SEWER RATES FOR RESIDENTIAL CUSTOMERS Customer Class No. of Dwelling
Units
Annual Revenue
Requirement
Monthly Fixed
Charge Per
Dwelling Unit
Residential Customers
Single Family Residential 4,710 $ 4,235,335 $74.94
Multi-Family Residential 1,265 739,296 $48.70
Subtotal: Residential 5,975 $ 4,974,631
Net Revenue Requirements - Customer Costs
Customer Class
Cost Classification Components Cost-of-Service
Net Revenue
Reqts.
% of COS
Net Revenue
Reqts.

Prepared by NBS
www.nbsgov.com | Toll-Free: 800.676.7516
COSA - Sewer Rates, 26 of 47255
CITY OF AMERICAN CANYON COSA - Sewer Rates

SEWER RATE STUDY
Cost-of-Service Analysis
TABLE 39 : CALCULATION OF PROPOSED SEWER RATES FOR COMMERCIAL CUSTOMERS Customer Class No. of Accounts Annual Volume
(hcf)
Total Annual
Revenue
Requirement
Monthly
Capacity Per
Account
Monthly
Customer Charge
Per Account
Monthly Fixed
Charge Per
Account1
Volumetric
Charge
Per hcf
Commercial
Commercial 177 261,244 $ 746,815 $112.69 $ 2.52 $115.21 $1.92

1. Monthly fixed charge is the based fixed charge plus the monthly customer charge per the number of accounts.

TABLE 40 : CALCULATION OF PROPOSED SEWER RATES FOR INDUSTRIAL CUSTOMERS Customer Class
Total Annual
Revenue
Requirement
Annual Sewage
Flow (1,000 gal)
Monthly Fixed
Charge
Volumetric
Charge Per MG
Industrial
Hess Collection Winery $ 26,006 3,640 $699 $4.84
AmCan Beverage (Coca-Cola) 410,583 45,625 $15,198 $5.00 Mezzetta Processing Facility 145,327 14,820 $4,626 $6.06 Prepared by NBS
www.nbsgov.com | Toll-Free: 800.676.7516
COSA - Sewer Rates, 27 of 47256
CITY OF AMERICAN CANYON COSA - Sewer Rates

SEWER RATE STUDY
Cost-of-Service Analysis
ALTERNATIVE 2 - 70% Fixed / 30% Variable
TABLE 41 : ALLOCATION OF SEWER REVENUE REQUIREMENTS Total (FLOW) (BOD) (TSS) (CA) Total Fixed Costs $ 1,990,534 $ 597,160 $ 696,687 $ 696,687 $ - Net Operating Costs $ 4,312,829 $ 1,293,849 $ 1,409,896 $ 1,409,896 $ 199,188 Net Revenue Requirements $ 6,303,363 $ 1,891,009 $ 2,106,583 $ 2,106,583 $ 199,188 Capacity Charges to recover Fixed Costs Flow ($/MGD) BOD ($/lbs/day) TSS ($/lbs/day) Fixed Costs $ 597,160 $ 696,687 $ 696,687
Design Capacity 1.44 2,248 2,291
$ 414,679 $ 309.85 $ 304.05
User Charges Flow ($/MG) BOD ($/lb) TSS ($/lb)
Net operating Costs $ 1,293,849 $ 1,409,896 $ 1,409,896 Annual Volumes 526 741,214 736,644
$ 2,462 $ 1.90 $ 1.91
Acct. Charge ($/yr)
Customer Costs $ 199,188
Number of Accounts 6,155
$ 32.36
TABLE 42 : ALLOCATION OF SEWER REVENUE REQUIREMENTS
Development of Allocation Factors
Customer Class Total Volume BOD TSS Customer
Residential Customers
Single Family Residential $ 1,265,153 $ 400,283 $ 436,520 $ 428,349 $ - Multi-Family Residential 216,706 68,564 74,771 73,371 - All Other Customers
Commercial $ 261,096 $ 55,506 $ 103,766 $ 101,824 $ -
Industrial
Hess Collection Winery $ 6,183 $ 4,135 $ 1,289 $ 759 $ - AmCan Beverage (Coca-Cola) 186,171 51,835 64,603 69,733 - Mezzetta Processing Facility 55,226 16,837 15,738 22,651 - Total: $ 1,990,534 $ 597,160 $ 696,687 $ 696,687 $ -
TABLE 43 : ALLOCATION OF SEWER REVENUE REQUIREMENTS
Development of Allocation Factors
Customer Class Total Volume BOD TSS Customer
Residential Customers
Single Family Residential $ 2,829,603 $ 867,282 $ 978,127 $ 984,195 $ - Multi-Family Residential 484,677 148,555 167,541 168,581 - All Other Customers
Commercial $ 586,731 $ 120,262 $ 232,513 $ 233,956 $ -
Industrial
Hess Collection Winery $ 9,589 $ 8,960 $ 494 $ 134 $ -
AmCan Beverage (Coca-Cola) 132,838 112,309 16,705 3,823 - Mezzetta Processing Facility 70,202 36,480 14,515 19,207 - Total: $ 4,113,640 $ 1,293,849 $ 1,409,896 $ 1,409,896 $ - Net Revenue Requirements - Design Capacity
Net Revenue Requirements - Operating Costs
Prepared by NBS
www.nbsgov.com | Toll-Free: 800.676.7516
COSA - Sewer Rates, 28 of 47257
CITY OF AMERICAN CANYON COSA - Sewer Rates

SEWER RATE STUDY
Cost-of-Service Analysis
TABLE 44 : ALLOCATION OF SEWER REVENUE REQUIREMENTS
Development of Allocation Factors
Customer Class Total Volume BOD TSS Customer
Residential Customers
Single Family Residential $ 152,425 $ - $ - $ - $ 152,425 Multi-Family Residential 40,938 - - - 40,938
All Other Customers
Commercial $ 5,728 $ - $ - $ - $ 5,728
Industrial
Hess Collection Winery $ 32 $ - $ - $ - $ 32
AmCan Beverage (Coca-Cola) 32 - - - 32
Mezzetta Processing Facility 32 - - - 32
Total: $ 199,188 $ - $ - $ - $ 199,188
Grand Total: $ 6,303,363 $ 1,891,009 $ 2,106,583 $ 2,106,583 $ 199,188 TABLE 45 : ALLOCATION OF NET REVENUE REQUIREMENTS TO CUSTOMER CLASSES - ALTERNATIVE 2 Volume BOD TSS Customer
Net Revenue Requirements 1
$ 1,891,009 $ 2,106,583 $ 2,106,583 $ 199,188 $ 6,303,363 --

30.0% 33.4% 33.4% 3.2% 100.0%
Residential Customers
All Other Customers $ 1,267,565 $ 1,414,647 $ 1,412,544 $ 152,425 $ 4,247,181 67.4% Multi-Family Residential 217,119 242,312 241,952 40,938 742,321 11.8% All Other Customers
Commercial $ 175,768 $ 336,280 $ 335,780 $ 5,728 $ 853,555 13.5% Industrial
Hess Collection Winery $ 13,096 $ 1,783 $ 893 $ 32 $ 15,803 0.3% AmCan Beverage (Coca-Cola) 164,144 81,308 73,556 32 319,041 5.1% Mezzetta Processing Facility 53,318 30,254 41,857 32 125,461 2.0% Total: $ 1,891,009 $ 2,106,583 $ 2,106,583 $ 199,188 $ 6,303,363 100%

1. Revenue requirement for each customer class is determined by multiplying the revenue requirement from each cost classification by the allocation factors for each customer class.

TABLE 46 : CALCULATION OF PROPOSED SEWER RATES FOR RESIDENTIAL CUSTOMERS Customer Class No. of Dwelling
Units
Annual Revenue
Requirement
Monthly Fixed
Charge Per
Dwelling Unit
Residential Customers
Single Family Residential 4,710 $ 4,247,181 $75.14
Multi-Family Residential 1,265 742,321 $48.90
Subtotal: Residential 5,975 $ 4,989,502
Customer Class
Cost Classification Components Cost-of-Service
Net Revenue
Reqts.
% of COS
Net Revenue
Reqts.

Net Revenue Requirements - Customer Costs
Prepared by NBS
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COSA - Sewer Rates, 29 of 47258
CITY OF AMERICAN CANYON COSA - Sewer Rates

SEWER RATE STUDY
Cost-of-Service Analysis
TABLE 47 : CALCULATION OF PROPOSED SEWER RATES FOR COMMERCIAL CUSTOMERS Customer Class No. of Accounts Annual Volume
(hcf)
Total Annual
Revenue
Requirement
Monthly
Capacity Per
Account
Monthly
Customer Charge
Per Account
Monthly Fixed
Charge Per
Account1
Volumetric
Charge
Per hcf
Commercial
Commercial 177 261,244 $ 853,555 $122.93 $ 2.70 $125.62 $2.25

1. Monthly fixed charge is the based fixed charge plus the monthly customer charge per the number of accounts.

TABLE 49 : CALCULATION OF PROPOSED SEWER RATES FOR INDUSTRIAL CUSTOMERS Customer Class
Total Annual
Revenue
Requirement
Annual Sewage
Flow (1,000 gal)
Monthly Fixed
Charge
Volumetric
Charge Per MG
Industrial
Hess Collection Winery $ 15,803 3,640 $518 $2.63
AmCan Beverage (Coca-Cola) 319,041 45,625 $15,517 $2.91 Mezzetta Processing Facility 125,461 14,820 $4,605 $4.74 Prepared by NBS
www.nbsgov.com | Toll-Free: 800.676.7516
COSA - Sewer Rates, 30 of 47259
CITY OF AMERICAN CANYON COSA - Sewer Rates

SEWER RATE STUDY
Cost-of-Service Analysis
ALTERNATIVE 3 - 90% Fixed / 10% Variable
TABLE 50 : ALLOCATION OF SEWER REVENUE REQUIREMENTS Total (FLOW) (BOD) (TSS) (CA) Total Fixed Costs $ 1,990,534 $ 199,053 $ 895,740 $ 895,740 $ - Net Operating Costs $ 4,312,829 $ 431,283 $ 1,812,723 $ 1,812,723 $ 256,099 Net Revenue Requirements $ 6,303,363 $ 630,336 $ 2,708,464 $ 2,708,464 $ 256,099 Capacity Charges to recover Fixed Costs Flow ($/MGD) BOD ($/lbs/day) TSS ($/lbs/day) Fixed Costs $ 199,053 $ 895,740 $ 895,740
Design Capacity 1.44 2,248 2,291
$ 138,226 $ 398.37 $ 390.92
User Charges Flow ($/MG) BOD ($/lb) TSS ($/lb)
Net operating Costs $ 431,283 $ 1,812,723 $ 1,812,723
Annual Volumes 526 741,214 736,644
$ 821 $ 2.45 $ 2.46
Acct. Charge ($/yr)
Customer Costs $ 256,099
Number of Accounts 6,155
$ 41.61
TABLE 51 : ALLOCATION OF SEWER REVENUE REQUIREMENTS
Development of Allocation Factors
Customer Class Total Volume BOD TSS Customer
Residential Customers
Single Family Residential $ 1,245,403 $ 133,428 $ 561,240 $ 550,735 $ - Multi-Family Residential 213,323 22,855 96,134 94,334 - All Other Customers
Commercial $ 282,832 $ 18,502 $ 133,414 $ 130,917 $ -
Industrial
Hess Collection Winery $ 4,011 $ 1,378 $ 1,657 $ 975 $ - AmCan Beverage (Coca-Cola) 189,996 17,278 83,061 89,657 - Mezzetta Processing Facility 54,970 5,612 20,235 29,122 - Total: $ 1,990,534 $ 199,053 $ 895,740 $ 895,740 $ -
TABLE 52 : ALLOCATION OF SEWER REVENUE REQUIREMENTS
Development of Allocation Factors
Customer Class Total Volume BOD TSS Customer
Residential Customers
Single Family Residential $ 2,812,079 $ 289,094 $ 1,257,592 $ 1,265,394 $ - Multi-Family Residential 481,676 49,518 215,410 216,747 - All Other Customers
Commercial $ 639,833 $ 40,087 $ 298,945 $ 300,800 $ -
Industrial
Hess Collection Winery $ 3,795 $ 2,987 $ 635 $ 173 $ -
AmCan Beverage (Coca-Cola) 63,830 37,436 21,478 4,916 - Mezzetta Processing Facility 55,517 12,160 18,663 24,694 - Total: $ 4,056,730 $ 431,283 $ 1,812,723 $ 1,812,723 $ - Net Revenue Requirements - Design Capacity
Net Revenue Requirements - Operating Costs
Prepared by NBS
www.nbsgov.com | Toll-Free: 800.676.7516
COSA - Sewer Rates, 31 of 47260
CITY OF AMERICAN CANYON COSA - Sewer Rates

SEWER RATE STUDY
Cost-of-Service Analysis
TABLE 53 : ALLOCATION OF SEWER REVENUE REQUIREMENTS
Development of Allocation Factors
Customer Class Total Volume BOD TSS Customer
Residential Customers
Single Family Residential $ 195,975 $ - $ - $ - $ 195,975 Multi-Family Residential 52,635 - - - 52,635
All Other Customers
Commercial $ 7,365 $ - $ - $ - $ 7,365
Industrial
Hess Collection Winery $ 42 $ - $ - $ - $ 42
AmCan Beverage (Coca-Cola) 42 - - - 42
Mezzetta Processing Facility 42 - - - 42
Total: $ 256,099 $ - $ - $ - $ 256,099
Grand Total: $ 6,303,363 $ 630,336 $ 2,708,464 $ 2,708,464 $ 256,099 TABLE 54 : ALLOCATION OF NET REVENUE REQUIREMENTS TO CUSTOMER CLASSES - ALTERNATIVE 3 Volume BOD TSS Customer
Net Revenue Requirements 1
$ 630,336 $ 2,708,464 $ 2,708,464 $ 256,099 $ 6,303,363 --

1. Revenue requirement for each customer class is determined by multiplying the revenue requirement from each cost classification by the allocation factors for each customer class.

TABLE 55 : CALCULATION OF PROPOSED SEWER RATES FOR RESIDENTIAL CUSTOMERS Customer Class No. of Dwelling
Units
Annual Revenue
Requirement
Monthly Fixed
Charge Per
Dwelling Unit
Residential Customers
Single Family Residential 4,710 $ 4,253,457 $75.26
Multi-Family Residential 1,265 747,633 $49.25
Subtotal: Residential 5,975 $ 5,001,090
% of COS
Net Revenue
Reqts.

Net Revenue Requirements - Customer Costs
Customer Class
Cost Classification Components Cost-of-Service
Net Revenue
Reqts.

