Agenda packet — Belmont City Council, June 11, 2024 (part 1 of 7)

CITY OF BELMONT

CITY COUNCIL AND BELMONT FIRE

PROTECTION DISTRICT BOARD OF

DIRECTORS
www.belmont.gov

1. ROLL CALL

2. PLEDGE OF ALLEGIANCE

3. REPORT FROM CLOSED SESSION

4. SPECIAL PRESENTATIONS
A. Proclamation Recognizing Pride Month
B. Proclamation Recognizing Junteenth

CITY COUNCIL REGULAR MEETING AGENDA
Tuesday, June 11, 2024
7:00 PM
City Council Chambers
City Hall, One Twin Pines Lane, Belmont, California
The meeting will be broadcast live to Belmont residents on Comcast Cable Channel 27, streamed live via the City’s website at www.Belmont.gov. The public may also attend the meeting in the Chambers and address the Council from the Chambers.

PUBLIC COMMENT:

To maximize time for live public comment, we encourage members of the public to provide comments by joining the Committee meeting via Zoom : For web, visit https://belmont-gov.zoom.us/ select “Join” and enter Meeting ID: 95745673035. Use the Raise Hand feature to request to speak. You may rename your profile if you wish to remain anonymous.

For dial- in comments, call *67 1-(669) 900-6833 (your phone number will appear on the live broadcast if *67 is not dialed prior to the phone number), enter Meeting ID: 95745673035, and press *9 to request to speak. All public comments are subject to a 3-minute time limit unless otherwise determined by the Committee Chair.

If you wish to submit written public comment, you may send an email to [email protected] before the council considers the item. Please indicate the agenda item topic or agenda item number you wish to comment on in your email’s subject line. Any public comment regarding agenda items that are received from the publication of the agenda through the meeting date will be made part of the meeting record but will not be read during the Council meeting.
1 C. Belmont Strategic Communications and Community Engagement Update

5. PUBLIC COMMENTS ON ITEMS NOT ON THE AGENDA

6. COUNCILMEMBER ANNOUNCEMENTS

7. CONSENT BUSINESS
A. Approval of Minutes
B. Monthly Financial Reports - April 2024
C. Service Agreement between the City of Belmont and IEDA D. 2023 Sanitary Sewer Rehabilitation Project Notice of Completion E. Belmont-San Carlos Fire Department Budgets for FY 2024-25 and FY 2025-26 This portion of the meeting is reserved for persons wishing to address the Body on any City matter not on the agenda. The period for public comment at this point in the agenda is limited to 15 minutes, with a maximum of 3 minutes per speaker. Speakers who requested but did not receive an opportunity to speak during this comment period will be given an opportunity to address the Body later in the meeting. State law prohibits the Body from acting on non-agenda items.

Consent business items are considered to be routine in nature and will be enacted by one motion. There will be no separate discussion on these items unless a member or staf request specific items to be removed for separate action.

The City Attorney will read the title of ordinances to be adopted.

Recommendation: Consider modifications and approve minutes Attachment(s):

May 28, 2024 City Council Regular Meeting
May 28, 2024 BFPD Minutes
Attachment(s):

Monthly Financial Reports - April
Recommendation: Adopt a resolution approving a three-year service agreement between the City of Belmont and Industrial Employers and Distributors Association, Inc. (IEDA) for labor negotiation services.

Attachment(s):

Staff Report-Service Agreement with IEDA
Resolution-Service Agreement with IEDA
Exhibit A-Draft Agreement and Scope of Services
Recommendation: Adopt a resolution accepting the work and authorizing the issuance of a Notice of Completion for the 2023 Sanitary Sewer Rehabilitation Project, City Contract Number 2023-620, Recording of Notice of Completion, and Release of Retention 35 days after Recording Notice of Completion
Attachment(s):

Staff Report
Resolution
Recommendation: Adopt a resolution ratifying the proposed budgets for the Belmont-San Carlos Fire Department for Fiscal Year (FY) 2024-25 and FY 2025-26, which cover the period July 1, 2024 through June 30, 2026
Attachment(s):
2 8. PUBLIC HEARINGS
A. Proposed Increases to Sewer Service Charges Effective Fiscal Years 2024-25 and 2025- 26 B. Public Hearing – Annual Report for Collection of Sewer Service Fees C. Public Hearing – Annual Report for Collection of Sewer Treatment Facility Charges D. Public Hearing – Annual Report for Collection of Storm Drainage Fees Staff Report
Resolution
Proposed FY 2024-25 and FY 2025-26 Budgets
Recommendation: Hold a Public Hearing and, 1) If protest is not made by the owners of a majority of separate parcels of property, adopt a resolution (Attachment A) increasing the City’s sewer charges effective fiscal years 2024-25 and 2025-26; and, 2) If protest is made by the owners of a majority of separate parcels of property, the City should stop further proceedings of the rate proposal and direct staff to prepare an annual report of City sewer service charges based on current sewer service rates
Attachment(s):

Staff Report
Resolution
Attachment B - 2024 Comprehensive Sewer Rate Study
Attachment C - Proposition 218 Notice
Recommendation: 1. Hold a public hearing to consider protests to collecting the fees on the tax roll; and

2. Unless there is a majority protest, overrule objections and adopt a resolution approving the annual report for collection on the tax roll of sewer services fees charged to parcels to fund the operation and maintenance of the City's sewer collection system Attachment(s):

Staff Report
Resolution
Sewer Service Charges Report FY 2024-25
Recommendation: 1. Hold a public hearing to consider protests to collecting the fees on the tax roll; and

2. Unless there is a majority protest, overrule objections and adopt a resolution approving the annual report for collection on the tax roll of the sewer treatment facility fees charged to parcel owners to fund the City of Belmont's share of the Silicon Valley Clean Water (SVCW) sewer treatment plant and conveyance system
Attachment(s):

Staff Report
Resolution
Sewer Treatment Facility Charges Report FY 2024-25
Recommendation: 1. Hold a public hearing to consider protests to collecting the fees on the tax roll;

2. Unless there is a majority protest, overrule objections and adopt a resolution approving the annual report for collection on the tax roll of storm drainage fees charged to parcel owners to fund the City of Belmont's National Pollutant Discharge Elimination System (NPDES) Storm 3 E. Adopt Budget and Related Items for Fiscal Year 2024-25

9. GENERAL BUSINESS

10. BRIEF VERBAL REPORTS FROM MEMBERS AND STAFF

11. MATTERS OF INTEREST/CLARIFICATION

12. ADJOURNMENT
Water Compliance Program for FY 2024-25
Attachment(s):

Staff Report
Resolution
NPDES Charges FY 2024-25
Recommendation: Adopt resolutions approving the Fiscal Year 2024-25 Budget, approving the Appropriations Limit, authorizing the Special Library Tax, and approving revisions to certain fees in the Master Revenue Schedule
Attachment(s):

Staff Report
Presentation
Resolutions
General Business items are considered separately, typically in the order listed. The chair will call for public comment on each item when the body considers the item.

A. Verbal report from Councilmembers on Intergovernmental (IGR) and Subcommittee Assignments
B. Verbal report from City Manager
Items in this category are for discussion and direction to staf only. However, Council/Board may take final action on an item if there is no need for additional staf analysis.

If you need assistance to participate in this meeting, please contact the City Clerk at (650) 595-7413. Notification in advance of the meeting will enable the City to make reasonable arrangements to ensure accessibility to this meeting.

Meeting information can also be accessed via the internet at:www.belmont.gov. All staf reports will be posted to the web in advance of the meeting, and any writings or documents provided to a majority of the City Council/District Board or Commission regarding any item on this agenda will be made available for public inspection in the City Clerk's Of ice, One Twin Pines Lane, during normal business hours and at the Council Chambers at City Hall, Second Floor, during the meeting.

AGENDA POSTING: I declare a copy of this agenda was posted at City Hall, One Twin Pines Lane, and the City's website www.belmont.gov on ,by . /s/
4 Combined Agency Meeting Minutes
May 28, 2024

Page 1 ends

MINUTES OF CITY OF BELMONT CITY COUNCIL AND BELMONT FIRE PROTECTION DISTRICT

BOARD OF DIRECTORS REGULAR MEETING
City Council Chambers, City Hall, One Twin Pines Lane, Belmont, California TUESDAY, MAY 28, 2024
CALL TO ORDER: 7:00 PM

ROLL CALL
COUNCILMEMBERS PRESENT: Pang-Maganaris, McCune, Hurt (arrived at 7:05 pm), Latimerlo, Mates
COUNCILMEMBERS ABSENT: None

PLEDGE OF ALLEGIANCE
Led by Mayor Mates.

REPORT FROM CLOSED SESSION
No closed session prior to regular meeting.

SPECIAL PRESENTATIONS
None

PUBLIC COMMENTS ON ITEMS NOT ON THE AGENDA
Giuliano Carlini commented on protected bike infrastructure.

COUNCILMEMBER ANNOUNCEMENTS
Councilmembers provided information on upcoming City events.

CONSENT BUSINESS
Minutes, City Council May 14, 2024 Special and Regular Meeting Minutes BFPD May 14, 2024 Meeting Minutes
Resolution 2024-33 authorizing the City Manager to negotiate and execute an amendment to the agreements with Gates + Associates for an additional $10,460 for Parks, Recreation, and Open Space Master Plan Services bringing the total amount not to exceed to $234,709 (including contingency) and an amendment to the agreement with WRA, Inc. for Open Space Management Plan and Environmental Impact Analysis Services for an additional $22,000 bringing the total amount not to exceed to $313,211 (including contingency) Resolution 2024-34 Attachment A, authorizing the City Manager to negotiate and execute a Task Order with Pavement Engineering, Inc. to provide construction management and inspection services for an amount not to exceed $199,980 for the 2024 Slurry Seal Project, City Contract Number 2024-630
Resolution 2024-35 authorizing the City Manager to negotiate and execute Amendment #1 to the contract with Parametrix, Inc. for additional services to extend the southbound left turn pocket at Ralston Avenue including a civil demolition plan for the El Camino Real concrete 5 Combined Agency Meeting Minutes
May 28, 2024

Page 2 ends

median, civil, striping and landscaping plans for the improved concrete median, and a traffic control plan during construction for an additional amount of $49,805, for a total contract cost to a not-to-exceed amount of $165,125
Resolution 2024-36 approving the establishment of 1) two-hour timed parking signs on the diagonal back-in parking sign locations at Artisan Crossing, 1325 Old County Road, and 2) no parking zone along various sections of the median and curbs along Irene Court Resolution 2024-37 authorizing the City Manager to negotiate and execute a Task Order with MNS Engineers, Inc. to provide construction management and inspection services for an amount not to exceed $270,452 for the San Juan Blvd. Capacity Improvement Project, City Contract Number 2024-631
In response to Council inquiry City Attorney Rennie explained that the amendment to the Gates and Associates and WRA contracts (Resolution 2024-33)is to provide assistance in preparing documents in response to the current litigation regarding the Parks, Recreation, and Open Space Master Plan Services (PROS) Plan.

City Manager Oskoui confirmed that a tree mitigation planting plan is in place for removal of trees associated with the project described in Resolution 2024-35.

Public Comment provided by Giuliano Carlini.

Written public comment received.

ACTION: On a motion made by Councilmember Hurt and seconded by Councilmember Latimerlo the Consent Business items were unanimously approved by a roll call vote (5-0).

PUBLIC HEARINGS
None

GENERAL BUSINESS
Introduction of the Proposed Fiscal Year 2024-25 Budget Finance Director Castaneda introduced the proposed fiscal year FY 2024-25 budget, noting that the budget is balanced. Executive Staff highlighted proposed department budgets. Director Castaneda noted that as part of the City’s budget development process, the Audit Committee will review the proposed FY 2024-25 budget prior to the June 11, 2024 public hearing and make recommendation to the Council regarding adoption.

Council deliberation ensued. Council concurred with the staff budget presentation. No action was taken.

TEMS TAKEN OUT OF ORDER

BRIEF VERBAL REPORTS FROM MEMBERS AND STAFF
Verbal report from Councilmembers on Intergovernmental (IGR) and Subcommittee Assignments
6 Combined Agency Meeting Minutes
May 28, 2024

Page 3 ends

Council reported on their assignments.

Verbal report from City Manager
City Manager Oskoui did not have an update.

MATTERS OF INTEREST/CLARIFICATION
None
RECESS at this time being 8:25 P.M. to Closed Session
Closed session - Conference with Labor Negotiators (Government Code Section 54957.6); Agency designated representatives: Davina Hurt and Robin Pang-Maganaris; Unrepresented Employees: City Manager, City Attorney
No reportable action taken.

ADJOURNMENT at this time being 11:00 p.m.

Submitted by,
Jozi Plut, City Clerk

7 Regular Meeting
Belmont Fire Protection District
May28, 2024

Page 1 ends

MEETING MINUTES OF THE CITY OF BELMONT CITY COUNCIL AND BELMONT FIRE PROTECTION

DISTRICT BOARD OF DIRECTORS REGULAR MEETING
City Council Chambers, City Hall, One Twin Pines Lane, Belmont, California This meeting is concurrent with the City Council Meeting TUESDAY, MAY 28, 2024
CALL TO ORDER: 7:00 PM

ROLL CALL
DIRECTORS PRESENT: Mates, Latimerlo, Hurt (arrived at 7:05 p.m.), McCune, Pang-Maganaris DIRECTORS ABSENT: None

CONSENT BUSINESS
BFPD May 14, 2024 Meeting Minutes
ACTION: On a motion made by Director Hurt and seconded by Director Latimerlo the Consent Business items were unanimously approved by a roll call vote (5-0).

Directors’ deliberation ensued. Directors concurred with the staff budget presentation. No action was taken.

RECESS at this time being 8:25 P.M. to Closed Session
ADJOURNMENT at this time being 11:00 p.m.

Submitted by,
Jozi Plut, District Secretary
8 FISCAL YEAR 2023-24
MONTHLY FINANCIAL REPORT - APRIL 30, 2024

HIGHLIGHTS

PERFORMANCE AT

A GLANCE REPORT
• General Fund balance decreased
compared to prior YTD

FUND RECAP AT A GLANCE
REPORT
Notable Fund Balance Increase compared to prior YTD:
•General Fund
•Development Services
•Belmont Fire Protection District
•Street Improvement
•Fleet & Equipment Management
• Sewer Collection System
• Sewer Treatment
Notable Fund Balance Decrease compared to prior YTD:
• Planned Park
• Storm Drainage Enterprise

CASH DISBURSEMENTS &

PURCHASE ORDER

ACTIVITY REPORT
•Amounts equal to and above $50,000

BUDGET VARIANCE
REPORT
• Management Discussion & Analysis
• Tax Trends
This report contains financial information which has not been reviewed or audited by an independent auditor, does not reflect the application of generally accepted accounting principles in all instances and is subject to future revision. This report has not been prepared with a view to informing an investment decision in any of the City’s bonds, notes or other obligations. Any projections, plans or other forward-looking statements included in this report are subject to a variety of uncertainties that could cause any actual plans or results to differ materially from any such statement. The information herein is not intended to be used by investors or potential investors in considering the purchase or sale of the City’s bonds, notes or other obligations and investors and potential investors should rely only on information filed by the City on the Municipal Securities Rulemaking Board’s Electronic Municipal Market Access System for municipal securities disclosures and website, maintained on the World Wide Web at https://emma.msrb.org/ These financial reports are designed to provide a general overview of the City of Belmont’s interim finances. Questions concerning any information provided in these reports should be addressed to [email protected] or for additional information regarding the City’s financial activities, including past award winning audited financial statements, transparency efforts and best practices please visit the City at www.belmont.gov. 9 City of Belmont
Performance at a Glance
Results for the Period Ended April 30, 2024
(000's)
6/30/2014 $8,204 Audited
6/30/2015 $9,049 Audited
6/30/2016 $9,177 Audited
6/30/2017 $11,128 Audited
6/30/2018 $11,325 Audited
6/30/2019 $14,846 Audited
6/30/2020 $13,637 Audited
6/30/2021 $13,398 Audited
6/30/2022 $18,013 Audited
6/30/2023 $26,586 Audited
4/30/2024 $32,813 Unaudited
* excludes Measure I
\ 0
Fund Balance - YTD Fund Deficits
As shown on the Fund Recap at a Glance (page 3) Recreation, Street Maintenance and Facilities Management Fund have deficits and are expected to be eliminated in a future period.

The General Fund balance is $32.8 million, an increase of $6.2 million compared to the amount at the prior fiscal year end. The increase compared to the 6/30/23 balance was primarily due to the receipt of $1.8M in property tax collections that were received in April. Year-to-date budgeted operating transfers $3.5 million from the General Fund to various funds will not be recorded until at the end of the fiscal year based on actual results.

General Fund
General Fund Balance Trends*
$0
$2
$4
$6
$8
$10
$12
$14
$16
$18
$20
$22
$24
$26
$28
$30
$32
$34
$36
General Fund Balance Trend
(in millions)
June March
$0 $20 $40 $60 $80 $100 $120 $140
Budget
Expenditures
Actual
Expenditures
Budget
Revenues
Actual
Revenues
All Funds Revenues & Expenditures
YTD Comparison (in millions)
33%
58%
1%5% 3%
Capital Improvement Plan
Streets Sewer
Technology Recreational Facilities
Parks & Open Space
2 10
Audited Unaudited PY YTD
Fund Fund Balance YTD YTD PY YTD YTD YTD PY YTD Fund Balance Fund Balance Fund Name 06/30/23 Budget Actual (Under) % Actual Budget Actual Under % Actual 04/30/24 04/30/23 (1) (2) Over (3) (Over) (1)+(2)-(3)

GENERAL FUND
101 General $26,586 $24,968 $26,227 $1,259 105% $29,807 $25,667 $19,999 $5,668 78% $18,124 $ 32,813 29,687 102 Measure I 3,937 2,001 1,693 (308) 85% 1,606 5,645 1,953 3,692 35% 782 3,677 3,762

SPECIAL REVENUE FUNDS
205 Recreation 583 2,808 2,065 (743) 74% 1,984 3,076 2,765 311 90% 2,484 (117) (500) 206 Library Maintenance & Operation 815 264 308 43 116% 292 791 314 476 40% 288 808 840 207 Athletic Field Maintenance 366 102 155 53 152% 114 292 95 197 33% 141 426 349 208 City Tree 284 13 41 28 317% 13 71 66 5 93% 31 259 279 209 Senior Services Donation 92 5 3 (2) 58% 2 4 0 4 6% 0 95 92 210 Development Services 1,538 5,677 5,841 165 103% 3,576 5,445 4,873 572 90% 4,307 2,506 353 212 General Plan Maintenance 1,592 499 794 295 159% 515 937 723 213 77% 107 1,662 1,713 223 Belmont Fire Protection District 20,198 14,428 16,675 2,247 116% 15,145 10,695 12,194 (1,498) 114% 9,690 24,680 21,672 225 Police Grants and Donations 30 4 5 1 126% 0 4 1 4 14% 3 35 30 227 Supplemental Law Enforcement 7 146 187 41 128% 160 106 104 2 98% 148 89 12 231 Street Maintenance 0 3,218 1,021 (2,196) 32% 990 2,171 2,048 124 94% 1,796 (1,026) (806) 232 RMRA Street Project 606 565 547 (18) 97% 465 1,099 21 1,078 2% 9 1,132 456 233 Measure W 1,809 364 324 (41) 89% 466 792 0 792 0% 0 2,133 1,923 234 Street Improvements 1,903 902 1,036 134 115% 1,382 2,635 167 2,469 6% 876 2,773 1,411 237 Traffic Impact 97 10 3 (7) 28% 3 0 0 0 N/A 0 99 203 239 Public Art 404 6 11 5 179% 6 0 0 0 N/A 0 416 402
275 Affordable Housing Successor 9,448 343 294 (49) 86% 3,053 3,281 3,711 (430) 113% 364 6,031 9,157 277 Inclusionary Housing 2,572 503 609 107 121% 2 0 0 0 N/A 0 3,181 2,454 Total Special Revenue 42,343 29,858 29,920 62 100% 28,170 31,401 27,083 4,318 86% 20,245 45,180 40,041

CAPITAL PROJECT FUNDS
308 General Facilities 734 12 21 9 177% 10 584 8 576 1% 7 747 728 310 Infrastructure 2,395 37 67 31 183% 725 1,178 154 1,023 13% 994 2,308 2,541 312 Comcast PEG Program 405 6 11 5 179% 6 100 0 100 0% 0 416 402 341 Planned Park 1,701 34 44 10 131% 437 594 674 (80) 113% 730 1,071 1,696 342 Park Impact 641 138 31 (106) 23% 287 546 0 546 0% 151 673 463 343 Open Space 97 0 6 6 N/A 5 59 0 59 0% 63 102 106
399 Capital Improvement Projects - 31,472 8,001 (23,472) 25% 0 31,596 4,675 26,921 15% 0 3,326 704 Special Assessment Districts 315 5 9 4 179% 4 0 0 0 N/A 0 324 312 Total Capital Projects 6,288 31,704 8,190 (23,513) 26% 1,474 34,656 5,511 29,145 16% 1,944 8,967 6,249

DEBT SERVICE & OTHER FUNDS
406 Library Bond Debt Service 286 563 627 64 111% 625 567 666 (98) 117% 674 247 221 501-505 Sewer Collection System 31,482 13,649 16,673 3,024 122% 14,515 19,261 9,284 9,977 48% 8,723 38,871 31,408 507 Sewer Treatment 27,391 2,694 2,952 257 110% 2,896 3,642 2,712 931 74% 3,055 27,631 25,833 525 Storm Drainage Enterprise 2,173 1,974 1,118 (857) 57% 994 2,689 1,655 1,033 62% 1,482 1,636 2,100 530 Solid Waste Management 1,868 591 509 (81) 86% 458 535 454 81 85% 420 1,924 1,804 570 Worker's Compensation 1,761 819 834 16 102% 665 610 708 (99) 116% 671 1,888 1,531 571 Liability Insurance 3,686 707 251 (456) 35% 142 937 686 251 73% 748 3,251 2,780 572 Self Funded Vision 0 0 0 0 N/A 2 4 0 4 0% (6) 0 8
573 Fleet & Equipment Management 8,394 3,887 4,009 121 103% 3,799 4,554 3,754 800 82% 3,103 8,649 8,134 574 Facilities Management (603) 2,885 2,421 (465) 84% 1,483 2,172 2,019 153 93% 2,017 (201) (534) 575 Benefit Prefunding 1,234 1,236 1,188 (48) 96% 1,132 1,131 1,208 (77) 107% 1,122 1,214 1,092 Total Debt & Other 77,673 29,006 30,581 1,575 105% 26,711 36,100 23,145 12,955 64% 22,007 85,109 74,378 Total All Funds $156,826 $117,536 $96,611 ($20,925) 82% $87,768 $133,469 $77,691 $55,779 58% $63,103 $175,747 $154,117 Fund Types:

General Fund - Used to account for and report all financial resources not accounted for and reported in another fund.

Special Revenue Funds - Used to account for and report the proceeds of specific revenue sources that are restricted or committed to expenditure for specific purposes other than debt service or capital projects.

Capital Projects Funds - Used to account for and report financial resources that are restricted, committed, or assigned to expenditure for capital outlays, including the acquisition or construction of capital facilities and other capital ass Debt Service & Other Funds - Includes funds used to account for and report financial resources that are restricted, committed, or assigned to expenditure for principal and interest; funds used to finance and account for special activities and services performed by a designated department for other departments in the City on a cost reimbursement basis; and funds to account for operations financed and operated in a manner similar to a private business enterprise with the intent that the cost of providing goods and services is primarily financed through user charges; and funds used to account for assets held by the City as an agent.

Variance
Revenues Expenditures
Variance
City of Belmont
Fund Recap at a Glance
Results for the Period Ended April 30, 2024
(000's)
3 11
City of Belmont
Budget Variance Report
General Fund / All Other Funds
Results for the Period Ended April 30, 2024
(000's)
General Fund All Other Funds
Year to Date (YTD) Annual PY YTD Year to Date (YTD) Annual PY YTD Budget Actual Variance % Budget Actual Budget Actual Variance % Budget Actual

REVENUES
Taxes $18,340 $18,818 $478 103% $22,007 $19,645 $17,930 $18,658 $729 104% $21,516 $17,933 Licenses and permits 990 918 (72) 93% 1,188 829 2,138 2,660 523 124% 2,565 1,814 Intergovernmental 321 442 121 138% 385 3,636 8,459 5,833 (2,626) 69% a 10,151 2,666 Charge for services 3,623 3,480 (143) 96% b 4,347 3,646 31,539 34,154 2,615 108% 37,847 30,426 Fines and forfeits 133 112 (21) 84% 160 99 - - - N/A - - 1,260 2,393 1,133 190% 1,512 1,926 2,100 4,507 2,407 215% 2,520 2,243 Miscellaneous 298 60 (238) 20% c 357 26 196 491 295 251% 235 (73) Other financing sources - - - N/A - - - 14 14 N/A - 2,951 Operating transfers in 4 4 1 120% 4 - 30,207 4,066 (26,141) 13% d 36,248 - Total Revenues 24,968 26,227 1,259 105% 29,961 29,807 92,569 70,385 (22,184) 76% 111,082 57,961

EXPENDITURES
General government 6,460 5,291 (1,170) 82% 7,752 4,563 6,873 6,386 (487) 93% 8,248 5,678 Public safety 13,115 12,675 (441) 97% 15,738 11,936 10,764 12,200 1,437 113% e 12,917 9,841 Streets and utilities - - - N/A - - 42,287 15,913 (26,373) 38% 50,744 15,137 Culture and recreation 2,146 1,911 (235) 89% 2,575 1,625 8,110 5,818 (2,292) 72% 9,732 5,411 Urban redevelopment - - - N/A - 0 7,992 7,930 (62) 99% 9,591 3,444 Debt service - - - N/A - - 5,512 5,497 (16) 100% 6,614 5,469 Operating transfer out 3,946 122 (3,823) 3% 4,735 0 26,265 3,947 (22,317) 15% 31,517 0 Total Expenditures 25,667 19,998 (5,669) 78% 30,800 18,124 107,802 57,692 (50,110) 54% 129,363 44,978 ($699) $6,228 ($839) $11,682 ($15,234) $12,692 ($18,281) $12,983 Management Discussion and Analysis
(Items with unfavorable budget variance more than $0.1 million) General Fund
Revenues
Other Funds
Revenues
Other Funds
Expenditures
a) Intergovernmental - The revenue will be received in a future reporting period. d) Operating Transfers In – Budgeted operating transfers are recorded at the end of the fiscal year based on actual results. e) Public Safety - Fourth quarter payment of $2.2M to San Mateo Consolidated Fire Department was made in March.

Trends
** July Sales Tax & TOT revenues received were for June activities and accrued to the previous FY. July revenues will be received in August. b) Charge for Services - The budget variance is primarily due to the quarterly fire prevention and protection fee, which will be received in a future reporting period. c) Miscellaneous - The budget variance is primarily due to the timing of the annual Crystal Springs Uplands School (CSUS) Public Service Fee, which will be received in a future reporting period.

Use of money and property

EXCESS OF REVENUES OVER/
(UNDER) EXPENDITURES
-$650
-$450
-$250
-$50
$150
$350
$550
$750
$950
Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun
Thousands
Sales Taxes & TOT - Monthly Comparison
Sales Taxes FY 23 Sales Taxes FY 24 TOT FY 23 TOT FY 24 $0
$2,000
$4,000
$6,000
$8,000
$10,000
$12,000
$14,000
FY 14 FY 15 FY 16 FY 17 FY 18 FY 19 FY 20 FY 21 FY 22 FY 23 Thousands
Major General Fund Taxes - 10-year Trends
Prop Tax Sales Taxes TOT
4 12
City of Belmont
Disbursements & Purchase Order Activity Report
Results for the Period Ended April 30, 2024
Vendor Description Date No. Amount
CALPERS COB CONTRIB PPE 03/22/24 4/1/24 DAJ000008889 139,932.82 CALPERS COB CONTRIBUTION PPE 04/05/24 4/8/24 DAJ000008900 136,896.75 CALPERS COB HEALTH PREMIUM-APR 4/8/24 DAJ000008901 211,711.09 CALPERS COB CONTRIBUTION PPE 04/19/24 4/24/24 DAJ000008918 139,417.25 CHICAGO TITLE CO ROEM AFFORD HOUSING PROJ 4/10/24 DAJ000008903 3,500,000.00 CITY OF BELMONT EMPLOYEES PAYROLL 04/0/524 4/4/24 DAJ000008944 572,106.07 CITY OF BELMONT EMPLOYEES PAYROLL 04/19/24 4/18/24 DAJ000008945 590,673.30 LAIF-BFPD JAN - MAR 2024 LAIF INTEREST 4/15/24 IAJ000008951 677,024.99 LAIF-CITY JAN - MAR 2024 LAIF INTEREST 4/15/24 IAJ000008950 771,556.57 LAIF-SEWER JAN - MAR 2024 LAIF INTEREST 4/15/24 IAJ000008952 61,519.09 MISSIONSQUARE DEF COMP ACCT# 302442 4/8/24 DAJ000008899 61,633.71 MISSIONSQUARE DEF COMP ACCT# 302442 4/22/24 DAJ000008915 53,050.25 PG&E CITYWIDE UTILITIES 4/25/24 DAJ000008920 51,903.53
Total Disbursements in Excess of $50,000 $ 6,967,425.42 Total Count 13
Vendor Description Date No. Amount
PAVEMENT ENGINEERING INC CM/QA 2023 PAVEMENT PROJECT 4/1/24 24 00088 476,160.00 PAVEMENT ENGINEERING INC TO#4-CM/QA 2023 PAVMENT PRO 4/18/24 24 00093 476,160.00 Total Purchase Orders Issued in Excess of $50,000 $ 952,320.00 Total Count 2
Disbursements Amounts Equal to $50,000 and Above
Purchase Order Amounts Equal to $50,000 and Above
5 13
Beginning Balance Ending Balance
March 31, 2024 Receipts Disbursements April 30, 2024
City of Belmont $ 122,245,561.63 $ 15,853,112.87 $ (7,160,615.28) $ 130,938,059.22 Belmont Fire Protection District 20,355,321.91 4,384,955.97 (60,073.48) 24,680,204.40 Successor Agency of the RDA - - - -
Total $ 142,600,883.54 $ 20,238,068.84 $ (7,220,688.76) $ 155,618,263.62 -
Deposit Investments Pool Total
City of Belmont & Belmont Fire Protection District $ 1,247,465.04 $ 154,370,798.58 $ 155,618,263.62 -
Respectfully Submitted,
s/b Grace Castaneda
Grace Castaneda
City Treasurer
I certify that this report accurately reflects all investments of City of Belmont and Belmont Fire Protection District, and is in conformance with the adopted Investment Policy mandated by Government Code 53646. Furthermore, I certify to the best of my knowledge, sufficient investment liquidity and anticipated revenues are available to meet the Agency's budgeted expenditure requirement for the next six months.

CITY OF BELMONT

TREASURER'S REPORT
April-24
Balance Summary
Agency Receipts and Disbursements Summary
treasurer report 04-2024

Page 1 of 2 ends

14 Investment Type Issuer
Maturity
Date Par Amount Current Market Value Interest Total
Investment
Period Rate
Pricing
Source Manager
Deposit
General Account Wells Fargo $ 1,247,465.04 $ 1,247,465.04 Bank Bank Investments:

L.A.I.F.-POOL State of California Daily 148,550,443.35 147,687,553.49 528,839.58 90 days 4.272% LAIF LAIF L.A.I.F.-BONDS State of California Daily 5,820,355.23 5,786,546.34 20,720.46 90 days 4.272% LAIF LAIF Total $ 155,618,263.62 $ 154,721,564.87 $ 549,560.04
s/b Grace Castaneda
S/B John Violet
Investment Detail

CITY OF BELMONT

TREASURER'S REPORT
April-24

0.00%

1.00%

2.00%

3.00%

4.00%

5.00%

6.00%

7.00%
$0
$20,000,000
$40,000,000
$60,000,000
$80,000,000
$100,000,000
$120,000,000
$140,000,000
$160,000,000
Apr-23 May-23 Jun-23 Jul-23 Aug-23 Sep-23 Oct-23 Nov-23 Dec-23 Jan-24 Feb-24 Mar-24 Apr-24 LAIF-POOL 127,892,077 124,692,077 128,042,077 115,474,495 115,474,495 117,024,495 115,089,713 115,789,713 132,764,713 133,851,862 133,701,862 133,701,862 148,550,443 LAIF-BOND 7,435,147 7,287,147 7,287,147 6,909,922 6,909,922 6,909,922 6,972,783 6,870,783 5,691,783 5,758,836 5,758,836 5,758,836 5,820,355 INTEREST RATE 2.870% 2.993% 3.167% 3.305% 3.434% 3.534% 3.670% 3.843% 3.929% 4.012% 4.122% 4.232% 4.272% City of Belmont Investment Portfolio Trends

Page 2 of 2 ends

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Service Agreement with IEDA - Staff Report (1)

STAFF REPORT
Meeting Date: June 11, 2024
Agency: City of Belmont
Staff Contact: Ann Ritzma, Interim Administrative Services Director [email protected] Agenda Title: Service Agreement between the City of Belmont and IEDA Agenda Action: Resolution
Recommendation
Adopt a resolution approving a three-year service agreement between the City of Belmont and Industrial Employers and Distributors Association, Inc. (IEDA) for labor negotiation services.

Strategic Focus Area
Fiscal and Organizational Sustainability
Background
The City’s three labor contracts - Belmont Police Officers Association (BPOA), Federation of State, County and Municipal Employees, Local 829, Council 57 (AFSCME) and the Mid-Management (MMCEA) Teamsters 856, expire in the next twelve months and staff is recommending utilizing IEDA for the upcoming labor contract negotiations. IEDA has previously provided labor negotiation services to Belmont and is currently working with several cities in San Mateo County to negotiate new labor contracts.

Analysis
Staff’s experience with IEDA has been positive and their representative, Austris Rungis has over 30 years of labor negotiation experience in Bay area cities. For this reason, staff is recommending utilizing IEDA again for the upcoming labor contract negotiations as well as meet and confer items outside of labor contract negotiations. The three contracts will expire in the next twelve months.

The costs for the three-year agreement are as follows:

Term Dates Cost
First Year July 1, 2024 – June 30, 2025 $26,841.43
Second Year July 1, 2025 – June 30, 2026 $28,183.50
Third Year July 1, 2026 – June 30, 2027 $29,592.67
The City or IEDA may terminate the Agreement by giving thirty (30) days written notice for failure to meet the terms and conditions of the contract and assignment changes in the IEDA labor negotiator without approval of the City.
16

Page 2 of 2 ends

Service Agreement with IEDA - Staff Report (1)
Alternatives

1. Take No Action

2. Provide Staff with Alternative Direction
Attachments
A. Resolution with draft agreement and Exhibit A scope of services Fiscal Impact
☐ No Fiscal Impact
☒ Funding Source Confirmed:

Funding for the first year, fiscal year (FY) 2024-25, is included in the proposed FY 2024-25 budget in the General Fund under the human resources division (Account #101-1-401-8351).

Funding for each subsequent year of the agreement will be incorporated as part of the annual budget development process and will be contingent on Council appropriation.

Source: Purpose: Public Outreach:

Staff Discretionary Action Posting of Agenda
17

Page 1 of 2 ends

RESOLUTION NO. 2024 –

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BELMONT

APPROVING A THREE-YEAR SERVICE AGREEMENT BETWEEN THE CITY OF

BELMONT AND INDUSTRIAL EMPLOYERS AND DISTRIBUTORS ASSOCIATION, INC. (IEDA) FOR LABOR NEGOTIATION SERVICES
WHEREAS, it is necessary and desirable that the City obtain the professional services of qualified persons to consult with and advise the City Manager and City Council on labor relations; and
WHEREAS, it is a longstanding practice of the City to obtain services of an external labor contract negotiators; and
WHEREAS, the City Manager and/or designee is now and will in the future be engaged in meeting and conferring in good faith with representatives of the American Federation of State, County and Municipal Employees Local 829, Council 57 (AFSCME), the Belmont Police Officers Association (BPOA), and the Mid-Management Confidential Employees Association (MMCEA)/Teamsters Local 856 on matters within the scope of the collective bargaining process; and
WHEREAS, the City has successfully utilized the services of IEDA, Inc. for labor relations consulting and IEDA retains the knowledge, skills, and proven track record of providing these services to several cities in the Bay area.

NOW, THEREFORE, the City Council of the City of Belmont resolves as follows:

SECTION 1. The City Manager is authorized to negotiate and execute an agreement with IEDA for labor relations consulting for amounts not to exceed the following:

July 1, 2024 – June 30, 2025 $26,841.43
July 1, 2025 – June 30, 2026 $28,183.50
July 1, 2026 – June 30, 2027 $29,592.67
* * *
ADOPTED June 11, 2024 by the City of Belmont City Council by the following vote:

Ayes:

Noes:

Absent:

Abstain:
18

Page 2 of 2 ends

ATTEST:

City Clerk Mayor
APPROVED AS TO FORM:

City Attorney
19 CONTRACT NO:
1 Service 2015-10-5

CITY OF BELMONT

SERVICE AGREEMENT
IEDA, Inc.

This Service Agreement (hereinafter “Agreement”) is entered into by the City of Belmont, a municipal corporation (hereinafter "City"), and Industrial Employers Distributors Association, (hereinafter "Consultant”). City and Consultant may be collectively referred to herein as the “parties.”

RECITALS
A. City requested rates from Consultant to perform the services generally including: Labor Relations Consulting for the period beginning July 1, 2024 until either party requests termination, with a 30 day notice.

B. In response to the City’s request, Consultant provided rates, and, after review and consideration, Consultant agreed to perform the services more particularly described on Exhibit “A”, in return for the compensation described in this Agreement.

C. In reliance upon Consultant’s documentation of its qualifications, the City finds that Consultant has demonstrated the requisite qualifications, experience, training, and expertise to perform the requested services.

IN CONSIDERATION OF THE MUTUAL COVENANTS AND CONDITIONS IDENTIFIED HEREIN, THE PARTIES AGREE AS FOLLOWS:

1. SCOPE OF SERVICES. Consultant shall perform the services described in Exhibit “A”, attached hereto and incorporated herein by reference, in accordance with the terms and conditions contained in this Agreement.

2. PUBLIC WORKS PROJECT. When the preceding box is checked, the services to be performed include public works within the meaning of Labor Code Sections 1720 to 1861 and Consultant must comply state laws pertaining to prevailing wage and the requirements contained in City of Belmont Agreement Addendum Labor Code Requirements for Public Works Projects, attached and incorporated in this Agreement by reference.

3. TIME FOR PERFORMANCE. Time is of the essence in the performance of services under this Agreement and the timing requirements set forth herein shall be strictly adhered to unless otherwise modified in writing in accordance with this Agreement. Consultant shall commence performance, and shall complete all required services no later than the dates set forth in Exhibit “A.” Any services for which times for performance are not specified in this Agreement shall be commenced and completed by Consultant in a reasonably prompt and timely manner based upon the circumstances and direction communicated to the Consultant. Consultant shall submit all requests for extensions of time to the City in writing no later than ten (10) days after the start of the condition which purportedly caused the delay, and not later than the date on which performance is due.

4. PAYMENT.
4(A). Billing. In order to request payment, Consultant shall submit either monthly, quarterly, or annual invoices to the City identifying the services performed, the time frame it covered, and the charges based on the agreed compensation. The City shall make either monthly, quarterly, 20 City of Belmont Service Agreement.

Labor Relations Consulting
IEDA, Inc.
2 or annual payments to Consultant for services which are performed in accordance with this Agreement, to the satisfaction of the City.
4(B). Compensation. The compensation payable to Consultant for the services identified in Exhibit “A” are as follows:

One Year: July 1, 202024 – June 30, 2025 - $26,841.43
Second Year: July 1, 2025 - June 30, 2026- $28,183.50
Third Year July 1, 2026 – June 30, 2027- $29,592.67
4(C). Consultant shall not perform any services beyond the services identified without prior written authorization from the City’s Authorized Representative. If the City’s Authorized Representative provides authorization for additional services, the total compensation payable to the Consultant under this Agreement shall not exceed $8,500.00 4(D). Consultant’s Failure to Perform. In the event that Consultant performs services which do not comply with the requirements of this Agreement, Consultant shall, upon receipt of written notice from the City, re-perform the services (without additional compensation to the Consultant). If Consultant’s failure to perform in accordance with this Agreement causes damages to the City, Consultant shall reimburse the City for the damages incurred (which may be charged as an offset to Consultant’s payment).

5. AUTHORIZED REPRESENTATIVES.
5(A). Consultant’s Authorized Representative. Consultant understands that, in entering into this Agreement, the City has relied upon Consultant’s ability to perform in accordance with its representations regarding the qualifications of the Consultant (including the qualifications of its Authorized Representative, its personnel, and its subconsultants, if any). All services under this Agreement shall be performed by, or under the direct supervision of, Consultant’s Authorized Representative.
5(B). City’s Authorized Representative. For the performance of services under this Agreement, the Consultant shall take direction from the City’s Authorized Representative, unless otherwise designated in writing by the City’s Authorized Representative or the City Manager.

6. INFORMATION AND DOCUMENTATION.
6(A). Information from City. City has made an effort to provide Consultant with all information necessary for Consultant’s performance of services under this Agreement. If Consultant believes additional information is required, Consultant shall promptly notify the City, and the City will provide to Consultant all relevant non-privileged information in City's possession. 6(B). Consultant’s Accounting Records. Consultant shall maintain all accounting records related to this Agreement in accordance with generally accepted accounting principles and state law requirements, and in no event for less than four years. Consultant’s accounting records shall include, at a minimum, all documents which support Consultant’s costs and expenses related to this Agreement, including personnel, subconsultant invoices and payments, and reimbursable expenses. Consultant’s accounting records shall be made available to City within a reasonable 21 City of Belmont Service Agreement.

Labor Relations Consulting
IEDA, Inc.
3 time after City’s request, during normal business hours. 6(C). Ownership of Work Product. All original documents prepared by Consultant (including its employees and subconsultants) for this Agreement (“work product”), whether complete or in progress, are the property of the City, and shall be given to the City at the completion of Consultant’s services, or upon demand by the City. Consultant shall have a right to make and keep copies of the work product. Consultant shall not reveal the work product, or make it available, to any third party without the prior written consent of the City.

7. RELATIONSHIP BETWEEN THE PARTIES. Consultant is, and at all times shall remain, an independent contractor solely responsible for all acts of its employees, agents, or subconsultants, including any negligent acts or omissions. Consultant is not City’s agent, and shall have no authority to act on behalf of the City, or to bind the City to any obligation whatsoever, unless the City provides prior written authorization to Consultant. Consultant is not an officer or employee of City, and Consultant shall not be entitled to any benefit, right, or compensation other than that provided in this Agreement.

8. CONFLICTS OF INTEREST PROHIBITED. Consultant (including its employees, agents, and subconsultants) shall not maintain or acquire any direct or indirect interest that conflicts with the performance of this Agreement. Consultant shall comply with all requirements of the Political Reform Act (California Government Code Sections 81000, et seq.) and other laws relating to conflicts of interest, including: (a) Consultant shall not make or participate in a decision made by the City if it is reasonably foreseeable that the decision may have a material effect on Consultant’s economic interest, and (b) if required by law, Consultant shall file financial disclosure forms with the City Clerk. If Consultant maintains or acquires a conflicting interest, any contract with the City (including this Agreement) involving Consultant’s conflicting interest may be terminated by the City.

9. NONDISCRIMINATION. Consultant shall not discriminate against any person related to the performance under this Agreement (including any employee or applicant) because of race, color, religious creed, national origin, physical disability, mental disability, medical condition, marital status, sexual orientation, or sex.

10. COMPLIANCE WITH LAW AND STANDARD OF CARE. Consultant shall comply with all applicable legal requirements including all federal, state, and local laws (including ordinances and resolutions), whether or not said laws are expressly stated in this Agreement. Consultant shall perform services under this Agreement using a standard of care equal to, or greater than, the degree of skill and diligence ordinarily used by reputable professionals, with a level of experience and training similar to Consultant, performing under circumstances similar to those required by this Agreement.

11. BUSINESS LICENSE. The Consultant shall apply for and pay the business tax and registration tax for a business license, in accordance with the Belmont City Code.

12. INSURANCE. Consultant must, throughout the duration of this Agreement, maintain insurance to cover Consultant (including its agents, representatives, subconsultants, suppliers, and employees) in connection with the performance of Work under this Agreement, including against claims for injuries to persons or damages to property which may arise from or in connection with the performance of the Work. This Agreement identifies the minimum insurance levels with which 22 City of Belmont Service Agreement.

Labor Relations Consulting
IEDA, Inc.
4 Consultant must comply; however, the minimum insurance levels do not relieve Consultant of any other performance responsibilities under this Agreement (including the indemnity requirements).

City reserves the right to modify these requirements, including limits, based on the nature of the risk, prior experience, insurer, coverage, or other circumstances. 12(A). Coverage. Consultant must maintain insurance in the following minimum levels:
12(A)(1). Workers’ Compensation. Workers’ compensation coverage as required by the State of California, with statutory limits.
12(A)(2). Commercial General Liability (CGL). Commercial general liability with coverage at least as broad as ISO form CG 00 01 covering CGL on an “occurrence” basis, including products and completed operations, property damage, bodily injury and personal & advertising injury with limits no less than $2,000,000 per occurrence. If a general aggregate limit applies, either the general aggregate limit shall apply separately to this project/location (ISO CG 25 03 or 25 04) or the general aggregate limit shall be twice the required occurrence limit. 12(A)(3). Employer’s Liability. Employer’s liability in an amount not less than $1,000,000 per accident for bodily injury or disease.
12(A)(4). Automobile Liability. Automobile liability with coverage at least as broad as ISO Form Number CA 00 01 covering any auto (Code 1), or if Consultant has no owned autos, hired, (Code 8) and non-owned autos (Code 9) in an amount not less than $1,000,000 per accident for bodily injury and property damage (coverage required to the extent applicable to Consultant’s vehicle usage in performing services hereunder).
12(A)(5). Professional Liability. For design-build projects, or if the Work requires Consultant to provide professional services related to environmental hazards, professional liability in an amount not less than $1,000,000 per occurrence or claim, and $2,000,000 policy aggregate. 12(B). Additional Coverage. Consultant may carry, at its own expense, any additional insurance it deems necessary or prudent. If Consultant maintains higher levels than the minimums shown above, City requires and shall be entitled to coverage for the higher limits maintained by Consultant. Any available insurance proceeds in excess of the specified minimum levels of insurance and coverage shall be available to the City.
12(C). Insurer Qualifications. Insurance is to be placed with insurers with a current A.M. Best’s rating of no less than A:VII, unless otherwise acceptable to the Entity. Exception may be made for the State Compensation Insurance Fund when not specifically rated. 12(D). Deductibles. Any deductibles or self-insured retentions must be declared to and approved by City. At the option of City, either:
12(D)(1). Consultant must reduce or eliminate such deductibles or self-insured retentions as respects the City, its officers, officials, employees and volunteers; or, 12(D)(2). Consultant must provide a financial guarantee satisfactory to City guaranteeing payment of losses and related investigations, claim administration and defense expenses. 23 City of Belmont Service Agreement.

Labor Relations Consulting
IEDA, Inc.
5 12(E). Subrogation Waiver. Consultant hereby grants to City a waiver of any right to subrogation which any insurer of Consultant may acquire against the City by virtue of the payment of any loss under such insurance. Consultant agrees to obtain any endorsement that may be necessary to affect this waiver of subrogation. The Workers’ Compensation policy must be endorsed with a waiver of subrogation in favor of City for all work performed by Consultant, its employees, agents and subcontractors. This provision applies regardless of whether or not the City has requested or received a waiver of subrogation endorsement from the insurer. 12(F). Evidence of Coverage. Concurrently with the execution of this Agreement, Consultant must furnish City with original certificates and amendatory endorsements, or copies of information or declaration page listing all policy endorsements of the insurance required hereunder. However, failure to obtain the required documents before the work beginning shall not waive Consultant’s obligation to provide them. City reserves the right to require complete, certified copies of all required insurance policies, including endorsements, required by these specifications, at any time. 12(G). Endorsements. The insurance policies must be endorsed as follows:
12(G)(1). For commercial general liability and automobile liability insurance, the City (including its elected officials, employees, and agents) must be named as an additional “insured”. The endorsement must include liability arising out of work or operations performed by or on behalf of Consultant including materials, parts, or equipment furnished in connection with such work or operations and automobiles owned, leased, hired or borrowed by or on behalf of Consultant. For commercial general liability, the policy must be endorsed with a form at least as broad as ISO form CG 20 10, GC 11 85 or both CG 20 10 and CG 20 37 forms if later revisions used. 12(G)(2). Consultant’s insurance is primary to any other insurance (including self-insurance) available to the City (including its elected officials, employees, and agents) with respect to any claim arising out of this Agreement. Any insurance maintained by the City shall be excess of the Consultant’s insurance and shall not contribute with it. 12(G)(3). No policy shall be canceled, limited, or allowed to expire without renewal until after 30 days written notice has been given to the City by first class mail. 12(H). Claims Made Policies. If any required coverage is made on a claims-made form:
12(H)(1). The “Retro Date” must be shown and must be before the date of the contract or the beginning of contract work.
12(H)(2). Insurance must be maintained and evidence of insurance must be provided for at least five (5) years after completion of the contract of work. 12(H)(3). If coverage is canceled or non-renewed, and not replaced with another claims-made policy form with a “Retro Date” prior to the contract effective date, Consultant must purchase “extended reporting” coverage for a minimum of five (5) years after completion of contract work. 12(H)(4). A copy of the claims reporting requirements must be submitted to City for review. 12(H)(5). If the services involve lead-based paint or asbestos identification/remediation, Consultant’s Pollution Liability policy shall not contain lead-based paint or asbestos exclusions. 24 City of Belmont Service Agreement.

Labor Relations Consulting
IEDA, Inc.
6 If the services involve mold identification/remediation, Consultant’s Pollution Liability policy shall not contain a mold exclusion, and the definition of Pollution shall include microbial matter, including mold.
12(I). Subcontractors. Consultant must require and verify that all subcontractors maintain insurance meeting all the requirements stated herein, and Consultant must ensure that City is an additional insured on insurance required from subcontractors. For CGL coverage subcontractors must provide coverage with a format least as broad as CG 20 38 04 13.

13. REPORTING DAMAGES. If any damage (including death, personal injury or property damage) occurs in connection with the performance of this Agreement, Consultant shall immediately notify the City Risk Manager’s office by email at [email protected], and Consultant shall promptly submit to the City’s Risk Manager and the City’s Authorized Representative, a written report (in a form acceptable to the City) with the following information: (a) name and address of the injured or deceased person(s), (b) name and address of witnesses, (c) name and address of Consultant's insurance company, and (d) a detailed description of the damage and whether any City property was involved.

14. INDEMNIFICATION. Consultant shall indemnify, hold harmless, and defend the City (including its elected officials, officers, agents and employees) from and against any and all claims (including all litigation, demands, damages, liabilities, costs, and expenses, and including court costs and attorney’s fees) resulting or arising from performance, or failure to perform, under this Agreement.

15. TERM OF THE AGREEMENT. The term of this Agreement shall commence on the date last signed by the parties, below, and shall continue until completion of all services in accordance with the timing requirements set forth in Exhibit “A” and paragraph 2 of this Agreement. This Agreement may be terminated by either party without cause upon thirty (30) days written notice to Consultant. If the City exercises its right to terminate this Agreement in accordance with this paragraph, the City shall pay Consultant for all services satisfactorily performed in accordance with this Agreement, through and including the date of termination, but not to exceed the payments according to the rates specified or the maximum amount authorized under 4(b) of this Agreement.

16. DEFAULT. If either party (“demanding party”) has a good faith belief that the other party (“defaulting party”) is not complying with the terms of this Agreement, the demanding party shall give written notice of the default (with reasonable specificity) to the defaulting party, and demand the default to be cured within ten days of the notice. If: (a) the defaulting party fails to cure the default within ten days of the notice, or, (b) if more than ten days are reasonably required to cure the default and the defaulting party fails to give adequate written assurance of due performance within ten days of the notice, then (c) the demanding party may terminate this Agreement upon written notice to the defaulting party.

17. NOTICES. All notices required or contemplated by this Agreement shall be in writing and shall be delivered to the respective party as set forth in this section. Communications shall be deemed to be effective upon the first to occur of: (a) actual receipt by a party’s Authorized Representative, or (b) actual receipt at the address designated below, or (c) three working days following deposit in the United States Mail of registered or certified mail sent to the address designated below. The Authorized Representative of either party may modify their respective contact information identified in this section by providing notice to the other party. 25 City of Belmont Service Agreement.

Labor Relations Consulting
IEDA, Inc.
7 TO: City of Belmont To: Consultant
Attn: Stacey Cue, President
IEDA, Inc
2200 Powell Street, #1000
Emeryville, CA 94608

18. HEADINGS. The heading titles for each paragraph of this Agreement are included only as a guide to the contents and are not to be considered as controlling, enlarging, or restricting the interpretation of the Agreement.

19. SEVERABILITY. If any term of this Agreement (including any phrase, provision, covenant, or condition) is held by a court of competent jurisdiction to be invalid or unenforceable, the Agreement shall be construed as not containing that term, and the remainder of this Agreement shall remain in full force and effect; provided, however, this paragraph shall not be applied to the extent that it would result in a frustration of the parties’ intent under this Agreement.

20. GOVERNING LAW, JURISDICTION, AND VENUE. The interpretation, validity, and enforcement of this Agreement shall be governed by and interpreted in accordance with the laws of the State of California. Any suit, claim, or legal proceeding of any kind related to this Agreement shall be filed and heard in a court of competent jurisdiction in the County of San Mateo.

21. ATTORNEY’S FEES. In the event any legal action is commenced to enforce this Agreement, the prevailing party is entitled to reasonable attorney’s fees, costs, and expenses incurred.

22. ASSIGNMENT AND DELEGATION. This Agreement, and any portion thereof, shall not be assigned or transferred, nor shall any of the Consultant’s duties be delegated, without the written consent of the City. Any attempt to assign or delegate this Agreement without the written consent of the City shall be void and of no force or effect. A consent by the City to one assignment shall not be deemed to be a consent to any subsequent assignment.

23. MODIFICATIONS. This Agreement may not be modified orally or in any manner other than by an agreement in writing signed by both parties.

24. WAIVERS. Waiver of a breach or default under this Agreement shall not constitute a continuing waiver or a waiver of a subsequent breach of the same or any other provision of this Agreement.

25. CONFLICTS. If any conflicts arise between the terms and conditions of this Agreement and the terms and conditions of the attached exhibits or any documents expressly incorporated, the terms and conditions of this Agreement shall control.

26. ENTIRE AGREEMENT. This Agreement, including all documents incorporated herein by reference, comprises the entire integrated understanding between the parties concerning the services described herein. This Agreement supersedes all prior negotiations, agreements, and understandings regarding this matter, whether written or oral. The documents incorporated by reference into this Agreement are complementary; what is called for in one is binding as if called for in all.

27. SIGNATURES. The individuals executing this Agreement represent and warrant that they have 26 City of Belmont Service Agreement.

Labor Relations Consulting
IEDA, Inc.
8 the right, power, legal capacity, and authority to enter into and to execute this Agreement on behalf of the respective legal entities of the Consultant and the City. This Agreement shall inure to the benefit of and be binding upon the parties hereto and their respective successors and assigns.

IN WITNESS WHEREOF, the City and Consultant do hereby agree to the full performance of the terms set forth herein.

CITY OF BELMONT
By:

Date:

CONSULTANT
IEDA, Inc.

By:

(print name) (print title)
Date:

APPROVED AS TO FORM

By:

(print name) (print title)
Date:

FUNDING VERIFIED

27 City of Belmont Service Agreement.

Labor Relations Consulting
IEDA, Inc.
9 EXHIBIT A SCOPE OF SERVICES
This Exhibit is attached to and made a part of the Labor Relations Consulting Services Agreement between IEDA, Inc. ("Consultant") and the City of Belmont ("City').

A. Serve as the City's Chief Spokesperson and Negotiating Team Leader during MOU negotiations.

B. Report to the City Council on staff recommendations and the progress of negotiations.

C. Recommend strategies for successful outcomes in negotiations.

D. Assist in development of management proposals and positions and meeting with designated City staff as required.

E. Prepare written memoranda of understanding in a form and manner approved by the City Council and City Manager.

F. Serve as the City's Chief Spokesperson for situational meet and confers such as the impact of layoffs, statutory changes requiring meeting and conferring, pension modifications, work schedule changes, revisions in City rules and numerous other issues as may be requested by the City.

G. Assist in the design of pension, health and other employee benefit plan strategies.

H. Consulting with the City on grievance handling and other dispute resolution procedures as may be requested.

I. Research and advise the City of labor relations trends and matters relating to employment conditions and employer-employee relations.

J. Maintain a professional relationship with the Unions and Employee Associations. 28

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2023 Sanitary Sewer Rehabilitation Project Notice of Completion - Staff Report

STAFF REPORT
Meeting Date: June 11, 2024
Agency: City of Belmont
Staff Contact: Bozhena Palatnik, Public Works, (650)595-7463, [email protected] Agenda Title: 2023 Sanitary Sewer Rehabilitation Project Notice of Completion Agenda Action: Resolution
Recommendation
Adopt a resolution accepting the work and authorizing the issuance of a Notice of Completion for the 2023 Sanitary Sewer Rehabilitation Project, City Contract Number 2023-620, Recording of Notice of Completion, and Release of Retention 35 days after Recording Notice of Completion.

Strategic Focus Area
Infrastructure and Mobility
Background
As part of the on-going Pavement Rehabilitation Program, ten streets are scheduled for pavement reconstruction in the summer of 2024. To avoid cutting into newly paved roads, all existing sanitary and storm sewer pipes, drain inlets, and manholes located under these streets were evaluated, and several sanitary sewer mains required replacement or repair prior to the pavement project. Additionally, several other sanitary sewer mains in poor condition were identified and included in this project.

The subject project was advertised in February 2023 and received six bids. The low bid came in at $834,480 which was below engineer’s estimate of $960,300. The project was awarded to Casey Construction, Inc. and construction began in May 2023. Approximately 3,500 linear feet of sewer mains were replaced and repaired in the following streets: Arbor Avenue, South Road, Middle Road, Hillman Avenue, Lyon Avenue, Alameda de las Pulgas, and Villa Avenue.

Analysis
The project started in May and was completed by the end of July 2023 with one Change Order. The final project cost including the change order is $871,282.53. The project close out was delayed due to contractor’s slow response to provide the necessary time and material documentation associated with the change order. The change order in the amount of $36,802.53 was mainly due to utility conflicts that required modifications to pipe alignment and rehabilitation methods.

The Contractor has completed the project in accordance with the plans and specifications and as modified by approved change order. A final project inspection has been conducted by the City staff, and the work has been deemed complete per the contract requirements, and that the project can be recommended for acceptance by Council and a “Notice of Completion” recorded. 29

Page 2 of 2 ends

2023 Sanitary Sewer Rehabilitation Project Notice of Completion - Staff Report Alternatives

1. Take no action.

2. Refer back to staff for more information.

Attachments
A. Resolution
Fiscal Impact
☐ No Fiscal Impact
☒ Funding Source Confirmed:

Funding in the amount of $871,282.53 came from the
Residential Gravity Replacement Project #7074 (399-3-730- 7074-9030).

Source: Purpose: Public Outreach:

Staff Statutory/Contractual Requirement Posting of Agenda 30

Page 1 of 2 ends

RESOLUTION NO. 2024 –

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BELMONT

ACCEPTING THE WORK AND AUTHORIZING THE ISSUANCE OF A NOTICE OF COMPLETION, AND RELEASE OF RETENTION 35 DAYS AFTER RECORDING NOTICE OF COMPLETION FOR THE 2023 SANITARY SEWER REHABILITATION PROJECT, CITY CONTRACT NUMBER 2023-620
WHEREAS, on February 14, 2023, Council approved advertisement for sealed bids and awarding the 2023 Sanitary Sewer Rehabilitation Project to the lowest responsible bidder for an amount not to exceed $960,300; and,
WHEREAS, on March 16, 2023, City conducted a bid opening, and the low bid came in at $834,480; and,
WHEREAS, the final cost of construction is $871,282.53.

NOW, THEREFORE, the City Council of the City of Belmont resolves as follows:

SECTION 1. Accepts the work as complete.

SECTION 2. Authorizes the City Clerk to issue the Notice of Completion to Interstate Grading and Paving, Inc.

SECTION 3. Authorizes the City Clerk to file Notice of Completion with the San Mateo County Clerk-Record’s office for the 2023 Sanitary Sewer Rehabilitation Project, City Contract Number 2023-620.
* * *
ADOPTED June 11, 2024 by the City of Belmont City Council by the following vote:

Ayes:

Noes:

Absent:

Abstain:
31

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ATTEST:

City Clerk Mayor
APPROVED AS TO FORM:

City Attorney
32

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Ratify BSCFD FY 2024-25 & 2025-26 Budgets

STAFF REPORT
Meeting Date: June 11, 2024
Agency: Belmont Fire Protection District
Staff Contact: Grace Castaneda, Finance Director, [email protected] Agenda Title: Belmont-San Carlos Fire Department Budgets for FY 2024-25 and FY 2025-26 Agenda Action: Resolution
Recommendation
Adopt a resolution ratifying the proposed budgets for the Belmont-San Carlos Fire Department for Fiscal Year (FY) 2024-25 and FY 2025-26, which cover the period July 1, 2024 through June 30, 2026.

Strategic Focus Area
Fiscal and Organizational Sustainability
Background
On October 1, 2011, the Belmont-San Carlos Fire Department, a joint powers authority, or JPA, entered into a post-operations era with the primary function of winding down the legacy obligations incurred during the prior operation of the jointly funded fire department.

The Second Amended and Restated Joint Powers Agreement for the Belmont-San Carlos Fire Department (“Fire Department”) requires a multi-step process to adopt a budget. The first step is a recommendation to adopt a budget by the Belmont-San Carlos Fire Department’s Fire Commission. The second step is for the member agencies, the Belmont Fire Protection District and the City of San Carlos, to take an action consenting to the Fire Commission’s recommendation. The budget is considered adopted once both member agencies have ratified. The Fire Department follows a two-year budget cycle.