Prepared by NBS
www.nbsgov.com | Toll-Free: 800.676.7516
COSA - Sewer Rates, 32 of 47261
CITY OF AMERICAN CANYON COSA - Sewer Rates

SEWER RATE STUDY
Cost-of-Service Analysis
TABLE 56 : CALCULATION OF PROPOSED SEWER RATES FOR COMMERCIAL CUSTOMERS - OPTION 3 Customer Class No. of Accounts Annual Volume
(hcf)
Total Annual
Revenue
Requirement
Monthly
Capacity Per
Account
Monthly
Customer Charge
Per Account
Monthly Fixed
Charge Per
Account2
Volumetric
Charge
Per hcf
Commercial
Commercial 177 261,244 $ 930,030 $133.16 $ 3.47 $136.63 $2.45

1. Monthly fixed charge is the based fixed charge plus the monthly customer charge per the number of accounts.

TABLE 57 : CALCULATION OF PROPOSED SEWER RATES FOR COMMERCIAL CUSTOMERS - OPTION 4 Customer Class No. of Accounts Annual Volume
(hcf)
Total Annual
Revenue
Requirement
Monthly
Customer Charge
Per Account
Monthly Fixed
Charge Per
Account1
Volumetric
Charge
Per hcf
Commercial
Commercial 177 261,244 $ 930,030 $3.47 $71.79 $0.00

1. Monthly fixed charge is set equal to the monthly fixed charge for single family residential customers and includes a monthly customer charge per account.

TABLE 58 : CALCULATION OF PROPOSED SEWER RATES FOR INDUSTRIAL CUSTOMERS Customer Class
Total Annual
Revenue
Requirement
Annual Sewage
Flow (1,000 gal)
Monthly Fixed
Charge
Volumetric
Charge Per MG
Industrial
Hess Collection Winery $ 7,847 3,640 $338 $1.04
AmCan Beverage (Coca-Cola) 253,867 45,625 $15,836 $1.40 Mezzetta Processing Facility 110,528 14,820 $4,584 $3.75 Prepared by NBS
www.nbsgov.com | Toll-Free: 800.676.7516
COSA - Sewer Rates, 33 of 47262
CITY OF AMERICAN CANYON Current vs. Proposed Rates

SEWER RATE STUDY
Cost-of-Service Analysis & Rate Design
TABLE 59 : CURRENT VS. PROPOSED SEWER RATES
FY 2023/24 FY 2024/25 FY 2025/26 FY 2026/27 FY 2027/28

25.00% 20.00% 12.00% 12.00% 0.00%
Residential - Monthly Fixed Service Charges
Single Family Residential Per Dwelling Unit $60.48 $74.94 $89.93 $100.72 $112.81 $112.81 Multi-Family Residential Per Dwelling Unit $45.36 $48.70 $58.44 $65.45 $73.31 $73.31 Commercial Customers 3
Monthly Fixed Service Charge Per Account $60.48 $115.21 $138.25 $154.84 $173.42 $173.42 Volumetric Charge Per HCF $5.40 $1.92 $2.31 $2.58 $2.89 $2.89 Industrial Customers
Monthly Fixed Charge
Hess Collection Winery n/a $699 $838 $939 $1,052 $1,052 AmCan Beverage (Coca-Cola) n/a $15,198 $18,238 $20,427 $22,878 $22,878 Mezzetta Processing Facility n/a $4,626 $5,551 $6,217 $6,963 $6,963 Volumetric Charge
Hess Collection Winery n/a $4.84 $5.81 $6.51 $7.29 $7.29 AmCan Beverage (Coca-Cola) n/a $5.00 $6.00 $6.72 $7.53 $7.53 Mezzetta Processing Facility n/a $6.06 $7.27 $8.15 $9.12 $9.12

2. The fixed charge includes a monthly customer charge per account.

3. Current rates for commercial customers are charged the higher of the fixed or variable rate. Proposed rates have both a fixed and volumetric charge per commercial customer.

Per 1,000 gal sewage
flow
ALTERNATIVE 1 - 55% Fixed / 45% Variable
Proposed Sewer Rates Current
Rates Sewer Rate Schedule1,2 Description
Prepared by NBS
www.nbsgov.com | Toll-Free: 800.676.7516
Current & Proposed Rates, 34 of 47263
CITY OF AMERICAN CANYON Current vs. Proposed Rates

SEWER RATE STUDY
Cost-of-Service Analysis & Rate Design
TABLE 60 : CURRENT VS. PROPOSED SEWER RATES
FY 2023/24 FY 2024/25 FY 2025/26 FY 2026/27 FY 2027/28

25.00% 20.00% 12.00% 12.00% 0.00%
Residential - Monthly Fixed Service Charges
Single Family Residential Per Dwelling Unit $60.48 $75.14 $90.17 $100.99 $113.11 $113.11 Multi-Family Residential Per Dwelling Unit $45.36 $48.90 $58.68 $65.72 $73.61 $73.61 Commercial Customers 3
Monthly Fixed Service Charge Per Account $60.48 $125.62 $150.75 $168.84 $189.10 $189.10 Volumetric Charge Per HCF $5.40 $2.25 $2.70 $3.02 $3.38 $3.38 Industrial Customers
Monthly Fixed Charge
Hess Collection Winery n/a $518 $621 $696 $780 $780
AmCan Beverage (Coca-Cola) n/a $15,517 $18,620 $20,854 $23,356 $23,356 Mezzetta Processing Facility n/a $4,605 $5,526 $6,189 $6,932 $6,932 Volumetric Charge
Hess Collection Winery n/a $2.63 $3.16 $3.54 $3.97 $3.97 AmCan Beverage (Coca-Cola) n/a $2.91 $3.49 $3.91 $4.38 $4.38 Mezzetta Processing Facility n/a $4.74 $5.68 $6.37 $7.13 $7.13

2. The fixed charge includes a monthly customer charge per account.

3. Current rates for commercial customers are charged the higher of the fixed or variable rate. Proposed rates have both a fixed and volumetric charge per commercial customer.

Per 1,000 gal sewage
flow
ALTERNATIVE 2 - 70% Fixed / 30% Variable
Sewer Rate Schedule1,2 Description Current
Rates
Proposed Sewer Rates
Prepared by NBS
www.nbsgov.com | Toll-Free: 800.676.7516
Current & Proposed Rates, 35 of 47264
CITY OF AMERICAN CANYON Current vs. Proposed Rates

SEWER RATE STUDY
Cost-of-Service Analysis & Rate Design
TABLE 61 : CURRENT VS. PROPOSED SEWER RATES
FY 2023/24 FY 2024/25 FY 2025/26 FY 2026/27 FY 2027/28

25.00% 20.00% 12.00% 12.00% 0.00%
Residential - Monthly Fixed Service Charges
Single Family Residential Per Dwelling Unit $60.48 $75.26 $90.31 $101.14 $113.28 $113.28 Multi-Family Residential Per Dwelling Unit $45.36 $49.25 $59.10 $66.19 $74.14 $74.14 Commercial Customers 3
Monthly Fixed Service Charge Per Account $60.48 $136.63 $163.95 $183.63 $205.66 $205.66 Volumetric Charge Per HCF $5.40 $2.45 $2.94 $3.29 $3.69 $3.69 Industrial Customers
Monthly Fixed Charge
Hess Collection Winery n/a $338 $405 $454 $508 $508
AmCan Beverage (Coca-Cola) n/a $15,836 $19,004 $21,284 $23,838 $23,838 Mezzetta Processing Facility n/a $4,584 $5,501 $6,161 $6,900 $6,900 Volumetric Charge
Hess Collection Winery n/a $1.04 $1.25 $1.40 $1.57 $1.57 AmCan Beverage (Coca-Cola) n/a $1.40 $1.68 $1.88 $2.11 $2.11 Mezzetta Processing Facility n/a $3.75 $4.50 $5.03 $5.64 $5.64

2. The fixed charge includes a monthly customer charge per account.

3. Current rates for commercial customers are charged the higher of the fixed or variable rate. Proposed rates have both a fixed and volumetric charge per commercial customer.

Per 1,000 gal sewage
flow
ALTERNATIVE 3 - 90% Fixed / 10% Variable
Sewer Rate Schedule1,2 Description Current
Rates
Proposed Sewer Rates
Prepared by NBS
www.nbsgov.com | Toll-Free: 800.676.7516
Current & Proposed Rates, 36 of 47265
Prepared by NBS
www.nbsgov.com | Toll-Free: 800.676.7516 Regional Bill Comp #1, Page 37 of 47 $725.76 $738.60 $785.04 $884.88 $899.28 $901.74 $903.07 $982.38$1,272.00 $1,274.88 $1,906.32 $0
$200
$400
$600
$800
$1,000
$1,200
$1,400
$1,600
$1,800
$2,000
City of
American
Canyon
(Current)
Napa
Sanitation
District
Town of
Yountville
Vallejo Flood
&
Wastewater
District
Alt. 1 - 55%
Fixed / 45%
Variable
Alt. 2 - 70%
Fixed / 30%
Variable
Alt. 3 - 90%
Fixed / 10%
Variable
City of Benicia City of
Petaluma
City of
Calistoga
City of St.

Helena
City of American Canyon (Year 1)
Annual Sewer Bill Comparison - Single Family Accounts
266
Prepared by NBS
www.nbsgov.com | Toll-Free: 800.676.7516 Regional Bill Comp #2, Page 38 of 47 $60.48 $61.55 $65.42 $73.74 $74.94 $75.14 $75.26 $81.87$106.00 $106.24 $158.86 $0
$20
$40
$60
$80
$100
$120
$140
$160
$180
$200
City of
American
Canyon
(Current)
Napa
Sanitation
District
Town of
Yountville
Vallejo Flood
&
Wastewater
District
Alt. 1 - 55%
Fixed / 45%
Variable
Alt. 2 - 70%
Fixed / 30%
Variable
Alt. 3 - 90%
Fixed / 10%
Variable
City of
Benicia
City of
Petaluma
City of
Calistoga
City of St.

Helena
City of American Canyon (Year 1)
Monthly Sewer Bill Comparison - Single Family Accounts
267
Prepared by NBS
www.nbsgov.com | Toll-Free: 800.676.7516 Regional Bill Comp #3, Page 39 of 47 $60.48 $61.55 $73.74 $81.51 $89.49$112.81 $113.11 $113.28 $114.68 $145.14 $186.00 $0
$20
$40
$60
$80
$100
$120
$140
$160
$180
$200
City of
American
Canyon
(Current)
Napa
Sanitation
District
(July 2023)
Vallejo Flood
&
Wastewater
District
(July 2023)
Town of
Yountville
(January
2027)
City of
Benicia
(January
2026)
Alt. 1 - 55%
Fixed / 45%
Variable
Alt. 2 - 70%
Fixed / 30%
Variable
Alt. 3 - 90%
Fixed / 10%
Variable
City of
Petaluma
(July 2027)
City of
Calistoga
(January
2028)
City of St.

Helena
(July 2027)
City of American Canyon (Year 5)
Monthly Sewer Bill Comparison - Single Family Accounts
268
Prepared by NBS
www.nbsgov.com | Toll-Free: 800.676.7516 SFR Bill Comp #1, Page 40 of 47 $60.48 $74.94 $75.14 $75.26 $60.48 $89.93 $90.17 $90.31 $60.48 $100.72 $100.99 $101.14 $60.48 $112.81 $113.11 $113.28 $60.48 $112.81 $113.11 $113.28 $0
$10
$20
$30
$40
$50
$60
$70
$80
$90
$100
$110
$120
Current Rates Alternative 1 - 55% Fixed / 45%
Variable
Alternative 2 - 70% Fixed / 30%
Variable
Alternative 3 - 90% Fixed / 10%
Variable
Single Family Residential Monthly Sewer Bills - 5-Year Projections FY 2023/24 FY 2024/25 FY 2025/26 FY 2026/27 FY 2027/28
269
Prepared by NBS
www.nbsgov.com | Toll-Free: 800.676.7516 MFR Bill Comp #1, Page 41 of 47 $45.36 $48.70 $48.90 $49.25 $45.36 $58.44 $58.68 $59.10 $45.36 $65.45 $65.72 $66.19 $45.36 $73.31 $73.61 $74.14 $45.36 $73.31 $73.61 $74.14 $0
$10
$20
$30
$40
$50
$60
$70
$80
Current Rates Alternative 1 - 55% Fixed / 45%
Variable
Alternative 2 - 70% Fixed / 30%
Variable
Alternative 3 - 90% Fixed / 10%
Variable
Multi-Family Residential Monthly Sewer Bills - 5-Year Projections FY 2023/24 FY 2024/25 FY 2025/26 FY 2026/27 FY 2027/28
270
Prepared by NBS
www.nbsgov.com | Toll-Free: 800.676.7516 Comm (Opt 1) Bill Comp #1, Page 42 of 47 $60.48 $138.75 $153.14 $166.63 $60.48 $166.50 $183.76 $199.96 $60.48 $186.48 $205.81 $223.95 $60.48 $208.86$230.51 $250.82 $60.48 $208.86$230.51 $250.82 $0
$25
$50
$75
$100
$125
$150
$175
$200
$225
$250
$275
Current Rates - 100% Fixed Alternative 1 - 55% Fixed / 45% Variable
Alternative 2 - 70% Fixed / 30%
Variable
Alternative 3 - 90% Fixed / 10%
Variable
Commercial Monthly Sewer Bills (Option 1) - 5-Year Projections FY 2023/24 FY 2024/25 FY 2025/26 FY 2026/27 FY 2027/28
Note: Commercial customer bills are based on average annual consumption of 147 HCF per month. 271
Prepared by NBS
www.nbsgov.com | Toll-Free: 800.676.7516 Comm (Opt 1) Bill Comp #2, Page 43 of 47 $60.48 $60.48 $60.48 $60.48 $60.48 $60.48$211.31 $307.41 $347.77$397.74$466.94 $499.61 $237.92 $350.21 $397.38$455.77 $536.63 $574.81 $259.09 $381.55$432.98$496.66 $584.83 $626.46 $0
$100
$200
$300
$400
$500
$600
$700
$800
50 100 121 147 183 200
Annual Bill
Consumption (HCF)
Commercial (Option 1) - Sewer Bill Comparison
Current vs. Proposed Rates (FY 2023/24)
Current Rates - 100% Fixed
Alternative 1 - 55% Fixed / 45% Variable
Alternative 2 - 70% Fixed / 30% Variable
Alternative 3 - 90% Fixed / 10% Variable
Average
WINTER Bill
(121 HCF/mo.)
Average
ANNUAL Bill
(147 HCF/mo.)
272
Prepared by NBS
www.nbsgov.com | Toll-Free: 800.676.7516 Industrial Bill Comp, Page 44 of 47 $21,695.61 $40,707.20 $30,365.62 $22,971.43 $21,695.61 $48,849.06 $36,438.45 $27,565.99 $21,695.61 $54,711.39 $40,810.66 $30,873.43 $21,695.61 $61,276.51 $45,707.46 $34,578.16 $21,695.61 $61,276.51 $45,707.46 $34,578.16 $0
$5,000
$10,000
$15,000
$20,000
$25,000
$30,000
$35,000
$40,000
$45,000
$50,000
$55,000
$60,000
$65,000
Current Rates Alternative 1 - 55% Fixed / 45%
Variable
Alternative 2 - 70% Fixed / 30%
Variable
Alternative 3 - 90% Fixed / 10%
Variable
AmCan Beverages Inc. Monthly Sewer Bills - 5-Year Projections FY 2023/24 FY 2024/25 FY 2025/26 FY 2026/27 FY 2027/28
Note: Industrial customer bills are based on average annual consumption of 5,100 HCF per month. 273
Prepared by NBS
www.nbsgov.com | Toll-Free: 800.676.7516 Combined Bill #1, Page 45 of 47 $60.48
$74.94
$89.93 $100.72 $112.81 $112.81
$77.51
$83.49
$91.00
$99.19
$103.16 $106.25
$137.99
$158.43
$180.93
$199.91
$215.97 $219.06
$0
$25
$50
$75
$100
$125
$150
$175
$200
$225
$250
Current FY 2023/24 FY 2024/25 FY 2025/26 FY 2026/27 FY 2027/28 Annual Bill
Single Family Residential Utility Bill
Water* Sewer**
* Water bill is calculated using a 1" Meter and monthly winter water use of 7 HCF. ** Sewer bill is based on Alternative 1 - 55% Fixed / 45% Variable. 274
Prepared by NBS
www.nbsgov.com | Toll-Free: 800.676.7516 Combined Bill #2, Page 46 of 47 $60.48
$75.14
$90.17 $100.99 $113.11 $113.11
$77.51
$83.49
$91.00
$99.19
$103.16 $106.25
$137.99
$158.63
$181.17
$200.18
$216.27 $219.36
$0
$25
$50
$75
$100
$125
$150
$175
$200
$225
$250
Current FY 2023/24 FY 2024/25 FY 2025/26 FY 2026/27 FY 2027/28 Annual Bill
Single Family Residential Utility Bill
Water* Sewer**
* Water bill is calculated using a 1" Meter and monthly winter water use of 7 HCF. ** Sewer bill is based on Alternative 2 - 70% Fixed / 30% Variable. 275
Prepared by NBS
www.nbsgov.com | Toll-Free: 800.676.7516 Combined Bill #3, Page 47 of 47 $60.48
$75.26
$90.31 $101.14 $113.28 $113.28
$77.51
$83.49
$91.00
$99.19
$103.16 $106.25
$137.99
$158.75
$181.31
$200.33
$216.44 $219.53
$0
$25
$50
$75
$100
$125
$150
$175
$200
$225
$250
Current FY 2023/24 FY 2024/25 FY 2025/26 FY 2026/27 FY 2027/28 Annual Bill
Single Family Residential Utility Bill
Water* Sewer**
* Water bill is calculated using a 1" Meter and monthly winter water use of 7 HCF. ** Sewer bill is based on Alternative 3 - 90% Fixed / 10% Variable. 276

CITY COUNCIL AGENDA
JANUARY 16, 2024

STAFF REPORT

BUSINESS
ITEM NUMBER: 10.

TITLE
Annual Comprehensive Financial Report and Year-end Financial Results

RECOMMENDATION
Receive and file the Annual Comprehensive Financial Report and related communica,ons from the City's external auditor for Fiscal Year 2022-23.

CONTACT
Juan Gomez, Finance Director

BACKGROUND & ANALYSIS
Annual Comprehensive Financial Report
A4er the conclusion of each fiscal year, an independent auditor (currently Richardson & Co.) reviews the repor,ng of the City’s financial statements in accordance with industry accoun,ng standards.

The result is an “Annual Comprehensive Financial Report (ACFR)”.

The City’s Fiscal Year 2022-23 ACFR was finalized on December 28, 2023 (A?achment 1). It includes financial statements for the City of American Canyon and the American Canyon Fire Protec,on District. It also contains the independent auditor’s report, which describes the scope of the audit as well as the auditor’s opinion on the financial statements. For the Fiscal Year 2022-23 ACFR, the City received an “unmodified” opinion. An “unmodified” opinion is only issued when there are no significant repor,ng issues, the financial statements are free of material misstatements, and informa,on is presented in accordance with Generally Accepted Accoun,ng Principles (GAAP). This opinion indicates that the City’s financial condi,on, posi,on, and opera,ons are fairly presented in the financial statements. This is important to financial statement users and provides comfort to the City’s creditors, while enabling the City to obtain better interest rates on any new debt issuances.

The Fiscal Year 2022-23 ACFR includes an introductory sec,on that profiles the City, discusses the local economy, recounts key projects, and details financial planning issues and future challenges, as well as other vital topics. Included in the report is the Cer,ficate of Achievement for Excellence in Financial Repor,ng presented to the City by the Government Finance Officers Associa,on for its prior year (Fiscal Year 2021-22). Staff has submi?ed the Fiscal Year 2022-23 ACFR for the same 277
award and expects to receive it in time for presentation in next year’s ACFR.

The ACFR also includes a “Management Discussion and Analysis” sec,on, which provides financial highlights, an overview of the financial statements, and compares key financial data to the prior year. The conclusion of the report details a variety of supplemental financial data, debt and demographical sta,s,cs. Also included are four related communica,ons: “Management Le?er”, “Governance Le?er”, “Appropria,on Limit Tes,ng for the City”, and “Appropria,on Limit Tes,ng for the Fire District”. In these le?ers, the auditors iden,fied no material deficiencies in internal controls.

The “Management Le?er” noted ma?ers for considera,on that staff will be working on implementing in the next ACFR.

Year-end Financial Reporting
The results of FY2023 opera,ons showed General Fund revenues miss budgeted revenues by $97,590, however expenditures came under budget by $1,296,942. Revenues from property tax were less than anticipated due to new properties not making the January 1 property tax roll date but instead will be received in FY2024. Expenditures were less than an,cipated due to numerous salary and benefits savings due to vacancies; and contractual services related to recrea,on and public works. Overall, a4er transfers in and transfers out, the General fund had a year-end surplus of $2,713,936. This was par,ally an,cipated in the budget as a result of a sales tax recovery payment from a state audit, increased building permit revenues and less than an,cipated expenditures, but results came in more favorable than expected.

Other major funds are the City's Enterprise funds. A4er transfers in and out, the water enterprise had a deficit of $747,963, the sewer enterprise a deficit of $849,326 and the recycled water enterprise a deficit of $633,140. Detailed informa,on on all of the City's funds can be found in attachment 1 - City of American Canyon ACFR 2023.

COUNCIL PRIORITY PROGRAMS AND PROJECTS
Organizational Effectiveness: "Deliver exemplary government services."

FISCAL IMPACT
The cost of the audit was consistent with the approved contract amount and the recommended ac,on will have no impact on the City's Fiscal Year 2023-24 Budget. A full discussion of the City’s financial status starts on Page 4 of the Fiscal Year 2022-23 ACFR.

Implied in all City Council Goals, Objec,ves, and Work Programs is the fundamental principle that the City will follow the City Council’s adopted Fiscal Policy and will exercise the utmost financial discipline and accountability. In accordance with the City’s adopted Fiscal Policy and pursuant to Sec,on 37208 of the Government Code, the City Manager is responsible for preparing an audited Comprehensive Financial Report each year.
278

ENVIRONMENTAL REVIEW
Not applicable.

ATTACHMENTS:

1. City of American Canyon Annual Comprehensive Financial Report FY 2022-23

2. City of American Canyon Management Letter FY 2022-23

3. City of American Canyon Governance Letter FY 2022-23

4. City of American Canyon City Appropriations Limit Report FY 2022-23

5. American Canyon Fire Protection District Appropriations Limit Report FY2022-23 279
American Canyon, California
www.cityofamericancanyon.org

CITY OF AMERICAN CANYON AND

AMERICAN CANYON FIRE PROTECTION

DISTRICT

ANNUAL COMPREHENSIVE FINANCIAL REPORT

FOR THE FISCAL YEAR ENDED
JUNE 30, 2023
280
(This page intentionally left blank.)
281

American Canyon, California
Napa County
City of
American
Canyon

CITY OF AMERICAN CANYON
AND
AMERICAN CANYON FIRE PROTECTION DISTRICT
ANNUAL COMPREHENSIVE FINANCIAL REPORT
for the fiscal year ended June 30, 2023
Prepared by the Finance Department
282

(This page intentionally left blank.)
283

CITY OF AMERICAN CANYON
Annual Comprehensive Financial Report
For the Year Ended June 30, 2023
i
TABLE OF CONTENTS ..................................................................................................................... i

INTRODUCTORY SECTION
Letter of Transmittal ......................................................................................................................... iv Certificate of Achievement for Excellence in Financial Reporting – Government Finance Officers Association .................................................................................. xii List of Principal Officials ................................................................................................................ xiii Organizational Chart ....................................................................................................................... xiv

FINANCIAL SECTION
Independent Auditor’s Report ............................................................................................................ 1 Management’s Discussion and Analysis ........................................................................................... 4 Basic Financial Statements
Government-Wide Financial Statements:

Statement of Net Position ......................................................................................................... 17 Statement of Activities ............................................................................................................. 18 Fund Financial Statements:

Governmental Funds:

Balance Sheet ........................................................................................................................ 20 Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Position ................................................................................................... 22 Statement of Revenues, Expenditures, and Changes in Fund Balances .............................................................................................................................. 23 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the
Statement of Activities ........................................................................................................ 25 Proprietary Funds:

Statement of Net Position ..................................................................................................... 26 Statement of Revenues, Expenses and Changes in Fund Net Position ............................................................................................................................... 27 Statement of Cash Flows ...................................................................................................... 28 Fiduciary Funds:

Statement of Fiduciary Net Position ..................................................................................... 29 Statement of Changes in Fiduciary Net Position .................................................................. 30 Notes to Basic Financial Statements ............................................................................................ 31

REQUIRED SUPPLEMENTARY INFORMATION
Schedules of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual:

General Fund .............................................................................................................................. 74 Fire District Operations Special Revenue Fund ......................................................................... 75 CDBG, CalHome and HOME Loan Development Special Revenue Fund ......................................................................................................................................... 76 State and Federal Grants – City Special Revenue Fund ............................................................. 77 284

CITY OF AMERICAN CANYON
Annual Comprehensive Financial Report
For the Year Ended June 30, 2023
ii
REQUIRED SUPPLEMENTARY INFORMATION (Continued)
Schedule of the Proportionate Share of the Net Pension Liability and Schedule of Contributions – City Miscellaneous Plan (Unaudited) ............................................ 78 Schedule of the Proportionate Share of the Net Pension Liability and Schedule of Contributions – Fire Safety Plan (Unaudited) .......................................................... 79 Schedule of the Proportionate Share of the Net Pension Liability and Schedule of Contributions – Fire Miscellaneous Plan (Unaudited) ............................................. 80 Schedule of Changes in the Net OPEB Liability and Related Ratios – City Plan (Unaudited) ................................................................................................................... 81 Schedule of Changes in the Net OPEB Liability and Related Ratios – Fire Plan (Unaudited) ................................................................................................................... 82 Schedule of Contributions to the OPEB Plan – City Plan (Unaudited) ........................................... 83 Schedule of Contributions to the OPEB Plan – Fire Plan (Unaudited) ........................................... 84

SUPPLEMENTAL INFORMATION
Budgetary Comparisons, Major Capital Projects and Debt Service Funds
Schedules of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual:

City Capital Projects Fund .................................................................................................... 85 Affordable Housing Capital Projects Fund .......................................................................... 86 Nonmajor Governmental Funds
Combining Balance Sheet ............................................................................................................ 87 Combining Schedule of Revenues, Expenditures and Changes in Fund Balances ........................................................................................................................... 92 Schedules of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual ................................................................................................................. 97 Internal Service Funds
Combining Statement of Net Position – Internal Service Funds ............................................... 118 Combining Statement of Revenues, Expenses and Changes in Fund Net Position – Internal Service Funds .................................................................................... 119 Statement of Cash Flows – Internal Service Funds.................................................................... 120 Fiduciary Funds
Combining Statement of Fiduciary Net Position – Custodial Funds ......................................... 121 Combining Statement of Changes in Fiduciary Net Position – Custodial Funds ...................................................................................................................... 122

STATISTICAL SECTION
Statistical Section Table of Contents ............................................................................................. 123 Financial Trends Information
Schedule of Net Position by Component – Last Ten Fiscal Years ............................................ 124 Schedule of Changes in Net Position – Last Ten Fiscal Years .................................................. 125 Schedule of Fund Balances, Governmental Funds – Last Ten Fiscal Years ....................................................................................................................................... 127 285

CITY OF AMERICAN CANYON
Annual Comprehensive Financial Report
For the Year Ended June 30, 2023
iii
STATISTICAL SECTION (Continued)
Schedule of Changes in Fund Balances, Governmental Funds – Last Ten Fiscal Years ..................................................................................................................... 128 Revenue Capacity Information
Own Source Tax Revenue by Source – Last Ten Fiscal Years .................................................. 129 Assessed Value of Taxable Property – Last Ten Fiscal Years ................................................... 130 Direct and Overlapping Property Tax Rates – Last Ten Fiscal Years ....................................... 131 2022/23 Top Ten Property Taxpayers ........................................................................................ 132 2013/14 Top Ten Property Taxpayers ........................................................................................ 133 Property Tax Levies and Collections – Last Ten Fiscal Years .................................................. 134 Debt Capacity Information
Ratios of Outstanding Debt by Type – Last Ten Fiscal Years ................................................... 135 Ratios of General Bonded Debt Outstanding – Last Ten Fiscal Years ...................................... 136 Computation of Direct and Overlapping Debt ........................................................................... 137 Computation of Legal Debt Margin – Last Ten Fiscal Years .................................................... 138 Pledged Revenue Coverage – Last Ten Fiscal Years ................................................................. 139 Demographic and Economic Information
Demographic and Economic Statistics – Last Ten Fiscal Years ................................................ 140 Principal Employers – (Ten Largest) – Last Fiscal Years ......................................................... 141 Operating Information
Full-Time Equivalent City Government Employees by
Function/Program – Last Ten Fiscal Years ............................................................................ 142 Operating Indicators by Function/Program – Last Ten Fiscal Years ......................................... 143 Capital Asset Statistics by Function/Program – Last Ten Fiscal Years ....................................................................................................................................... 144 286
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287
iv
December 28, 2023
To the Honorable Mayor, Members of the City Council and Citizens of the City of American Canyon We hereby submit the Annual Comprehensive Financial Report of the City of American Canyon for the fiscal year ended June 30, 2023. The fiscal year covers financial transactions from July 1, 2022 to June 30, 2023 on a modified or full accrual basis, depending on the fund type. The City follows a policy of preparing a complete set of financial statements in conformity with accounting principles generally accepted in the United States of America after the end of each fiscal year. An independent licensed certified public accounting firm audits these financial statements.

City management assumes full responsibility for the completeness and reliability of all of the information presented in this report. The City has established a comprehensive internal control framework that is designed both to protect the City's assets from loss, theft, or misuse and provides sufficiently reliable information that the City of American Canyon's financial statements are in conformity with U.S. generally accepted accounting principles. The cost of internal controls should not out-weigh their benefits and the internal controls are designed to provide reasonable rather than absolute assurance that the financial statements will be free from material misstatement. City management asserts that, to the best of our knowledge and belief, this financial report is complete and reliable in all material respects.