Pursuant to Section 4.2 of Article IV of the Joint Powers Agreement, the Fire Commission must obtain the prior consent of the Belmont Fire Protection District and the City of San Carlos on the proposed budget before it is formally adopted. The Belmont-San Carlos Fire Department is to prepare a budget setting forth the expenditures and cost allocation for the upcoming year. The cost allocation formula by member agencies stipulates the Belmont Fire Protection District pay 47.1% and the City of San Carlos 52.9%, with the exception of the administrative support services, which are split equally amongst the agencies.

Consistent with the process outlined above, the Fire Commission considered the Belmont-San Carlos Fire Department FY 2024-25 and FY 2025-26 Budgets at their meeting on May 14, 2024. After receiving a staff report and discussing this issue, the proposed budgets for FY 2024-25 and FY 2025-26 were recommended for approval by Resolution No. 2024-01 to the member agencies by the Fire Commission.

Analysis
The proposed budgets generally include non-discretionary expenditures. Important highlights include the following four wind-down activities of the JPA:
33

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Ratify BSCFD FY 2024-25 & 2025-26 Budgets

1. Paying for the unfunded liabilities of the safety and miscellaneous retirement plans with CalPERS.

Below is a summary of the outstanding pension obligations based on the CalPERS June 30, 2022 actuarial valuation:

2. The outstanding postretirement health benefit obligation, net of plan assets in the California Employers' Retiree Benefit Trust (CERBT) fund, is $1,059,993. The Budget includes Other PostEmployment Benefits (OPEB) benefit payments made on a pay-go basis for retirees and surviving spouse who have earned lifetime medical coverage, $178,791 in FY 2024-25 and $183,943 in FY 2025-26.

3. The Budget assumes a fiscal reserve of $452,428 in FY 2024-25, and then lowering the reserve to $150,000 in FY 2025-26, which is the stated minimum reserve for the entity.

Belmont-San Carlos Fire Department’s budget for FY 2024-25 is $4,678,510, and $4,707,958 for FY 2025-26. Contributions paid by the member agencies increase modestly in FY 2024-25 and FY 2025-26 as follows: Belmont Fire Protection District ($1,869,949 in FY 2024-25 and $2,073,797 in FY 2025-26 -

47.1%) and the City of San Carlos ($2,096,897 in FY 2024-25 and $2,325,734 in FY 2025-26 - 52.9%).

Alternatives

1. With direction, refer to staff for further consideration.

2. Take no action.

Attachments
A. Resolution
B. Proposed FY 2024-25 and FY 2025-26 Budget
Fiscal Impact
☐ No Fiscal Impact
☒
Funding Source Confirmed:

For FY 2024-25, the Belmont Fire Protection District’s
contribution is $1,869,949, which has been incorporated in the Belmont Fire Protection District’s proposed FY 2024-25 budget.

For FY 2025-26, the Belmont Fire Protection District’s
contribution is $2,073,797, which will be incorporated during FY 34

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Ratify BSCFD FY 2024-25 & 2025-26 Budgets
2025-26’s budget development process.

Source: Purpose: Public Outreach:

Staff Statutory/Contractual Requirement Posting of Agenda 35

Page 1 of 1 ends

RESOLUTION NO. 2024 –

A RESOLUTION OF THE BOARD OF DIRECTORS OF THE BELMONT FIRE

PROTECTION DISTRICT RATIFYING THE BELMONT-SAN CARLOS FIRE DEPARTMENT BUDGETS FOR FY 2024-25 AND FY 2025-26
WHEREAS, pursuant to Section 4.2 of Article IV of Belmont-San Carlos Fire Department’s Joint Powers Agreement, the Fire Commission must obtain the prior consent of the Belmont Fire Protection District and the City of San Carlos on the proposed budget before it is formally adopted; and,
WHEREAS, on May 14, 2024, the Department’s Fire Commissions recommended the Fiscal Year 2024-25 and Fiscal Year 2025-26 Budgets to be ratified by the Belmont Fire Protection District as a member agency by Resolution No. 2024-01.

NOW, THEREFORE, the Board of Directors of the Belmont Fire Protection District resolves as follows:

SECTION 1. The Belmont Fire Protection District ratifies the Belmont-San Carlos Fire Department’s Appropriations Budget in the amount of $4,678,510 for Fiscal Year 2024-25 and $4,707,958 for Fiscal Year 2025-26. The budgeted amount for the Belmont Fire Protection District’s contribution is $1,869,949 in Fiscal Year 2024-25 and $2,073,797 in Fiscal Year 2025-

26. * * *
ADOPTED June 11, 2024 by the Board of Directors of the Belmont Fire Protection District by the following vote:

Ayes:

Noes:

Absent:

Abstain:

ATTEST:

Board Secretary Board President
APPROVED AS TO FORM:

Board Attorney
36 Belmont-San Carlos Fire Department
FY 2024-25 & FY 2025-26 Budgets
37 Belmont-San Carlos Fire Department
Fiscal Years 2024-25 & 2025-26 Budgets
Table of Contents
Budget Summary.........................................................................................1 Summaries and Operating Budget
Fund Recap – Fiscal Years 2023-24 through 2025-26 .....................................3 Revenues and Other Sources & Expenditures and Other Uses by Fund and Function ......................................................................................................4 Department Summary by Division and Expenditure Classification ...................5 Appendix......................................................................................................6 38 Belmont-San Carlos Fire Department
Budget Fiscal Years 2024-25 and 2025-26
Budget Summary
The proposed Fiscal Years 2024-25 and 2025-26 Budgets reflects the Belmont-San Carlos Fire Department’s (Fire Department) obligations in a post-operations era since the September 30, 2011 dissolution. The Budget funds the following wind-down activities of the Department:
▪ Below is a summary of the outstanding pension obligations based on CalPERS’s June 30, 2022 actuarial valuation:

Plan Unfunded Accrued Liability
Safety $33,949,091
Miscellaneous $1,103,621
In furtherance of retiring these obligations, the Budget includes payments to CalPERS of $4,405,051 in FY 2024-25 and $4,420,017 in FY 2025-26. These amounts factor in a prepayment of the contribution in one annual payment at the beginning of each fiscal year, and no additional discretionary payments towards retiring the obligation. The FY 2024-25 and FY 2025-26 costs reflect CalPERS’s investment returns of -7.5% and 6.1% as of June 30, 2022 and June 30, 2023, respectively, and a discount rate of 6.8%. ▪ Based on the June 30, 2023 actuarial valuation performed by the Fire Department’s actuary, Foster & Foster, the outstanding postretirement health benefit obligation, net of plan assets in the California Employers' Retiree Benefit Trust (CERBT) fund, is $1,059,993. The Budget includes Other Post-Employment Benefits (OPEB) benefit payments made on a pay-go basis for retirees and surviving spouse who have earned lifetime medical coverage, $178,791 in FY 2024-25 and $183,943 in FY 2025-26.
▪ The estimated liability for unpaid loss and allocated loss adjustment expenses ranges from $175,000 (70% confidence level) to $404,000 (90% confidence level) estimated as of June 30, 2025 for outstanding workers compensation claims from past employees. The Fire Department estimates claims payments of $18,340 in FY 2024-25 and $18,969 in FY 2025-

26. As a result of the above activity and the need to maintain the reserve requirement discussed below, contributions paid by the member agencies increase modestly in FY 2024-25 and FY 2025-26 as follows: Belmont Fire Protection District ($1,869,949 in FY 2024-25 and $2,073,797 in FY 2025- 26 - 47.1%) and the City of San Carlos ($2,096,897 in FY 2024-25 and $2,325,734 in FY 2025- 26 - 52.9%).

The Budget assumes a fiscal reserve of $452,428 in FY 2024-25, and then lowering the reserve to $150,000 in FY 2025-26, which is the stated minimum reserve for the entity. 39 Reserved or Reserved or Reserved or Reserved or
Number Description Designated Available Revenues Expenditures Designated Available Revenues Expenditures Designated Available Revenues Expenditures Designated Available

GENERAL FUND
105 General Fund $ 150,000 $ 30,485 $ 3,769,721 $ 2,792,113 $ 150,000 $ 1,008,092 $ 3,972,846 $ 4,678,510 $ 150,000 $ 302,428 $ 4,405,531 $ 4,707,958 $ 150,000 $ 0 5/8/2024 11:24
Belmont-San Carlos Fire Department
FY 2024-25 & FY 2025-26 Budgets
Fund Recap
Fiscal Years 2023-24 through 2025-26
Audited Fund Balance Estimated Fund Balance Proposed Fund Balance Fund Estimated Proposed Proposed
Proposed Fund Balance
7/1/2023 FY 2023-24 6/30/2024 FY 2024-25 6/30/2025 FY 2025-26 6/30/2026 40 Account/Division FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 Fund Number Description Actual Estimated Proposed Proposed Revenues & Other Sources
105 6628 BELMONT FIRE DISTRICT SERVICES 1,792,093 1,719,818 1,869,949 2,073,797 105 6629 CITY OF SAN CARLOS SERVICES 2,009,131 1,927,802 2,096,897 2,325,734 Service Charges 3,801,224 3,647,620 3,966,846 4,399,531 105 7111 Interest Earnings-Investments 6,070 44,635 6,000 6,000 105 7112 Other Interest Earnings 23,289 (7,147) - -
Use of Money/Property 29,359 37,488 6,000 6,000
105 7252 Refunds and Rebates 81,021 84,613 - -
Miscellaneous 81,021 84,613 - -
General Fund 3,911,604 3,769,721 3,972,846 4,405,531
TOTAL REVENUES AND OTHER SOURCES 3,911,604 3,769,721 3,972,846 4,405,531 Expenditures & Other Uses
105 Dissolution Costs 3,918,127 2,792,113 4,678,510 4,707,958 Public Safety 3,918,127 2,792,113 4,678,510 4,707,958
General Fund 3,918,127 2,792,113 4,678,510 4,707,958
TOTAL EXPENDITURES AND OTHER USES 3,918,127 2,792,113 4,678,510 4,707,958 5/8/2024 11:24
Belmont-San Carlos Fire Department
FY 2024-25 & FY 2025-26 Budgets
Revenues and Other Sources & Expenditures and Other Uses 41 Division: 4222 Dissolution Costs Dissolution Costs
Fund: 105 General Fund Fire Department
Actual Estimated Proposed Proposed
Account Account Description FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 Personnel
8120 PERS Legacy Costs 3,622,079 $ 2,481,548 $ 4,405,051 $ 4,420,017 $ Personnel Total 3,622,079 $ 2,481,548 $ 4,405,051 $ 4,420,017 $ Supplies & Services
8351 Other Professional/Technical 19,255 $ 22,378 $ 18,183 $ 24,890 $ 8363 Bank Service Fees 5,018 4,053 4,192 4,336
8519 OPEB ADC/PayGo Contribution 177,637 204,722 178,791 183,943 8598 Claims-Workers' Compensation 34,942 17,732 18,340 18,969 Supplies & Services Total 236,852 $ 248,884 $ 219,506 $ 232,138 $ Administrative & Other
8310 Administrative Support Service 59,195 $ 61,681 $ 53,953 $ 55,804 $ Administrative & Other Total 59,195 $ 61,681 $ 53,953 $ 55,804 $ Total Expenditures 3,918,127 $ 2,792,113 $ 4,678,510 $ 4,707,958 $ Account Account Description Amount
8120 PERS Legacy Costs $ 4,405,051
$ 4,420,017
8351 Other Professional/Technical $ 18,183
$ 24,890
8363 Bank Service Fees $ 4,192
$ 4,336
8519 OPEB ARC Contribution
$ 178,791
$ 183,943
8598 Claims-Workers' Compensation $ 18,340
$ 18,969
8310 Administrative Support Services $ 53,953
$ 55,804
Notes
FY 2024-25: Amounts provided by CalPERS. Miscellaneous - $138,538, Safety - $4,250,614 and IRC Section 415(b) Replacement Benefit Plan - $15,639. 47.1%-Belmont/52.9%-San Carlos split.

FY 2025-26: Amounts provided by CalPERS. Miscellaneous - $135,800, Safety - $4,277,700 and IRC Section 415(b) Replacement Benefit Plan - $15,951. 47.1%-Belmont/52.9%-San Carlos split.

Multi-year agreement with City of Belmont, including financial, treasury, debt, and risk management, subject to CPI increase. 50/50 split amongst agencies.

Legal, accounting, actuary and workers compensation claim administration services. CPI increase. 47.1%/52.9% split.

Per Foster & Foster actuarial report, June 30, 2023 valuation. Using greater of ADC or PayGo (Expected Retiree Benefit Payments).

47.1%/52.9% split.

Per Per Foster & Foster actuarial report, June 30, 2023 valuation. Using greater of ADC or PayGo (Expected Retiree Benefit Payments).

47.1%/52.9% split.

Legacy claims cost based on actuarial Worker's Compensation Program.

47.1%/52.9% split.

Legacy claims cost based on actuarial Worker's Compensation Program.

47.1%/52.9% split.

Service fees for banking services. CPI increase. 47.1%/52.9% split.

Service fees for banking services. CPI increase. 47.1%/52.9% split. 42 APPENDIX
What is the Basis for the Belmont-San Carlos Fire Department Budget? The Belmont-San Carlos Fire Department prepares its budget using the modified accrual basis of accounting whereby revenues are recognized when they become measurable and available.

Likewise, expenditures are recognized when an event or transaction is expected to draw upon current spendable resources.

What are the Budgetary Policies of the Belmont-San Carlos Fire Department? The Belmont-San Carlos Fire Department operates under a set of budget policies which guide the development of the budget. These policies are presented below. • Where possible, General Fund revenues, operating expenditures and transfers should balance on a "current" basis.
• Supplemental appropriations during the fiscal year require an appropriations adjustment resolution to be passed by the Fire Board.
• In cases where there is an increase in the size of the budget due to an appropriation increase, the resolution requires an offsetting change in fund balance, unless the added cost is accompanied by an unanticipated increase in revenue to the General Fund. If such an offset occurs then there is no change to the fund balance, but the increase in revenue and the source of that revenue is to be shown in the appropriations adjustment resolution.
• Where the increased appropriation is to be funded from a restricted source and no offsetting revenue is identified, the resolution must show a decrease in fund balance from the balance that was expected when the budget was adopted.

What are Funds?
Perhaps the biggest perplexities encountered by someone examining the budget or financial statements of a government agency for the first time is the existence of numerous "funds." Whereas even the largest commercial enterprise generally will report only a single amount for each item in its financial statements (e.g., "cash," "sales"), governments, both large and small, will typically report a number of separate columns or "funds." Each of these funds is considered to function as a separate fiscal and accounting entity. Funds are normally used by governments to segregate resources related to specific activities (e.g., general operations, capital projects). For most governments, the principal operating fund is known as the "General Fund."
43 What Different Kinds of Funds do Governments Use?
Governments may use any number of individual funds in their budgeting and financial reporting (although they are encouraged to use the least number of funds practical in their specific circumstances). Regardless of the number of individual funds used, generally accepted accounting principles (GAAP) require all of these individual funds to be aggregated into no more than seven specified "fund types" on the combined balance sheet.

Four of these fund types are known as the "governmental funds." They are the General Fund, the special revenue funds, the debt service funds, and the capital project funds. These funds are typically used to account for most of a government's operations and capital expenditures.

Two other funds types are known as the "proprietary funds" because they function in a manner similar to private enterprise. These funds are the enterprise (or service) funds and the internal service funds. The last of the seven fund types that may be found on a government’s combined balance sheet or in a budget document is the trust and agency fund. The Belmont-San Carlos Fire Department only uses a General Fund.

General Fund
The General Fund is used to account for the financial resources and expenditures associated with most Department operations where revenue is not required to be recorded in a separate fund. As the name implies, revenues collected in this fund are not restricted as to which division or purpose they may be expended.

The sources of revenue for the General Fund are primarily from service charges and the use of money and property held by the Department.

Is "Unassigned Fund Balance" a Good Measure of Economic Health? "Unassigned” or “available” fund balance is not designated to reflect economic health but simply to provide a measure of the financial resources available for future spending or appropriation. While an absence of spendable resources may well be an indication of actual or potential economic problems, the presence of such resources is no guarantee of sound economic health. For example, just as an individual can increase his or her checkbook balance by taking out a loan, so too can a governmental fund increase its spendable resources (i.e., " unassigned fund balance") by issuing long-term debt.

In neither case would the economic position of the individual or government be improved because the debt must be repaid. Accordingly, a significant level of "unassigned fund balance" should not be taken alone as evidence of sound economic health. Rather, users of government financial statements should also take care to evaluate future claims on governmental fund assets when assessing the economic health of a governmental fund. In particular, users should be careful to consider a governmental fund's obligation to finance long-term debt (reported separately in the general long-term debt account group), as well as the potential future drain on governmental fund resources posed by deficits in other funds (e.g., enterprise funds).
44 How High a Level of "Unassigned” or “Available” Fund Balance Should be Maintained in the General Fund?
There is little argument that a deficit "unassigned” or “available” fund balance is normally to be avoided. Indeed, such deficits are illegal in a number of jurisdictions. The "right amount" of unassigned fund balance, however, is a question open to debate, particularly in the General Fund. Bond raters and others often use "rules of thumb" to measure the adequacy of unreserved fund balance in the General Fund. For example, 5 percent of annual operating expenditures is a commonly used amount. Others argue that unassigned fund balance should equal no less than one month's operating expenditures (i.e., 8.3%). Care must be taken, however, to avoid applying such rules of thumb mechanically. A variety of factors must be taken into account when evaluating the adequacy of fund balance in the General Fund.

One important consideration is the reliability of a governmental agency's revenue sources.

Whereas some governmental revenues are traditionally quite stable, others often can vary significantly depending on conditions in the economy (e.g., interest income). Governments depending upon less reliable revenue sources may need to maintain significantly higher levels of unreserved fund balance than those relying upon more stable sources of revenue.

Another important factor is the timing of cash inflows and outflows. Governments whose cash flows are less predictable or uneven because of the timing of revenue collections may need relatively higher levels of unreserved fund balance to maintain liquidity than those with highly predictable continuous cash inflows and outflows.

A third important consideration involves resources available in other funds. Some governments, for example, establish separate "budget stabilization funds" to meet unexpected contingencies. When such additional resources are available in other funds, a lessor amount of unreserved fund balance may be appropriate in the General Fund.

In short, the specific financial history, prospects and circumstances of each individual government must be carefully weighed when evaluating the adequacy of "unassigned fund balance."
In Belmont-San Carlos Fire Department's case, the revenue stream is stable, predictable and known. Accordingly, the Board has not set an established policy on the balance of unassigned fund balance of the General Fund.

Why Does the Department Prepare a Budget?
Any government entity prepares a budget for more than one reason. The first is that it has a legal obligation to do so. But of equal importance, for Belmont-San Carlos Fire Department, is that the budget sets forth the basic spending policy of the Fire Board. 45 Every other year the Board adopts a bi-annual budget for the upcoming two fiscal years. The Department's fiscal year begins on July 1st. The budget, therefore, will remain in effect through June 30th. There are two major sections of the budget. The revenue side describes the sources and amounts of revenue the Department expects to receive over the fiscal year period. The expenditure or appropriations side describes how much money will be spent from either current revenues or from existing fund.

A final important purpose to remember about the budget document is that it is a plan. The projected revenues and the expenditures are estimates. Many incidents can happen throughout a year to change either revenue expectations or expenditure needs. The Department tries to budget as accurately as possible. Should things change, however, there is a process in place to amend the budget document. Supplemental appropriations resolutions are presented to the Board during the budget cycle to add appropriations. Sometimes these changes will be accompanied by an offsetting additional source of revenue, neutralizing the possible impact on the expected ending fund balance of the relevant fund. Other times these changes will require fund balances be used, reducing the amount of the fund balance from what was projected at the beginning of the year.

How Does the Department Prepare its Budget?
The Belmont-San Carlos Fire Department prepares a budget through a traditional budget process. The Controller prepares a rough draft of the budget with input from the City Managers of Belmont and San Carlos. Once this phase has been completed, a final draft budget document is prepared, reviewed, considered and adopted by the Fire Board at a public hearing. Finally, the Belmont Fire Protection District and City of San Carlos will ratify the budget adopted by the Board.

Major Revenue Sources
Belmont Fire Protection District/City of San Carlos Service Charges - This revenue source is derived from charging each agency for the obligations of the Department.
46 Glossary of Terms
Administrative & other - A budget category that accounts for all administrative support charges, principal and interest payments, and transfers between funds required to support the fund.

Appropriation - Money budgeted for a given division. Appropriations are the means by which legal authority is given to expend public monies. The appropriation is the maximum level of expenditure authorized.

Budget - A plan of financial and division operation which lists appropriations and the means of financing them for a given time period. Belmont-San Carlos Fire Department adopts a one-year plan.

Encumbrance - Financial commitments related to unperformed services or contracts for goods for which part of an appropriation has been reserved.

Expenditure - Appropriated funds which have been spent.

Fiscal year - A twelve-month period used for budgeting, accounting or revenue reporting purposes. California agencies operate on a July 1 to June 30 fiscal basis.

Fund - An independent fiscal and accounting term used to record all financial transactions related to the specific purpose for which the fund was created.

Revenue - Amounts received for intergovernmental sources, service charges, interest and use of property and other income.

Supplies & services - A budget category that accounts for all supplies, goods and services required to support the division.
47

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Public Hearing Under Proposition 218 to Consider Protests to Proposed Increases to Sewer Service Charges Effective Fiscal Years 2024- 2025 and 2025-2026 - Staff Report
Meeting Date: June 11, 2024
Agency: City of Belmont
Staff Contact: Ray Towne, Public Works, 650-595-7459, [email protected] Alberto Espinoza, Public Works, 650-595-7465, [email protected] Agenda Title: Proposed Increases to Sewer Service Charges Effective Fiscal Years 2024-25 and 2025-26
Agenda Action: Resolution
Recommendation
Hold a Public Hearing and, 1) If protest is not made by the owners of a majority of separate parcels of property, adopt a resolution (Attachment A) increasing the City’s sewer charges effective fiscal years 2024- 25 and 2025-26; and, 2) If protest is made by the owners of a majority of separate parcels of property, the City should stop further proceedings of the rate proposal and direct staff to prepare an annual report of City sewer service charges based on current sewer service rates.

Strategic Focus Area
Fiscal and Organizational Sustainability
Background
The City’s Sewer Rate Revenue is used to wholly fund operations, maintenance, and debt service for the capital improvements associated with of the City of Belmont’s sewer utility systems, and to fund City of Belmont’s sewer treatment costs at the wastewater treatment plant managed by the Silicon Valley Clean Water (SVCW). Rate calculations follow the guidelines developed by the State Water Resources Control Board, to ensure that sufficient revenues are collected to operate and maintain the system, cover all obligations of the Sewer Fund, and that the costs of providing service are equitably distributed among customer classes based on their use of the system.

Analysis
On April 9, 2024, the City Council received the 2024 Comprehensive Sewer Rate Study (Attachment B) prepared by HDR Engineering, Inc. (HDR) that analyzed the revenue requirements for the current year plus a five-year projected period. The analysis indicated that the total deficiency of revenues before any sewer rate adjustments ranges from $579,000 in FY 2024-25 to $3.2 million by FY 2028-29. The calculations are based on meeting the following key prudent financial metric criteria:
• Meeting Debt Service Coverage Ratios – During the prior rate study this was a key driver in the results of the proposed rate adjustments. The proposed rate adjustments in this study allow the City to maintain a strong debt service coverage ratio.
• Adequate Renewal and Replacement Funding – The need to maintain the system is key to minimizing future deferred capital needs. This study continued the annual renewal and

STAFF REPORT
48

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Public Hearing Under Proposition 218 to Consider Protests to Proposed Increases to Sewer Service Charges Effective Fiscal Years 2024-25 and 2025-26 - Staff Report
replacement funding needs to prudent levels over the 5-year plan. • Maintaining Prudent Reserve Fund Levels – The study has continued funding to increase reserve fund ending balances to typical industry levels. Given that the city receives semiannual payments for services, it is important to have sufficient reserves (cash on hand) to fund operations between payments.

Rate adjustments needed to meet the deficiency are 4% in FYs 2024-2028 and are shown in Table 1.

The table summarizes revenue requirements compared to anticipated expenses for the sewer utility.

Table 1 – Summary of Sewer Utility Revenue Requirements For this two-year rate period, the proposed rates include a 10% Drought Regulation Adjustment (DRA).

The City implemented the DRA in 2016 in order to adjust for the revenue shortfall as a result of water conservation impacts on the related fixed cost of the system and revenues received by the City through the consumption component of the City’s sewer rate. The DRA factor will be reviewed again during the next rate study period and adjusted at that time if need be.

At present rates, a typical residential customer with 8 hundred cubic feet of winter water average usage would have a monthly bill of $135.36 (8 HCF X 1.10 = 8.80 HCF). Under the proposed rates, with the flow adjustment factor remaining at 10%, the same customer would have a monthly bill of $140.77 in FY 2024-25. For illustrative purposes, Table 2 below shows how the present and proposed monthly sewer rates will change on a monthly bill assuming an average of eight Hundred Cubic Feet (HCF) multiplied by the DRA.
49

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Public Hearing Under Proposition 218 to Consider Protests to Proposed Increases to Sewer Service Charges Effective Fiscal Years 2024-25 and 2025-26 - Staff Report
Table 2 – Monthly Change to Sewer Bill
Table 3 – Present Rates, Proposed Rates, and Forecasted Rates Note: Present Drought Regulation Adjustment (DRA) is Hundred Cubic Feet (HCF) X 1.10 X $/HCF 50

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Public Hearing Under Proposition 218 to Consider Protests to Proposed Increases to Sewer Service Charges Effective Fiscal Years 2024-25 and 2025-26 - Staff Report
On April 9, 2024, the City Council reviewed and discussed the proposed adjustments and provided staff direction to proceed with setting a Proposition 218 public hearing. In proposing the increased charges, the City has complied with each of the relevant requirements of Section 6 of Article XIIID of the California Constitution (which was adopted by the voters in 1996 as part of Proposition 218).

Consequently, the City mailed notice of the proposed change to each property owner of record as of the last equalized assessment roll.

Property owners have the right to submit written protest against the proposed change and may do so by mail or in person to the City Clerk not later than the conclusion of the Public Hearing. If written protests against the change are presented by the owners of a majority of the affected parcels, the City Council may not impose the change.

Proposition 218 Compliance
Staff implemented notification requirements of Proposition 218 for thisrate increase, which mandatesthat written notice of proposed service rate increases be mailed to all affected property owners. The notice, a copy of which is attached (Attachment C), lists the current and proposed rates, and described the process for protesting the proposed rates. A total of 8,970 notices were mailed out. The language in Proposition 218 specified that the Council may not take action on the proposed rates if a majority of property owners (50% +1), or about 4,486, submit written protests.

The City Clerk will tabulate the final number of protests at the end of the public hearing and certify the results. As of May 30, 2024, six written protests had been received by the City Clerk’s Office.

Alternatives

1. Refer to staff for additional input

2. Take no action

3. Deny or modify the approval
Attachments
A. Resolution
B. 2024 Comprehensive Sewer Rate Study
C. Proposition 218 Notice
Fiscal Impact
☐ No Fiscal Impact
☒ Funding Source Confirmed: Sewer rates are accounted for in the Sewer Collections Fund and incorporated into the proposed FY 2024-25 budget.

Source: Purpose: Public Outreach:

Staff Statutory/Contractual Requirement Posting of Agenda Other*
51

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Public Hearing Under Proposition 218 to Consider Protests to Proposed Increases to Sewer Service Charges Effective Fiscal Years 2024-25 and 2025-26 - Staff Report
* Public hearing notice was mailed to all property owners in the City 52

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RESOLUTION NO. 2024 –

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BELMONT INCREASING CERTAIN CITY SEWER SERVICE CHARGES EFFECTIVE JULY 1, 2024 AND JULY 1, 2025
WHEREAS, the City Council has determined to increase sewer service charges; and, WHEREAS, the City Council has determined that the increased sewer service charge should be considered for collection on the assessment roll as provided in Belmont City Code Section (BCC) 21-70; and,
WHEREAS, Health and Safety Code Section 5471 authorizes a city to set sewer service rates by ordinance or resolution in order to collect the charge on the assessment roll; and, WHEREAS, on June 9, 2020, the City Council adopted Ordinance No. 2020-1147, amending Belmont City Code Section 21-93 to provide that future rate adjustments may be adopted by ordinance or resolution and the City has since choose to adopt the rates by resolution.

NOW, THEREFORE, the City Council of the City of Belmont resolves as follows:

SECTION 1. LEGISLATIVE FINDINGS:

The City Council finds as follows:
(a) The City has complied with each of the requirements of California Constitution Article XIIID, Section 6, including the notice requirement set forth in Section 6(a)(1) for increasing the City’s sewer service charges.
(b) Revenues derived from the Sewer Service Charge will be used only for the purpose set forth in BCC Section 21-86.
(c) The Sewer Service Charge is established at a rate that does not exceed the amount permissible under Article XIIID for such a charge and is not a tax. (d) A majority protest, as defined by Section 6(b) of Article XIIID of the California Constitution does not exist with respect to the increase of the sewer service charge. (e) The rates adopted herein fairly and equitably recover the cost of providing sewer service from all customer classes through fixed fees and a volume charge calculated based on the average monthly non-irrigation water consumption for the prior fiscal year for all customers.

SECTION 2. SEWER SERVICE CHARGE
(a) The City’s schedule of charges for sewer service is amended as provided in this section.

In accordance with BCC Section 21-93, the schedule of charges as amended herein shall remain in effect until amended or repealed by the City Council by resolution. 53

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(b) The annual sewer service charge for use of the system by a parcel is the sum of the Base Charge and a Flow Charge. The Flow Charge is calculated by multiplying the Flow Charge Factor in the rate tables in subsection (c) by the estimated annual wastewater discharge of the parcel. The “Drought Regulation Adjustment” (DRA) shown in the rate tables is applied to winter water rate use to normalize water consumption.
(c) The Base Charge and Flow Charge Factor for residential and commercial parcels effective July 1, 2024 is shown in Rate Table (1), and effective July 1, 2025 is shown in Rate Table (2).