Richardson and Co. LLP, a licensed certified public accounting firm, has audited the City of American Canyon's financial statements. The goal of the independent audit was to provide reasonable assurance that the financial statements of the City of American Canyon, for the fiscal year ended June 30, 2023, are free of material misstatement. The independent audit involved examining, on a test basis, evidence supporting amounts and disclosures in the financial statements; assessing the accounting principles used and significant estimates made by management; and evaluating the overall financial statement presentation. Richardson and Co. LLP has concluded, based upon the audit, that there was a reasonable basis for rendering an unmodified opinion ("clean" opinion) that the City of American Canyon's financial statements for the fiscal year ended June 30, 2023 are fairly presented in conformity with U.S. generally accepted accounting principles. The independent auditor's report is presented as the first component of the financial section of this report.

Annual Comprehensive Financial Report (ACFR)
This ACFR contains financial information and data using the financial reporting format established for governments by the Governmental Accounting Standards Board (GASB). The GASB sets accounting and financial reporting standards for governments in the United States of America. The financial reporting standards require that management provide a narrative introduction, overview, and analysis to accompany the basic financial statements in the form of Management’s Discussion and Analysis (MD&A). This letter of transmittal is designed to complement the MD&A and should be read in conjunction with it.

Immediately following the report of the independent auditors, you will find the City of American Canyon's MD&A.
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Profile of the City and its Operations
Incorporated on January 1, 1992, the City of American Canyon is the second largest city in Napa County. The City's population as of January 1, 2023 was estimated to be 21,338 by the California State Department of Finance. American Canyon is located at the Southern end of the Napa Valley wine growing region in close proximity to the San Francisco Bay. It is bounded by the Napa River and a 500-acre wetland preserve to the west, the foothills of the Sulphur Springs Mountain Range to the east, the City of Vallejo to the south, the Napa Airport and numerous vineyards to the north.

The City operates under a council-manager form of government and is a general law city. Policy making and legislative authority are vested in the City Council. There are four elected Council Members and one elected Mayor. The Vice Mayor is selected annually by the Council. The non-partisan Mayor and City Council members serve staggered four-year terms. The Council's responsibilities include passing ordinances, adopting the City budget, appointing committees, and hiring the City Manager, Fire Chief and City Attorney. The City Manager implements the policies and ordinances of the City Council, appoints department heads, oversees and maintains the daily operations of the City.

The City provides a full range of municipal services including police and fire protection services through the American Canyon Fire Protection District; construction and maintenance of City streets, storm drains, bridges and similar infrastructure type assets; park maintenance and community recreation activities; short and longrange community planning; operation of water, wastewater, and recycled water utilities; and more. The City operates its water, wastewater, and recycled water systems in a fashion similar to private businesses, which is termed business-type activities in the financial statements.

The City's annual budget serves as the foundation for the City of American Canyon's financial planning and control system. Every year, each City department submits requests for appropriations to the City Manager. The City Manager uses these requests as a starting point for developing a proposed budget. The City Manager then presents the proposed budget to the City Council's Finance Committee followed by a presentation to the City Council. The Council holds public hearings on the proposed budget and then ultimately adopts a formal budget.

The budget is adopted by fund, function, and department. During the fiscal year the City Manager and Council periodically review the City's actual financial activity in relationship to the original budget, and as necessary, amends the original budget to reflect changing needs.

Factors affecting Financial Condition
The information presented in the financial statements is best understood when it is considered in context with the City's particular economic climate and with the City's plans for the future.

Napa Valley is considered by many to be North America's legendary wine, food, and wellness capital. The valley's vineyards are planted on gently rolling hills and are very picturesque. Their bucolic charm attracts large numbers of tourists. It is estimated that each year 5 million tourists visit more than 300 wineries scattered throughout the valley. The lodging, restaurants, wineries, and shopping located throughout the valley make tourism a major contributor to the local economy. The City of American Canyon, at the south end of Napa Valley, benefits from some tourism; however, these economic benefits are enjoyed much more by those cities in the north valley. In 2010 the City joined the Napa Valley Tourism Improvement District (NVTID) to increase tourism in American Canyon. The NVTID provides valley-wide as well as local tourist activity marketing and promotion.

In addition to the tourism related economic benefits of proximity to the Napa Valley, American Canyon benefits tremendously as a wine processing hub. Because of our strategic location at the southern end of Napa County and with easy access to state and interstate highways, American Canyon's industrial district 289
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is home to millions of square feet of wine processing, bottling, storage, and distribution space. Demand for space in this area is very high, with very little vacancy and new development currently under review.

Coming out of the COVID-19 pandemic, the City like many other agencies throughout California has seen a healthy rebound in sales tax revenues, fueled by consumer spending on goods, services and leisure activities as well as increased property tax revenues. Property tax revenues continue to rise above the traditional Prop 13 increases due to the development of new housing on the east side of town. Two new subdivisions are underway with new homes selling each month. Currently scheduled for completion in Spring 2024 is a fourth hotel in the city, two additional hotels are scheduled to be constructed in the next few years, further contributing to TOT revenues. The outlook currently remains stable in American Canyon due to the factors mentioned above, however greater economic variables like higher mortgage rates and inflationary pressures can impact sales and property taxes.

The passing of the American Rescue Plan Act (ARPA) of 2021 provided $350 billion in additional funding to state and local governments. The City received $4.9 million in ARPA funds, and utilized the funds to improve infrastructure and parks. Street, pedestrian and bike safety improvements were completed in 2023, and a new skate park is scheduled for completion in Spring 2024. A major paving and utility improvement project is scheduled to commence in FY 2024-25 utilizing ARPA funding.

The City and employee bargaining units completed new Memorandum of Understanding’s (MOU’s) in 2022 for five years terms after a one-year extension to the previous MOUs. The new MOUs will have continued impact on salaries and benefits in the coming years, however it allows the City to remain competitive in the job market as unemployment remains at historical lows at the local and state levels.

Approximately 48% of general fund revenue received is from property taxes and are critical in supporting the cost of essential services provided by the City. For FY 2022-23 the City budgeted a 4.3% increase in property taxes but actuals came in at a 2% increase. This was attributed to a lower number of new construction properties placed on the January 1, 2022 tax roll than was anticipated. There are two new subdivisions underway and many of these new homes became occupied after the January 1 date and will be reflected in FY 2023-24 revenue. Property tax is projected to increase an additional 6.8% in the FY 2023-24 as reported by the Napa County Assessor’s Office which includes new construction properties and a maximum allowable 2% CPI adjustment on existing homes. American Canyon home values have had a median increase in value of

5.5% in 2023 on top of the 2022 increase of 10.24%, with the median home value now at $670,000. With developable land selling and construction continuing throughout the City, further increases in assessed valuation and property tax revenues are expected in the next couple of years. New construction will also mean an increase in plan review and building permit revenue. City finance staff continues to monitor recent interest rate increases which could result in downward pressures to selling prices and reduced transactions as buyers get priced out. The home mortgage market will continue to see prolonged high interest rates as long as inflation remains high, with the Federal Reserve signaling more hikes could follow until inflation subsides to their target rate of 2%.

The City's Transient Occupancy Tax (TOT) rate is 12%. TOT revenues for FY 2022-23 decreased 4% from last year to $1.57 million as a result of a decrease in leisure travel and discretionary spending as higher inflation rates stressed household budgets. For FY 2023-24, we have projected minimal growth in existing properties but with the addition of the fourth hotel, FY 2023-24 revenues are budgeted at $1.9 million. We expect that American Canyon will continue to benefit from tourism in the Napa Valley and anticipate an increase in leisure spending if inflation continues to cool. We also expect additional hotel rooms currently under construction in American Canyon now and in the next three years will bring additional TOT revenue.

Sales tax revenues came in 90% higher in FY 2022-23 compared to last year at $5.9 million. This was due in large part to a favorable audit determination from the State allocating revenues to the City instead of the County 290
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pools, the total amount of recovered and new revenues was $2.8 million. However, because this includes onetime recovery revenue from previous years misallocations, we expect FY 2023-24 revenues to decrease and be more in line with historical growth, with an expected amount of $4.5 million.

Staff will continue to closely monitor and review updated economic forecasts for any new developments that may positively or negatively affect the City's budget.

Capital Improvement Program
The City of American Canyon's capital improvement program is a long-range program for major municipal construction projects. Key projects currently in progress include:
 Knightsbridge Way Reconstruction and Water Main Improvements – The City is undertaking a project to replace the 8" water main on Knightsbridge Way between Danrose Drive and Elliott Drive, including all the courts: Regent Court, Park Lane, Lansford Court, Arden Court, and Linwood Lane. To maximize efficiency, once the underground work is complete, this project will also include the installation of ADA ramps, the road reconstruction of Knightsbridge Way, and a two-layer pavement treatment on the courts. It is anticipated that this project will advertise for construction in spring 2024 with anticipated construction completion in fall 2024.
 Green Island Road Reconstruction – The Green Island Road Reconstruction & Widening Project will bring much-needed infrastructure improvements to the Green Island Industrial District. The upgrades will significantly benefit the businesses within the district, which are a vital component of the City’s economy. Established in 2019, the Green Island Road Community Facilities District will provide a significant portion of the funding for the project. In 2023, construction began on the undergrounding of existing overhead utilities with completion scheduled for spring 2024. The construction contract was subsequently awarded to St. Francis Electric and work is anticipated to be completed in mid-2023. The final phases of the project—road reconstruction and Class I multi-use trail construction—will be advertised for bids in 2024, with estimated project completion in 2024.  Pavement Rehabilitation Projects – Road Repair and Accountability Act (also known as SB1) and Measure T, (the half cent Napa Valley County Sales Tax for Road Repairs) funds will be used to repair/rehabilitate various streets in American Canyon on an annual basis. The streets selected are based on our pavement management program, considering public safety, underground utility needs, and available funding.
 Rancho Del Mar Paving and Utility Improvements – The Rancho Del Mar Subdivision is the oldest subdivision in American Canyon. In 2022, City Council prioritized federal American Rescue Plan Act (ARPA) funding to rehabilitate water and sewer utilities, provide for different pavement treatments including full reconstruction to local streets, upgrade curb ramps to ADA compliance, and implement thermoplastic striping and pavement markings. Streets included in this work are Rio Del Mar from Highway 29 to Carolyn Drive, all of Los Altos Place east of Carolyn Drive, Cassayre Drive, Flamingo Court, Del Rio Court, Alta Loma Drive, Joan Drive from Carolyn Drive to Los Altos Place, and Carolyn Drive from Rio Del Mar to Los Altos Place. Design began in 2023 with construction anticipated in 2024.

New Development
Key development projects include:
 Broadway District Specific Plan – The Broadway District is the heart of American Canyon. The Broadway District Specific Plan (BDSP) is transforming Broadway into a livable, mixed-use, small-town neighborhood with quality development. The Broadway District Specific Plan was updated in 2021.

Development projects in the BDSP include the following:
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o Home2Suites Hotel - A new 102-room Home2Suites hotel is under construction. o Hampton Inn Hotel - A new 112-room Hampton Inn hotel construction is anticipated to begin in 2024.
o Napa Cove - A 66-unit affordable apartment project is nearing completion in early 2024. o Circle K - A Convenience store and gas station opened its doors to customers in February 2023. o Residences at Napa Junction - A 435-unit apartment project is under review. o Crawford/Broadway Townhomes - A 100-unit apartment townhome project is under review. o Chicken Guy Restaurant - A quick serve restaurant with a drive-thru service construction is anticipated to begin in 2024.
o Sun Square - A mixed use residential/commercial project of 20 apartments located on Napa Junction Road was approved in April 2023.
 Watson Ranch – The 300-acre Watson Ranch Specific Plan (WRSP) includes a new hotel, 1,253 residential units, parks, and other amenities. Development projects in the WRSP include the following:
o Watson Ranch Specific Plan Update – An update to the Watson Ranch Specific Plan was approved in September 2023.
o Artisan at Watson Ranch - 98 single-family homes are available for sale today. o Harvest at Watson Ranch - 219-unit single family homes are available for sale today. o Lemos Pointe - A 186-unit affordable rental community is nearing completion in early 2024. o The Hotel at the Napa Valley Ruins & Gardens - A 200-room resort hotel and 30 townhomes and flats were approved in January 2023.
o Napa Valley Ruins and Gardens (NVRG) Quarry Lake and Fig Tree Amphitheaters – Two outdoor amphitheaters were approved in May 2023.
o Promontory at Watson Ranch - 216 single family homes with Accessory Dwelling Unit (ADU) options were approved in August 2023.
 Napa Logistics Park - The Napa Logistics Park is nearing buildout with completion of a 200,000 SF Amazon Distribution Center in September 2021 (Building 3). Building 4, a 700,000 SF warehouse was completed March 2021. A Pacific Gas and Electric (PG&E) 100,000 SF Regional Maintenance facility is nearing completion in early 2024.
 Commerce Court - A 330,000 SF wine warehouse at 1005 Commerce Court on 15.24 acres was completed October 2020. A 217,000 SF wine warehouse at 1075 Commerce Court on 10.35 acres began construction in 2023. A 220,000 square foot wine warehouse at 1055 Commerce Court on 10.17 acres is under review.
 Giovannoni Logistics Center – A 2.4 million SF high cube wine warehouse business park on 208-acres, north of Green Island Road was approved in March 2023.
 Canyon Estates – A 35-single family large lot subdivision of custom homes is under construction. Custom home lot sales are ongoing.
 Oat Hill Residential – A 291-unit, 20-acre multifamily development on the east side of Oat Hill is under construction.
 Bell Products - A new business headquarters for Bell Products in the Green Island Industrial Park was approved in May 2023.
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 Green Island Solar Farm - A solar farm with associated RV storage proposed on Highway 29, north of Green Island Road was approved in July 2023.
 Paintball Jungle – The commercial recreational paintball business received a Conditional Use Permit approval in November 2023.
 Ecological Center - An exciting project to transform the Wetlands Edge Corporation Yard into an Ecological Education Center through a partnership between the American Community & Canyon Foundation and the City of American Canyon was approved in December 2023.

Paoli/Watson Lane Annexation
The City is preparing an annexation application on 85 acres at the City’s northeast boundary. The annexation area would facilitate construction of Newell Road from its terminus in Watson Ranch to Highway 29. The Watson Lane residential area would remain in its current development pattern. Vacant land in the northern half of the annexation area could be considered for urban uses following annexation. An Environmental Impact Report that evaluates the project was certified, the General Plan was amended, and Pre-Zoning First Reading was approved in November 2023. The Pre-Zoning final reading is pending a conformance determination by the Napa County Airport Land Use Commission anticipated in early 2024.

General Plan Update
The City is preparing a comprehensive technical General Plan Update (GPU) for the first time since 1994. The General Plan is American Canyon’s long-term blueprint for development of the City and land outside its boundaries that bears relation to its planning. The GPU will ensure all components of the General Plan are internally consistent and current with State Law. An Environmental Impact Report that evaluates the GPU will be released for public review in early 2024.

The Housing Element component of the General Plan was approved in January 2023. The State Department of Housing and Community Development (HCD) certified the Housing Element in May 2023.