Rate Table (1) - Effective July 1, 2024
Collection Rate
Residential
Base Charge $447.89
Flow Charge Factor ($/HCF x 1.10 DRA) $6.38
Commercial
Base Charge $447.89
Flow Charge Factor Low Strength ($/HCF x 1.10 DRA) $6.38 Flow Charge Factor High Strength ($/HCF x 1.10 DRA) $12.39 Treatment Rate
Residential
Base Charge $235.39
Flow Charge Factor ($/HCF x 1.10 DRA) $3.15
Commercial
Base Charge $235.39
Flow Charge Factor Low Strength ($/HCF x 1.10 DRA) $3.15 Flow Charge Factor High Strength ($/HCF x 1.10 DRA) $6.14 Note: 1 HCF (hundred cubic feet) = 748 gallons of water Rate Table (2) - Effective July 1, 2025
Collection Rate
Residential
Base Charge $465.80
Flow Charge Factor ($/HCF x 1.10 DRA) $6.63
Commercial
Base Charge $465.80
Flow Charge Factor Low Strength ($/HCF x 1.10 DRA) $6.63 Flow Charge Factor High Strength ($/HCF x 1.10 DRA) $12.88 Treatment Rate
Residential
Base Charge $244.81
Flow Charge Factor ($/HCF x 1.10 DRA) $3.28
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Commercial
Base Charge $244.81
Flow Charge Factor Low Strength ($/HCF x 1.10 DRA) $3.28 Flow Charge Factor High Strength ($/HCF x 1.10 DRA) $6.38 (d) The estimated annual wastewater discharge of a parcel is determined by multiplying a parcel’s estimated monthly winter water use by 12. Winter water use is estimated as the average of meter readings provided by Mid-Peninsula Water District for the period of December through March from two years before the year for which the charges are calculated. If December through March readings are not available for that year but are for the year prior to the year for which the charges are calculated, the later readings are used for the average. (f) The city manager is directed to update the Master Revenue Schedule to reflect the changes to the schedule of charges for sewer service.
* * *
ADOPTED June 11, 2024 by the City of Belmont City Council by the following vote:

Ayes:

Noes:

Absent:

Abstain:

ATTEST:

City Clerk Mayor
APPROVED AS TO FORM:

City Attorney
55 Draft Report
City of Belmont
Comprehensive Sewer
Rate Study
April 2024
DRAFT
56 900 108th Ave NE, Suite 1300
Bellevue, WA 98004
April 9, 2024
Mr. Peter Brown
Director of Public Works
City of Belmont
One Twin Pines Lane
Belmont, California 94002
Subject: City of Belmont 2024 Comprehensive Sewer Rate Study Draft Report Dear Mr. Brown:

HDR Engineering, Inc. (HDR) is pleased to present the Draft report for the comprehensive sewer rate study conducted for the City of Belmont (City). The overall objective in conducting the rate study was to establish cost-based rates that provide adequate and sustainable funding for the operational and capital needs of the sewer utility. This report outlines the approach, methodology, findings, and conclusions of the rate study process undertaken for the City’s sewer utility.

This report was developed utilizing the City’s specific accounting, operating, and historical customer billing records. HDR utilized this information to develop our analyses, which shaped our findings, conclusions, and recommendations. At the same time, this study was developed utilizing generally accepted rate setting principles as outlined in the Water Environment Federation Manual of Practice No. 27 rate setting manual to meet the proportionality requirements of Proposition 218. The conclusions and recommendations contained within this report provide the City with cost-based and proportional rates for its customers.

We appreciate the assistance provided by the City staff, management, and the City Council in the development of this study.

Sincerely yours,
HDR Engineering, Inc.

Shawn Koorn
Associate Vice President
DRAFT
57 Table of Contents i
City of Belmont – Comprehensive Sewer Rate Study
Executive Summary
Introduction .................................................................................................................. 1 Overview of the Rate Study Process .............................................................................. 2 Key Study Results .......................................................................................................... 3 Overview of the Sewer Rate Study................................................................................. 4 Summary of the Revenue Requirement Analysis.................................................. 4 Summary of the Cost of Service Analysis ............................................................. 6 Summary of the Rate Design Analysis.................................................................. 7 City Council Review ..................................................................................................... 10 Summary ..................................................................................................................... 10 1 Overview of the Rate Setting Process

1.1 Introduction ...................................................................................................... 11

1.2 Generally Accepted Rate Setting Principles..…………………………………………………….11

1.3 Prudent Financial Planning ..........................…………………………………………………….11

1.4 Overview of the Rate Study Process ..……………………………………………………………….12

1.5 Determining the Revenue Requirement ............................................................ 13

1.6 Analyzing the Sewer Cost of Service .................................................................. 13

1.7 Designing Sewer Rates....................................................................................... 14

1.8 Summary………………………………… ..................…………………………………………………….14 2 Development of the Sewer Revenue Requirement

2.1 Introduction.......................................................................................................16

2.2 Determining the Sewer Utility Revenue Requirement........................................ 16

2.2.1 Determining the Time Period and Methodology.....................................16

2.2.2 Flow Impacts on Calculating Revenues...................................................17

2.2.3 Projection of Sewer Revenues................................................................18

2.2.4 Projection of Sewer Operation and Maintenance Expenses....................19

2.2.5 Projection of Sewer Capital Improvement Projects and Funding.............21

2.2.6 Projection of Debt Service ......................................................................22

2.2.7 Reserve Funding .....................................................................................23

2.2.8 Summary of the Sewer Revenue Requirement .......................................22

2.2.9 Debt Service Coverage Ratios................................................................. 25

2.2.10 Review of the Sewer Reserve Levels.......................................................25

2.2.11 Consultant’s Conclusions........................................................................26

2.3 Summary............................................................................................................26 Table of Contents
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58 Table of Contents ii
City of Belmont – Comprehensive Sewer Rate Study
3 Development of the Sewer Cost of Service Analysis

3.1 Introduction..................................................................................................... 27

3.2 Objectives of a Cost of Service Study................................................................ 27

3.3 Determining the Customer Classes of Service.................................................... 28

3.4 General Cost of Service Procedures................................................................... 28

3.4.1 Functionalization of Costs..................................................................... 28

3.4.2 Allocation of Costs................................................................................ 29

3.4.3 Development of Distribution Factors.................................................... 29

3.4.4 Functionalization and Allocation of Sewer Plant in Service ................... 30

3.4.5 Functionalization and Allocation of Operating Expenses....................... 31

3.4.6 Major Assumptions of the Cost of Service Study................................... 31

3.5 Summary of the Cost of Service Analysis ........................................................... 32

3.6 Consultant’s Conclusions and Recommendations.............................................. 32

3.7 Summary ........................................................................................................... 33 4 Development of the Sewer Rate Design

4.1 Introduction ...................................................................................................... 34

4.2 Rate Design Goals and Objectives...................................................................... 34

4.3 Development of Cost Based Sewer Rates........................................................... 34

4.4 Present and Proposed Sewer Rates ................................................................... 35

4.5 Average Residential Local Bill Comparison......................................................... 38

4.6 City Council Review ........................................................................................... 38

4.7 Summary of the Sewer Rate Study..................................................................... 38 Technical Appendix
Proposition 218 Notice
DRAFT
59 Executive Summary 1
City of Belmont – Comprehensive Sewer Rate Study
Introduction
HDR Engineering, Inc. (HDR) was retained by the City of Belmont (City) to perform a comprehensive sewer rate study, which is an update to the prior rate studies completed by HDR for the City. The latest study having been completed in 2022. The 2022 study set rates for the two-year period for Fiscal Years (FY) 2022-2023 and 2023-2024. The City’s sewer treatment services are provided for the City through its participation in Silicon Valley Clean Water (SVCW), which owns and operates a sub-regional wastewater treatment plant and related conveyance facilities that serve the City of Belmont, as well as the cities of Redwood City, San Carlos, and the West Bay Sanitary District. SVCW allocates its costs between the agencies based on their capacity rights, average annual flow rates, and strength of the sewer generated by each member agency.

The collection system component is based on the City’s costs to operate and maintain the City’s sewer system.

The City’s sewer rate is comprised of two components, a collection system component and a treatment system component. The collection system component is based on the costs to operate the City’s sewer collection system. The treatment costs are based on the current treatment costs projections and are adjusted as the City is notified of cost changes by SVCW. The City bills customers on the tax rolls. Each parcels’ sewer charge is the sum of the base charge and flow charges for both collection and treatment.

The vast majority of the City’s rate revenues are derived from residential customers. Currently, the City has two major classes of service: residential/non-residential low strength and high strength non-residential customers. The City’s sewer rate structure includes a fixed component, as well as a flow based component based on the customers’ winter water average consumption.

Annually, the City requests the water consumption data from the Mid-Peninsula Water District to develop the proposed sewer rates, and resulting revenue forecast, for the next fiscal year. In the 2016 rate study, it was recommended that the City make adjustments to the winter water calculation that takes into account the mandated conservation on the City’s sewer customers.

This resulted in the City adopting a drought regulation adjustment on each customer’s winter period consumption, or a multiplier, to develop the consumption for rate setting purposes. The consumption data from Mid-Peninsula Water District is reviewed and a determination made as to the level of the drought regulation adjustment. For this study, the adjustment factor was maintained at 10% as there were no significant changes in consumption levels from the prior study..

This study is based on the previous sewer rate study methodologies and analyses completed by HDR over the past 10 years. The prior studies provided recommendations, and proposed rates, to fund an adequate level of renewal and replacement and include funding of capital projects from prior years. This study reviews the adequacy of the existing sewer rates to meet identified system improvement needs and provides the basis for appropriate rate levels for each customer Executive Summary
DRAFT
60 Executive Summary 2
City of Belmont – Comprehensive Sewer Rate Study
classification. The projected rate adjustments allow the City to meet three key prudent financial criteria, these are:
• Meeting Debt Service Coverage Ratios (DSC) – DSC ratios are the measurement of a utility’s ability to repay outstanding debt. As noted in the City’s 2019 JPFA Sewer Revenue Bond issuance, a minimum debt service coverage ratio of 2.0 is targeted. The proposed rate adjustments in this study allow the City to maintain a debt service coverage ratio greater than 2.0.
• Adequate Renewal and Replacement Funding – The need to maintain the system is key to minimizing future capital needs. This study has continued with increasing the City’s annual renewal and replacement funding needs to prudent levels, which exceed depreciation over the rate planning period. This reflects the funding needs of past deferred capital improvements and necessary inflow and infiltration (I&I) capital improvement needs.
• Maintaining Prudent Reserve Fund Levels – The study has continued to provide ending reserve fund balances to be in line with industry best practices. Given that the City receives semi-annual revenue payments for services, it is important to have sufficient cash reserves on hand to fund operations between revenue payments.

Meeting these three key criteria is critical to the City being able to fund, or finance future capital through the issuance of long-term debt. By adjusting rates, the City is demonstrating to the outside financial community its willingness and commitment to maintain a strong financial position. This willingness to address financial issues and adjust rates accordingly will be beneficial when issuing future long-term debt for the sewer system’s capital needs. As a point of reference, HDR is not acting as the City’s municipal advisor or calculating or verifying the debt service coverage ratios for the City for financial projections.

The development of this study examines the adequacy and proportionality of the current sewer ratesfor the City’s sewer utility and provides the cost-basis for recommended sewer rate revenue adjustments. This report describes the overall methodology used to analyze the City’s sewer rates along with the findings, conclusions, and recommendations.

Overview of the Rate Study Process
A comprehensive sewer rate study uses three interrelated analyses to address the adequacy and proportionality of a utility’s rates. These three analyses are a revenue requirement analysis, a cost of service analysis, and a rate design analysis. These three analyses are illustrated below in Figure ES-1.

DRAFT
61 Executive Summary 3
City of Belmont – Comprehensive Sewer Rate Study
Figure ES – 1
Overview of the Comprehensive Rate Analyses
For the City’s sewer rate study, HDR completed each of the three analyses, a revenue requirement analysis, cost of service analysis, and rate design analysis. The results from each task of the rate study were used as the basis for establishing cost-based and proportional rates for the City’s customers.

Key Study Results
The sewer utility was financially evaluated on a stand-alone basis. By reviewing the sewer utility individually, the revenues required to adequately fund both O&M and capital infrastructure for the sewer utility must be balanced against the rate impacts to customers. Likewise, future rate impacts should be considered and evaluated as part of the study projections. For example, the delayed action to fund capital improvements in the current time period could result in higher future costs and in turn increased rate adjustments as well as risk associated with catastrophic system failures. It is challenging to balance the desire for least cost rates with the operating and capital needs required to provide a high-level service to customers.

Based on the technical analysis undertaken as part of this study, the following findings, conclusions, and recommendations were noted.
• The revenue requirement analysis for the sewer utility was developed for FY 2023-2024 – 2031-2032.
• The starting point for the revenue requirement analysis was the City’s FY 2023-2024 adopted sewer budget and the sewer utility capital improvement plan. • Wastewater treatment is provided by Silicon Valley Clean Water (SVCW) and is included within the City’s operation and maintenance expenses. The SVCW FY 2023-2024 budget was escalated annually based on the projections provided by SVCW. • The current flow adjustment factor has been maintained at 10% to reflect the minimal changes expected for the winter water averages for the two-year rate setting period.

Revenue Requirement Analysis
Cost of Service Analysis
Rate Design Analysis
Compares the revenues to the expenses to
determine the overall
revenue adjustment required
Proportionally distributes the revenue
requirement to the sewer utility customer
classes of service
Reflects the revenue requirement and
cost of service results to collect the
target level of revenues
DRAFT
62 Executive Summary 4
City of Belmont – Comprehensive Sewer Rate Study
• Escalation factors were developed to project operating expenses in future years. These factors ranged from 2% to 7% per year depending on the specific expense and reflect the inflationary increases experienced by the City in the past. • A cost of service analysis was developed to review the proportionality of the existing rates. The results of the cost of service analysis indicated minimal cost differences between the customer classes of service. Given these results, it is recommended that no adjustments in the cost relationships between the classes of service be made at this time. • Proposed rates were developed for consideration by the City Council for FY 2024-2025 and FY 2025-2026.
• Rate projections were developed for a 5-year period through FY 2028-2029, to provide the City Council with a projection of the rates necessary to meet future operating and capital needs.
• The proposed rate adjustments are necessary for the City to adequately fund its financial needs and maintain prudent financial measures and operating metrics  Maintain a healthy financial outlook for future long-term borrowing by targeting a 2.0 minimum debt service coverage ratio
 Adequate funding of capital improvements from rates to prudently maintain the City’s existing infrastructure (i.e., renewal and replacement programs) as well as I&I improvements
 Maintain adequate minimum reserve levels for routine operating and capital needs as well as emergency situations
Provided below is the executive summary of the technical analyses undertaken for the City’s study and the findings, conclusions, and recommendations of this study.

Overview of the Sewer Rate Study
The sewer rate study determines the overall adequacy of the existing sewer rates, on a financial stand-alone basis, at current rate levels. That is, no funding sources other than those generated by the sewer utility were used to fund sewer utility expenses. For the sewer rate study, a concerted effort was made to minimize rate impacts over the five-year review period while also maintaining the City’s financial targets for debt service coverage ratio, capital improvement funding, and operating and capital cash reserve levels.

Summary of the Revenue Requirement Analysis
The development of the revenue requirement analysis is used to determine the overall adequacy of the sewer utility rates. The starting point of the sewer revenue requirement analysis was the City’s FY 2023-2024 adopted sewer utility budget. HDR and City staff developed a projection of revenues and expenses for future years based on assumed escalation (inflationary) factors. The sewer study was developed to project future rate needs based on projected operating costs and identified capital needs over the multi-year period. However, the focus for purposes of rate setting was the next two-year period (FY 2024-2025 – 2025-2026). The summary of the sewer revenue requirement is shown below in Table ES-1. It indicates the need for rate adjustments in order to properly fund the sewer utility.

DRAFT
63 Executive Summary 5
City of Belmont – Comprehensive Sewer Rate Study
Table ES – 1
Summary of Sewer Revenue Requirement ($000s)
Budget Projected
2023-24[1] 2024-25 2025-26 2026-27 2027-28 2028-29
Revenues
Retail Rate Revenues $14,337 $14,481 $14,625 $14,772 $14,919 $15,069 Other Revenues 138 872 804 782 688 719
Total Revenues $14,476 $15,353 $15,430 $15,554 $15,607 $15,788 Expenses
Collection O&M Expenses $3,895 $4,021 $4,148 $4,280 $4,418 $4,561 Treatment O&M Expenses 3,625 3,496 4,090 4,270 4,470 4,670 Repair & Replace. Funding 3,000 5,000 5,200 5,500 6,000 6,400 I/I Capital Funding 650 668 686 705 724 744
Total Debt Service 2,500 2,503 2,498 2,501 2,501 2,497
Change in Working Capital +/- 805 244 1 142 29 181
Total Expenses $14,476 $15,932 $16,623 $17,398 $18,141 $19,053 Balance/(Deficiency) of Funds $0 ($579) ($1,193) ($1,844) ($2,534) ($3,265) Cumulative as a % of Rates 0.0% 4.0% 8.2% 12.5% 17.0% 21.7% Proposed Rate Adjustments 0.0% 4.0% 4.0% 4.0% 4.0% 4.0% Debt Service Coverage Ratio
Before Rate Adjustment 2.73 3.08 2.82 2.74 2.63 2.57
After Rate Adjustment 2.73 3.31 3.30 3.48 3.64 3.88
[1] Note: FY 2023-24 includes the revenues at the adopted rate levels from the prior rate study. Therefore, no rate adjustment is included in FY 2023-24.

Table ES–1 shows the total deficiency of revenues, before the proposed sewer rate adjustments, ranges from $579,000 in FY 2024-25 increasing to $3.3 million by FY 2028-29. A 4.0% annual sewer revenue adjustment is proposed for the projected time period of FY 2024-2025 through FY 2028-2029. The projected rate adjustments allow the City to meet three key prudent financial metric criteria, these are:
• Meet Prudent Debt Service Coverage Ratios – Minimum DSC target of 2.0. • Adequate Renewal and Replacement Funding – Annual renewal and replacement funding needs exceed depreciation over the 5-year plan as well as I&I capital funding needs.
• Maintain Prudent Reserve Fund Levels – Operating reserve target equal to annual minimum of 180 days of O&M; Capital project reserve target equal to two years of annual depreciation.

The revenue requirement developed in this sewer rate study will allow the City to develop costbased rates that meet the City’s goals and objectives for maintaining the existing system and funding future capital needs. While the revenue requirement analysis projected operating and DRAFT
64 Executive Summary 6
City of Belmont – Comprehensive Sewer Rate Study
capital needs over a five-year period, the focus of the proposed rates, for Proposition 218 purposes, is the next two fiscal years, FY 2024-2025 and FY 2025-2026.

Summary of Cost of Service Analysis
A cost of service analysis determines the proportional distribution of the previously developed revenue requirement to each of the customer classes of service. The objectives of the cost of service analysis are different from determining revenue requirement. A revenue requirement analysis determines the utility's overall financial needs, while the cost of service study determines the proportional manner to collect the revenue requirement from the customer classes of service (e.g., rate schedules). The City has two rate schedules, low strength and high strength. Low strength includes all residential customers, and the non-residential customers that have domestic strength wastewater. High strength is for non-residential customers that have wastewater strengths greater than domestic strength levels. Table ES-2 provides a summary of the cost of service analysis for the FY 2024-2025 test year.

Table ES – 2
Summary of the FY 2024-25 Sewer Cost of Service Analysis ($000’s) Classes of Service
Present Rate
Revenues
Distributed
Costs
$
Difference
%
Difference
Low Strength
Residential and Non-Residential $14,233 $14,806 ($574) 4.0% High Strength
Non-Residential 248 254 (6) 3.9%
Total $14,481 $15,060 ($579) 4.0%
The results of the cost of service analysis indicated very minimal cost differences between the customer classes of service. It should be noted that the cost of service analysis developed by HDR is not a simple fixed/variable analysis. Rather, the cost of service analysis distributes costs between the customer classes of service based on each customer class’s proportional share of volume, strength, and customer-related costs. Given that, no adjustments to the cost relationships between the customer classes of service are recommended at this time.

Summary of the Rate Design Analysis
The final step of the comprehensive sewer rate study process is the design of sewer rates to collect the desired level of revenue, based on the results of the revenue requirement and cost of service analyses. The individual allocated totals were then distributed to each customer class.

The distributed expenses were then aggregated to determine the overall responsibility of each customer class of service.

Developing proportional rates is of paramount importance in developing the proposed sewer rates. Given this, the City’s proposed sewer rates have been developed with the intent of meeting the legal requirements of California Constitution Article XIII D, section 6 (Article XIII D), commonly DRAFT
65 Executive Summary 7
City of Belmont – Comprehensive Sewer Rate Study
referred to as Proposition 218. A key component of Article XIII D is the development of rates which reflect the cost of providing service and are proportionally allocated among the customer classes of service. HDR would point out that there is no single methodology for proportionally assigning costs to the various customer groups. The Water Environment Federation (WEF) Manual of Practice No. 27 clearly delineates various methodologies which may be used to establish cost‐based rates. Article XIII D does not prescribe a particular methodology for establishing rates. Consequently, HDR developed the City’s proposed sewer rates based on the WEF MOP #27 methodology and the City’s sewer system operating and customer characteristics, in order to provide an administrative record of the steps taken to establish the City’s proposed sewer rates to meet the requirements of Article XIII D.

HDR is of the opinion that the proposed rates comply with the legal requirements of Article XIII D. HDR reaches this conclusion based upon the following:
 The revenue derived from sewer rates does not exceed the funds required to provide the property related service (i.e., sewer service). The proposed rates are designed to collect the overall revenue requirement of the City’s sewer utility.  The revenues derived from sewer rates shall not be used for any purpose other than that for which the fee or charge is imposed. The revenues derived from the City’s sewer rates are used exclusively to operate and maintain the City’s sewer system.  The amount of a fee or charge imposed upon a parcel or person as an incident of property ownership shall not exceed the proportional costs of the service attributable to the parcel.

The cost of service analysis was specifically developed to focus on the issue of the proportional assignment of costs.

The City’s sewer rate is comprised of two components, a collection system component and a treatment system component. The collection system component is based on the costs to operate the City’s sewer system, except for treatment costs. The treatment costs are based on the current treatment costs projections and is adjusted as the City is notified of cost changes by the wholesale provider (SVCW). Each parcels’ sewer charge is the sum of the base charge and flow charges for both collection and treatment. The proposed sewer rate designs maintain their current rate structure.

For the five-year rate period, the rates have maintained the 10% flow adjustment factor that reflects the historical change in consumption given mandated and targeted conservation. MidPeninsula Water District consumption billing data was reviewed and utilized in the development of the study. As a result of there being no significant changes in consumption levels since the prior study, the adjustment factor was maintained at 10%. The flow adjustment factor will allow the City to maintain sufficient revenues during the proposed rate period of FY 2024-2025 and FY 2025-2026. The flow adjustment factor will be reviewed again during the next rate study and a determination made as to adjust the flow adjustment factor or to eliminate, and restart, the flow adjustment factor.

The same formula for this adjustment will remain as follows: (HCF = 100 cubic feet) Formula: Actual Volume Usage x (1 + (flow adjustment factor)) = adjusted volume usage DRAFT
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City of Belmont – Comprehensive Sewer Rate Study
Example: 8 HCF x (1+ .10) = 8.8 HCF adjusted volume usage Table ES-3 provides the present and proposed rates for the residential and non-residential customers for the next five fiscal years.

Table ES – 3
Present and Proposed Sewer Rates (Annual)
Present
Rates
Proposed
Rates
FY 2024-25
Proposed
Rates
FY 2025-26
Forecasted
Rates
FY 2026-27
Forecasted
Rates
FY 2027-28
Forecasted
Rates
FY 2028-29

COLLECTION
Residential
Base Charge $430.66 $447.89 $465.80 $484.43 $503.81 $523.96 Flow Charge ($/HCF)[1] 6.13 6.38 6.63 6.90 7.17 7.46
Non-Residential
Base Charge $430.66 $447.89 $465.80 $484.43 $503.81 $523.96 Flow Charge Low
Strength ($/HCF)[1]

6.13 6.38 6.63 6.90 7.17 7.46
Flow Charge High
Strength ($/HCF)[1]

11.91 12.39 12.88 13.40 13.93 14.49

TREATMENT
Residential
Base Charge $226.34 $235.39 $244.81 $254.60 $264.79 $275.38 Flow Charge ($/HCF)[1] 3.03 3.15 3.28 3.41 3.54 3.69
Non-Residential
Base Charge $226.34 $235.39 $244.81 $254.60 $264.79 $275.38 Flow Charge Low
Strength ($/HCF)[1]

3.03 3.15 3.28 3.41 3.54 3.69
Flow Charge High
Strength ($/HCF)[1]

5.90 6.14 6.38 6.64 6.90 7.18

COMBINED
Residential
Base Charge $657.00 $683.28 $710.61 $739.04 $768.60 $799.34 Flow Charge ($/HCF) 9.16 9.53 9.91 10.30 10.72 11.14
Non-Residential
Base Charge $657.00 $683.28 $710.61 $739.04 $768.60 $799.34 Flow Charge Low
Strength ($/HCF)]

9.16 9.53 9.91 10.30 10.72 11.14
Flow Charge High
Strength ($/HCF)

17.81 18.52 19.26 20.03 20.84 21.67
At present rates, a typical residential customer with 8 hundred cubic feet of winter water average would have a monthly bill of $135.36 (8 HCF X 1.10 = 8.80 HCF). Under the proposed rates, with the flow adjustment factor remaining at 10%, the same customer would have a monthly bill of DRAFT
67 Executive Summary 9
City of Belmont – Comprehensive Sewer Rate Study
$140.77 in FY 2024-25. Table ES-4 shows the average residential bill for FY 2024-25 through FY 2028-29.

Table ES – 4
Present and Proposed Sewer Rates (Monthly)
Proposed
FY 2024-25
Proposed
FY 2025-26
Forecasted
FY 2026-27
Forecasted
FY 2027-28
Forecasted
FY 2028-29
Proposed Revenue Adjustment 4.0% 4.0% 4.0% 4.0% 4.0%
Present Average Monthly Bill [1] $135.36
After Proposed Rate Adj. [2] $140.77 $146.41 $152.26 $158.35 $164.68 Monthly Bill Difference 5.41 5.63 5.86 6.09 6.33
Cumulative Bill Difference 5.41 11.05 16.91 22.99 29.32 % Change to Monthly Bill 4.0% 4.0% 4.0% 4.0% 4.0%
[1] – Current average bill assumes 10% flow adjustment factor and 8 HCF monthly consumption [2] –Proposed average bill assumes a 10% flow adjustment factor and 8 HCF monthly consumption This report provides a more detailed discussion of the sewer rate study revenue requirement, cost of service, and rate design analyses undertaken for the City.

City Council Review
At the time of this report, the study results were anticipated to be presented to the City Council on April 9, 2024. If approved, and moved by the City Council, a public hearing will be set and the customer notification sent to the customers.

Summary
The adequacy and proportionality of the City’s sewer rates were reviewed by HDR through the development of a comprehensive sewer rate study. Based on the analyses developed herein, which included the budgeted operating and capital expenses, HDR has proposed a comprehensive set of revenue recommendations for the sewer utility. The following sections of the report provide a more detailed discussion of the technical analyses undertaken, along with the findings, conclusions
DRAFT , and recommendations of the study.
68 Introduction and Overview of the Rate Setting Process 10 City of Belmont – Comprehensive Sewer Rate Study

1.1 Introduction
HDR Engineering, Inc. (HDR) was retained by the City of Belmont (City) to conduct a comprehensive sewer rate study. The objective in conducting a comprehensive sewer rate study is to develop cost-based and proportional rates which adequately fund the City’s operation and maintenance (O&M) needs, along with the necessary capital improvements (i.e., capital infrastructure) to provide service. This study determines the adequacy of the existing sewer rates and provides the analytical framework for any needed future adjustments.

1.2 Generally Accepted Rate Setting Principles
As a practical matter, utilities should consider setting their rates around generally accepted or global principles and guidelines. Utility rates should be:
 Cost-based, proportional, and set at a level that meets the utility’s full revenue requirement
 Easy for the customer to understand and easy for the utility to administer  Designed to conform with generally accepted rate setting techniques  Stable in their ability to provide adequate revenues to meet the utility’s financial, operating, capital infrastructure and regulatory requirements  Established at a level that is, from the customer’s perspective, stable from year-to-year These general principles and guidelines have historically been used by the City to establish their current sewer rates. For this study, they were again applied in the rate analyses developed for the City.

1.3 Prudent Financial Planning
Financial rate-setting policies and guidelines are integral to the process of developing a utility rate study. Financial policies are intended to provide guidance in the financial planning and ratesetting process, and in the day-to-day financial management of the City’s utilities. Adoption of financial policies provides a strong foundation for the long-term financial sustainability of the utility and provides the outside financial community with a better understanding of the City’s commitment to managing the utility in a
financially prudent manner. As a part of the City’s previous rate studies, key financial and rate-setting policies/targets were developed and established. These key financial
policies address issues such as maintaining minimum
reserves for cash flow and capital improvement purposes, minimum debt service coverage (DSC) ratios, and consistent and adequate rate funding of capital

1.0 Overview of the Rate Setting Process
“Financial policies are
intended to provide guidance
in the financial planning and
rate-setting
process…Adoption of
financial policies provides a
strong foundation for the
long-term financial
sustainability of the utility...”
DRAFT
69 Introduction and Overview of the Rate Setting Process 11 City of Belmont – Comprehensive Sewer Rate Study
projects for the City. Each of the key financial planning and rate setting objectives were carried forward from the City’s prior sewer rate studies.

1.4 Overview of the Rate Study Process
A comprehensive study generally consists of three interrelated analyses performed for the sewer utility. Figure 1 - 1 provides an overview of these analyses.

Figure 1 – 1
Overview of the Comprehensive Rate Analyses
In a comprehensive rate study, the revenue requirement analysis is concerned with the overall funding sources (revenues) and expenses (both operating and capital) of the utility. From this analysis, a determination can be made as to the overall level of adjustment to rate revenues.

Next, a cost of service analysis is performed to proportionally distribute the revenue requirement to the various types of customers served (e.g., residential, commercial). Finally, given the overall level of revenues to be collected, along with the proportional distribution of those costs, the last step of the rate study process is the designing of rates to collect the appropriate level of revenues while considering the other rate design goals and objectives of the utility (e.g., revenue stability, conservation, ease of administration, customer understanding). However, a key component of the study is supporting the requirements of Proposition 218 for the proposed rates while considering rate design goals and objectives.

In the case of the City’s study, all three analyses (revenue requirement, cost of service, rate design) were conducted for the sewer utility. The results from each task of the rate study were used as the basis for establishing cost-based and proportional rates for the City’s customers.

In developing this study, HDR utilized generally accepted cost of service and rate setting techniques as well as industry best practices in the development of the City’s sewer rate study.

1.5 Determining the Revenue Requirement
Most public utilities use the “cash basis” methodology for establishing their revenue requirement and setting rates. This revenue requirement methodology conforms to most public utility budgetary requirements and the calculation is easy to understand. Under the cash basis revenue requirement methodology, a public utility:
 Adds operation and maintenance (O&M) expenses to applicable taxes or transfer payments to determine total operating expenses. Operation and maintenance expenses include the materials, electricity, labor, supplies, etc., needed to keep the utility functioning.
 Calculates capital costs by adding debt service payments (principal and interest) to capital improvements financed with rate revenues. In lieu of including capital improvements financed with rate revenues, a utility sometimes includes (i.e., substitutes) annual depreciation expense to stabilize the annual revenue requirement from year-to-year.

Note that the two portions of the capital expense component (debt service and capital improvements financed from rates) are necessary under the cash basis methodology because utilities generally cannot finance all their capital facilities with strictly rates or long-term debt.

Under the cash basis revenue requirement methodology, the sum of the operating expenses and capital costs equals the utility’s total revenue requirement during any period of time (see Table 1-1).

Table 1 – 1
Overview of the Sewer Utility Cash Basis Revenue Requirement + Sewer Operation and Maintenance Expenses
 Planning and Project Management
 Sanitary Sewer Operations
+ Repair and Replacement Funded from Rates
+ Debt Service (P + I) – Existing and Future
± Change in Working Capital
= Total Sewer Revenue Requirement
− Miscellaneous Revenues
= Net Revenue Requirement (Balance Required from Rates) The analyses developed within this report utilized the cash basis methodology. This is consistent with past practices of the City’s utility rate-setting.

1.6 Analyzing the Sewer Cost of Service
After the total revenue requirement is determined, it is then distributed to the users (i.e., customers) receiving sewer service. The proportional distribution, as analyzed through a cost of service analysis, reflects the cost relationships for collecting and conveying wastewater along with the costs from SVWC to treat the wastewater. The approach for establishing the cost of DRAFT
71 Introduction and Overview of the Rate Setting Process 13 City of Belmont – Comprehensive Sewer Rate Study
service analysis is based on the Water Environment Federation Manual of Practice No. 27 (WEF MOP #27). As discussed in the manual, a cost of service analysis requires three analytical steps, which are:

1. Costs are functionalized or grouped into the various cost categories related to providing service (e.g., for pumping; treatment, collection). This step is largely accomplished by the utility’s accounting system

2. The functionalized costs are then allocated to the appropriate cost component(s).

Allocation refers to the arrangement of the functionalized data into cost components. For example, sewer utility costs are typically allocated as volume, strength (BOD/TSS), customer-related, or a combination of the cost components

3. Once the costs are allocated to the cost components, they are proportionally distributed to the customer classes of service (e.g., residential/ low-strength non-residential, highstrength non-residential). The distribution is based on each customer class’s relative contribution to the cost component (i.e., benefits received from and burdens placed on the system and its resources). For example, customer-related costs are distributed to each class of service based on the total number of customers in that class of service. Once costs are distributed, the revenues from each customer class of service required to achieve cost-based rates can be determined
At the conclusion of the cost of service study, two key pieces of information are provided. First, the cost of service provides an understanding of the total revenues to be collected from each class of service. In other words, the revenue requirement is, for example, $10.0 million and the cost of service provides a proportional method to distribute that total cost of $10.0 million between the sewer customer classes of service (e.g., residential/ low-strength non-residential, high-strength non-residential ). The other important piece of information provided by the cost of service analysis is the average unit costs. Average unit costs are the distributed costs divided by the appropriate consumption (billing) units. This provides an understanding of the cost on a $/customer/month and $/hundred cubic feet (HCF) basis.

1.7 Designing Sewer Rates
The design of the proposed sewer rates for adoption by the City concludes the analytical or technical analysis portion of the rate study process. In designing proposed sewer rates, the results from both the revenue requirement and cost of service analyses are used to develop rates that achieve the overall goals and objectives of the City. These goals and objectives may include the consideration of cost-based rates, but may also consider items such as ability to pay, continuity of past rate philosophy, conservation (efficient use), encouragement of economic development, ease of customer understanding and billing administration, legal requirements, etc. It is important to understand that cost of service is only one goal or objective in designing final sewer rates. However, it is an important one, and necessary to meet the proportionality requirements of Proposition 218.

1.8 Summary
This section of the report has provided a brief introduction to the general principles, techniques, and economic theory used to set sewer utility rates. These principles and methodologies have been the basis for the City’s past utility rate studies and continue to be the basis for the City’s DRAFT
72 Introduction and Overview of the Rate Setting Process 14 City of Belmont – Comprehensive Sewer Rate Study
current rate study. The next three sections of the report discuss the sewer utility rate study and the technical analyses undertaken.

DRAFT
73 Development of the Sewer Revenue Requirement Analysis 15 City of Belmont – Comprehensive Sewer Rate Study

2.1 Introduction
This section of the City’s rate study report discusses the development of the sewer revenue requirement analysis and proposed sewer rate revenue transition plan. The main objective of the revenue requirement is to develop cost-based sewer rates while attempting to minimize the impact to the utility’s customers. Provided below is a detailed discussion of the revenue requirement, along with our findings, conclusions and recommendations.

2.2 Determining the Sewer Utility Revenue Requirement
The starting point of the sewer revenue requirement analysis was the FY 2023-24 adopted sewer budget. HDR and the City developed a projection of revenues and expenses for future years based on assumed escalation (inflationary) factors. The sewer study developed future rate needs based on operating and capital expenses over a five-year period, through FY 2028-2029. However, the focus for purposes of rate setting was the next two-year period (FY 2024-2025 and FY 2025-2026).

A rate transition plan was developed to provide a smooth transition to fully funding the sewer utility over the long-term.

The sewer capital funding plan was developed based on the current sewer utility capital improvement plan (CIP). This plan does not assume additional issuances of long-term debt at this time, while continuing the transition of rate funded capital to strengthen the level of renewal and replacement and capital project funding over the 5-year planning period.

2.2.1 Determining the Time Period and Methodology
The first step in calculating the revenue requirement for the sewer utility was to establish a time frame for the revenue requirement analysis. For this study, the revenue requirement was developed for FY 2023-2024 through FY 2028-2029, with the focus for rate setting purposes on FY 2024-2025 and FY 2025-2026. Reviewing a multi-year time period is recommended in an attempt to identify significant expenses that may be on the horizon. By anticipating future financial requirements, the City can begin planning for these changes sooner, thereby minimizing short-term rate impacts and overall long-term rates.

The second step in determining the revenue requirement for the City was to determine the basis of accumulating costs. For the City’s revenue requirement, the “cash basis” approach was utilized. The cash basis approach is the most commonly used methodology by municipal utilities to set their revenue requirement, and the method used in previous rate studies developed for the City by HDR. The actual revenue requirement developed for the City was customized to follow the City’s system of accounts (budget documents). However, even with these modifications, the City’s sewer revenue requirement still contains the basic cost components of the cash basis methodology. Table 2-1 provides a summary of the cash basis approach used to develop the City’s sewer revenue requirement.

2.0 Development of the Sewer Revenue Requirement
DRAFT
74 Development of the Sewer Revenue Requirement Analysis 16 City of Belmont – Comprehensive Sewer Rate Study
Table 2 – 1
Overview of the Cash Basis Revenue Requirement
+ Collection O&M Expenses
+ Treatment O&M Expenses
+ Repair & Replacement Funded from Rates
+ I/I Capital Funding
+ Debt Service (P + I) – Existing and Future
± Change in Working Capital
= Total Sewer Revenue Requirement
− Miscellaneous Revenues
= Net Revenue Requirement (Balance Required from Rates) Given a time period around which to develop the revenue requirement and a method to accumulate the costs, the focus shifts to the development and projection of the revenues and expenses of the sewer utility.

The primary financial inputs in the development of the revenue requirement wasthe City’s 2023- 2024 adopted sewer budget, historical winter customer characteristics data (e.g., number of customers and average winter consumption), and current adopted rates. Presented below is a detailed discussion of the steps and key assumptions used in the development of the projections of the City’s sewer revenues and expenses.

2.2.2 Flow Impacts on Calculating Revenues
The City has a sewer rate structure that includes a fixed component as well as a volumetric component based on the customers’ winter water average consumption. Each year, the City requests the water consumption data from the Mid-Peninsula Water District to develop the proposed sewer rates, and resulting revenue forecast, for the next fiscal year. The City adopted a drought regulation factor during the 2016 rate study, which is now called the flow adjustment factor. This adjustment factor has been in place since that time. However, during the comprehensive rate study process, the factor is reviewed, and updated, if necessary, to reflect current and projected consumption levels.

As mentioned previously, this study has maintained the current flow adjustment factor of 10%.

Based on the impact of the flow factor adjustment on the sewer billing units, the City will be projected to maintain target revenues during this next two-year period as customer winter water is impacted by conservation, possible drought conditions, and future conservation efforts by MidPeninsula Water District. The flow adjustment factor will be reviewed again during the next rate study and adjusted at that time, or depending on conditions, reset, with rates set at adequate levels assuming no flow adjustment factor. The same formula for this adjustment will remain as follows (HCF = 100 cubic feet):

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75 Development of the Sewer Revenue Requirement Analysis 17 City of Belmont – Comprehensive Sewer Rate Study
Formula: Actual Volume Usage x (1 + (flow adjustment factor)) = adjusted volume usage Example: 8 HCF x (1+ .10) = 8.80 HCF adjusted volume usage It should also be noted that the majority of the City’s costs are fixed and do not vary depending on the level of sewer flows. The one cost that can vary is the cost of treatment from Silicon Valley Clean Water (SVCW). The cost of treatment is flow based and would change as a result of decreased sewer flows. Given all of the above, a decline in annual winter water consumption, which is the basis for establishing sewer billing units and subsequent sewer rate revenues, will have an impact on the necessary rate adjustment to prudently fund the City’s operating and capital expenses.

2.2.3 Projection of Sewer Revenues
Once the billing units were developed, based on the winter water data, the next step in developing the revenue requirement was to develop a projection of rate revenues, at present rate levels. In general, this process involved developing projected billing units for each customer group. The billing units for each customer group were then multiplied by the applicable current sewer rates. This method of independently calculating revenues assures the projected revenues used within the analysis tie to the projected billing units.

The vast majority of the City’s rate
revenues are derived from residential
customers. Currently, the City has two
major classes of service: Low strength
customers, and high strength customers.

Residential customers are low strength
customers as are those non-residential
customers that have domestic strength
flow based on the customer type. The high
strength customers reflect those customers
with higher strength wastewater flows given the type of business activity which impacts the costs of treatment. This is an important distinction as SVCW allocates costs, in part, between the member agencies on the strength of the wastewater flows. In total, and at currently adopted rate levels, the City is projected to receive approximately $14.5 million in rate revenue in FY 2024-25.

This is based on the projected winter water billing data, plus the flow adjustment factor of 10%.

Future years are projected at an additional 1.0% annual customer growth.

In addition to rate revenues, the City also receives a variety of miscellaneous revenues, which include interest on investments, standby fees, and other miscellaneous revenues. The utility is projected to annually receive an average of approximately $773,000 in miscellaneous revenues over the projected planning horizon.

On a combined basis, taking into account the rate revenues along with miscellaneous revenues, the City’s total projected revenues are expected to be approximately $15.4 million in FY 2024- 25, increasing to approximately $15.8 million in FY 2028-2029 prior to projected rate adjustments.
$13,178
$248 $1,055
Projected FY 2024 - 25
Rate Revenues
By Customer Type ($000)
Residential
Commercial LS
Commercial HS
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76 Development of the Sewer Revenue Requirement Analysis 18 City of Belmont – Comprehensive Sewer Rate Study

2.2.4 Projection of Sewer Operation and Maintenance Expenses Operation and maintenance (O&M) expenses are incurred by the City to operate and maintain the existing collection and conveyance system as well as the treatment charges from SVCW. In general, O&M expenses are grouped into a number of different major functional categories (see Table 2-1). For each major functional category, the City maintains a number of subaccounts. To begin the process of projecting O&M expenses over the planning horizon, escalation factors were developed.

Escalation factors were developed for the basic types of expenses the City incurs: labor, benefits, materials and supplies, utilities, insurance, and miscellaneous expenses. The escalation factors used were in the range of two to seven percent per year, depending on the type of cost and recent inflationary trends. A major cost for the sewer utility is the cost of wastewater treatment from Silicon Valley Clean Water (SVCW). SVCW’s costs have been increasing due to capital projects and operating costs associated with regulatory and utility cost increases. SVCW costs are allocated proportionally between the members based on their capacity rights, average annual flow rates and strength of the sewer generated by each member agency. Based on the SVCW budget for FY 2023-2024, Belmont’s share of $3.6 million in treatment costs were included in the study. The SVCW treatment costs were based on the SVCW planning document and are increasing at approximately 5.4% annually over the five-year period.

Provided below in Table 2-3 is a summary of the escalation factors used to develop the projected O&M expenses for FY 2024-2025 through FY 2028-2029.

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77 Development of the Sewer Revenue Requirement Analysis 19 City of Belmont – Comprehensive Sewer Rate Study
Table 2 – 3
Overview of the Sewer Utility Escalation Factors
FY
2024-25[1]
FY
2025-26
FY
2026-27
FY
2027-28
FY
2028-29
Revenues
Rate Revenues (Growth) 1.0% 1.0% 1.0% 1.0% 1.0%
Other Revenues Flat Flat Flat Flat Flat
Expense
Labor 2.0% 2.0% 2.0% 2.0% 2.0%
Professional/Contractual 2.0% 2.0% 2.0% 2.0% 2.0%
Data Processing 3.0% 3.0% 3.0% 3.0% 3.0%
Benefits – Medical 7.0% 7.0% 7.0% 7.0% 7.0%
Benefits – Other 5.3% 5.3% 5.3% 5.3% 5.3%
Materials & Supplies 3.0% 3.0% 3.0% 3.0% 3.0%
Equipment/Vehicles 3.0% 3.0% 3.0% 3.0% 3.0%
Education/Training 2.0% 2.0% 2.0% 2.0% 2.0%
Indirect Expense 3.0% 3.0% 3.0% 3.0% 3.0%
Miscellaneous 3.0% 3.0% 3.0% 3.0% 3.0%
Utilities 5.0% 5.0% 5.0% 5.0% 5.0%
SVCW Treatment -3.6% 17.0% 4.4% 4.7% 4.5%
Inflation Factor 2.7% 2.7% 2.7% 2.7% 2.7%
[1] Rate revenue for FY 2024/2025 was based on the projected billing units and current adopted sewer rates. Other revenues were calculated.

The development of the revenue requirement was based on the City’s FY 2023-2024 adopted sewer budget. Using the escalation factors developed in Table 2 – 3, a forecast of future O&M expenses was developed. As noted, the SVCW treatment costs were based on the projections provided by SVCW. The revenue requirement maintained the overall functional nature of the City’s system of accounts (i.e., salaries and wages, benefits, supplies). It should be noted that no other significant changes or extraordinary increases over the FY 2023-2024 budget levels for operating expenses were assumed.

Total operation and maintenance
expenses for the City are projected to be
approximately $7.5 million in FY 2024-
2025. Of this amount, approximately
47% or $3.5 million is related to SVCW
wastewater treatment costs. The SVCW
wastewater treatment costs are
purchased services and are thus not a
“locally controlled” sewer cost. Over the
$4,021
$3,496
$5,000
$668 $2,503
$244
Projected FY 2024 - 25
Expenses ($000)
Collection O&M
Treatment (S.V.C.W)
R&R Funding
I&I Funding
Debt Service
Working Capital
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78 Development of the Sewer Revenue Requirement Analysis 20 City of Belmont – Comprehensive Sewer Rate Study
planning horizon, the O&M expenses are projected to increase to approximately $9.2 million by FY 2028-2029.

2.2.5 Projection of Sewer Capital Improvement Projects and Funding A key component in the development of the City’s sewer revenue requirement was properly funding capital improvement needs. The sewer capital funding plan was developed from the City’s current sewer capital improvement plan and ongoing master plan.

As noted in prior rate studies, and in this rate study, a key objective is setting proposed rates at a level that establishes a prudent funding level for renewal and replacement needs above annual depreciation expense. This study includes a transition to continue to strengthen the level of renewal and replacement and capital project funding over the 5-year planning period. Renewal and replacement funding is approximately $5.0 million in FY 2024-2025, increasing to $6.4 million in FY 2028-2029.

In addition to the sewer capital plan, additional capital improvements have been outlined to reduce inflow and infiltration (I&I) in the sewer system. I&I rate funded capital is $668,000 in FY 2024-2025, increasing to $744,000 in FY 2028-2029. Shown below in Table 2–4 is a summary of the sewer capital improvement plan and funding.

Table 2 - 4
Summary of the Sewer Capital Improvement Plan ($000s)
FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 Total Sewer Capital Projects $4,833 $10,390 $8,061 $12,363 $7,640 $6,400 Less: Funding Sources
Operating Fund Reserves $0 $0 $0 $0 $0 $0
Capital Fund Reserves 83 3,640 1,111 4,863 40 0
Connection Fee Reserves 1,750 1,750 1,750 2,000 1,600 0 Grants 0 0 0 0 0 0
Total Funding Sources $1,833 $5,390 $2,861 $6,863 $1,640 $0 Sewer Capital from Rates $3,000 $5,000 $5,200 $5,500 $6,000 $6,400 I&I Capital Funding $650 $668 $686 $705 $724 $744
The City, based on the rate transition plan developed as part of this revenue requirement, is projected to have adequate resources to provide funding for these capital projects. Prior rate study capital funding analyses have included the periodic issuance of long-term debt to fund identified capital improvement needs. For this study, no new long-term debt is planned to be issued given the availability of existing reserves and rate funding available to fund the City’s capital plan. Provided below is an overview of the funding sources the City has used, and will continue to use, to fund the planned improvements over the next five-year period.

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79 Development of the Sewer Revenue Requirement Analysis 21 City of Belmont – Comprehensive Sewer Rate Study
Rate Funding – A general financial guideline states that, at a minimum, a utility should annually fund from rates an amount equal to or greater than annual depreciation expense for renewal and replacement funding. In this case, annual depreciation expense reflects the City’s current investment in sewer collection plant being depreciated or “losing” its useful life. Therefore, this portion of plant investment needs to be replaced to maintain the existing level of infrastructure.

More importantly, for a sewer utility, failure to maintain the collection system infrastructure could lead to infiltration and inflow (I&I) issues. With increased flows, the City’s overall cost of wastewater treatment would, in turn, also increase. That being the case, it becomes very costeffective to properly and adequately maintain the collection system in order to minimize I&I issues on the system. The City has taken a proactive approach in past studies and in this analysis to maintain capital funding equal to or greater than annual depreciation.

Capital Reserve Funding – The capital reserve can serve different purposes, but capital reserves are primarily a means to set aside funds for larger capital projects that may require funding greater than the annual rate funding component provides. Maintaining adequate capital reserves helps to smooth out the fluctuations in capital improvement spending, but it also provides the City with greater financial flexibility during the planning and construction of projects. As part of the current capital funding plan, there will be approximately $44.9 million in capital projects over the five year period, with an annual average ending cash balance of $21.6 million in capital reserves used as a funding source over the five-year rate setting period (FY 2024-25 – FY 2028- 29). Over the planning horizon, close attention should be given to the capital reserve balance as to not reduce fund balances below minimum targets. The target minimum capital reserve amount is typically set equal to two-years of annual depreciation expense.

Long-Term Debt – Another funding source for capital projects is the issuance of long-term debt (e.g., low-interest loans, revenue bonds). While there are certain advantages and disadvantages with the issuance of long-term debt, it is important to weigh all of them when deciding whether to issue new debt or fund a project by other means. Long-term debt is often issued for major capital projects which have an immediate impact on rates while also being a financing mechanism to smoothly finance / fund the major capital project. For this analysis, the City is not anticipating issuing any additional long-term debt during the five-year planning period.

2.2.6 Projection of Debt Service
The final component of the City’s revenue requirement is annual debt service payments. The City currently has three outstanding debt obligations; the 2016 Refunding, and the 2016 and 2019 revenue bonds, amounting to a total annual debt service of approximately $2.5 million for FY 2024-2025. As mentioned previously, the City is not anticipating issuing additional long-term debt at this time. As a result, the three outstanding debt issuances will comprise the debt service payments for the planning period.

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80 Development of the Sewer Revenue Requirement Analysis 22 City of Belmont – Comprehensive Sewer Rate Study

2.2.7 Reserve Funding
This study has used reserve funding, or transfers to and from sewer reserve funds, to smooth and mitigate the rate adjustments in any particular year. Funds can be drawn down to mitigate the need for a rate adjustment or increased to replenish reserves if they have been drawn down in prior years. In this analysis, change in working capital is primarily used to balance the revenue requirement to the proposed rate adjustments. From year-to-year, the use of these reserves, or change in working capital, is very minimal.

2.2.8 Summary of the Sewer Revenue Requirement
Given the above projections of revenues and expenses, a summary of the revenue requirement for the sewer utility can be developed. In developing the final revenue requirement, consideration was given to the financial planning objectives of the City. In particular, emphasis was placed on attempting to minimize rates, yet still have adequate funds to support the operational and capital expenses as well as meet the City’s target financial metrics throughout the projected time period. Presented below in Table 2-5 is a summary of the sewer revenue requirement. A detailed analysis of the sewer revenue requirement can be found in the Technical Appendix.

Table 2 – 5
Summary of Sewer Revenue Requirement ($000s)
Budget Projected
2023-24[1] 2024-25 2025-26 2026-27 2027-28 2028-29
Revenues
Retail Rate Revenues $14,337 $14,481 $14,625 $14,772 $14,919 $15,069 Other Revenues 138 872 804 782 688 719
Total Revenues $14,476 $15,353 $15,430 $15,554 $15,607 $15,788 Expenses
Collection O&M Expenses $3,895 $4,021 $4,148 $4,280 $4,418 $4,561 Treatment O&M Expenses 3,625 3,496 4,090 4,270 4,470 4,670 Repair & Replace. Funding 3,000 5,000 5,200 5,500 6,000 6,400 I/I Capital Funding 650 668 686 705 724 744
Total Debt Service 2,500 2,503 2,498 2,501 2,501 2,497
Change in Working Capital +/- 805 244 1 142 29 181
Total Expenses $14,476 $15,932 $16,623 $17,398 $18,141 $19,053 Balance/(Deficiency) of Funds $0 ($579) ($1,193) ($1,844) ($2,534) ($3,265) Cumulative as a % of Rates 0.0% 4.0% 8.2% 12.5% 17.0% 21.7% Proposed Rate Adjustments 0.0% 4.0% 4.0% 4.0% 4.0% 4.0% Debt Service Coverage Ratio
Before Rate Adjustment 2.73 3.08 2.82 2.74 2.63 2.57
After Rate Adjustment 2.73 3.31 3.30 3.48 3.64 3.88
[1] Note: FY 2023-24 includes the revenues at the adopted rate levels from the prior rate study. Therefore, no rate adjustment is included in FY 2023-24.

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81 Development of the Sewer Revenue Requirement Analysis 23 City of Belmont – Comprehensive Sewer Rate Study
It is important to note that the “Balance/(Deficiency) of Funds” row in Table 2-5 is cumulative.

That is, any adjustments in the initial years will reduce the deficiency in later years. Rates need to be adjusted approximately 21.7% in order to adequately fund annual O&M expenses, annual repair and replacement funding, and the system’s capital needs over the five-year period. The size and timing of the adjustments is critical as it is proposed that the City set rates for a two year period. This is important as the
rate transition plan, or
proposed rate adjustments,
have been developed for a 5-
year period. Any adjustments
to the proposed rate
adjustments shown in the
initial years will result in the
need to adjust rates, more or
less, in the later years
depending on the adjustments
made in the initial years. The
graph above illustrates the
projected revenues, expenses,
and reserve funds.

Table 2 – 5 shows the total deficiency of revenues before any sewer rate adjustments ranges from $579,000 in FY 2024-2025 to $3.3 million by FY 2028-2029. A 4.0% sewer revenue adjustment is proposed annually for each of the five years of the projected time period. As noted, this study is focused on the proposed rates for FY 2024-2025 and FY 2025-2026. The projected rate adjustments allow the City to meet three key prudent financial criteria, these are:
• Debt Service Coverage Ratios – DSC target of 2.0
• Adequate Renewal and Replacement Funding – Annual renewal and replacement funding exceed depreciation over the 5-year plan
• Maintain Prudent Reserve Fund Levels – Operating reserve target equal to annual minimum of 180 days of O&M; Capital reserve target equal to two years of annual depreciation expense
Meeting these three key criteria are critical to the City being able to fund/finance capital projects with long-term debt in the future. By adjusting rates, the City is demonstrating to the outside financial community its willingness and commitment to maintain a strong financial position.

The revenue requirement developed in this sewer rate study will allow the City to develop costbased rates that meet the City’s goals and objectives for maintaining the existing system and funding past deferred capital projects. The rate transition plan provides smooth increases in rates over a 5-year period.
$0
$5,000
$10,000
$15,000
$20,000
$25,000
FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29
Summary of the Revenue Requirement ($000's)
O&M Expenses Rate Funded Capital
Debt Service Change in Working Capital Revenues
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82 Development of the Sewer Revenue Requirement Analysis 24 City of Belmont – Comprehensive Sewer Rate Study

2.2.9 Debt Service Coverage Ratios
Generally, revenue bonds contain covenants requiring rates to be set at an adequate level to assure repayment of the annual principal and interest debt obligations. The financial measure of rate adequacy is typically determined using a debt service coverage ratio (DSC). The DSC ratio is a financial measure of the utility’s ability to repay the debt. Based on the City’s approach, the DSC ratio is set at a level such that revenues less operating expenses will be 2.0 times greater than the maximum annual debt service on the outstanding debt. That is, rates will be sufficient to pay projected O&M and have an additional annual debt service payment.

As noted above, the City has
established a target of
maintaining a 2.0 DSC ratio.

At present rate levels, the
sewer utility is meeting the
policy minimum.

While the City is not
planning on issuing
additional long-term debt
at this time, the DSC ratio
decreases before the
proposed rate adjustments
due to O&M costs
increasing while revenue
remains relatively flat. Due to this, the proposed rate adjustments are necessary in order to maintain strong coverage ratios and remain above the target of a 2.0 DSC ratio. 1 This is an
important financial target as planning around the absolute minimum level (e.g., 1.25 bond requirement) can result in a technical default on the bonds if unplanned expenditures occur or revenues are lower than anticipated in a given year. Planning a minimum DSC target of 2.0 was recommended by the City’s financial advisors during the most recent bond issues. A higher DSC ratio can result in a higher bond rating and lower interest rates and bond costs. As noted, for purposes of the rate study, HDR is not acting as a municipal advisor to the City, or calculating DSC ratios for reporting or verification purposes.

2.2.10 Review of the Sewer Reserve Levels
There can be many different purposes for reserves, and they can also be a good indicator of the long-term financial health of the utility. The City’s sewer utility currently has one reserve fund, however, for rate setting purposes, it was split into three reserve funds: an operating reserve fund, capital reserve fund, and connection fee reserve fund. The operating fund reserve has a minimum ending fund balance target of 180 days of O&M expenses plus an emergency reserve 1 A debt service coverage (DSC) ratio is an indicator of the amount of funds available to pay debt service after O&M expenses and other pre-debt obligations have been met. A DSC ratio of 1.25 means the utility has 25% more funds available to pay debt service than the amount of the debt service payment(s). For example, assuming a utility has a $1.0 million debt service payment, a DSC of 1.25 means that the utility has $1.25million available to pay debt service (i.e. $1.25 million ÷ $1.0 million = 1.25 DSC).

0.00 0.50

1.00 1.50

2.00 2.50

3.00 3.50

4.00 4.50
FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29
Debt Service Coverage Ratio
Before Proposed Rate Adjustment A�er Proposed Rate Adjustment Policy Target
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83 Development of the Sewer Revenue Requirement Analysis 25 City of Belmont – Comprehensive Sewer Rate Study
of $2.0 million, which is approximately $7.1 million for FY 2024-2025. The capital fund reserve has a target minimum of approximately two years of annual depreciation expense, or approximately $3.7 million for FY 2024-2025. The connection fee reserve does not have a specific target minimum as
connection fees may only
be used for system
expansion, or debt service
issued for expansion of the
system. Combined, the
City’s target minimum
reserve is approximately
$10.8 million for FY 2024-
2025, increasing to $12.2
million by FY 2028-2029.

Over this planning period,
the City is projected to
maintain adequate
operating and capital
reserves and not fall below these recommended minimum reserve levels. The annual cash flow and ending reserve balances should be reviewed each year to make sure that the uses of funds do not place the reserve balance below the minimum level. Additionally, as the sewer reserves approach the minimums, the need for rate adjustments should be evaluated in order to avoid future, large rate adjustments for customers. It should also be noted that the funding source for the capital reserve is through current and future long-term debt issuances which are placed in the capital reserve fund.

2.2.11 Consultant’s Conclusions
Based on the City’s revenue requirement analysis, the overall sewer rate adjustment should be adjusted annually by 4.0% over the projected five year period. These proposed rate adjustments are needed to fully fund the projected operating costs of the sewer utility and the annual capital improvement needs. HDR has reached this conclusion for the following reasons:
• Rate adjustments are necessary to continue to fund the City’s annual renewal and replacement needs.
• Rate adjustments are necessary to maintain prudent financial metrics for debt service coverage ratio and reserve levels.
• The proposed rate adjustments maintain the City’s sewer system strong financial health, which is important as the City continues to maintain the existing system.

The rate transition plan presented in this study provides the City with the ability to meet the goals and objectives for the sewer system.

2.3 Summary
This section of the report has provided a discussion of the City’s revenue requirement analysis.

The revenue requirement analysis developed a financial plan to support the City’s operating and DRAFT
84 Development of the Sewer Revenue Requirement Analysis 26 City of Belmont – Comprehensive Sewer Rate Study
capital needs for the sewer utility. The next section will discuss the cost of service analysis developed for the City.

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85 Development of the Sewer Cost of Service Analysis 27 City of Belmont – Comprehensive Sewer Rate Study

3.1 Introduction
The purpose of a cost of service analysis is to proportionally distribute the total revenue requirement to the sewer customer classes of service. For the City’s study, the customer classes of service are low strength (residential and commercial low) and high strength commercial. The previously developed revenue requirement for FY 2024-2025 was utilized in the development of the cost of service analysis.

In order to determine the proportional distribution of costs to each customer class of service on the sewer system, a cost of service analysis is conducted. As outlined in the WEF MOP #27, and to meet the requirements of Proposition 218, the cost of service functionalizes, allocates, and distributes the sewer revenue requirement to each class of service in a proportional manner. In recent years, increasing emphasis has been placed on cost of service studies by government agencies, customers, utility regulatory commissions, and other parties. This interest has been generated in part by continued inflationary trends, increased operating and capital expenditures, as well as concerns of equity in rates among customers. Following the generally-accepted guidelines and principles of a cost of service analysis will inherently lead to rates which are equitable, cost-based, and not viewed as arbitrary or capricious in nature. Provided below is a detailed discussion of the cost of service analysis for the sewer utility.

3.2 Objectives of a Cost of Service Study
There are two primary objectives in conducting a cost of service study:
• Proportionally distribute the allocated revenue requirement to the customer classes of service
• Derive average unit costs for subsequent rate designs The objectives of a cost of service analysis are different from determining the revenue requirement. As noted previously, a revenue requirement analysis determines the utility’s overall financial (revenue) needs, while the cost of service study determines the proportional manner to collect the revenue requirement.

The second rationale for conducting a cost of service analysis is to design the rates such that they properly reflect the costs incurred by the City to provide sewer service. For example, the City may incur costs related to flow or total volume, the strength of wastewater flow, and customer cost components. Each of these types of costs may be collected in a slightly different manner to allow for the development of a rate that collects costs in the same manner as they are incurred.

In order to determine the cost to serve each customer class on a system, three basic analytical tasks are completed: functionalization, allocation, and distribution of the FY 2024-2025 revenue requirement. Each of these steps in the cost of service analysis is discussed in detail below.

3.0 Development of the Sewer Cost of Service Analysis
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86 Development of the Sewer Cost of Service Analysis 28 City of Belmont – Comprehensive Sewer Rate Study

3.3 Determining the Customer Classes of
Service
One of the first tasks of a cost of service analysis is to determine the classes of service for the analysis. In
determining classes of service, the objective is to group customers together into similar or homogeneous groups
based upon wastewater flow and strength characteristics and/or sewer facility requirements. Based on the current rate schedules, the classes of service used within the sewer study are:
 Low Strength
 Residential
 Non-Residential – Low
 High Strength
 Non-Residential – High
In this case, low strength represents domestic level
wastewater for residential customers and commercial
customers with domestic strength wastewater flow. High
strength represents commercial customers with higher
strength wastewater, which is more costly to treat.

Furthermore, the City is billed by SVCW based on the
strength of the wastewater. In developing these customer classes of service, the costs of treatment can be distributed proportionately to reflect the impacts placed on the system.