Water Supply
The critical droughts from 2020-2022 brought to the forefront the City's need to continue to seek out permanent, reliable water sources to serve its residents and businesses. The City receives nearly all of its water from the Department of Water Resources' (DWR) State Water Project (SWP). Generally, this "raw water" is treated at the City's Water Treatment Plant (WTP) and then distributed to residents and businesses in the City's Water Service Area (which is larger than the City limits proper). The City also maintains connections with the Cities of Napa and Vallejo, who are able to provide treated water supplies if necessary. The City's Urban Water Management Plan demonstrates that the City has sufficient water to meet projected needs in the next 20 years. However, the City could benefit from a greater variety of water sources, better water quality, and less expensive water sources. As such, the City is pursuing several important options, including participation in new, regional surface water projects and potable re-use of recycled water from our Water Reclamation Facility. In recent years, the City has invested heavily in maximizing both the water quality and quantity of recycled water produced at the Water Reclamation Facility. The City has been successful in reducing demand for potable water by as much as 21-acre feet per year through conversion of potable water, uses for irrigation to recycled water and permanent changes to landscape and irrigation techniques.

In 2017, the City joined as a member of the Sites Reservoir Project. The Sites Project is a new proposed “offstream” water storage reservoir that would hold approximately 1.8 million-acre feet. In fiscal year 2023-24, the City will continue to participate on the project team that is pursuing funding and ultimately, construction of this new water supply project. The City’s share of the Sites Reservoir Project is 4,000-acre feet per year.

In May 2018, the City Council authorized new water rates beginning January 2019. The water rates will increase in each of the subsequent five years, with the last increase implemented January 2023. The City will no longer collect a drought surcharge of two dollars per unit. The rate increases are required to meet operational requirements, construct improvements to existing aging infrastructure, and to establish funding necessary to pay for additional water purchases. City staff is working on developing a new rate structure in fiscal year 2023- 24, that will focus on all three of the City’s enterprise funds and anticipates having updated rates take effect in May 2024.
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Cash Resources
The cash and investments held by the City are sufficient to move forward into the new fiscal year, conduct operations, and embark upon the planned capital asset improvement programs. Please see Note C – Cash and Investments beginning on page 38 of the ACFR.

Risk Management
The City limits its exposure to losses from unfavorable events, employee injuries, and from the risk of damages to City property by participating with other governments in an insurance pool wherein the risk of substantial monetary loss is transferred from the City to the insurance pool. Further information about this arrangement is included in the notes to the financial statements.

Long-Term Debt Administration
In accordance with the City's fiscal policy, the issuance of long-term debt is limited to capital improvements or projects that cannot be financed from current revenues or resources. The City may issue general obligation bonds, revenue bonds, certificates of participation or anticipation notes. The payback period of the debt is limited to the estimated useful life of the capital project or improvement. All debt service payments were made as required during the fiscal year, and the City complied with all required reserves and debt service covenants.

Postemployment Benefits
The City directly participates in the Public Employees Retirement System (PERS) of the State of California for all full-time employees. The City plans to fund each year's required contribution for its regular and public safety plans based on rates calculated by PERS after analyzing the city's workforce. With respect to retiree health care costs, the City's practice has been to pay the same premium for retired employees' health care as it does for active employees. The City continues to fund its actuarially determined contribution (ADC) each year, ensuring the long-term sustainability of this benefit. The City and Fire District have entered into irrevocable trusts with PERS to fund retiree health benefits. Additional information about the City's pension and other postemployment benefits plans are included in notes J and K to the financial statements and the required supplementary information section of this report. In 2017, the City negotiated with employee bargaining units a reduction in post-employment medical insurance benefits for future employees as they retire, which resulted in a decrease in long-term liability.

Awards
The City was awarded a Certificate of Achievement for Excellence in Financial Reporting by the Government Finance Officers Association (GFOA) for its comprehensive annual financial report for the fiscal year ended June 30, 2022. The Certificate of Achievement is a prestigious national award, recognizing conformance with the highest standards for preparation of state and local government financial report. In order to be awarded a Certificate of Achievement, a government must publish an easily readable and efficiently organized annual comprehensive financial report. This report must satisfy both generally accepted accounting principles and applicable legal requirements. A Certificate of Achievement is valid for a period of one year only. In our opinion, the current comprehensive annual financial report continues to meet the Certificate of Achievement Program's requirements and it will be submitted to the GFOA to determine its eligibility for recognition.

Acknowledgements
The preparation of this report would not have been possible without the capable and dedicated services of the Finance Department. Thanks to all City departments for their assistance in providing the data necessary to prepare this report. The Mayor and City Council also warrant special recognition for their 294
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continued support, leadership and high expectations for professionalism in overseeing the City of American Canyon's financial affairs.

Respectfully Submitted,

Jason B. Holley Juan Gomez
City Manager Finance Director/Treasurer
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Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of American Canyon
California
For its Annual Comprehensive
Financial Report
For the Fiscal Year Ended
June 30, 2022
Executive Director/CEO
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CITY OF AMERICAN CANYON
PRINCIPAL OFFICIALS
YEAR ENDED JUNE 30, 2023
CITY COUNCIL
Mayor ……………………………………………………………………………………………………………….. Leon Garcia Vice Mayor……………………………………………………………………………………….………………… Pierre Washington Council Member ………………………..……………………………………………………………………… Mark Joseph Council Member ………………………………………………….……………………………………………. David Oro Council Member …………….……..………………………………………………………………………….. Mariam Aboudamous ADMINISTRATIVE PERSONNEL
City Manager ………………….………………………………………….…………………………………….. Jason Holley Assistant City Manager …………………………………………………………………………………….. Maria Ojeda City Clerk ………………………………………………………………………………………………………….. Taresa Geilfuss Police Chief ……………………………………….…………………………………………………….……….. Rick Greenberg Fire Chief …………………………………………….……………………………………………..…….………. Geoff Belyea City Attorney ………………………………….………………………………………………………….……… William Ross Finance Director……………………………………………………………………….………………….….… Juan Gomez Public Works Director…………………………………………………………..…………………….….….. Erica Ahmann‐Smithies Community Services Director ………………………………………….………………………….…….. Brent Cooper Parks and Recreation Director………………………………………………….………………….….…. Alexandra Ikeda 297
POLICE CHIEF
CITY MANAGER CITY ATTORNEY
CITY CLERK HUMAN

RESOURCES

FINANCE
ASSISTANT CITY

MANAGER
CITY COUNCIL
PUBLIC WORKS UTILITIES AND

MAINTENANCE

COMMUNITY

DEVELOPMENT
PARKS AND

RECREATION
FIRE PROTECTION

DISTRICT
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299
550 Howe Avenue, Suite 210
Sacramento, California 95825
Telephone: (916) 564-8727
FAX: (916) 564-8728
1 INDEPENDENT AUDITOR’S REPORT
To the City Council
City of American Canyon, California
Opinions
We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of American Canyon, California (the City), as of and for the year ended June 30, 2023, and the related notes to the financial statements, which collectively comprise the City of American Canyon, California’s basic financial statements as listed in the table of contents.

In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of American Canyon, California, as of June 30, 2023, and the respective changes in financial position and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America.

Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City, and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.

Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter. 300
To the City Council
City of American Canyon, California
2 Auditor’s Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with generally accepted auditing standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.

In performing an audit in accordance with generally accepted auditing standards, we:
 Exercise professional judgment and maintain professional skepticism throughout the audit.  Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.
 Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, no such opinion is expressed.
 Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.
 Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for a reasonable period of time.

We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control-related matters that we identified during the audit.

Required Supplementary Information
Accounting principles generally accepted in the United States of America require that management’s discussion and analysis, budgetary comparison schedules, schedules of the proportionate share of the net pension liability, schedules of contributions to the pension plan, schedules of changes in the net OPEB liability and related ratios and schedules of employer contributions to the OPEB plan be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the 301
To the City Council
City of American Canyon, California
3 information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s basic financial statements. The combining and individual nonmajor fund financial statements are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the combining and individual nonmajor fund financial statements are fairly stated, in all material respects, in relation to the basic financial statements as a whole.

Other Information
Management is responsible for the other information included in the annual report. The other information comprises the introductory and statistical sections but does not include the basic financial statements and our auditor’s report thereon. Our opinions on the basic financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon.

In connection with our audit of the basic financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the basic financial statements, or the other information otherwise appears to be materially misstated.

If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report.

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MANAGEMENT'S DISCUSSION AND ANALYSIS
4 This section of the City of American Canyon's annual financial report presents our discussion and analysis of the City's financial performance during the fiscal year that ended on June 30, 2023. Please read it in conjunction with the City's audited financial statements, which follow this section.

FINANCIAL HIGHLIGHTS
 The City's total net position increased by about $2.8 million over the course of this year’s operations after conducting all City operations and programs. The Citywide Statement of Activities reports a $5.1 million increase in net position for Governmental Activities using full accrual accounting and a decrease of $2.3 million in Business-type Activities. The assets and deferred outflows of the City exceeded its liabilities and deferred inflows by $377.4 million at the end of fiscal year 2022-23. The Citywide Statement of Net Position reports that $308.7 million is related to Governmental Activities and $68.7 million is related to Business-type Activities. Of that amount, $21 million (the unrestricted net position) may be used to meet the City's ongoing obligations and operating expenses for the next fiscal year.
 Governmental Funds reported combined fund balances of $47.7 million at June 30, 2023, an increase of $5.4 million compared to the prior year. Of these fund balances, $0.5 million is non-spendable, $30.3 million is restricted, $9.3 million is committed, $4.9 million is assigned, and $2.7 million is unassigned.
 Overall, city-wide revenues from all governmental and business-type activities were $57.0 million, an increase of about $4.8 million compared to the prior year. This amount includes $0.9 million from capital grants and contributions for Governmental Activities and $0.6 million from Business-type Activities.
 The City's total expense for all programs in fiscal year 2022-23 was $54.2 million, an increase of $6.9 million compared to the prior year.
 The General Fund ended fiscal year 2022-23 with a fund balance of $15.3 million, an increase of $2.7 million compared to the prior year of which $4.7 million was unassigned. The Fire District Operations Fund ended fiscal year 2022-23 with a $5.8 million fund balance, an increase of $0.1 million compared to the prior year. The CDBG, Cal Home and HOME Loan Development Special Revenue Fund ended fiscal year 2022-23 with a fund balance of $0.1 million an increase of $0.1 million from last year. The State and Federal Grants - City Special Revenue Fund ended fiscal year 2022-23 near even, an increase of $0.7 million compared to the prior year. The Affordable Housing Capital Projects Fund ended fiscal year 2022-23 with a fund balance of $0.3 million, which is unchanged compared to the prior year. Other Governmental Funds reported a cumulative fund balance of $24.9 million available for special purposes, primarily infrastructure and capital asset additions.  The City ended fiscal year 2022-23 with $22.8 million of available net position in its enterprise funds consisting of restricted and unrestricted net position. This is a decrease of $2.3 million from the prior fiscal year. Internal Service Funds ended fiscal year 2022-23 with a cumulative unrestricted fund balance of $0.6 million a decrease of $0.1 million compared to the prior year.

OVERVIEW OF THE FINANCIAL STATEMENTS
This annual report consists of four parts – a management’s discussion and analysis (this section), the basic financial statements, required supplementary information, and an optional section that presents combining statements for non-major governmental funds and proprietary funds. The basic financial statements include two kinds of statements that present different views of the City:
 The first two statements are government-wide financial statements that provide both long-term and short-term information about the City’s overall financial status. 303

MANAGEMENT'S DISCUSSION AND ANALYSIS
5  The remaining statements are fund financial statements that focus on individual parts of the City government, reporting the City's operations in more detail than the government-wide statements. - The governmental funds statements tell how general government services such as public safety, community development, parks and recreation, public works and streets were financed in the short term as well as what remains for future spending.
- Proprietary fund statements offer short and long-term financial information about the activities the government operates like businesses, such as the City's water, wastewater and recycled water systems.

The financial statements also include notes that explain some of the information in the financial statements and provide more detailed data. The statements are followed by a section of required supplementary information that further explains and supports the information in the financial statements. In addition to these required elements, we have included a section with combining statements that provide details about our non-major funds, each of which are added together and presented in single columns in the basic financial statements.

Figure A-1 summarizes the major features of the City's financial statements, including the portion of the City government they cover and the types of information they contain. The remainder of this overview section of management’s discussion and analysis explains the structure and contents of each of the statements.

Figure A-1
Major Features of City of American Canyon's Government-Wide and Fund Financial Statements

Fund Statements

Government-Wide
Statements Governmental Funds Proprietary Funds

Scope Entire City government The activities of the City that are not proprietary or fiduciary, such as police, fire, streets,
general government, and community services
Activities the City operates
similar to private businesses:
the water, wastewater, and
recycled water funds and
internal service funds

Required financial
statements
 Statement of net position  Balance sheet  Statement of net position  Statement of activities  Statement of revenues, expenditures, and changes in fund balances
 Statement of revenues,
expenses, and changes in
net position
 Statement of cash flows

Accounting basis
and measurement
focus
Accrual accounting and
economic resources focus
Modified accrual accounting and current financial
resources focus
Accrual accounting and
economic resources focus

Type of
asset/liability
information
All assets and liabilities, both
financial and capital, and shortterm and long-term
Only assets expected to be used up and liabilities
that come due during the year or soon thereafter;
no capital assets included
All assets and liabilities, both
financial and capital, and shortterm and long-term

Type of
inflow/outflow
information
All revenues and expenses
during the year, regardless of
when cash is received or paid
Revenues for which cash is received during or soon
after the end of the year; expenditures when goods
or services have been received and payment is due
during the year or soon thereafter
All revenues and expenses
during the year, regardless of
when cash is received or paid

304

MANAGEMENT'S DISCUSSION AND ANALYSIS
6 Government-wide Statements
The government-wide statements report information about the City as a whole using accounting methods similar to those used by private-sector companies. The statement of net position includes all of the City's assets and liabilities. All of the current year’s revenues and expenses are accounted for in the statement of activities regardless of when cash is received or paid.

The two government-wide statements report the City's net position and how it has changed. The difference between the City's assets and liabilities is one way to measure the City's financial health or position.
 Over time, an increase or decrease in the City's net position is an indicator of whether its financial health is improving or deteriorating, respectively.

The government-wide financial statements of the City are reported in two categories:
 Governmental activities – All of the City’s basic services are included here, such as general government, police, fire, community development, parks and recreation, and public works. Property taxes, sales taxes, transient occupancy taxes, special and other taxes, user charges and fees, and state, local and federal grants finance these activities.  Business-Type activities - The City charges fees to customers to help cover the costs of certain services. The City's water, wastewater, and recycled water enterprises are reported here.

Fund Financial Statements
The fund financial statements provide more detailed information about the City's most significant funds – not the City as a whole. Funds are accounting devices that the City uses to keep track of specific sources of funding and spending for particular purposes.  The City's major funds, including the General Fund; Fire District Operations; CDBG, CalHome and HOME Loan Development; State and Federal Grants – City; City Capital Projects; and Affordable Housing; are reported in separate columns, and all other governmental funds are aggregated in a single column.
 The City establishes other funds to control and manage money for particular purposes. Some funds are maintained to demonstrate that the City is properly using certain specific fees for their intended purpose (such as the City's impact fee funds).
 Other funds are maintained for similar purposes but also demonstrate the City's ability to repay its long-term debt obligations, such as bonds.

The City has three kinds of funds:

Governmental funds – The City's basic services are included in governmental funds, which focus on (1) how cash and other financial assets that can readily be converted to cash flow in and out, and (2) the balances left at year-end that are available for spending. Consequently, the governmental funds statements provide a detailed short-term view that helps one determine whether there are more or fewer financial resources that can be spent in the near future to finance the City's programs. Because this information does not encompass the additional long-term focus of the government-wide statements, we provide additional information at the bottom of the governmental funds' statement, or on the subsequent page, that explains the relationship (or differences) between them.

Proprietary funds – There are two different types of proprietary funds. Enterprise funds are used to report the same functions reported as business-type activities in the government-wide financial statements: the City's Water, Wastewater, and Recycled Water Operations. Internal service funds are 305

MANAGEMENT'S DISCUSSION AND ANALYSIS
7 an accounting device used to accumulate and allocate costs internally. During the 2015 fiscal year, the City created internal service funds. Proprietary funds provide the same type of information as the government-wide statements, only in more detail. The proprietary fund statements provide separate information for the City's Water, Wastewater, and Recycled Water Operations, which are considered major funds of the City.

Fiduciary funds - These funds are used to account for resources held for the benefit of parties outside the government. Fiduciary funds are not reflected in the government-wide financial statements because the resources of those funds are not available to support the City of American Canyon’s own programs.

The accounting used for fiduciary funds is much like that used for proprietary funds.

FINANCIAL ANALYSIS OF THE CITY AS A WHOLE
Net Position. As summarized in Table A-1 below, the City's combined net position increased $2.8 million between fiscal years 2022 and 2023.

Table A-1
City of American Canyon's Net Position
(in millions of dollars)
Governmental
Activities
Business-Type
Activities Total
Total
Percentage
Change
2022 2023 2022 2023 2022 2023 2022-23

Current and other assets

59.9 65.2

29.1 26.3

89.0 91.5 2.8%
Capital assets

275.2

275.8

51.8 50.3

327.0

326.1 -0.3%
Total assets

335.1

341.0

80.9 76.6

416.0

417.6 0.4%
Deferred Outflow of Resources

6.5 12.4

1.5 2.4

8.0 14.7 83.8%

-
Long-term debt outstanding

22.3 34.8

8.3 9.2

30.6 44.0 43.8%
Other liabilities

7.3 7.6

1.7 0.7

9.0 8.3 -8.9%
Total liabilities

29.6 42.4

10.0 9.9

39.6 52.3 31.8%
Deferred Inflows of Resources

8.4 2.3

1.4 0.3

9.8 2.6 -73.5%
Net investment in capital assets

269.2

267.0

46.0 45.9

315.2

312.9 -0.7%
Restricted

34.1 36.9

6.7 6.9

40.8 43.8 7.4%
Unrestricted

0.3 4.8

18.3 15.9

18.6 20.7 11.3%
Total net position

303.6

308.7

71.0 68.7

374.6

377.4 0.7%
The net position of the City’s governmental and business-type activities increased 0.7% to $377.4 million. The increase was primarily due to an increase in Grants and Contributions from COVID-19 pandemic relief. Approximately 83% of the City’s net position is invested in capital assets such as buildings, land, equipment and facilities. The remaining 17% of net position is represented by restricted and unrestricted net position. Notable receivables are the $2.8 million in Taxes and $3.7 million from Utilities. Intergovernmental Receivables of $0.5 million grant funding for CIP, COPS funding, and other minor receivables. About 84.3% of the City's total liabilities are represented by long-term obligations 306

MANAGEMENT'S DISCUSSION AND ANALYSIS
8 including pension liabilities, lease revenue bonds, capital leases and loans from the State of California.

A more detailed list of long-term liabilities is found in Note G – Long-Term Liabilities on pages 52-56.

Changes in net position. The City's major sources of revenue and functional expenses are presented in charts 1 and 2. As summarized in Table A-2 on page 10, revenues for fiscal year 2022-23 totaled $57.0 million, an increase of $4.8 million or 9.2% from the prior year. The primary source of discretionary revenue for the City’s General Fund is property tax revenue which totaled $18.2 million or 32% of total revenues for the year and increased by 5.2% over fiscal year 2021-22 due to continued increases in home values and the addition of new properties to the tax roll as they become occupied.

Sales tax revenue increased by $2.9 million or 58% to $7.9 million in fiscal year 2022-23, due to a favorable State audit that determined sales tax revenues should have been allocated to the City instead of the County pools. These additional revenues included retroactive allocations and are one-time revenue recoveries. For the 2023-24 fiscal year we have budgeted sales tax revenues to increase from normal levels, excluding this one-time recovery. Approximately $15.6 million or 27% of all City revenues were generated from water, wastewater, and recycled water service fees and other revenue.

The total cost for all programs and services in fiscal year 2022-23 was $54.2 million which includes a wide range of services such as public safety, public works, community development, parks and recreation programs, storm drain, water and wastewater treatment plants and related distribution and collection systems. Major types of expenditures by function are shown in Chart 2. As summarized in Table A-2, for fiscal year 2022-23, expenses increased by $6.9 million or 14.6%. In this fiscal year, the Charges for services,
34%
Grants and
contributions, 9%
Property taxes, 32%
Sales taxes, 14%
Franchise Taxes, 2% Other, 9%
Chart 1
Sources of Revenues
General & Other Prog
18%
Public Safety
25%
Storm Drain
1%
Public works
15%
Comm Dev
7%
Parks & Rec
6%
Water and Sewer
28%
Chart 2
Functional Expenses
307

MANAGEMENT'S DISCUSSION AND ANALYSIS
9 General Government expenses increased by $3.3 million, a 50.8% increase from the prior year largely due to $1.8 million disposition of assets resulting from the removal of assets from the construction in progress account, projects were determined to be completed, cancelled and did not meet the capitalization threshold. Other factors included increases in insurance costs, wages and benefits as vacancies were filled, and legal expenses. Water, Wastewater and Recycled Water expenses were $1.7 million higher compared to prior year at $15.2 million. This increase is mainly the result of increased costs for producing water, equipment purchases and system repair and maintenance.

The City’s largest operating expense was public safety services and utility services. The City’s cost to provide police and fire protection services was $13.5 million or 25% of the City’s total operating expenses. Water and sewer service expenses were collectively $14.6 million or 26.9% of total expenses. Public Works and Storm Drain departments accounted for 15.5% of expenses, Community Development 6.8%, and Parks and Recreation 5.7%. The remaining 20.1% was expended on general City administration and other programs.

When all operations were concluded, governmental activities created a $5.1 million increase in net position and business-type activities created a $2.3 million decrease.

308

MANAGEMENT'S DISCUSSION AND ANALYSIS
10 Table A-2
Changes in the City of American Canyon’s Net Position
(in millions of dollars)
Governmental
Activities Business Type Activities Total
Total
Percentage
Change

2022 2023 2022 2023 2022 2023 2022-23
Revenues
Program revenues
Charges for services

5.7 7.3

13.7 13.7

19.4 21.0 8.2%
Grants and contributions - operating

4.7 2.0

0.2 0.3

5.0 2.3 -54.0%
Grants and contributions - capital

1.2 0.9

1.8 0.6

3.0 1.5 -50.0%
General revenues
Property taxes

17.3 18.2

17.3 18.2 5.2%
Franchise taxes

0.8 1.0

0.8 1.0 25.0%
Sales taxes

5.0 7.9

5.0 7.9 58.0%
Other

1.7 4.1

1.0 1.7

5.1 200.0%
Total revenues

36.4 41.4

15.7 15.6

52.2 57.0 9.2%
Expenses
General government

6.5 9.8

6.5 9.8 50.8%
Public Safety

15.2 13.5

15.2 13.5 -11.2%
Public works

6.5 8.4

6.5 8.4 29.2%
Community Development

2.2 3.7

2.2 3.7 68.2%
Parks and Recreation

2.7 3.1

2.7 3.1 14.8%
Storm Drain

0.4 0.4

0.4 0.4 0.0%
Water

8.3 9.0

8.3 9.0 9.6%
Wastewater

4.9 5.6

4.9 5.6 12.2%
Other

0.3 0.1

0.3 0.6

0.6 0.7 16.7%
Total expenses

33.8 39.0

13.5 15.2

47.3 54.2 14.6%
Excess (deficiency) before transfers

2.6 2.4

2.2 0.4

4.9 2.8 -42.9%
Transfers

2.2 2.7

(2.2)

(2.7)

- 0.0%
Increase(decrease) in net position

4.8 5.1

(2.3)

4.9 2.8 -42.9%
Net position, beginning

298.8

303.6

71.0 71.0

369.8

374.6 1.3%
Net position, ending

303.6

308.7

71.0 68.7

374.6

377.4 0.7%

309

MANAGEMENT'S DISCUSSION AND ANALYSIS
11 City Program Costs
Table A-3 presents the cost of each of the City's six largest programs: Public Safety, Public Works, Parks and Recreation, Water, Wastewater, and Community Development.

Table A-3
Cost of City of American Canyon's Programs
(in millions of dollars)
Total Cost of Services Percentage
Change
2022 2023 2022-23
Public Safety 15.2 13.5 -11.2%
Public Works (includes Storm drain) 6.9 8.8 27.5%
Community Development 2.2 3.7 68.2%
Parks and Recreation 2.7 3.1 14.8%
Water 8.3 9.0 9.6%
Wastewater 4.9 5.6 12.2%
Recycled Water 0.3 0.6 100.0%
All other 6.8 9.9 45.6%
Total 47.3 54.2 14.6%
The cost of all programs this year was $54.2 million, an increase of $6.9 million, or 14.6% compared with the prior year. Public safety decreased 11.2% or $1.6 million as a result of an insurance recovery that was previously paid and offset expenses. Public Works increased 27.5% or $1.9 million as a result of clearing out projects from the Construction in Progress account, projects have been completed, did not meet capitalization threshold or cancelled therefore have been expensed. Community Development increased 68.2% or $1.5 million associated with increased services by contract permit and building inspections which is offset with increased revenues. Expenses this fiscal year also include professional services associated with the annexation process for land in the northeast part of the City.

Governmental Activities
As detailed on the Statement of Activities, the City’s governmental program expenses totaled $39.0 million during the year. Program revenues, including grants, totaled $10.2 million leaving the City to fund the balance of $28.8 million with general revenues. Program revenues decreased by $1.4 million, while expenditures increased by $5.2 million over the prior year. The increase in the Program Revenues was due to increased building permit revenues as mentioned earlier as a result of increased development activity partially offset by decreased recreation program revenue compared to the prior year.

Business-Type Activities
At 2022-23 fiscal year-end, the net position for the City’s enterprise funds or business-type activities, the City’s Water, Wastewater, and Recycled Water funds, decreased $2.3 million from the prior year, charges for services remained the same compared to the prior year. Business-type revenues remained the same overall compared to FY 2021-22. Water fund expenses increased by $0.7 million or 9.6% compared to fiscal year 2021-22 and was primarily from increases in the cost of water purchases from the Norh Bay Aqueduct and City of Vallejo, as well as overall increases in wages and benefits for employees based on bargaining unit agreements. Wastewater fund expenses increased $0.7 million to $5.6 million, primarily due to the purchase of new equipment including a Vactor truck. An Enterprise Rate Study is currently underway and scheduled for presentation to the City Council in early 2024 for the establishment of updated water, wastewater and recycled water rates.

310

MANAGEMENT'S DISCUSSION AND ANALYSIS
12 FINANCIAL ANALYSIS OF THE CITY’S FUNDS
At the end of fiscal year 2022-23, the City’s governmental funds had a combined fund balance of $47.7 million, about $5.4 million more than the prior year. This can be attributed to public works activities for related to impact fees and capital improvement special revenue sources, which added $1.7 million of restricted fund balance in 2022-23; and the General Fund’s better than expected performance, due in part to sales tax revenue recovery for a total General fund contribution of $2.4 million. The Fire District Operations fund balance increased by $0.1 million or 2.0% as a result of fiscal year 2022-23 operations.

The City’s Cash and Investment accounts increased by $6.5 million compared to the prior year, totaling $84.3 million at fiscal year-end. The City’s Restricted Cash and Investments totaled $7.4 million of that balance. Fiduciary Funds comprised another $8.8 million of that balance. The Water and Wastewater enterprise funds ended the year with $23.7 million in cash and investments available for future use, of which $6.9 million is restricted.

The City’s General Fund had a surplus of revenues over expenditures of $0.3 million before other financing sources. General Fund Property Taxes increased by $0.3 million, Sales Taxes increased by $2.8 million, Other Taxes increased $0.1 million. Charges for Services increased by $0.5 million compared to the prior year. The City’s General Fund Expenditures increased by $3.1 million to $25.4 million mostly due to increase in supplies and services ($1.5 million), salary and benefits costs as vacant positions became filled and wage adjustments based on employee contracts ($0.7 million); and contract police services with the Napa County Sheriff’s Office ($0.5 million). The Transfers out to Other Funds increased by $0.7 million compared to the prior year due to a $0.7 million transfer to the Capital Projects Fund for the Corporation Yard Relocation Project. After including inter-fund transfers, the General Fund ended the fiscal year with an excess of $2.7 million.

The City’s non-major governmental funds ended the fiscal year with a consolidated fund balance of $24.9 million. This entire fund balance amount is restricted with externally enforceable legal restrictions.

General Fund Budgetary Highlights
Over the course of the year, the City Council amended the City budget to fund new projects, avoid cost overruns, to account for unanticipated revenues. Additionally, adjustments were made as a result of the mid-year budget review. At year-end, including all adjustments, actual General Fund expenditures, were $1.3 million less than final budget amounts. Salary and benefit savings were the largest item $0.3M followed by legal and professional services $0.3M.

The General Fund’s fund balance increased by $2.7 million from June 30, 2022 to June 30, 2023. The General Fund’s primary source of discretionary revenue is property taxes which totaled $12.4 million or 48.2% of total revenues for the year and increased by 2.4% over the prior year. This was under budget $0.2 million. Non-property taxes came in at budget and Charges for Services were $0.1 million more than the final budget.

311

MANAGEMENT'S DISCUSSION AND ANALYSIS
13 CAPITAL ASSET AND DEBT ADMINISTRATION
Capital Assets
As of June 30, 2023, the City had invested $326.0 million (net of accumulated depreciation) in a broad range of capital assets, including land, vehicles, equipment, the water, wastewater, and recycled water systems, streets, and other capital assets (see Table A-4). This amount represents a net decrease, after additions and deductions, of about $0.9 million or -0.3% compared to the prior fiscal year.

Additional information can be found in the notes to the financial statements, Note F – Capital Assets pages 48-51.