3.4 General Cost of Service Procedures
In order to determine the cost to serve each customer class of service on the City’s system, a cost of service analysis is conducted. A cost of service study utilizes a three-step approach to review costs, and take the form of
functionalization, allocation, and distribution. Provided below is a detailed discussion of the sewer cost of service study conducted for the City, and the specific steps taken within the analysis.

3.4.1 Functionalization of Costs
The first analytical step of the sewer cost of service study is called functionalization. Functionalization is the
arrangement of sewer expenses and asset (infrastructure) data by major operating functions. This is generally
accomplished through the utility’s system of accounts. In this study, the City’s system of accounts was used to functionalize sewer plant assets and operating expenses.

Terminology of a Cost of
Service Analysis
Functionalization – The
arrangement of the cost data by
functional category (e.g.
treatment, collection, etc.).

Allocation – The assignment of
functionalized costs to cost
components (e.g. volume,
strength, and customer related).

Distribution – Distributing the
allocated costs to each customer
class based on the proportional
contribution to that specific cost
component.

Volume Costs – Costs that are
classified as volume related vary
with the total flow of sewer (e.g.
chemical use at the treatment
facility).

Strength Costs – Costs classified
as strength related refer to the
wastewater treatment function.

Typically, strength-related costs
are further defined as
biochemical oxygen demand
(BOD) and suspended solids (SS).

Customers with higher
wastewater strength
characteristics cost more to
treat. Facilities are often
designed and sized around
meeting these costs.

Direct Assignment – Costs that
can be clearly identified as
belonging to a specific customer
class.

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87 Development of the Sewer Cost of Service Analysis 29 City of Belmont – Comprehensive Sewer Rate Study

3.4.2 Allocation of Costs
The second analytical task performed is the allocation of the functionalized expenses to cost components. This task reviews each cost and attempts to determine why the sewer cost was incurred and what type of need was being met (e.g. volume, strength, customer etc.). The cost classifiers used for the sewer utility cost of service study are as follows:
• Volume Related Costs: Volume-related costs are those that tend to vary according to the quantity of wastewater collected and treated. An example of a volume related cost is electricity used for pumping wastewater.
• Strength Related Costs: Strength related costs are those costs associated with the additional handling and treatment of high “strength” wastewater. Wastewater strength is typically measured in biochemical oxygen demand (BOD) and total suspended solids (SS). Increased levels of BOD or SS generally equate to increased treatment costs. Pretreatment is generally required if the discharge is known to regularly exceed the typical (i.e., domestic level) waste strength.
• Customer Related Costs: Customer-related costs vary with the addition or deletion of a customer. Customer related costs typically include the costs of billing, collecting, and accounting. Customer-related costs may also be further categorized as actual or weighted.
• Revenue Related: Some costs associated with the sewer utility may vary with the amount of revenue received by the utility. An example of a revenue related cost would be a utility tax, which is based on gross utility revenue.
• Direct Assignment: Certain costs associated with operating the utility may be directly traced to a specific sewer customer or class of service. These costs are then directly assigned to that specific class of service. It should be noted that there were not any costs that were directly assigned during the development of the City’s cost of service analysis.

Once the costs have been allocated, the next step is to distribute the costs proportionally between the customer classes of service. Provided in the next section is a summary of the development of the distribution factors.

3.4.3 Development of Distribution Factors
Once the allocation process is complete, and the customer groups have been defined, the allocated costs are distributed to the customer classes of service. The City’s allocated costs were distributed using the following distribution factors:
 Volume Distribution Factor: Volume-related costs are distributed on the basis of contribution to wastewater flows. In order to develop this distribution factor, some knowledge of the contribution to flows must be determined. The assumed wastewater contribution by customer class for FY 2024-2025 was the basis for the development of the volume allocation factor. Sewer flows were projected based on historical winter water billing for residential customers, and average water consumption for commercial customers.

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88 Development of the Sewer Cost of Service Analysis 30 City of Belmont – Comprehensive Sewer Rate Study
 Strength Distribution Factor: Strength-related costs are allocated between biochemical oxygen demand (BOD) and suspended solids (SS). Both of these types of costs are distributed to the various classes of service based upon the relative estimated strengths that each class of service contributed to the overall flow at the plant. Strength factors for the low strength and high strength customers were based on industry standard data.  Customer Distribution Factor: Customer costs within the cost of service study are distributed to the various customer classes of service based upon their respective customer counts. Two types of customer distribution factors were developed, actual and weighted.

The actual customer distribution factor was based on the actual number of accounts for each customer class. The weighted customer factor reflects the disproportionate costs associated with serving different types of customers. for purposes of the City’s study, no cost differences were determined for the weighted customer factor.  Revenue Related Distribution Factor: The revenue related distribution factor was developed from the projected rate revenues for FY 2024-2025 for each customer group. As a point of reference, no costs were allocated to the revenue component and therefore the revenue distribution factor was not used.

The development of distribution factors is based on generally accepted principles as developed in the WEF MOP #27 to meet the proportionality requirements of Proposition 218. Given the development of the distribution factors, the final step in the cost of service study is to distribute the allocated costs to the various customer classes of service.

3.4.4 Functionalization and Allocation of Sewer Plant in Service The next step of the cost of service is the functionalization and allocation of sewer plant in service. In performing the functionalization of plant in service, HDR utilized the City’s historical plant records. The allocation process included reviewing each group of assets and determining which cost classifiers the assets were related to. For example, the City’s assets were allocated as:
volume-related, strength-related, customer-related, or revenue-related. Provided below is a brief discussion of the allocation process used.

The City’s system assets are mostly collection related in nature. In this study, the collection plant was classified as 65% volume and 35% actual customer to reflect a portion of the assets being in place to simply move wastewater from the customer to the treatment system as well as a portion being related to providing service based on the number of customers on the system. Table 3-1 shows the detail of the classification for the City’s sewer plant in service. A more detailed exhibit of the City’s functionalization and classification of plant investment can be found in the Sewer Technical Appendix.

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89 Development of the Sewer Cost of Service Analysis 31 City of Belmont – Comprehensive Sewer Rate Study
Table 3 - 1
Summary of the Allocation of Sewer Plant in Service
Category
Volume
Related
BOD
Related
SS
Related
Actual
Customer
Direct
Assign
Improvements 65.0% 0% 0% 35.0% 0%
Machinery & Equipment 100.0% 0% 0% 0% 0%

3.4.5 Functionalization and Allocation of Operating Expenses Operating expenses are generally functionalized and allocated in a manner similar to the corresponding plant account. For example, maintenance of collection lines is typically allocated in the same manner (allocation percentages) as the plant account for collection lines. This approach to the allocation of operating expenses was used for this analysis.

Table 3 - 2
Summary of the Allocation of Sewer Expenses
Category
Volume
Related
BOD
Related
SS
Related
Actual
Customer
Weighted
Customer
SVCW Treatment 39.6% 29.5% 30.9% 0% 0%
Planning and Project
Management, Sewer
Operations, (Overall) 56.9% 7.0% 7.3% 24.7% 4.1%
Computer, Administrative
Charge 0% 0% 0% 0% 100%
For the City’s study, the revenue requirement for FY 2024-2025 was functionalized, allocated, and distributed. As noted earlier, the City utilized a cash basis revenue requirement, which was comprised of operation and maintenance expenses, debt service, and capital additions funded from rates. The SVCW treatment costs were allocated based on the SVCW wholesale contract for billing. A more detailed review of the allocation of the revenue requirement can be found in the Technical Appendix.

3.4.6 Major Assumptions of the Cost of Service Study
A number of key assumptions were used within the City’s cost of service study. Below is a brief discussion of the major assumptions used.
 The methodology used within the sewer cost of service study was based on generally accepted industry standard approaches and is consistent with the methodology used in the City’s prior sewer comprehensive rate studies
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90 Development of the Sewer Cost of Service Analysis 32 City of Belmont – Comprehensive Sewer Rate Study
 The test period used for the sewer cost of service analysis was FY 2024-2025. The revenue and expense data were previously developed within the revenue requirement analysis  The cash basis approach was utilized, which conforms to generally accepted sewer cost of service approaches and methodologies
 The allocation of plant in service was developed based on generally accepted cost allocation techniques and the City’s specific asset data
 Customer volumes used within this study were provided for each class of service by the City through Mid Peninsula’s average winter billing data
 Strength distribution factors were based on overall strength levels at the treatment plant within the City’s records.

3.5 Summary of the Cost of Service Analysis
Given the allocation and distribution of the FY 2024-2025 revenue requirement, a summary of the distributed costs as compared to the current revenues can be developed. Provided in Table 3-2 is a summary of the cost of service analysis.

Table 3 – 2
Summary of the FY 2024-25 Sewer Cost of Service Analysis ($000’s) Classes of Service
Present Rate
Revenues
Distributed
Costs
$
Difference
%
Difference
Low Strength
Residential and Non-Residential $14,233 $14,806 ($574) 4.0% High Strength
Non-Residential 248 254 (6) 3.9%
Total $14,481 $15,060 ($579) 4.0%
The results of the cost of service analysis indicate very minimal cost differences between the customer classes of service. It should be noted that the cost of service analysis developed by HDR is not a simple fixed/variable analysis. Rather, the cost of service analysis distributes costs between the customer classes of service based on each customer class’s proportional share of volume, strength, and customer-related costs. As the City continues to monitor rates and cost of service results through future studies, cost of service adjustments may be made as the results are driven by customer consumption. Given that, no adjustments in the cost relationships between the customer classes of service are recommended at this time.

3.6 Consultant’s Conclusions and Recommendations
The overall allocation of costs between low strength customers (e.g., residential and low strength non-residential) and high strength customers reflects the overall system average increase. In addition, it was noted that customers have been adjusting their water consumption habits and consumptive use has changed over the last several years, which has a direct impact on the rates charged in future years. As the City continues to monitor rates and cost of service results through future studies, cost of service adjustments may be made as the results are driven by customer DRAFT
91 Development of the Sewer Cost of Service Analysis 33 City of Belmont – Comprehensive Sewer Rate Study
consumption. Given these results, no adjustments in the cost relationships between the customer classes of service are recommended at this time. As a result, the overall proposed revenue/rate adjustments will be applied equally across all customers and rate components.

3.7 Summary
This section of the report has provided a summary of the cost of service analysis developed for the City. This analysis was prepared using generally accepted cost of service techniques and principles. The next section of the study will review the present and proposed sewer rates for the City.

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92 Development of the Sewer Rate Designs 34
City of Belmont – Comprehensive Sewer Rate Study

4.1 Introduction
The final step of the City’s comprehensive sewer rate study is the designing of sewer rates to collect the desired levels of revenues, based on the results of the revenue requirement and cost of service analyses. In reviewing sewer rate designs, consideration is given to the level of the rates and the structure of the rates.

4.2 Rate Design Goals and Objectives
Prudent rate administration dictates that several criteria must be considered when setting utility rates. Some of these rate design criteria are listed below:
 Rates which are easy to understand from the customer’s perspective  Rates which are easy for the utility to administer
 Consideration of the customer’s ability to pay
 Continuity, over time, of the rate making philosophy
 Policy considerations (encourage efficient use, economic development, etc.)  Provide revenue stability from month to month and year to year  Promote efficient allocation of the resource
 Equitable and non-discriminatory (cost-based)
Many industry experts and regulatory agencies recognize that the last consideration, equitable and cost-based rates, should be of paramount importance and provide the primary guidance to utilities on rate structure and policy. It is important that the City provide its customers with a proper price signal as to what their consumption or usage is costing. This goal may be approached through rate level and structure. When developing the proposed rate designs, all of the above listed criteria can be taken into consideration. However, it should be noted that it is difficult, if not impossible, to design a rate that meets all the goals and objectives listed above. For example, it may be difficult to design a rate that takes into consideration the customer’s ability to pay, and one which is cost-based. In designing rates, there are always trade-offs between these various goals and objectives.

4.3 Development of Cost Based Sewer Rates
As mentioned, developing cost-based and proportional rates is of paramount importance in developing proposed sewer rates. While it is always a key consideration in developing rates, meeting the legal requirements and documenting the steps taken to meet the requirements, has been in the forefront with the recent legal challenges in the State of California on utility rates.

Given this, the City’s proposed sewer rates have been developed to meet the requirements of California Constitution Article XIII D, Section 6 (Article XIII D). A key component of Article XIII D is the development of rates which reflect the cost of providing service and are proportionally distributed between the various customer classes of service. HDR would point out that there is no single methodology for proportionally assigning costs to the customer classes of service. The Water Environment Federation Manual of Practice No. 27 provides various methodologies which

4.0 Development of the Sewer Rate Design
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93 Development of the Sewer Rate Designs 35
City of Belmont – Comprehensive Sewer Rate Study
may be used to establish cost‐based rates. Unfortunately, Article XIII D is not prescriptive and does not provide a specific methodology for establishing rates. Given that, HDR developed the City’s proposed sewer rates based on generally accepted rate setting methodologies to meet the requirements of Article XIII D.

HDR is of the opinion that the proposed rates meet the legal requirements of Article XIII D. HDR reached this conclusion based upon the following:
• The revenue derived from sewer rates does not exceed the funds required to provide the property related service (i.e., sewer service). The proposed rates are designed to collect the overall revenue requirement of the City’s sewer system as identified in this study. • The revenues derived from sewer rates shall not be used for any purpose other than that for which the fee or charge is imposed. The revenues derived from the City’s sewer rates are used exclusively to operate and maintain the City’s sewer system. • The amount of a fee or charge imposed upon a parcel or person as an incident of property ownership shall not exceed the proportional costs of the service attributable to the parcel.

The cost of service analysis focused exclusively on the issue of proportional assignment of costs to customer classes of service. The proposed rates have appropriately grouped customers into customer classes of service (low strength and high strength) that reflect the varying wastewater volumes and system requirements (i.e., the benefits they receive from and burdens they place on the system) of each customer class of service. The grouping of customers and rates into these classes of service creates the proportionality expected under Proposition 218 by having differing rates by customer classes of service, which reflect both the level of revenue to be collected by the utility, and the manner in which these costs are incurred. As a result, these costs are assigned to customer classes of service based upon their proportional impacts.

4.4 Present and Proposed Sewer Rates
The City’s sewer rate is comprised of two components, a collection system component and a treatment system component. The collection system component is based on the costs to operate the City’s sewer system, excluding treatment costs. The treatment costs are based on the current treatment costs projections from SVCW and can be adjusted as the City is notified of cost changes by the wholesale provider. Each parcel’s sewer charge is the sum of the base charge and flow charges for both collection and treatment. The proposed sewer rate designs maintain their current rate structure and only the level of the rates is adjusted given the results of the revenue requirement and cost of service analyses.

For the five year planning period, the rates maintain the 10% flow adjustment factor that was established in the prior rate study. Recent Mid-Peninsula Water District consumption billing data was reviewed and based on that data, the recommendation is to maintain the flow adjustment factor at 10% for the two year rate setting period. The flow adjustment factor will allow the City to maintain sufficient revenues during the proposed rate period of FY 2024-2025 and FY 2025- 2026. The flow adjustment factor will be reviewed again during the next rate study and a determination made as to adjust the flow adjustment factor or to eliminate, and restart, the flow adjustment factor.

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94 Development of the Sewer Rate Designs 36
City of Belmont – Comprehensive Sewer Rate Study
The same formula for this adjustment will remain as follows: (HCF = 100 cubic feet) Formula: Actual Volume Usage x (1 + (flow adjustment factor)) = adjusted volume usage Example: 8 HCF x (1+ .10) = 8.8 HCF adjusted volume usage Table 4-1 provides the present and proposed rates for the residential and non-residential customers for the next five fiscal years.

Table 4 – 1
Present and Proposed Sewer Rates (Annual)
Present
Rates
Proposed
Rates
FY 2024-25
Proposed
Rates
FY 2025-26
Forecasted
Rates
FY 2026-27
Forecasted
Rates
FY 2027-28
Forecasted
Rates
FY 2028-29

6.13 6.38 6.63 6.90 7.17 7.46
Flow Charge High
Strength ($/HCF)[1]

11.91 12.39 12.88 13.40 13.93 14.49

3.03 3.15 3.28 3.41 3.54 3.69
Flow Charge High
Strength ($/HCF)[1]

5.90 6.14 6.38 6.64 6.90 7.18

9.16 9.53 9.91 10.30 10.72 11.14
Flow Charge High
Strength ($/HCF)

17.81 18.52 19.26 20.03 20.84 21.67
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95 Development of the Sewer Rate Designs 37
City of Belmont – Comprehensive Sewer Rate Study
The above rates are based on the rate transition plan developed in the revenue requirement analysis and the proportional distribution of costs in the cost of service analysis. As noted above, the rate is split between collection and treatment to allow the City to pass-through any increases in the wholesale treatment costs. Each component of the rate structure – fixed and variable – are proposed to be increased to meet the target revenue levels based on the rate transition plan.

At present rates, a typical residential customer with 8 hundred cubic feet of winter water average usage would have a monthly bill of $135.36 (8 HCF X 1.10 = 8.80 HCF). Under the proposed rates, the same customer would have a monthly bill of $140.77 in FY 2024-25. Table 4-2 shows the average residential bill for FY 2024-25 through FY 2028-29.

Table 4 – 2
Present and Proposed Sewer Rates (Monthly)
Proposed
FY 2024-25
Proposed
FY 2025-26
Forecasted
FY 2026-27
Forecasted
FY 2027-28
Forecasted
FY 2028-29
Proposed Revenue Adjustment 4.0% 4.0% 4.0% 4.0% 4.0%
Present Average Monthly Bill [1] $135.36
After Proposed Rate Adj. [2] $140.77 $146.41 $152.26 $158.35 $164.68 Monthly Bill Difference 5.41 5.63 5.86 6.09 6.33
Cumulative Bill Difference 5.41 11.05 16.91 22.99 29.32 % Change to Monthly Bill 4.0% 4.0% 4.0% 4.0% 4.0%
[1] – Current average bill assumes 10% flow adjustment factor and 8 HCF monthly consumption [2] –Proposed average bill assumes a 10% flow adjustment factor and 8 HCF monthly consumption As a point of reference, the proposed rates for FY 2024-2025 and FY 2025-2026 are the focus of this study and the only rates proposed. The forecasted rates are for information only to provide the City with the expected future rates for planning purposes based on the assumptions of this study. Proposed rates for future periods will be developed as part of future comprehensive sewer rate studies and may be revised based on the study assumptions at that time.

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4.5 Average Residential Local Bill Comparison
A comparison of the City’s current average residential rate to other local surrounding sewer utilities has been developed. Provided in the chart below is a comparison of the City’s current and proposed rates compared to other SVCW member agencies and other local utilities.

As can be seen in the above graph, with the potential adjustments, the City’s sewer rates remain very competitive while funding O&M, increased renewal and replacements, and deferred capital costs.

4.6 City Council Review
At the time of this report, the study results were anticipated to be presented to the City Council on April 9, 2024. If approved, and moved by the City Council, a public hearing will be set and the customer notification sent to the customers.

4.7 Summary of the Sewer Rate Study
This completes the analysis for the City’s sewer rate study. The proposed sewer rates were developed using generally accepted rate making methods and principles and the City’s system specific customer data and information. The proposed sewer rate adjustments for FY 2024-2025 and FY 2025-2026 are needed to adequately support the operating and capital needs of the City’s sewer system. Adoption of the proposed sewer rates for FY 2024-2025 and FY 2025-2026 are projected to provide adequate funding for the sewer utility over the two-year period, while financially positioning the utility for anticipated future capital and operation needs. Even with these proposed annual adjustments, it is prudent for the City to annually revisit the sewer rates to confirm their ability to cover expenses and maintain the identified financial metrics (e.g., reserve targets, debt service coverage ratios, etc.).
$0.00 $50.00 $100.00 $150.00 $200.00 $250.00 $300.00 $350.00 Hillsborough, Town of - Jul 23
San Mateo, City of - Aug 23
Foster City - Jul 24
Foster City - Jul 23
Millbrae, City of - Jul 23
Belmont - Proposed Jul 25
San Bruno, City of - Jul 23
San Bruno, City of - Jul 24
Belmont - Proposed Jul 24
Belmont - Present
San Carlos, City of - Jul 22
West Bay SD - Jul 23
West Bay SD - Jul 24
Burlingame, City of - Jan 24
Redwood City - Jul 23
Burlingame, City of - Jan 23
San Mateo, City of - Jul 24
$332.08
$159.14
$142.57
$139.77
$142.85
$146.41
$137.80
$144.62
$140.77
$135.36
$116.77
$108.83
$111.00
$97.24
$89.28
$89.22
$163.88
Average Residen�al Monthly Sewer Bill
(Based on flat rate of 8 HCF* of monthly winter water use) SVCW Agency Member
DRAFT
97 Development of the Sewer Rate Designs 39
City of Belmont – Comprehensive Sewer Rate Study
Technical Appendix
DRAFT
98 Budget
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 Sources of Funds
Operating Revenues $14,337,171 $14,480,542 $14,625,348 $14,771,601 $14,919,317 $15,068,510 $15,219,195 $15,371,387 $15,525,101 Other Revenue 138,406 872,198 804,264 782,063 687,643 719,411 729,025 436,843 437,126 ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- Total Sources of Funds $14,475,576 $15,352,740 $15,429,611 $15,553,664 $15,606,960 $15,787,921 $15,948,220 $15,808,230 $15,962,227 Applications of Funds
Collection O&M Expense $3,894,949 $4,021,143 $4,147,857 $4,279,897 $4,417,527 $4,561,027 $4,710,693 $4,866,837 $5,029,787 Treatment O&M Expenses 3,625,358 3,496,047 4,090,000 4,270,000 4,470,000 4,670,000 4,880,000 5,100,000 5,320,000 Repair and Replacement Funding 3,000,000 5,000,000 5,200,000 5,500,000 6,000,000 6,400,000 7,250,000 7,400,000 7,600,000 I/I Capital Funding 650,000 668,000 686,000 705,000 724,000 744,000 764,000 785,000 806,000 Total Debt Service 2,500,446 2,503,071 2,498,196 2,501,071 2,501,071 2,496,846 2,496,446 2,498,531 2,493,831 Change in Working Capital +/- 804,823 243,700 987 142,137 28,535 180,684 (114,978) 14,172 434,681 Total Revenue Requirements $14,475,576 $15,931,961 $16,623,040 $17,398,105 $18,141,133 $19,052,558 $19,986,162 $20,664,540 $21,684,299 Total Balance/(Deficiency) $0 ($579,221) ($1,193,429) ($1,844,441) ($2,534,173) ($3,264,637) ($4,037,942) ($4,856,310) ($5,722,072) Cumulative Balance as a % of Rate Revenues 0.0% 4.0% 8.2% 12.5% 17.0% 21.7% 26.5% 31.6% 36.9% Proposed Rate Adjustment 0.0% 4.0% 4.0% 4.0% 4.0% 4.0% 4.0% 4.0% 4.0% Additional Revenue from Adjustment $0 $579,222 $1,193,428 $1,844,441 $2,534,174 $3,264,636 $4,037,942 $4,856,310 $5,722,072 Total Balance/(Deficiency) $0 $0 ($0) $0 $0 ($0) $0 ($0) ($0) Additional Rate Adjustment Required 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% Residential Bill Comparison (8 HCF X Adjustment Factor) Monthly
After Proposed Rate Adjustment $135.36 $140.77 $146.41 $152.26 $158.35 $164.68 $171.27 $178.12 $185.24 Monthly Bill Difference $5.41 $5.63 $5.86 $6.09 $6.33 $6.59 $6.85 $7.12 Cumulative Bill Difference $5.41 $11.05 $16.91 $22.99 $29.32 $35.91 $42.76 $49.89 Debt Service Coverage Ratio (Revenue Bonds Only)
Before Proposed Rate Adjustment 2.73 3.08 2.82 2.74 2.63 2.57 2.49 2.28 2.20 After Proposed Rate Adjustment 2.73 3.31 3.30 3.48 3.64 3.88 4.11 4.23 4.49 Ending Reserve Balances $36,689,592 $33,292,891 $32,182,866 $27,461,863 $29,050,250 $29,530,934 $14,921,826 $14,935,998 $15,370,679 Target Minimum (Operating + Capital) $10,732,000 $10,845,000 $11,320,000 $11,586,000 $11,884,000 $12,173,000 $12,484,000 $12,807,000 $13,131,000 City of Belmont
Sewer Cost of Service Study - Rate Transition Plan
Summary of Revenue Requirement
Exhibit 1
Projected
1 DRAFT 04/05/2024
99 City of Belmont
Sewer Cost of Service Study
Exhibit 2
Data Assumptions
Budget
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 Escalation Factors
Revenues
Rate Revenue Estimated 1.0% 1.0% 1.0% 1.0% 1.0% 1.0% 1.0% 1.0% Other Revenues Budget 50.0% 50.0% 50.0% 50.0% 50.0% 50.0% 50.0% 50.0% Interest 0.4% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0%
Flat 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
Expenses
Labor Budget 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0%
Profess/Contractual Budget 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% Data Processing Budget 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% Benefits - Medical Budget 7.0% 7.0% 7.0% 7.0% 7.0% 7.0% 7.0% 7.0% Benefits - Other Budget 5.3% 5.3% 5.3% 5.3% 5.3% 5.3% 5.3% 5.3% Materials & Supplies Budget 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% Equipment/Vehicles Budget 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% Education/Training Budget 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% Indirect Expense Budget 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% Miscellaneous Budget 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% Utilities Budget 5.0% 5.0% 5.0% 5.0% 5.0% 5.0% 5.0% 5.0% SVCW Treatment Budget -3.6% 17.0% 4.4% 4.7% 4.5% 4.5% 4.5% 4.3% As Inflation Inflation 2.7% 2.7% 2.7% 2.7% 2.7% 2.7% 2.7% 2.7% 2.7% Revenue Bond Issue
Term in Years 30 30 30 30 30 30 30 30 30
Rate 5.0% 5.0% 5.0% 5.0% 5.0% 5.0% 5.0% 5.0% 5.0%
Projected
2 DRAFT 04/05/2024
100
City of Belmont
Sewer Cost of Service Study Page 1 of 4
Exhibit 3
Sources and Applications of Funds
Budget
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 Notes

REVENUES
Operating Revenues
6805 Sewer Use Fees - Rate Revenues $14,337,171 $14,480,542 $14,625,348 $14,771,601 $14,919,317 $15,068,510 $15,219,195 $15,371,387 $15,525,101 As Rate Revenue ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- Total Rate Revenues $14,337,171 $14,480,542 $14,625,348 $14,771,601 $14,919,317 $15,068,510 $15,219,195 $15,371,387 $15,525,101 Miscellaneous Revenues
6705 Public Works Service Charges $0 $0 $0 $0 $0 $0 $0 $0 $0 As Flat 6706 City CIP Chargeback 0 0 0 0 0 0 0 0 0 As Flat
6850 Sewer Lateral Certificate Fee 0 0 0 0 0 0 0 0 0 As Flat 7111 Interest Earnings - Investments 0 733,792 665,858 643,657 549,237 581,005 590,619 298,437 298,720 As Interest 7112 Other Interest Earnings 0 0 0 0 0 0 0 0 0 As Flat
7113 Interest Revenue - Change 0 0 0 0 0 0 0 0 0 As Flat 7252 Reimbursements 0 0 0 0 0 0 0 0 0 As Flat
Standby Charges 138,406 138,406 138,406 138,406 138,406 138,406 138,406 138,406 138,406 As Flat ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- Total Miscellaneous Revenues $138,406 $872,198 $804,264 $782,063 $687,643 $719,411 $729,025 $436,843 $437,126 TOTAL REVENUES $14,475,576 $15,352,740 $15,429,611 $15,553,664 $15,606,960 $15,787,921 $15,948,220 $15,808,230 $15,962,227

EXPENSES
Planning and Project Management (701)
Personnel
8101 Regular Salaries $479,542 $488,945 $498,532 $508,307 $518,274 $528,436 $538,798 $549,362 $560,134 As Labor 8102 Permanent Part-Time 0 0 0 0 0 0 0 0 0 As Labor
8103 Temporary Part-Time 3,500 $3,569 3,639 3,710 3,783 3,857 3,932 4,010 4,088 As Labor 8111 Overtime 0 0 0 0 0 0 0 0 0 As Labor
8112 Standby/Unscheduled 974 993 1,013 1,032 1,053 1,073 1,094 1,116 1,138 As Labor 8114 Acting Pay 0 0 0 0 0 0 0 0 0 As Labor
8119 Termination Pay 0 0 0 0 0 0 0 0 0 As Labor
8211 P.E.R.S. Retirement 110,606 116,468 122,641 129,141 135,985 143,193 150,782 158,773 167,188 As Benefits - Other 8221 F.I.C.A Social Security 217 229 241 253 267 281 296 312 328 As Benefits - Other 8231 Health Insurance 0 0 0 0 0 0 0 0 0 As Benefits - Medical 8232 Medicare 6,504 6,959 7,446 7,968 8,525 9,122 9,761 10,444 11,175 As Benefits - Medical 8233 Life & Disability Insurance 2,042 2,185 2,338 2,501 2,677 2,864 3,064 3,279 3,508 As Benefits - Medical 8235 State Unemployment Insurance 0 0 0 0 0 0 0 0 0 As Benefits - Other 8241 Dental Plan 2,824 3,022 3,233 3,459 3,701 3,961 4,238 4,534 4,852 As Benefits - Medical 8242 Vision Plan 813 870 931 996 1,066 1,141 1,221 1,306 1,398 As Benefits - Medical 8253 Allowances 1,050 1,106 1,164 1,226 1,291 1,359 1,431 1,507 1,587 As Benefits - Other 8259 Deferred Compensation 12,625 13,294 13,999 14,741 15,522 16,345 17,211 18,123 19,084 As Benefits - Other 8271 SEC 125 Benefits 69,343 74,197 79,390 84,948 90,894 97,257 104,065 111,349 119,144 As Benefits - Medical 8281 Benefit Prefunding 33,971 35,772 37,667 39,664 41,766 43,980 46,311 48,765 51,350 As Benefits - Other 8283 GASB 68 Pension Expense 0 0 0 0 0 0 0 0 0 As Benefits - Other 8284 GASB 75 OPEB Expense 0 0 0 0 0 0 0 0 0 As Benefits - Other 8285 Workers' Compensation 12,305 12,957 13,644 14,367 15,128 15,930 16,774 17,663 18,600 As Benefits - Other ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- Total Personnel $736,316 $760,564 $785,878 $812,314 $839,932 $868,798 $898,978 $930,544 $963,573 Supplies & Services
8314 Equipment Allocation - IT Charge $0 $0 $0 $0 $0 $0 $0 $0 $0 As Equipment/Vehicles 8351 Other Professional/Technical 5,000 5,098 5,198 5,300 5,404 5,510 5,618 5,728 5,840 As Profess/Contractual 8356 EOC - Disaster Preparedness 0 0 0 0 0 0 0 0 0 As Education/Training 8359 Computer Software License 0 0 0 0 0 0 0 0 0 As Materials & Supplies 8442 Equipment/Vehicle Rental 0 0 0 0 0 0 0 0 0 As Equipment/Vehicles 8522 Liability Insurance Charge 8,481 8,735 8,997 9,267 9,545 9,832 10,127 10,431 10,743 As Miscellaneous 8531 Postage/Delivery Service 0 0 0 0 0 0 0 0 0 As Materials & Supplies 8532 Telephone 0 0 0 0 0 0 0 0 0 As Utilities
8550 Printing & Binding 0 0 0 0 0 0 0 0 0 As Materials & Supplies 8580 Travel & Training 1,500 1,530 1,561 1,592 1,624 1,656 1,689 1,723 1,757 As Education/Training 8591 Membership & Dues 4,800 4,896 4,994 5,094 5,196 5,300 5,406 5,514 5,624 As Education/Training 8599 Miscellaneous 3,000 3,090 3,183 3,278 3,377 3,478 3,582 3,690 3,800 As Miscellaneous 8610 General Supplies 300 309 318 328 338 348 358 369 380 As Materials & Supplies 8612 Small Tools 0 0 0 0 0 0 0 0 0 As Miscellaneous
8680 Books/Manuals/Subscriptions 0 0 0 0 0 0 0 0 0 As Miscellaneous ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- Total Supplies & Services $23,081 $23,658 $24,251 $24,859 $25,483 $26,123 $26,780 $27,454 $28,146 Projected
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101
City of Belmont
Sewer Cost of Service Study Page 2 of 4
Exhibit 3
Sources and Applications of Funds
Budget
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 Notes Projected
Administrative & Other
8307 Vehicle Usage Charge $9,862 $10,158 $10,463 $10,776 $11,100 $11,433 $11,776 $12,129 $12,493 As Equipment/Vehicles 8308 Computer Usage Charge 52,615 54,193 55,819 57,494 59,219 60,995 62,825 64,710 66,651 As Data Processing 8309 Building Maintenance Charge 31,704 32,655 33,635 34,644 35,683 36,754 37,856 38,992 40,162 As Miscellaneous 8310 Administrative Support 118,682 122,242 125,910 129,687 133,578 137,585 141,713 145,964 150,343 As Miscellaneous ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- Total Administrative & Other $212,863 $219,249 $225,826 $232,601 $239,579 $246,767 $254,170 $261,795 $269,648 Total Planning and Project Management (701) $972,260 $1,003,472 $1,035,955 $1,069,774 $1,104,994 $1,141,687 $1,179,927 $1,219,793 $1,261,367 Sanitary Sewer Operations (710)
Personnel
8101 Regular Salaries $737,697 $752,162 $766,910 $781,948 $797,280 $812,913 $828,852 $845,104 $861,675 As Labor 8103 Temporary Part-Time 0 0 0 0 0 0 0 0 0 As Labor
8111 Overtime 10,000 10,196 10,396 10,600 10,808 11,020 11,236 11,456 11,681 As Labor 8112 Standby/Unscheduled 18,918 19,289 19,667 20,053 20,446 20,847 21,256 21,673 22,098 As Labor 8114 Acting Pay 0 0 0 0 0 0 0 0 0 As Labor
8119 Termination Pay 0 0 0 0 0 0 0 0 0 As Labor
8211 P.E.R.S. Retirement 176,101 185,435 195,263 205,612 216,509 227,984 240,067 252,791 266,189 As Benefits - Other 8221 F.I.C.A. Social Security 0 0 0 0 0 0 0 0 0 As Benefits - Other 8231 Health Insurance 0 0 0 0 0 0 0 0 0 As Benefits - Medical 8232 Medicare 11,501 12,306 13,167 14,089 15,075 16,131 17,260 18,468 19,761 As Benefits - Medical 8233 Life & Disability Insurance 3,462 3,704 3,963 4,241 4,538 4,855 5,195 5,559 5,948 As Benefits - Medical 8235 State Unemployment Insurance 0 0 0 0 0 0 0 0 0 As Benefits - Other 8241 Dental Plan 8,773 9,387 10,044 10,747 11,499 12,304 13,166 14,087 15,073 As Benefits - Medical 8242 Vision Plan 2,021 2,163 2,314 2,476 2,649 2,835 3,033 3,246 3,473 As Benefits - Medical 8251 Uniform Allowance 0 0 0 0 0 0 0 0 0 As Benefits - Other 8253 Allowances 420 442 466 490 516 544 573 603 635 As Benefits - Other 8259 Deferred Compensation 25,020 26,346 27,742 29,213 30,761 32,391 34,108 35,916 37,819 As Benefits - Other 8271 SEC 125 Benefits 195,084 208,740 223,352 238,987 255,716 273,616 292,769 313,263 335,191 As Benefits - Medical 8281 Benefit Prefunding 61,293 64,542 67,963 71,565 75,358 79,352 83,557 87,986 92,649 As Benefits - Other 8282 Compensated Absences 0 0 0 0 0 0 0 0 0 As Labor
8285 Workers' Compensation 85,938 90,493 90,493 90,493 90,493 90,493 90,493 90,493 90,493 As Benefits - Other ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- Total Personnel $1,336,229 $1,385,204 $1,431,740 $1,480,512 $1,531,648 $1,585,283 $1,641,564 $1,700,643 $1,762,683 Supplies & Services
8305 After Hours Dispatch Service $10,000 $10,196 $10,396 $10,600 $10,808 $11,020 $11,236 $11,456 $11,681 As Profess/Contractual 8311 Property Tax Admin Fee 55,000 55,550 56,106 56,667 57,233 57,806 58,384 58,967 59,557 As Rate Revenue 8314 Equipment Allocation - IT Charge 0 0 0 0 0 0 0 0 0 As Equipment/Vehicles 8351 Other Professional/Tech 94,000 95,843 97,722 99,639 101,592 103,584 105,615 107,686 109,798 As Profess/Contractual 8359 Computer Software License 0 0 0 0 0 0 0 0 0 As Materials & Supplies 8411 Water 10,000 10,500 11,025 11,576 12,155 12,763 13,401 14,071 14,775 As Utilities 8417 Other Waste Water Treatment 250,000 262,500 275,625 289,406 303,877 319,070 335,024 351,775 369,364 As Utilities 8418 S.V.C.W. Sewer Treatment 3,625,358 3,496,047 4,090,000 4,270,000 4,470,000 4,670,000 4,880,000 5,100,000 5,320,000 As SVCW Treatment 8430 Repair & Maintenance Service 20,000 20,600 21,218 21,855 22,510 23,185 23,881 24,597 25,335 As Miscellaneous 8441 Land/Building Rentals 0 0 0 0 0 0 0 0 0 As Miscellaneous 8442 Equipment/Vehicle Rental 1,000 1,030 1,061 1,093 1,126 1,159 1,194 1,230 1,267 As Equipment/Vehicles 8522 Liability Insurance Charge 50,320 51,830 53,384 54,986 56,636 58,335 60,085 61,887 63,744 As Equipment/Vehicles 8530 Communications 9,000 9,270 9,548 9,835 10,130 10,433 10,746 11,069 11,401 As Materials & Supplies 8532 Telephone 0 0 0 0 0 0 0 0 0 As Materials & Supplies 8580 Travel And Training 5,000 5,100 5,202 5,306 5,412 5,520 5,631 5,743 5,858 As Education/Training 8590 Street Access Fee 204,204 204,204 204,204 204,204 204,204 204,204 204,204 204,204 204,204 As Flat 8591 Memberships & Dues 7,000 7,140 7,283 7,428 7,577 7,729 7,883 8,041 8,202 As Education/Training 8599 Miscellaneous 2,500 2,575 2,652 2,732 2,814 2,898 2,985 3,075 3,167 As Miscellaneous 8610 General Supplies 6,500 6,695 6,896 7,103 7,316 7,535 7,761 7,994 8,234 As Materials & Supplies 8612 Small Tools 12,000 12,360 12,731 13,113 13,506 13,911 14,329 14,758 15,201 As Materials & Supplies 8613 Safety Equipment 15,000 15,450 15,914 16,391 16,883 17,389 17,911 18,448 19,002 As Miscellaneous 8632 Natural Gas & Electricity 55,000 57,750 60,638 63,669 66,853 70,195 73,705 77,391 81,260 As Utilities 8639 Gasoline 27,000 28,350 29,768 31,256 32,819 34,460 36,183 37,992 39,891 As Utilities 8641 Repair & Maintenance Supplies 40,000 41,200 42,436 43,709 45,020 46,371 47,762 49,195 50,671 As Miscellaneous 8680 Books/Manuals/Subscriptions 0 0 0 0 0 0 0 0 0 As Materials & Supplies ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- Total Supplies & Services
DRAFT
$4,498,882 $4,394,190 $5,013,808 $5,220,566 $5,448,469 $5,677,568 $5,917,919 $6,169,580 $6,422,611 4 04/05/2024
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Sewer Cost of Service Study Page 3 of 4
Exhibit 3
Sources and Applications of Funds
Budget
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 Notes Projected
Administrative & Other
8307 Vehicle Usage Charge $248,131 $255,575 $263,242 $271,139 $279,274 $287,652 $296,281 $305,170 $314,325 As Equipment/Vehicles 8308 Computer Usage Charge 143,114 147,407 151,830 156,385 161,076 165,908 170,886 176,012 181,293 As Data Processing 8309 Building Maintenance Charge 90,672 93,392 96,194 99,080 102,052 105,114 108,267 111,515 114,861 As Miscellaneous 8310 Administrative Support 165,819 170,794 175,917 181,195 186,631 192,230 197,997 203,936 210,055 As Miscellaneous ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- Total Administrative & Other $647,736 $667,168 $687,183 $707,799 $729,033 $750,904 $773,431 $796,634 $820,533 Total Sanitary Sewer Operations (710) $6,482,847 $6,446,562 $7,132,731 $7,408,877 $7,709,149 $8,013,755 $8,332,914 $8,666,856 $9,005,826 Sanitary Sewer Capital Operations (730)
Supplies & Services
8331 Engineering/Architecture $0 $0 $0 $0 $0 $0 $0 $0 $0 As Miscellaneous 8351 Other Professional/Tech 8,400 8,652 8,912 9,179 9,454 9,738 10,030 10,331 10,641 As Miscellaneous 8354 Bond Issuance Costs 0 0 0 0 0 0 0 0 0 As Miscellaneous 8361 Bond Amortization Expense 0 0 0 0 0 0 0 0 0 As Miscellaneous 8368 City Project Management & Services 0 0 0 0 0 0 0 0 0 As Miscellaneous 8531 Postage/Delivery Service 0 0 0 0 0 0 0 0 0 As Miscellaneous 8550 Printing and Binding 0 0 0 0 0 0 0 0 0 As Miscellaneous 8599 Miscellaneous 0 0 0 0 0 0 0 0 0 As Miscellaneous
8610 General Supplies 0 0 0 0 0 0 0 0 0 As Miscellaneous ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- Total Supplies & Services $8,400 $8,652 $8,912 $9,179 $9,454 $9,738 $10,030 $10,331 $10,641 Administrative & Other
8310 Administrative Support $56,800 $58,504 $60,259 $62,067 $63,929 $65,847 $67,822 $69,857 $71,953 As Miscellaneous ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- Total Administrative & Other $56,800 $58,504 $60,259 $62,067 $63,929 $65,847 $67,822 $69,857 $71,953 Capital Outlay
9030 Improvement Other Than Building $0 $0 $0 $0 $0 $0 $0 $0 $0 As Miscellaneous ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- Total Capital Outlay $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Sanitary Sewer Capital Operations (730) $65,200 $67,156 $69,171 $71,246 $73,383 $75,585 $77,852 $80,188 $82,593 Total Operating & Maintenance Expense $7,520,307 $7,517,190 $8,237,857 $8,549,897 $8,887,527 $9,231,027 $9,590,693 $9,966,837 $10,349,787 Repair and Replacement Funding $3,000,000 $5,000,000 $5,200,000 $5,500,000 $6,000,000 $6,400,000 $7,250,000 $7,400,000 $7,600,000 FY 2022-23 Approx. Depr. $1,703,958 I/I Capital Funding Transfer $650,000 $668,000 $686,000 $705,000 $724,000 $744,000 $764,000 $785,000 $806,000 Deferred Capital Funding (Debt Service) $0 $0 $0 $0 $0 $0 $0 $0 $0 Debt Service
2016 Sewer Revenue Refunding $767,505 $771,255 $768,505 $764,505 $769,255 $771,455 $773,355 $773,950 $771,550 Debt Schedule 2016 Sewer Revenue 621,941 621,191 620,191 628,941 621,941 619,141 616,341 618,331 617,531 Debt Schedule 2019 Sewer Revenue 1,111,000 1,110,625 1,109,500 1,107,625 1,109,875 1,106,250 1,106,750 1,106,250 1,104,750 Debt Schedule New Low Interest Loan 0 0 0 0 0 0 0 0 0
New Revenue Bond 2024/2025 0 0 0 0 0 0 0 0 0
New Revenue Bond 2027/2028 0 0 0 0 0 0 0 0 0
---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- Total Debt Service $2,500,446 $2,503,071 $2,498,196 $2,501,071 $2,501,071 $2,496,846 $2,496,446 $2,498,531 $2,493,831 5 DRAFT 04/05/2024
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Exhibit 3
Sources and Applications of Funds
Budget
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 Notes Projected
Change in Working Capital +/-
Operating (Cash) Reserve Transfer $804,823 $243,700 $987 $142,137 $28,535 $180,684 ($114,978) $14,172 $434,681 Capital Reserve Transfer 0 0 0 0 0 0 0 0 0
Connection Fee Transfer 0 0 0 0 0 0 0 0 0
---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- Change in Working Capital +/- $804,823 $243,700 $987 $142,137 $28,535 $180,684 ($114,978) $14,172 $434,681 TOTAL REVENUE REQUIREMENT $14,475,576 $15,931,961 $16,623,040 $17,398,105 $18,141,133 $19,052,558 $19,986,162 $20,664,540 $21,684,299 Total Balance/(Deficiency) of Funds $0 ($579,221) ($1,193,429) ($1,844,441) ($2,534,173) ($3,264,637) ($4,037,942) ($4,856,310) ($5,722,072) Total Incr. as a % of Current Rates 0.0% 4.0% 8.2% 12.5% 17.0% 21.7% 26.5% 31.6% 36.9% Proposed Rate Adjustment 0.0% 4.0% 4.0% 4.0% 4.0% 4.0% 4.0% 4.0% 4.0% Additional Revenue from Rate Increase $0 $579,222 $1,193,428 $1,844,441 $2,534,174 $3,264,636 $4,037,942 $4,856,310 $5,722,072 Balance/(Deficiency) of Funds $0 $0 ($0) $0 $0 ($0) $0 ($0) ($0) Deficiency as a % of Retail Rate Revenues 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% Residential Bill Comparison (8 HCF X Adjustment Factor) After Proposed Rate Adjustment $135.36 $140.77 $146.41 $152.26 $158.35 $164.68 $171.27 $178.12 $185.24 Monthly Bill Difference $5.41 $5.63 $5.86 $6.09 $6.33 $6.59 $6.85 $7.12 Cumulative Bill Difference $5.41 $11.05 $16.91 $22.99 $29.32 $35.91 $42.76 $49.89 Percentage Overall Change 4.0% 7.8% 11.5% 15.1% 18.5% 21.8% 25.0% 28.0%

4.0% 4.0% 4.0% 4.0% 4.0% 4.0% 4.0% 4.0%
Debt Service Coverage Ratio (Revenue Bonds Only)
Before Proposed Rate Adjustment 2.73 3.08 2.82 2.74 2.63 2.57 2.49 2.28 2.20 Minimum 1.0/Min Target 1.25 After Proposed Rate Adjustment 2.73 3.31 3.30 3.48 3.64 3.88 4.11 4.23 4.49 Minimum 1.0/Min Target 1.25 Reserve Balances 39,855,067
Operating (Cash) Reserve
Beginning Reserve Balance $7,500,000 $8,304,823 $8,548,524 $8,549,510 $8,691,647 $8,720,183 $8,900,867 $8,785,889 $8,800,061 Plus: To Reserves 804,823 243,700 987 142,137 28,535 180,684 0 14,172 434,681 Less: Transfers to Capital Reserve 0 0 0 0 0 0 0 0 0 Needs to be (-) Less: Other Uses of Funds 0 0 (0) 0 0 (0) (114,978) (0) (0) Ending Reserve Balance $8,304,823 $8,548,524 $8,549,510 $8,691,647 $8,720,183 $8,900,867 $8,785,889 $8,800,061 $9,234,742 Target Minimum = 180 Days of O&M $5,060,000 $5,100,000 $5,500,000 $5,690,000 $5,910,000 $6,120,000 $6,350,000 $6,590,000 $6,830,000 Emergency/Litigation Reserve $2,000,000 $2,000,000 $2,000,000 $2,000,000 $2,000,000 $2,000,000 $2,000,000 $2,000,000 $2,000,000 Target Minimum $7,060,000 $7,100,000 $7,500,000 $7,690,000 $7,910,000 $8,120,000 $8,350,000 $8,590,000 $8,830,000 Capital Project Reserve
Beginning Reserve Balance $28,467,526 $28,384,769 $24,744,367 $23,633,356 $18,770,216 $20,330,067 $20,630,067 $6,135,937 $6,135,937 Plus: To Reserves 0 0 0 0 0 0 0 0 0
Plus: Bond Funds Year 1 0 0 0 0 0 0 0 0 0 Input from City Projections Plus: Bond Funds Year 2 0 0 0 0 0 0 0 0 0
Plus: Transfers from Operating Reserve 0 0 0 0 0 0 0 0 0 Plus: From CIP 0 0 0 0 1,600,000 300,000 0 0 0
Less: CIP (82,757) (3,640,402) (1,111,011) (4,863,140) (40,149) 0 (14,494,130) 0 0 Less: Other Uses of Funds 0 0 0 0 0 0 0 0 0
Ending Reserve Balance $28,384,769 $24,744,367 $23,633,356 $18,770,216 $20,330,067 $20,630,067 $6,135,937 $6,135,937 $6,135,937 Target Minimum = 2 Yr's of Ann Depr Exp $3,672,000 $3,745,000 $3,820,000 $3,896,000 $3,974,000 $4,053,000 $4,134,000 $4,217,000 $4,301,000 FY 2022-23 Approx. Depr. $1,703,958 X 2 Connection Fee Reserve (Restricted)
Beginning Reserve Balance $3,887,541 $3,137,541 $2,387,541 $1,637,541 $637,541 $37,541 $1,037,541 $287,541 $1,287,541 Plus: To Reserves 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 Less: Use of Funds (1,750,000) (1,750,000) (1,750,000) (2,000,000) (1,600,000) 0 (1,750,000) 0 0 Ending Reserve Balance $3,137,541 $2,387,541 $1,637,541 $637,541 $37,541 $1,037,541 $287,541 $1,287,541 $2,287,541 Ending Reserve Balances $36,689,592 $33,292,891 $32,182,866 $27,461,863 $29,050,250 $29,530,934 $14,921,826 $14,935,998 $15,370,679 Target Minimum (Operating + Capital) $10,732,000 $10,845,000 $11,320,000 $11,586,000 $11,884,000 $12,173,000 $12,484,000 $12,807,000 $13,131,000 ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- $25,957,592 $22,447,891 $20,862,866 $15,875,863 $17,166,250 $17,357,934 $2,437,826 $2,128,998 $2,239,679 Monthly
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Exhibit 4
Capital Improvement Projects
Capital Improvement Projects 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 Total Notes Capacity Related Projects (Fund 503)
San Juan LS $1,500,000 $1,750,000 $1,750,000 $0 $0 $0 $0 $0 $0 $5,000,000 CCIP 1 115,515 269,535 0 0 0 0 0 0 0 385,050
CCIP 2 632,388 1,475,572 0 0 0 0 0 0 0 2,107,960
CCIP 3 0 59,922 139,818 0 0 0 0 0 0 199,740
CCIP 6 0 0 0 321,120 749,280 0 0 0 0 1,070,400
CCIP 7 0 0 0 77,760 181,440 0 0 0 0 259,200
CCIP 8 0 0 0 0 710,829 0 4,278,630 0 0 4,989,459
CCIP 4 0 0 0 0 0 0 391,200 0 0 391,200
CCIP 5 0 0 0 0 0 0 1,486,300 0 0 1,486,300
CCIP 9 0 0 0 0 0 0 1,869,920 0 0 1,869,920
CCIP 12 0 0 0 0 0 0 203,830 0 0 203,830
Sewer System Capacity Study Update 200,000 0 0 0 0 0 0 0 0 200,000 HIA Cost of Sewer Service Annexation 30,000 0 0 0 0 0 0 0 0 30,000 HIA Cost of Sewer Service Annexation / CIP-1 0 0 0 5,354,000 0 0 0 0 0 5,354,000 HIA Cost of Sewer Service Annexation / CIP-2 0 0 0 1,341,000 0 0 0 0 0 1,341,000 HIA Cost of Sewer Service Annexation / CIP-3 0 0 0 199,820 0 0 0 0 0 199,820 Total Sewer Capacity Improvement Projects $2,477,903 $3,555,029 $1,889,818 $7,293,700 $1,641,549 $0 $8,229,880 $0 $0 $25,087,879 Condition Related Projects (Fund 501)
Sewer Rehabilitation - Annual $100,000 $100,000 $100,000 $100,000 $100,000 $100,000 $100,000 $100,000 $100,000 $900,000 San Juan FM 878,274 1,024,653 1,024,653 0 0 0 0 0 0 2,927,580 Hiller LS 567,000 1,323,000 0 0 0 0 0 0 0 1,890,000
HIA Cost of Sewer Service Annexation / CIP-3 0 0 0 257,500 0 0 0 0 0 257,500 HIA Cost of Sewer Service Annexation / CIP-5 0 0 0 420,000 0 0 0 0 0 420,000 Island Park LS and FM 0 1,321,560 1,541,820 1,541,820 0 0 0 0 0 4,405,200 Sports Complex FM 0 44,160 51,520 51,520 0 0 0 0 0 147,200 Hiller FM 0 323,400 754,600 0 0 0 0 0 0 1,078,000
Ralston Ranch LS 0 0 0 0 0 0 1,320,000 0 0 1,320,000
CIP-4 0 0 0 0 0 0 26,000 0 0 26,000
CIP-6 0 0 0 0 0 0 227,000 0 0 227,000
Pipeline Rehab Batch 1 / Residential Gravity Replacement 809,580 1,889,020 0 0 0 0 13,591,250 0 0 16,289,850 Pipeline Rehab Batch 2 / Residential Gravity Replacement 0 809,580 1,889,020 0 0 0 0 0 0 2,698,600 Pipeline Rehab Batch 3 / Residential Gravity Replacement 0 0 809,580 1,889,020 0 0 0 0 0 2,698,600 Pipeline Rehab Batch 4 / Residential Gravity Replacement 0 0 0 809,580 1,889,020 0 0 0 0 2,698,600 Pipeline Rehab Batch 5 / Residential Gravity Replacement 0 0 0 0 809,580 0 0 0 0 809,580 Total Condition Related Projects $2,354,854 $6,835,373 $6,171,193 $5,069,440 $2,798,600 $100,000 $15,264,250 $100,000 $100,000 $38,793,710 Total Capital Improvement Projects $4,832,757 $10,390,402 $8,061,011 $12,363,140 $4,440,149 $100,000 $23,494,130 $100,000 $100,000 $63,881,589 Future Unidentified Capital Needs $0 $0 $0 $0 $1,600,000 $6,000,000 $0 $7,300,000 $7,500,000 $22,400,000 To Capital Reserve Fund $0 $0 $0 $0 $1,600,000 $300,000 $0 $0 $0 $1,900,000 Total Sewer Capital $4,832,757 $10,390,402 $8,061,011 $12,363,140 $7,640,149 $6,400,000 $23,494,130 $7,400,000 $7,600,000 $88,181,589 Less: Funding Sources
Grants $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Capital Reserve 82,757 3,640,402 1,111,011 4,863,140 40,149 0 14,494,130 0 0 24,231,589 Connection Fee Reserve 1,750,000 1,750,000 1,750,000 2,000,000 1,600,000 0 1,750,000 0 0 10,600,000 Additional Long-Term Debt 0 0 0 0 0 0 0 0 0 0
Total Funding Sources $1,832,757 $5,390,402 $2,861,011 $6,863,140 $1,640,149 $0 $16,244,130 $0 $0 $34,831,589 Total Capital Improvement Funded Through Rates $3,000,000 $5,000,000 $5,200,000 $5,500,000 $6,000,000 $6,400,000 $7,250,000 $7,400,000 $7,600,000 $53,350,000 FY 2022-23 Approx. Depr. $1,703,958 I/I Capital Funding $650,000 $668,000 $686,000 $705,000 $724,000 $744,000 $764,000 $785,000 $806,000 $6,532,000 7 DRAFT 04/05/2024
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Sewer Cost of Service Study
Exhibit 5E
Projected Revenue At Present Rates for 2023-2024
Use Description
Billing
Units 0.10
Rate Per
Billing Unit Total
Standby Charge 533 $245.40 $130,798.20
Residential
Collection
Base Charge $/Unit 10,748 $430.66 $4,628,651.83
Flow Charge $/HCF 588,130 653,478 $6.13 4,005,817.53
Total 660,643 $8,634,469.36
Treatment
Base Charge $/Unit 10,748 $226.34 $2,432,659.30
Flow Charge $/HCF 588,130 653,478 $3.03 1,980,037.05
Total $4,412,696.35
Total Residential Revenue $13,047,165.71
Commercial
Collection
LS - Base Charge $/Unit 208 $430.66 $89,574.80
HS - Base Charge $/Unit 19 $430.66 8,182.54
Low Strength Flow Charge $/HCF 89,206 99,118 $6.13 607,593.80 High Strength Flow Charge $/HCF 11,772 13,080 $11.91 155,778.29 Total 689,108 765,675 $861,129.42
Treatment
LS - Base Charge $/Unit 208 $226.34 $47,077.42
HS - Base Charge $/Unit 19 $226.34 4,300.46
Low Strength Flow Charge $/HCF 89,206 99,118 $3.03 300,327.77 High Strength Flow Charge $/HCF 11,772 13,080 $5.90 77,169.76 Total $428,875.41
Total Commercial Revenue $1,290,004.83
Summary of Revenues at Present Rates
Total Number of Billing Units
Standby 533
Residential 10,748
LS Commercial 208
HS Commercial 19
Total 11,508
Total Annual Flow
Residential 588,130
LS Commercial 89,206
HS Commercial 11,772
Total 689,108
Total Revenue
Standby Charge Revenue $130,798
Residential Revenue $13,047,166
LS Commercial 1,044,574
HS Commercial 245,431
Total $14,337,171
Total Revenue $14,467,969
2020-21 2021-22 2022-23 Average 2023-24
Billed HCF 722,463 807,524 722,463 750,817 689,108
% Adjustment Factor 0.09 0.09 0.10 0.100
Total HCF 787,485 880,202 794,710
DRAFT
820,799 765,675
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Exhibit 6
Development of the Volume Distribution Factor
FY 2024-25 11.0% Total Annual Avg. Daily
Annual Wastewater Inflow and Flow at Plant Flow At % of Flow (CCF) [1] Infiltration [2] [3] (CCF) Plant (MGD) [4] Total Residential 588,130 64,694 652,824 1.34 85.3%
Commercial 89,206 9,813 99,019 0.20 12.9%
Commercial High S. 11,772 1,295 13,067 0.03 1.7%
------------- ------------- ------------- ------------- ------------- Total Consumption 689,108 75,802 764,910 1.57 100.0%
Estimated Plant Flow [4] 1.94
Distribution Factor (VOL)
Note:
[1] Based on 2022/23 customer’s winter period consumption, plus estimated growth for FY 23/24 [2] Calculated based on billing report versus total plant flow. - Inflow represents external groundwater that can enter the sewer at service connections where the pipe is broken, at defective joints, at connections to manholes, etc. - Infiltration is water discharged to sewer from sources such as roof leaders, cellar, yard and drains from springs and other wet areas, storm sewers, catch basins, surface water runoff, etc [3] Total I&I allocated to each class of service based on flow. [4] City provided total flow for FY 2022/23 plus one year growth. 9 DRAFT 04/05/2024
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Exhibit 7
Development of the Customer Distribution Factor
Number of % of Number of Weighting Weighted % of
Units Total Bills [1] Factor Customer Total
Residential 10,748 97.9% 10,748 1.0 10,748 97.9%
Commercial 208 1.9% 208 1.0 208 1.9%
Commercial High S. 19 0.2% 19 1.0 19 0.2%
------------- ------------- ------------- ------------- ------------- Total Customers 10,975 100.0% 10,975 10,975 100.0%
Distribution Factor (AC) (WCA)
Note:
[1] Number of Residential bills from billing records.