Table A-4
City of American Canyon's Capital Assets
(net of depreciation, in millions of dollars)

Governmental
Activities
Business-type
Activities Total
Total
Percentage
Change
2022 2023 2022 2023 2022 2023 2022-23

Land

10.2 10.2

2.2 2.2

12.4 12.4 0.0%
Construction in progress

12.7 8.8

8.9 4.2

21.6 13.0 -39.8%
Right of Ways

165.2

165.2 0.0%
Buildings and Improvements

26.9 26.5

2.9 7.6

29.8 34.1 14.4%
Machinery and Equipment

2.3 1.9

0.8 1.3

3.1 3.2 -3.0%
Water utility system

17.8 16.7

17.8 16.7 -6.2%
Wastewater system

15.6 14.9

15.6 14.9 -3.9%
Recycled water System

3.6 3.4

3.6 3.4 -5.6%
Infrastructure system

57.7 61.9

57.4 61.9 7.8%
Leased Vehicles

0.2 1.1

0.2 1.0 500.0%
Subscription Technology

0.2 0.3 100.0%
Total 275.2 275.8

51.8 50.3 327.0 326.1 -0.3%

312

MANAGEMENT'S DISCUSSION AND ANALYSIS
14 Long - Term Debt
At the end of fiscal year 2022-23, the City had about $12.8 million in long-term debt obligations outstanding. Of the $12.8 million, $4.4 million relates to the City’s business-type activities and the remaining $8.4 million is applicable to governmental type financing activities. The remaining other longterm debt of $31.2 million are estimated employee benefits payable by the City. The City’s componentunit, the City of American Canyon’s Fire Protection District, has long-term debt obligation from green energy upgrades of $0.3 million and a financed purchase of fire engines of $1.7 million. It also has a $0.1 million liability for uninsured workers compensation claims.

For governmental type activities, the major long-term debt year-end balances consist of a refinanced $4.6 million capital lease to purchase a commercial office building that was transformed into City Hall, and $0.5 million for green energy projects benefiting City Hall.

For business-type activities, major long-term debt year-end balances are comprised of green energy projects for the benefit of Water enterprises of $1.2 million and Wastewater enterprises of $2.8 million; and a $0.4 million State loan for water system improvement. The City has no bonded debt outstanding for its business-type activities.

Additional information about the City's long-term obligations can be found in the notes to the financial statements, Note G – Long Term Liabilities, on pages 52-56.

ECONOMIC FACTORS AND NEXT YEAR’S BUDGETS
Fiscal Year 2023 was a volatile year, government assistance payments to households and businesses ended as provisions of several federal programs expired. Inflation and interest rates remained elevated putting pressure on household budgets. Price increases in energy, food, and housing are having significant impacts on household budgets leaving them with little for discretionary spending. On the flip side, unemployment remained low and wages across industries continued to rise, leading to strong consumer spending in FY 2023. The Federal Reserve continued to raise interest rates in FY 2023 to battle high inflation, however although inflation remains elevated by historical levels, it is subsiding in many areas. High interest rates make financing mortgages more expensive and could price potential buyers out of the market leading to a slowdown in home sales and refinancings. California continues to struggle with a housing shortage and American Canyon is fortunate to have several market-rate and affordable housing development projects underway to alleviate some of those shortages.

The unemployment rate in California continues to decline. As of December 2023, the Employment Development Department reports a 3.4% unemployment rate. Retail, restaurants and the hotel industry have seen some of strongest employment gains as these sectors were the hardest hit during the pandemic, significant increases have also been seen in the construction and health care sectors.

Employers in the state have struggled to hire workers and fill positions. Since October 2021, there have been more job openings in California that there are workers to fill these positions, meaning that worker availability has been the primary constraint on job growth in the state.

American Canyon’s sales tax receipts from April 2023 through June 2023 were 31.5% above the same period in 2022. Excluding reporting aberrations, actual sales were down 4.5%. Results reflected measurable improvement over last year due to the audit recovery, but excluding that recovery revenues were down 4.5% reflecting the impact of inflation and less spending on taxable discretionary goods.

Casual dining restaurants, warehousing and county pool categories continued to report increases year over year. Net of aberrations, taxable sales for all of Napa County decreased 5.7% over the comparable time period; the Bay Area and State were down 3%. 313

MANAGEMENT'S DISCUSSION AND ANALYSIS
15 Approximately 48% of general fund revenue received is from property taxes. The annual CPI granted was 2.00% which was the same as last year. Looking ahead the year over year increase in citywide assessed valuation for FY 2024 is $421 million, $180.6 million more than the FY 2023 $240.4 million increase. This growth was on the strength of residential uses which were offset by vacant use declines as newly developed properties transition from vacant to other permanent uses. New construction throughout the City continues as building supplies shortages have subsided and demand for single family homes in the area is still strong. Many single family and multifamily residential projects are currently underway which will add to the overall assessed valuation in future years as homes are sold.

Detached Single Family Residence – City of American Canyon Year
D‐SFR
Sales
Median
Price
%
Change
2017 188 $498,500 10.78%
2018 175 $525,000 5.32%
2019 186 $515,000 ‐1.90%
2020 165 $570,000 10.68%
2021 185 $635,000 11.40%
2022 130 $670,000 5.5%
*2023 60 $670,000 0%

*through August 31, 2023
With the first 8 months of sales data processed for 2023, SFRs are selling for the same than in the previous calendar year. Prices for the full calendar year 2022 increased 5.5%. The median price of all SFRs in 2023 is $670,000 which is $32,000 higher than the peak price experienced in 2006 at $638,00.

Higher interest rates have put a pause in a lot of potential buyers purchases as the cost of mortgages became more expensive. Median prices did peak in late 2022 to $700,000 but have since settled at $670,000 for the full year. Current trends indicate steady sale prices as interest rates have slowly come down and more homes are coming to market increasing the number of transactions overall in 2024. 2023-24 Taxable Property Values:

Combined Values Total
Total Values $4,348,669,848
Total Exemptions $87,767,910
Net Total Values $4,260,901,938
The City anticipates continued increases in assessed valuation due to growing interest in industrial and residential development. Key development projects include the Broadway District Specific Plan, the Giovannoni Logistics Center, Canyon Estates, Oat Hill Residential multi-family residences, and continued development of Napa Logistics Park and Watson Ranch (the long-planned mixed-use commercial/retail town center). The City is also embarking on a General Plan Update, American Canyon’s blueprint for development of the City and any land outside its boundaries that bears relation to its planning.
314

MANAGEMENT'S DISCUSSION AND ANALYSIS
16 CONTACTING THE CITY'S FINANCIAL MANAGEMENT
This financial report is designed to provide our citizens, taxpayers, customers, investors, and creditors with a general overview of the City's finances and to demonstrate the City's accountability for the money it receives. If you have questions about this report or need additional financial information, contact the Finance Director, City of American Canyon, 4381 Broadway Street, Suite 201, American Canyon, California 94503.
315

BASIC FINANCIAL STATEMENTS
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317

CITY OF AMERICAN CANYON
Statement of Net Position
June 30, 2023
Governmental
Activities
Business-type
Activities Total
ASSETS
Cash and investments 51,006,740 $ 16,856,176 $ 67,862,916 $ Restricted cash and investments 546,704 6,879,458 7,426,162 Taxes receivable 2,806,177 2,806,177
Accounts receivable, net 1, 2,268,123 450,939 3,719,062 Internal balances (141,192) 141,192
Interest receivable 357,863 122,235 480,098
Due from other governments 573,221 573,221
Property held for resale 477,773 477,773
Prepaid expenses and other assets 469,529 8,082 477,611 Loans receivable, net 7,670,172 7,670,172
Capital assets:

Non-depreciable 6,372,224 184,112,536 190,484,760
Depreciable, net of accumulated depreciation 43,929,996 91,669,783 135,599,779 Total capital assets 50,302,220 275,782,319 326,084,539 TOTAL ASSETS 76,577,486 341,000,245 417,577,731

DEFERRED OUTFLOWS OF RESOURCES
Pension plan 7,700,088 1,404,470 9,104,558
OPEB plans 4,682,813 896,567 5,579,380
TOTAL DEFERRED OUTFLOWS OF RESOURCES 12,382,901 2,301,037 14,683,938

LIABILITIES
Accounts payable 1, 372,773 981,206 2,353,979
Accrued expenses 323,681 47,001 370,682
Unearned revenue 4,949,717 4,949,717
Accrued interest payable 61,320 36,565 97,885
Deposits 296,819 207,436 504,255
Long-term liabilities:

Due within one year
Bonds, leases and contracts 308,253 997,471 1,305,724
Compensated absences 164,140 684,682 848,822
Workers compensation claims and judgments 113,638 113,638 Due in more than one year
Bonds, leases and contracts 7, 4,066,210 463,894 11,530,104 Compensated absences 38,161 41,573 79,734
Net pension liability 2,986,789 16,518,742 19,505,531
Net OPEB liability 1,651,304 8,978,868 10,630,172
TOTAL LIABILITIES 9,903,387 42,386,856 52,290,243

DEFERRED INFLOWS OF RESOURCES
Pension plan 224,256 1,344,874 1,569,130
OPEB plans 976,352 45,210 1,021,562
TOTAL DEFERRED INFLOWS OF RESOURCES 2,321,226 269,466 2,590,692

NET POSITION
Net investment in capital assets 266,988,674 45,866,437 312,855,111 Restricted for:

Public safety 2,213,024 2,213,024
Public works 17,547,665 17, 547,665
Storm drain projects 5,814,903 5,814,903
Community development, planning and building 9,141,114 9,141,114 Parks 2,122,215 2,122,215
Capacity expansion 6,879,458 6,879,458
Other activities 104,059 104,059
Unrestricted 15,959,775 4,743,410 20,703,185
TOTAL NET POSITION $ 68,705,670 308,675,064 $ 377,380,734 $ The accompanying notes are an integral part of these financial statements. 17 318
Functions/Programs Expenses
Charges for
Services
Operating
Grants and
Contributions
Capital Grants
and
Contributions
Primary government
Governmental Activities
General government $ 802,991 9,789,205 $
Public safety 1,585,452 13,571,896 256,497 $
Public works 8,387,534 1,988,677 1,662,896 719,951 $
Community development 2,540,651 3,677,752 117,571 217,698 Parks and recreation 3,093,188 327,341
Storm drain 401,695 2,280
Int on long-term debt 126,887
TOTAL GOVERNMENTAL ACTIVITIES 7,245,112 39,048,157 2,039,244 937,649 Business-type activities
Water 8,544,184 8,955,804 318,918 332,951
Wastewater 4,940,178 5,591,878 235,879
Recycled Water 226,361 557,261
Total business-type activities 15,104,943 13,710,723 318,918 568,830 TOTAL PRIMARY GOVERNMENT $ 20,955,835 54,153,100 $ 2,358,162 $ 1,506,479 $ General revenues:

Taxes:

Property taxes, levied for general purposes
Franchise taxes
Sales taxes
Other taxes
Unrestricted investment earnings
Other
Transfers, net
Total general revenues and transfers
Change in net position
Net position, beginning of year
Net position, end of year
The accompanying notes are an integral part of these financial statements.

Program Revenue

CITY OF AMERICAN CANYON
Statement of Activities
For the Year Ended June 30, 2023
18 319
Governmental
Activities
Business-type
Activities Total
$ (8,986,214) (8,986,214) $
(11,729,947) (11,729,947)
(4,016,010) (4,016,010)
(801,832) (801,832)
(2,765,847) (2,765,847)
(399,415) (399,415)
(126,887) (126,887)
(28,826,152) (28,826,152)
$ 240,249 240,249
(415,821) (415,821)
(330,900) (330,900)
(506,472) (506,472)
(506,472) (28,826,152) (29,332,624)
18,218,818 18,218,818
1,031,183 1,031,183
7,863,107 7,863,107
2,448,830 2,448,830
650,946 558,488 1,209,434
300,942 1,051,888 1,352,830
(2,735,392) 2,735,392
(1,783,504) 33,907,706 32,124,202
(2,289,976) 5,081,554 2,791,578
70,995,646 303,593,510 374,589,156
$ 68,705,670 308,675,064 $ 377,380,734 $
Net (Expense) Revenue and Changes in Net Position
Primary Government
19 320
General Fund
Fire District
Operations
Special
Revenue
CDBG,
CalHome and
HOME Loan
Development
Special
Revenue
State and
Federal
Grants - City
Special
Revenue
ASSETS
Cash and investments 12,354,007 $ 5,658,493 $ 116,385 $ 4,538,398 $ Restricted cash and investments 247,169
Taxes receivable 106,503 1,799,097
Accounts receivable, net 23,374 965,450
Interest receivable 38,825 164,078 930
Due from other governments 53,507 433,555
Due from other funds 1,658,806 35,727
Property held for resale 417,503
Prepaid expenditures and deposits 57,812
Loans receivable, net 2,302,926
TOTAL ASSETS 17,470,260 $ 6,110,091 $ 2,420,241 $ 4,971,953 $

LIABILITIES, DEFERRED INFLOWS AND FUND BALANCES
Liabilities:

Accounts payable 990,208 $ 173,069 $ 1,412 $ 56,341 $
Accrued expenses 80,142 178,761
Unearned revenue 310,033 4,639,684
Deposits 296,819
Due to other funds
TOTAL LIABILITIES 1,775,821 253,211 1,412 4,696,025

DEFERRED INFLOWS OF RESOURCES
Unavailable revenue 106,503 393,948 2,302,926 193,971

TOTAL DEFERRED INFLOWS
OF RESOURCES 393,948 106,503 2,302,926 193,971

FUND BALANCES
Nonspendable:

Property held for resale 417,503
Prepaid expenditures and deposits 57,812
Restricted for:

Public safety 144,765 445,319
Public works 81,957
Storm drain projects
Community development, planning and building 937,082 115,903 Parks
Other activities 104,059
Committed 7,915,030 1,392,733
Assigned 3,912,325 1,000,000
Unassigned 4,724,240
TOTAL FUND BALANCES (DEFICITS) 15,300,491 5,750,377 115,903 81,957

TOTAL LIABILITIES, DEFERRED
INFLOWS AND FUND BALANCES 17,470,260 $ 6,110,091 $ 2,420,241 $ 4,971,953 $ The accompanying notes are an integral part of these financial statements.

Major Funds

CITY OF AMERICAN CANYON
Balance Sheet
Governmental Funds
June 30, 2023
20 321
City Capital
Projects
Affordable
Housing
Capital
Projects
Nonmajor
Governmental
Funds
Total
Governmental
Funds
$ 247,829 1,079,945 $ 25,719,020 $ 49,714,077 $
299,535 546,704
900,577 2,806,177
270,494 180,101 1,439,419
141,499 1,975 347,307
86,159 573,221
1,694,533
60,270 477,773
57,812
93,625 5,273,621 7,670,172
$ 5,583,695 1,350,439 $ 27,420,516 $ 65,327,195 $
571,724 $ 1,792,754 $
$ 60,053 318,956
4,949,717
296,819
1,447,670 1,447,670
60,053 2,019,394 8,805,916
$ 534,322 5,273,621 8,805,291
534,322 5,273,621 8,805,291
417,503
57,812
2,020,362 1,430,278
1,290,386 17,375,356 18,747,699
5,814,903 5,814,903
310,074 107,883 1,470,942
2,122,215 2,122,215
104,059
9,307,763
4,912,325
2,740,405 (1,983,835)
310,074 1,290,386 24,866,800 47,715,988
$ 5,583,695 1,350,439 $ 27,420,516 $ 65,327,195 $
Major Funds
21 322

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323

CITY OF AMERICAN CANYON
Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Position June 30, 2023
Total fund balance, governmental funds $ 47,715,988
Amounts reported for governmental activities in the Statement of Net Position are different because:

Capital assets used in governmental activities are not current financial resources and, therefore, are not reported in the fund financial statements, but are reported in the governmental activities of the Statement of Net Position. 275,782,319
Revenues and loans receivable, which are deferred in the governmental funds because they are not available currently, are recognized as revenue in the Statement of Activities. 8,805,291 Internal service funds are used by management to charge the costs of activities to individual funds. The assets and liabilities of internal service funds are included in governmental activities in the Statement of Net Position.

This amount excludes long-term assets and liabilities reported in other line items. 780,224 Long-term assets and liabilities are not due and payable in the current period and are not included in the fund financial statements, but are included in the governmental activities of the Statement of Net Position.

Prepaid rent and deposits 365,000
Accrued interest payable (36,565)
Bonds, leases and contracts (8,461,365)
Compensated absences (726,255)
Uninsured claims (113,638)
Net pension liability (16,518,742)
Net OPEB liability (8,978,868)
Employee pension differences to be recognized in the future as pension expense are reported as deferred outflows and inflows of resources on the Statement of Net Position. 6,355,214 Employee OPEB differences to be recognized in the future as OPEB expense are reported as deferred outflows and inflows of resources on the Statement of Net Position. 3,706,461 NET POSITION OF GOVERNMENTAL ACTIVITIES IN THE STATEMENT OF NET POSITION $ 308,675,064 The accompanying notes are an integral part of these financial statements. 22 324
General Fund
Fire District
Operations
Special
Revenue
CDBG,
CalHome and
HOME Loan
Development
Special
Revenue
State and
Federal
Grants - City
Special
Revenue

REVENUES
Property taxes $ 5,403,686 12,438,663 $
Sales taxes 5,901,732
Other taxes 739,041 2,944,624
Special assessments
Fines and forfeitures 156,371
Licenses and permits 1,070,286
Intergovernmental 77,866 6,051 $ 1,179,213 $
Charges for services 382,801 2,159,290
Use of money and property 91,151 306,271 2,359
Other 159,543 643,249 76,910
TOTAL REVENUES 25,698,352 6,776,222 85,320 1,179,213

EXPENDITURES
Current:

General government 7,383,404
Public safety 7,064,902 8,337,957
Public works 2,575,048
Community development 3,568,827 10,308
Parks and recreation 3,070,204
Storm drain 384,808
Debt Service:

Principal 102,000
Interest and other charges 34,490
Capital outlay 1,565,995 29,908
TOTAL EXPENDITURES 25,350,156 8,767,387 10,308

EXCESS (DEFICIENCY) OF REVENUES OVER
EXPENDITURES (1,991,165) 348,196 75,012 1,179,213

OTHER FINANCING SOURCES (USES)
Issuance of long-term debt 1,842,000
Transfers in 3,181,725 268,746
Transfers out (815,985) (435,769)

TOTAL OTHER FINANCING
SOURCES AND USES 2,110,746 2,365,740 (435,769)
NET CHANGE IN FUND BALANCES 2,713,936 119,581 75,012 743,444 Fund balances (deficits), beginning of year 5,630,796 12,586,555 40,891 (661,487) FUND BALANCES (DEFICITS), END OF YEAR $ 5,750,377 15,300,491 $ 115,903 $ 81,957 $ The accompanying notes are an integral part of these financial statements Major Funds

CITY OF AMERICAN CANYON
Statement of Revenues, Expenditures and Changes in Fund Balances Governmental Funds
For the Year Ended June 30, 2023
23 325
City Capital
Projects
Affordable
Housing
Capital
Projects
Nonmajor
Governmental
Funds
Total
Governmental
Funds
17,842,349 $
1,986,981 $ 7,888,713
3,683,665
651,971 651,971
156,371
1,070,286
1,178,745 2,441,875
$ 218,886 1,271,848 $ 1,887,403 5,920,228
482,308 5,220 887,309
3,871 487,210 1,370,783
227,977 1,271,848 6,674,618 41,913,550
270,137 7,653,541
15,402,859
1,768,658 901,776 5,245,482
750 90,000 3,669,885
1,116 3,071,320
384,808
41,371 143,371
112,253 146,743
3,737,939 5,333,842
90,000 5,506,597 1,327,403 41,051,851
137,977 (4,234,749) 5,347,215 861,699
1,842,000
5,692,033 115,985 9,258,489
(70,492) (268,746) (4,932,105) (6,523,097)
(70,492) 5,423,287 (4,816,120) 4,577,392
67,485 1,188,538 531,095 5,439,091
242,589 101,848 24,335,705 42,276,897
$ 310,074 1,290,386 $ 24,866,800 $ 47,715,988 $
Major Funds
24 326

CITY OF AMERICAN CANYON
Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities
For the Year Ended June 30, 2023
Net change in fund balances - total governmental funds: $ 5,439,091 Amounts reported for Governmental Activities in the Statement of Activities are different because:

Governmental funds report outlays for capital assets as expenditures because such outlays use current financial resources. In contrast, the Statement of Activities reports only a portion of the outlay as expense.

The outlay is allocated over the assets' estimated useful lives as depreciation expense for the period.

Capital outlay 5,333,842
Depreciation expense (4,545,934)
Disposals (1,828,826)
Transfers from enterprise funds 211,864
Governmental funds do not present revenues that are not available to pay current obligations. In contrast, such revenues are reported in the Statement of Activities when earned. (389,740) Governmental funds report debt proceeds as current financial resources. In contrast, the Statement of Activities treats such issuance of debt as a liability. Governmental funds report repayment of bond principal as an expenditure. In contrast, the Statement of Activities treats such repayments as a reduction in long-term liabilities. This is the amount by which proceeds exceeded repayments, net of amortization of deferred amount on refunding. (1,698,629)
Internal service funds are used by management to charge the costs of activities to individual funds. The net revenue of certain internal service funds is reported with governmental activities. 341,485 Some expenses reported in the statement of activities do not require the use of current financial resources and these are not reported as expenditures in governmental funds:

Change in prepaid rent (6,000)
Change in deferred outflows of resources-pension plan 4,289,686 Change in deferred outflows of resources-OPEB plans 1,580,488 Change in accrued interest payable (14,593)
Change in compensated absences 22,078
Change in uninsured claims 2,020,343
Change in net pension liability (8,595,641)
Change in net OPEB liability (3,179,324)
Change in deferred inflows of resources-pension plan 4,862,522 Change in deferred inflows of resources-OPEB plans 1,238,842 CHANGE IN NET POSITION OF GOVERNMENTAL ACTIVITIES $ 5,081,554 The accompanying notes are an integral part of these financial statements. 25 327

CITY OF AMERICAN CANYON
Statement of Net Position
Proprietary Funds
June 30, 2023
Governmental
ActivitiesWater Wastewater
Recycled
Water Total
Internal
Service Funds
ASSETS
Current assets:

Cash and investments 11,103,665 $ 5,264,859 $ 487,652 $ 16,856,176 $ 1,292,663 $ Accounts receivable, net 1,573,038 660,539 34,546 2,268,123 11,520 Interest receivable 55,790 62,009 4,436 122,235 10,556
Prepaid expenses 3,900 4,079 103 8,082 46,717
Total current assets 12,736,393 5,991,486 526,737 19,254,616 1,361,456 Non-current assets:

Restricted cash and investments 6,333,174 546,284 6,879,458 Advances to other funds 1,269,554 5,539,179 6,808,733
Capital assets:

Non-depreciable 3,516,932 1,941,680 913,612 6,372,224
Depreciable, net of accumulated depreciation 18,541,407 21,324,300 4,064,289 43,929,996 1,947,890 Total non-current assets 29,661,067 29,351,443 4,977,901 63,990,411 1,947,890 TOTAL ASSETS 42,397,460 35,342,929 5,504,638 83,245,027 3,309,346

DEFERRED OUTFLOW OF RESOURCES
Pension plan 626,869 773,363 4,238 139,351 1,404,470
OPEB plan 267,280 621,819 7,468 98,658 896,567
Total deferred outflows of resources 1,395,182 894,149 11,706 238,009 2,301,037

LIABILITIES
Current Liabilities:

Accounts payable 158,939 213,834 372,773 188,452
Accrued expenses 25,104 21,660 237 47,001 4,725
Accrued interest payable 10,964
Due to other funds 246,863
Deposits 163,251 44,185 207,436
Compensated absences, current portion 72,222 91,918 164,140 19,478 Bonds, notes and loans payable, current portion 165,634 142,619 308,253 342,678 Total current liabilities 462,640 636,726 237 1,099,603 813,160 Non-current liabilities:

Advances from other funds 6,808,733 6,808,733
Compensated absences, non-current portion 15,991 22,170 38,161 Bonds, notes and loans payable 2,672,047 1,455,483 4,127,530 1,048,993 Net pension liability 1,644,658 1,333,119 9,012 2,986,789 296,348 Net OPEB liability 1,145,271 492,278 13,755 1,651,304 181,707 Total non-current liabilities 3,303,050 5,477,967 6,831,500 15,612,517 1,527,048 TOTAL LIABILITIES 5,940,607 3,939,776 6,831,737 16,712,120 2,340,208

DEFERRED INFLOW OF RESOURCES
Pension plan 123,485 100,094 677 224,256 22,251
OPEB plan 13,478 31,356 376 45,210 4,974
Total deferred inflows of resources 113,572 154,841 1,053 27,225 269,466

NET POSITION
Net investment in capital assets 20,460,237 20,428,299 4,977,901 45,866,437 554,567 Restricted for:

Capacity expansion 6,333,174 546,284 6,879,458
Unrestricted 9,668,080 12,444,850 (6,294,347) 15,818,583 625,355 TOTAL NET POSITION (DEFICIT) 39,238,261 $ 30,642,663 $ (1,316,446) $ 68,564,478 1,179,922 $ 141,192
$ 68,705,670
The accompanying notes are an integral part of these financial statements.

TOTAL NET POSITION PER GOVERNMENT-WIDE FINANCIAL STATEMENTS The assets and liabilities of certain internal service funds are not included in the fund financial statement, but are included in the Business Activities of the Statement of Net Position.

Business Type ActivitiesEnterprise Funds
26 328

CITY OF AMERICAN CANYON
Statement of Revenues, Expenses and Changes in Fund Net Position Proprietary Funds
For the Year Ended June 30, 2023
Governmental
ActivitiesWater Wastewater
Recycled
Water Total
Internal
Service Funds

OPERATING REVENUES
Charges for services $ 4,940,178 8,544,184 $ 226,361 $ 13,710,723 $ 2,437,842 $ Other 171,546 448,314 619,860
TOTAL OPERATING REVENUES 8,992,498 5,111,724 226,361 14,330,583 2,437,842

OPERATING EXPENSES
Employee services 1,904,177 1,592,962 14,303 3,511,442 253,950 Maintenance and operations 6,004,493 1,827,620 188,152 8,020,265 1,896,384 Depreciation 1,274,314 1,746,613 222,255 3,243,182 425,012 TOTAL OPERATING EXPENSES 8,871,769 5,478,410 424,710 14,774,889 2,575,346 OPERATING INCOME (LOSS) 120,729 (366,686) (198,349) (444,306) (137,504)

NON-OPERATING REVENUES (EXPENSES)
Interest and investment revenue 336,058 302,496 12,392 650,946 21,580 Other revenue 5,157
Interest expense (83,380) (56,216) (130,911) (270,507) (50,926) Gain (loss) on disposal of capital assets 8,761

TOTAL NON-OPERATING
REVENUE (EXPENSES) 246,280 252,678 (118,519) 380,439 (15,428)

INCOME (LOSS) BEFORE
CONTRIBUTIONS AND TRANSFERS 367,009 (114,008) (316,868) (63,867) (152,932)

CONTRIBUTIONS AND TRANSFERS
Capital contributions 332,951 235,879 568,830
Transfers in 180,888 15,190 196,078
Transfers out (1,152,085) (1,447,923) (331,462) (2,931,470) CHANGE IN NET POSITION (747,963) (849,326) (633,140) (2,230,429) (152,932) Net position (deficit), beginning of year 31,491,989 39,986,224 (683,306) 70,794,907 1,332,854

TOTAL NET POSITION (DEFICIT),
END OF YEAR 39,238,261 $ 30,642,663 $ (1,316,446) $ 68,564,478 1,179,922 $ Change in net position (2,230,429)
(59,547)
$ (2,289,976)
The accompanying notes are an integral part of these financial statements.

CHANGE IN NET POSITION OF BUSINESS TYPE ACTIVITIES
Adjustment to reflect the consolidation of internal service fund activities related to enterprise funds.

Business Type Activities
Enterprise Funds
27 329
Governmental
Activities
Water Wastewater
Recycled
Water Total
Internal
Service Funds

CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from customers 9,202,311 $ 5,187,475 $ 230,007 $ 14,619,793 $ Cash paid to suppliers (6,391,103) (1,727,606) (216,470) (8,335,179) (1,758,416) $ Cash paid to employees and related benefits (1,796,305) (1,801,081) (1,952) (3,599,338) (263,342) Cash (paid) received from interfund services provided (60,098) (115,100) (175,198) 2,437,842 Other receipts 10,815
CASH PROVIDED BY OPERATING ACTIVITIES 954,805 1,543,688 11,585 2,510,078 426,899

CASH FLOWS FROM NONCAPITAL

FINANCING ACTIVITIES
Amounts received (paid) to other funds (3,142,663) (2,419,533) 950,778 (4,611,418)

CASH (USED) PROVIDED BY NONCAPITAL AND
RELATED FINANCING ACTIVITIES (3,142,663) (2,419,533) 950,778 (4,611,418) CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES:

Capital assets purchased (384,843) (1,055,668) (902,180) (2,342,691) (148,417) Capital revenues received 332,951 235,879 568,830
Proceeds from disposal of capital assets 40,352
Principal paid on long-term liabilities (141,894) (876,722) (1,018,616) (238,621) Proceeds from long-term liabilities 5,760 5,760
Interest paid on long-term liabilities (67,730) (102,072) (130,911) (300,713) (40,049)

CASH PROVIDED (USED) BY CAPITAL AND
RELATED FINANCING ACTIVITIES (255,756) (1,798,583) (1,033,091) (3,087,430) (386,735)

CASH FLOWS FROM INVESTING ACTIVITIES
Collection of interest and investment revenue 246,706 288,660 8,870 544,236 12,448 CHANGE IN CASH AND CASH EQUIVALENTS (2,196,908) (2,385,768) (61,858) (4,644,534) 52,612 Cash and cash equivalents, beginning of year 8,196,911 19,633,747 549,510 28,380,168 1,240,051 CASH AND CASH EQUIVALENTS, END OF YEAR 17,436,839 $ 5,811,143 $ 487,652 $ 23,735,634 $ 1,292,663 $

American Canyon City CouncilJanuary 16, 2024

American Canyon City Council
January 16, 2024