Actual Customer Customer Service & Accounting
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Exhibit 8
Development of the Strength Distribution Factor
Annual Flow Avg. Factor Calculated % of Avg. Factor Calculated % of (CCF) (mg/l) [1] Pounds [2] Total (mg/l) [1] Pounds [2] Total Residential 652,824 250 1,018,742 82.8% 220 896,493 82.8% Commercial 99,019 250 154,521 12.6% 220 135,978 12.6%
Commercial High S. 13,067 700 57,093 4.6% 616 50,242 4.6% ------------- ------------- ------------- ------------- ------------- Total Strength 764,910 1,230,356 100.0% 1,082,713 100.0% Distribution Factor (BOD) (SS)
Note:
[1] Average BOD and SS strength factors based on typical residential customer from similar studies. High strength based on 2.8 times residential based on WA State Dept Health, Rule Development Committee Issue Research Report, Wastewater Quality/Strength/Content, page 6 of 18. [2] Calculated pounds equals (annual flow (x) 748 (x) strength factor mg/l (x) 8.34 /1,000,000) Biochemical Oxygen Demand Suspended Solids
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Exhibit 9
Development of the Revenue Related Distribution Factor
Projected Year % of
FY 2024-25 Total
Residential $13,177,637 91.0%
Commercial 1,055,020 7.3%
Commercial High S. 247,885 1.7%
--------------- -------------
Total Rate Revenues $14,480,542 100.0%
Distribution Factor (RR)
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Exhibit 10
Functionalization and Allocation of Plant in Service
Customer Related
Weighted for:

Total Operating Biochemical Suspended Actual Customer
Plant Volume Oxygen Demand Solids Customer Acct/Svcs Revenue Direct FY 2021 (VOL) (BOD) (SS) (AC) (WCA) (RR) (DA)
Sewer Operations (501)
Land $14,793 $9,615 $0 $0 $5,178 $0 $0 $0 65.0% VOL 35% AC Improvements 8,442,998 5,487,949 0 0 2,955,049 0 0 0 65.0% VOL 35% AC Machinery and Equipment 261,761 261,761 0 0 0 0 0 0 100.0% VOL --------------- --------------- --------------- --------------- --------------- --------------- --------------- --------------- Total Sewer Operations (501) $8,719,552 $5,759,325 $0 $0 $2,960,227 $0 $0 $0 Sewer Capital (503)
Land $0 $0 $0 $0 $0 $0 $0 $0 65.0% VOL 35% AC
Construction in Progress 5,254,615 3,415,500 0 0 1,839,115 0 0 0 65.0% VOL 35% AC Improvements 33,530,504 21,794,828 0 0 11,735,676 0 0 0 65.0% VOL 35% AC Machinery and Equipment 9,098 9,098 0 0 0 0 0 0 100.0% VOL --------------- --------------- --------------- --------------- --------------- --------------- --------------- --------------- Total Sewer Capital (503) $38,794,217 $25,219,425 $0 $0 $13,574,792 $0 $0 $0 TOTAL PLANT IN SERVICE $47,513,769 $30,978,751 $0 $0 $16,535,019 $0 $0 $0 Less: Accumulated Depreciation
Improvements
Sewer Operations (501) ($6,754,397) ($4,390,358) $0 $0 ($2,364,039) $0 $0 $0 As Sewer Operations (501) Sewer Capital (503) (10,343,235) (6,723,103) 0 0 (3,620,132) 0 0 0 As Sewer Capital (503) --------------- --------------- --------------- --------------- --------------- --------------- --------------- --------------- Total Accum Depr Imprv. ($17,097,632) ($11,113,461) $0 $0 ($5,984,171) $0 $0 $0 Machinery and Equipment
Sewer Operations (501) ($251,179) ($251,179) $0 $0 $0 $0 $0 $0 As Sewer Operations (501) Sewer Capital (503) (9,098) (5,914) 0 0 (3,184) 0 0 0 As Sewer Capital (503) --------------- --------------- --------------- --------------- --------------- --------------- --------------- --------------- Total Accum Depr Mach & Equip ($260,277) ($257,093) $0 $0 ($3,184) $0 $0 $0 Total Accumulated Depreciation ($17,357,909) ($11,370,554) $0 $0 ($5,987,356) $0 $0 $0 Net Plant in Service $30,155,860 $19,608,197 $0 $0 $10,547,663 $0 $0 $0 Basis of Allocation
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Exhibit 11
Functionalization and Allocation of
Revenue Requirements
Weighted for:

Biochemical Suspended Actual Customer
Total Volume Oxygen Demand Solids Customer Acct/Svcs Revenue Direct FY 2024-25 (VOL) (BOD) (SS) (AC) (WCA) (RR) (DA)

EXPENSES
Planning and Project Management (701)
Personnel
Regular Salaries $488,945 $317,926 $0 $0 $171,019 $0 $0 $0 As Net Plant In Svc Permanent Part-Time 0 0 0 0 0 0 0 0 As Net Plant In Svc Temporary Part-Time 3,569 2,320 0 0 1,248 0 0 0 As Net Plant In Svc Overtime 0 0 0 0 0 0 0 0 As Net Plant In Svc
Standby/Unscheduled 993 646 0 0 347 0 0 0 As Net Plant In Svc Acting Pay 0 0 0 0 0 0 0 0 As Net Plant In Svc
Termination Pay 0 0 0 0 0 0 0 0 As Net Plant In Svc
P.E.R.S. Retirement 116,468 75,731 0 0 40,737 0 0 0 As Net Plant In Svc F.I.C.A Social Security 229 149 0 0 80 0 0 0 As Net Plant In Svc Health Insurance 0 0 0 0 0 0 0 0 As Net Plant In Svc
Medicare 6,959 4,525 0 0 2,434 0 0 0 As Net Plant In Svc Life & Disability Insurance 2,185 1,421 0 0 764 0 0 0 As Net Plant In Svc State Unemployment Insurance 0 0 0 0 0 0 0 0 As Net Plant In Svc Dental Plan 3,022 1,965 0 0 1,057 0 0 0 As Net Plant In Svc Vision Plan 870 566 0 0 304 0 0 0 As Net Plant In Svc
Allowances 1,106 719 0 0 387 0 0 0 As Net Plant In Svc
Deferred Compensation 13,294 8,644 0 0 4,650 0 0 0 As Net Plant In Svc SEC 125 Benefits 74,197 48,245 0 0 25,952 0 0 0 As Net Plant In Svc Benefit Prefunding 35,772 23,260 0 0 12,512 0 0 0 As Net Plant In Svc GASB 68 Pension Expense 0 0 0 0 0 0 0 0 As Net Plant In Svc GASB 75 OPEB Expense 0 0 0 0 0 0 0 0 As Net Plant In Svc Workers' Compensation 12,957 8,425 0 0 4,532 0 0 0 As Net Plant In Svc ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- Total Personnel $760,564 $494,541 $0 $0 $266,024 $0 $0 $0 Supplies & Services
Equipment Allocation - IT Charge $0 $0 $0 $0 $0 $0 $0 $0 As Net Plant In Svc Other Professional/Technical 5,098 3,315 0 0 1,783 0 0 0 As Net Plant In Svc EOC - Disaster Preparedness 0 0 0 0 0 0 0 0 As Net Plant In Svc Computer Software License 0 0 0 0 0 0 0 0 As Net Plant In Svc Equipment/Vehicle Rental 0 0 0 0 0 0 0 0 As Net Plant In Svc Liability Insurance Charge 8,735 5,680 0 0 3,055 0 0 0 As Net Plant In Svc Postage/Delivery Service 0 0 0 0 0 0 0 0 As Net Plant In Svc Telephone 0 0 0 0 0 0 0 0 As Net Plant In Svc
Printing & Binding 0 0 0 0 0 0 0 0 As Net Plant In Svc
Travel & Training 1,530 995 0 0 535 0 0 0 As Net Plant In Svc Membership & Dues 4,896 3,184 0 0 1,712 0 0 0 As Net Plant In Svc Miscellaneous 3,090 2,009 0 0 1,081 0 0 0 As Net Plant In Svc General Supplies 309 201 0 0 108 0 0 0 As Net Plant In Svc Small Tools 0 0 0 0 0 0 0 0 As Net Plant In Svc
Books/Manuals/Subscriptions 0 0 0 0 0 0 0 0 As Net Plant In Svc ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- Total Supplies & Services $23,658 $15,383 $0 $0 $8,275 $0 $0 $0 Administrative & Other
Vehicle Usage Charge $10,158 $6,605 $0 $0 $3,553 $0 $0 $0 As Net Plant In Svc Computer Usage Charge 54,193 0 0 0 0 54,193 0 0 100% WCA Building Maintenance Charge 32,655 21,233 0 0 11,422 0 0 0 As Net Plant In Svc Administrative Support 122,242 0 0 0 0 122,242 0 0 100% WCA ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- Total Administrative & Other $219,249 $27,838 $0 $0 $14,975 $176,436 $0 $0 Total Planning and Project Management (701) $1,003,472 $537,762 $0 $0 $289,274 $176,436 $0 $0 Strength Related
Basis of Allocation
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Exhibit 11
Functionalization and Allocation of
Revenue Requirements
Weighted for:

Biochemical Suspended Actual Customer
Total Volume Oxygen Demand Solids Customer Acct/Svcs Revenue Direct FY 2024-25 (VOL) (BOD) (SS) (AC) (WCA) (RR) (DA)
Strength Related
Basis of Allocation
Sanitary Sewer Operations (710)
Personnel
Regular Salaries $752,162 $489,077 $0 $0 $263,085 $0 $0 $0 As Net Plant In Svc Temporary Part-Time 0 0 0 0 0 0 0 0 As Net Plant In Svc Overtime 10,196 6,630 0 0 3,566 0 0 0 As Net Plant In Svc Standby/Unscheduled 19,289 12,542 0 0 6,747 0 0 0 As Net Plant In Svc Acting Pay 0 0 0 0 0 0 0 0 As Net Plant In Svc
Termination Pay 0 0 0 0 0 0 0 0 As Net Plant In Svc
P.E.R.S. Retirement 185,435 120,575 0 0 64,860 0 0 0 As Net Plant In Svc F.I.C.A. Social Security 0 0 0 0 0 0 0 0 As Net Plant In Svc Health Insurance 0 0 0 0 0 0 0 0 As Net Plant In Svc
Medicare 12,306 8,002 0 0 4,304 0 0 0 As Net Plant In Svc Life & Disability Insurance 3,704 2,408 0 0 1,296 0 0 0 As Net Plant In Svc State Unemployment Insurance 0 0 0 0 0 0 0 0 As Net Plant In Svc Dental Plan 9,387 6,104 0 0 3,283 0 0 0 As Net Plant In Svc Vision Plan 2,163 1,406 0 0 756 0 0 0 As Net Plant In Svc Uniform Allowance 0 0 0 0 0 0 0 0 As Net Plant In Svc
Allowances 442 288 0 0 155 0 0 0 As Net Plant In Svc
Deferred Compensation 26,346 17,131 0 0 9,215 0 0 0 As Net Plant In Svc SEC 125 Benefits 208,740 135,729 0 0 73,011 0 0 0 As Net Plant In Svc Benefit Prefunding 64,542 41,967 0 0 22,575 0 0 0 As Net Plant In Svc Compensated Absences 0 0 0 0 0 0 0 0 As Net Plant In Svc Workers' Compensation 90,493 58,841 0 0 31,652 0 0 0 As Net Plant In Svc ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- Total Personnel $1,385,204 $900,699 $0 $0 $484,505 $0 $0 $0 Supplies & Services
After Hours Dispatch Service $10,196 $6,630 $0 $0 $3,566 $0 $0 $0 As Net Plant In Svc Property Tax Admin Fee 55,550 36,120 0 0 19,430 0 0 0 As Net Plant In Svc Equipment Allocation - IT Charge 0 0 0 0 0 0 0 0 As Net Plant In Svc Other Professional/Tech 95,843 0 0 0 0 95,843 0 0 100% WCA Computer Software License 0 0 0 0 0 0 0 0 As Net Plant In Svc Water 10,500 6,827 0 0 3,673 0 0 0 As Net Plant In Svc
Other Waste Water Treatment 262,500 103,981 77,487 81,031 0 0 0 0 40% VOL 30% BOD 31% SS S.V.C.W. Sewer Treatment 3,496,047 1,384,849 1,031,999 1,079,199 0 0 0 0 40% VOL 30% BOD 31% SS Repair & Maintenance Service 20,600 13,395 0 0 7,205 0 0 0 As Net Plant In Svc Land/Building Rentals 0 0 0 0 0 0 0 0 As Net Plant In Svc Equipment/Vehicle Rental 1,030 670 0 0 360 0 0 0 As Net Plant In Svc Liability Insurance Charge 51,830 33,701 0 0 18,129 0 0 0 As Net Plant In Svc Communications 9,270 6,028 0 0 3,242 0 0 0 As Net Plant In Svc Telephone 0 0 0 0 0 0 0 0 100% WCA
Travel And Training 5,100 3,316 0 0 1,784 0 0 0 As Net Plant In Svc Street Access Fee 204,204 204,204 0 0 0 0 0 0 100% VOL
Memberships & Dues 7,140 4,643 0 0 2,497 0 0 0 As Net Plant In Svc Miscellaneous 2,575 1,674 0 0 901 0 0 0 As Net Plant In Svc General Supplies 6,695 4,353 0 0 2,342 0 0 0 As Net Plant In Svc Small Tools 12,360 8,037 0 0 4,323 0 0 0 As Net Plant In Svc Safety Equipment 15,450 10,046 0 0 5,404 0 0 0 As Net Plant In Svc Natural Gas & Electricity 57,750 57,750 0 0 0 0 0 0 100.0% VOL Gasoline 28,350 18,434 0 0 9,916 0 0 0 As Net Plant In Svc Repair & Maintenance Supplies 41,200 26,789 0 0 14,411 0 0 0 As Net Plant In Svc Books/Manuals/Subscriptions 0 0 0 0 0 0 0 0 As Net Plant In Svc ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- Total Supplies & Services $4,394,190 $1,931,447 $1,109,486 $1,160,231 $97,183 $95,843 $0 $0 Administrative & Other
Vehicle Usage Charge $255,575 $166,182 $0 $0 $89,393 $0 $0 $0 As Net Plant In Svc Computer Usage Charge 147,407 0 0 0 0 147,407 0 0 100% WCA Building Maintenance Charge 93,392 60,726 0 0 32,666 0 0 0 As Net Plant In Svc Administrative Support 170,794 0 0 0 0 170,794 0 0 100% WCA ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- Total Administrative & Other $667,168 $226,908 $0 $0 $122,059 $318,201 $0 $0 Total Sanitary Sewer Operations (710) $6,446,562 $3,059,055 $1,109,486 $1,160,231 $703,746 $414,044 DRAFT
$0 $0
15 04/05/2024
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City of Belmont
Sewer Cost of Service Study Page 3 of 3
Exhibit 11
Functionalization and Allocation of
Revenue Requirements
Weighted for:

Biochemical Suspended Actual Customer
Total Volume Oxygen Demand Solids Customer Acct/Svcs Revenue Direct FY 2024-25 (VOL) (BOD) (SS) (AC) (WCA) (RR) (DA)
Strength Related
Basis of Allocation
Sanitary Sewer Capital Operations (730)
Supplies & Services
Engineering/Architecture $0 $0 $0 $0 $0 $0 $0 $0 As Net Plant In Svc Other Professional/Tech 8,652 0 0 0 0 8,652 0 0 100% WCA Bond Issuance Costs 0 0 0 0 0 0 0 0 As Net Plant In Svc Bond Amortization Expense 0 0 0 0 0 0 0 0 As Net Plant In Svc City Project Management & Services 0 0 0 0 0 0 0 0 As Net Plant In Svc Postage/Delivery Service 0 0 0 0 0 0 0 0 As Net Plant In Svc Printing and Binding 0 0 0 0 0 0 0 0 As Net Plant In Svc Miscellaneous 0 0 0 0 0 0 0 0 As Net Plant In Svc
General Supplies 0 0 0 0 0 0 0 0 As Net Plant In Svc
---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- Total Supplies & Services $8,652 $0 $0 $0 $0 $8,652 $0 $0 Administrative & Other
Administrative Support
Administrative Support $58,504 0 0 0 0 58,504 0 0 100% WCA ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- Total Administrative & Other $58,504 $0 $0 $0 $0 $58,504 $0 $0 Capital Outlay
Improvement Other Than Building $0 $0 $0 $0 $0 $0 $0 $0 As Net Plant In Svc ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- Total Capital Outlay $0 $0 $0 $0 $0 $0 $0 $0
Total Sanitary Sewer Capital Operations (730) $67,156 $0 $0 $0 $0 $67,156 $0 $0 Total Operating & Maintenance Expense $7,517,190 $3,596,817 $1,109,486 $1,160,231 $993,020 $657,636 $0 $0 Net Capital Funded Through Rates $5,668,000 $3,685,495 $0 $0 $1,982,505 $0 $0 $0 As Net Plant In Svc Deferred Capital Funding (Debt Service) $0 $0 $0 $0 $0 $0 $0 $0 As Net Plant In Svc Debt Service
2016 Sewer Revenue Refunding $771,255 $501,492 $0 $0 $269,763 $0 $0 $0 As Net Plant In Svc 2016 Sewer Revenue 621,191 403,916 0 0 217,275 0 0 0 As Net Plant In Svc 2019 Sewer Revenue 1,110,625 722,160 0 0 388,465 0 0 0 As Net Plant In Svc New Low Interest Loan 0 0 0 0 0 0 0 0 As Net Plant In Svc New Revenue Bond 2024/2025 0 0 0 0 0 0 0 0 As Net Plant In Svc ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- Total Debt Service $2,503,071 $1,627,568 $0 $0 $875,503 $0 $0 $0 Change in Working Capital +/- $243,700 $158,461 $0 $0 $85,239 $0 $0 $0 As Net Plant In Svc TOTAL REVENUE REQUIREMENTS $15,931,961 $9,068,340 $1,109,486 $1,160,231 $3,936,268 $657,636 $0 $0 Less: Miscellaneous Revenue
Public Works Service Charges $0 $0 $0 $0 $0 $0 $0 $0 As Net Plant In Svc City CIP Chargeback 0 0 0 0 0 0 0 0 As Net Plant In Svc Sewer Lateral Certificate Fee 0 0 0 0 0 0 0 0 100% Vol
Interest Earnings - Investments 733,792 417,668 51,101 53,438 181,296 30,289 0 0 As Total Rev. Req.

Other Interest Earnings 0 0 0 0 0 0 0 0 As Total Rev. Req.

Interest Revenue - Change 0 0 0 0 0 0 0 0 As Total Rev. Req.

Reimbursements 0 0 0 0 0 0 0 0 As Total Rev. Req.

Standby Charges 138,406 78,779 9,638 10,079 34,196 5,713 0 0 As Total Rev. Req. ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- Total Miscellaneous Revenues $872,198 $496,448 $60,739 $63,517 $215,492 $36,002 $0 $0 NET REVENUE REQUIREMENTS FROM RATES $15,059,763 $8,571,893 $1,048,747 $1,096,714 $3,720,776 $621,634 $0 $0 % Net Revenue Requirement
DRAFT 100.0% 56.9% 7.0% 7.3% 24.7% 4.1% 0.0% 0.0%
16 04/05/2024
114
City of Belmont
Sewer Cost of Service Study
Exhibit 12
Allocation of Revenue Requirements
Net Revenue
Allocation Components Requirement Residential Low Strength High Strength Distribution Factor Volume Related $8,571,893 $7,315,816 $1,109,647 $146,429 (VOL) Strength Related
Bio-oxygen Demand $1,048,747 $868,369 $131,712 $48,666 (BOD) Suspended Solids 1,096,714 908,085 137,736 50,892 (SS)
Total Strength Related $2,145,461 $1,776,454 $269,449 $99,558 Customer Related
Actual Customer $3,720,776 $3,643,819 $70,516 $6,442 (AC) Weighted Customer 621,634 608,776 11,781 1,076 (WCA)
Total Customer Related $4,342,410 $4,252,595 $82,297 $7,518 Revenue Related $0 $0 $0 $0 (RR)
Direct Assignment $0 $0 $0 $0 (DA)
NET REVENUE REQUIREMENT $15,059,763 $13,344,865 $1,461,393 $253,505 Commercial
17 DRAFT 04/05/2024
115
City of Belmont
Sewer Cost of Service Study
Exhibit 13
Summary of the Cost of Service Analysis
FY 2024-25
Expenses Residential Low Strength High Strength
Revenues at Present Rates $14,480,542 $13,177,637 $1,055,020 $247,885 Distributed Revenue Requirement $15,059,763 $13,344,865 $1,461,393 $253,505 ----------------- ----------------- ----------------- --------------- Balance/(Deficiency) of Funds ($579,221) ($167,228) ($406,374) ($5,620) Required % Change in Rates 4.0% 1.3% 38.5% 2.3%
Last Study 7.0% 5.8% 23.2% -2.7%
Proposed Rate Adjustment 4.0%
Additional Revenue from Rate Adjustment $579,222 $513,264 $56,207 $9,750 Proposed Adjustment Based on COSA 4.0% 3.9% 5.3% 3.9%
Last Study 7.0% 6.9% 8.1% 6.4%
Commercial
18 DRAFT 04/05/2024
116
City of Belmont
Sewer Cost of Service Study
Exhibit 14
Average Unit Cost
Total Residential Low Strength High Strength
Volume - $/100 cf [1] $10.79 $11.45 $8.07 $8.07
Strength - $/100 cf $2.70 $2.78 $1.96 $5.49
Revenue/Direct - $/100 cf $0.00 $0.00 $0.00 $0.00
---------- ---------- ---------- ----------
Total $/100 cf $13.49 $14.23 $10.03 $13.56
Customer Costs - $/account/annual $395.67 $395.67 $395.67 $395.67 Average Total Cost $/100 cf $18.95 $20.88 $10.63 $13.97 Average Current Revenue $/100 cf $18.22 $20.62 $7.67 $13.66 Notes: [1] Volume per 100 cubic feet is based on annualized average monthly winter water usage values.

Annual Cost - $/account/year $1,372.21 $1,241.64 $7,026.12 $13,342.36 Annual Revenue - $/account/year $1,319.44 $1,226.08 $5,072.35 $13,046.60 Basic Data:

Annual Volume(/100 cf) 794,710 639,065 137,500 18,145
Number of Accounts 10,975 10,748 208 19
Commercial
19 DRAFT 04/05/2024
117
Demand Adjustment Factor 10.0% 10.0% 10.0% 10.0% 10.0% 10.0% Revenue Adjustment July 1 each year 4.0% 4.0% 4.0% 4.0% 4.0% Present FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 Collection
Residential
Base Charge - Annual $430.66 $447.89 $465.80 $484.43 $503.81 $523.96 Flow Charge (S/HCF) $6.13 $6.38 $6.63 $6.90 $7.17 $7.46 Non-Residential
Base Charge $430.66 $447.89 $465.80 $484.43 $503.81 $523.96 Flow Charge (S/HCF)
Low strength $6.13 $6.38 $6.63 $6.90 $7.17 $7.46
High Strength $11.91 $12.39 $12.88 $13.40 $13.93 $14.49 Treatment
Residential
Base Charge - Annual $226.34 $235.39 $244.81 $254.60 $264.79 $275.38 Flow Charge (S/HCF) $3.03 $3.15 $3.28 $3.41 $3.54 $3.69 Non-Residential
Base Charge $226.34 $235.39 $244.81 $254.60 $264.79 $275.38 Flow Charge (S/HCF)
Low strength $3.03 $3.15 $3.28 $3.41 $3.54 $3.69
High Strength $5.90 $6.14 $6.38 $6.64 $6.90 $7.18
City of Belmont
Sewer Utility
Proposed Rate Adjustments - 5 Year Rate Transition Plan 20 DRAFT 04/05/2024
118
Proposition 218 Notice
DRAFT
119
PROPOSITION 218 NOTICE TO

PROPERTY OWNERS FOR PUBLIC HEARING

ON PROPOSED SEWER RATE ADJUSTMENTS
You are receiving this notice because you are a City of Belmont sewer customer and you own property that is receiving sewer services. A public hearing will be held to consider the proposed rate adjustments, shown in detail below, for sewer services for a two-year period. If adopted, the proposed rate adjustments will become effective for Tax Years 2024-25 and 2025-26. The purpose of the hearing is to consider all oral testimony and written protests of the proposed rates.

HOW WILL THE SEWER REVENUES

BE USED, AND CAN THEY BE USED
FOR ANY OTHER PURPOSES?
State law requires that these revenues only be
used to pay costs associated with operating
and maintaining the sewer utility. Revenues
may not be used to pay for other City
services.

WHEN WOULD THE NEW RATES
TAKE EFFECT?
If passed, the rates will take effect 30 days
after a Public Hearing. The rates will appear
on the next property tax bill.

BASIS OF PROPOSED RATES:

The proposed rates were designed to recover
the cost of providing sewer service to all
customer classes. The cost of providing sewer
service will be recovered through fixed fees
and volume charges that will be calculated
based on the average monthly, non-irrigation,
water consumption for the prior winter for all
customers.

STANDBY CHARGE:

For non-metered parcels $245.40 per parcel.

CURRENT
RATES

PROPOSED

RATES FY
2024-25

PROPOSED

RATES FY
2025-26 COLLECTION
Residential
Base Charge
Flo\N Charge ($/HCF)l1
$430.66
$6.13
$447.89
$6.38
$465.80
$6.63
Non-Residential
Base Charge
Flo\N Charge Lo\N
Strength ($/HCF)l1l
Flo\N Charge High
Strength ($/HCF)l1l
$430.66
$6.13
$11.91
$447.89
$6.38
$12.39
$465.80
$6.63
$12.88

TREATMENT
Residential
Base Charge
Flo\N Charge ($/HCF)l1
$226.34
$3.03
$235.39
$3.15
$244.81
$3.28
Non-Residential
Base Charge
Flo\N Charge Lo\N
Strength ($/HCF)l1l
Flo\N Charge High
Strength ($/HCF)l1l
$226.34
$3.03
$5.90
$235.39
$3.15
$6.14
$244.81
$3.28
$6.38

COMBINED
Residential
Base Charge
Flo\N Charge ($/HCF)l1
$657.00
$9.16
$683.28
$9.53
$710.61
$9.91
Non-Residential
Base Charge
Flo\N Charge Lo\N
Strength ($/HCF)l1l
Flo\N Charge High
Strength ($/HCF)l1l
$657.00
$9.16
$17.81
$683.28
$9.53
$18.52
$710.61
$9.91
$19.26
[1] Present and proposed Drought Regulation Adjustment is Hundred Cubic Feet (HCF) X 1.10 X $/HCF.

The City’s sewer utility is a revenue neutral enterprise. Your sewer bill reflects only those charges sufficient to support your sewer service. To continue providing sewer services, the City must adjust its rates for service, implement certain rate increases and passthrough higher costs to its customers based on rate changes from the City’s sewage treatment and disposal provider. Minimizing costs for customers is one of the City’s main concerns. The City is committed to providing reliable sewer service at the lowest possible cost while meeting legal requirements, growing State and Federal Clean Water standards, and protecting the environment. Rising costs of meeting regulatory requirements, storm and sewer treatment, and repair and replacement of an aging system are necessitating adjustments to the sewer rates. Sewer fund expenditures and revenues must balance while maintaining a high level of service. The Council is considering a 4% increase for FY 2024-25 and FY 2025-26 as shown in the table below: Each parcel’s sewer charge will be the sum of the Base Charges and Flow Charges for both Collection and Treatment.

TUESDAY, JUNE 11, 2024 | 7:00 P.M.

CITY COUNCIL CHAMBERS
One Twin Pines Lane, Belmont, CA 94002
ZOOM: BELMONT-GOV.ZOOM.US
MEETING ID: 95745673035
120
For this two-year rate period, the
proposed rates include a 10% Drought
Regulation Adjustment (DRA) factor.

The 10% DRA factor will allow the City to
maintain sufficient revenues during the next fiveyear period given continued changing winter water consumption levels. The DRA factor will
be reviewed again during the next rate study
period, and adjusted at that time if needed.

The formula for the adjustment is:

Actual Volume Usage (Hundred Cubic Feet) X (1
+ (DRA Factor)) = Adjusted Volume Usage
NEED: $28.1 MILLION FOR DEFERRED

CAPITAL IMPROVEMENTS AND

REHABILITATION
On the current CIP horizon, there are $28.1 million in deferred maintenance improvement projects. The primary reasons
for the proposed rate plan are to: cover modest operating cost increases; undertake new capital improvements to
meet current standards; and continue the City’s
rehabilitation of its aging infrastructure. The proposed rates and the drought regulation adjustment factor allow the City to continue to address the repair and
replacement of its aging sewer infrastructure. Since the summer of 2014, the following progress has been made:
26,892 linear feet of gravity sewer lines replaced or
rehabilitated.

A force main assessment was completed in July 2015.

A master plan for the rehabilitation/replacement of the City’s 11 lift stations has been completed.
22 sewer flow monitors have been installed throughout the City.

Sewer capacity improvements on Ralston Avenue
completed.

Replacement of the Shoreway Pump Station completed.

Sewer capacity improvement on El Camino Real are
currently under design.

Replacement of North Road Pump Station and force main
is currently under construction.

Belmont contributions to SVCW RESCU program.
/BelmontCalifornia
Example: 8 HCF x (1+ .10) = 8.80 adjusted volume usage

IF YOU WISH TO PROTEST THIS PROPOSED
SEWER RATE ADJUSTMENT, YOU MAY:

Attend the Public Hearing on June 11, 2024 at 7:00 P.M
in the City Council Chambers located at One Twin Pines
Lane, Belmont, CA 94402 or via Zoom at belmont-gov.
zoom.us (Meeting ID: 95745673035).

SUBMIT A WRITTEN PROTEST
Written protests of the proposed rate change have to
identify the address of the impacted property and the
signature(s) of the property owner(s). Only one written protest will be counted per identified parcel. If a majority of property owners receiving sewer service file written
protests by the end of the public hearing on June 11, 2024, the sewer rates will not be approved.

A written protest regarding the rate increase for sewer services may be mailed to:

City of Belmont,
City Clerk Office, Suite 340
One Twin Pines Lane,
Belmont CA 94002
All written protests need to be received by the City Clerk at or before the close of the public hearing.

For information on the City’s sewer rates or use of funds on capital projects, please visit the City’s webpage:
belmont.gov or call (650) 595-7425
121

Page 1 of 2 ends

Public Hearing – Annual Report for Collection of Sewer Service Fees - Staff Report

STAFF REPORT
Meeting Date: June 11, 2024
Agency: City of Belmont
Staff Contact: Ray Towne, Public Works, 650-595-7459, [email protected] Alberto Espinoza, Public Works, 650-595-7465, [email protected] Agenda Title: Public Hearing – Annual Report for Collection of Sewer Service Fees Agenda Action: Resolution
Recommendation

1. Hold a public hearing to consider protests to collecting the fees on the tax roll; and

Strategic Focus Area
Fiscal and Organizational Sustainability
Background
A report of annual sewer service charges has been prepared based on the effective rates for Fiscal Year 2024-25. The adoption of the annual report is necessary to allow the charges listed in the report to be collected by the San Mateo County Tax Collector on the assessment roll, as has been done in previous years.

Analysis
Belmont City Code (BCC) Sections 21-70 through 21-78 establish a protocol for the setting and collection of sewer charges, and provides for collection of the charges on the assessment roll in accordance with Health and Safety Code (HSC) Section 5473 etseq. These provisionsrequire the City to prepare an annual report containing a description of each parcel of real property receiving the services and facilities and the amount of the charge for each parcel for the year, computed in conformity with the charges previously adopted by the City. In accordance with these provisions, City staff has prepared a report entitled “City of Belmont Sewer Service Charges Fiscal Year 2024-25,” and published notice of the Public Hearing as required by HSC Section 5473.1. The City Council will consider any objections or protests to the annual report, and if a majority protest is not made, BCC Section 21-77 and HSC Section 5473.3 provides that upon the conclusion of the hearing, the City Council may (for purposes of collection on the tax roll) adopt, revise, change, reduce, or modify any charge or overrule all objections and make a determination upon each charge as described in the report.

A copy of the report is included as Attachment B to this agenda staff report, is on file in the City Clerk’s Office, and is also available on the City’s website at:
https://www.belmont.gov/departments/public-works/infrastructure/sewer-system/sewer-rates 122

Page 2 of 2 ends

Public Hearing – Annual Report for Collection of Sewer Service Fees - Staff Report Alternatives

1. Take no action. This would require the City to identify alternative means of collecting the approved charges.

2. Continue the Public Hearing and refer back to staff for additional information.

Attachments
A. Resolution
B. City of Belmont Sewer Service Charges Fiscal Year 2024-25 Fiscal Impact
☐ No Fiscal Impact
☒ Funding Source Confirmed:

Sewer rates are accounted for in the Sewer Collections Fund and incorporated into the proposed FY 2024-25 budget.

Source: Purpose: Public Outreach:

Staff Statutory/Contractual Requirement Posting of Agenda * Other
* Notice of Public Hearing published in the newspaper
123

Page 1 of 2 ends

RESOLUTION NO. 2024 –

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BELMONT

APPROVING THE ANNUAL REPORT FOR COLLECTION ON THE TAX ROLL OF

THE SEWER SERVICE FEES CHARGED TO PARCEL OWNERS TO FUND THE

OPERATION AND MAINTENANCE OF THE CITY'S SEWER COLLECTION SYSTEM FOR FISCAL YEAR 2024-25
WHEREAS, Belmont City Code (BCC) Section 21-93 and Health and Safety Code (HSC) Section 5471 permits the City Council to set the City's sewer charges; and, WHEREAS, BCC Sections 21-70 through 21-78 establish a protocol for the collection of sewer charges on the property tax assessment roll in accordance with HSC Section 5473 et seq. which require the City to prepare an annual report containing a description of each parcel of real property receiving the services and facilities and the amount of the charge for each parcel for the year, computed in conformity with the charges adopted by the City; and, WHEREAS, in accordance with BCC Section 21-71 and HSC Section 5473, City staff prepared this year's annual report of charges entitled "City of Belmont Sewer Service Charges Fiscal Year 2024-25,” and published notice of the public hearing as required by HSC Section 5473.1; and,
WHEREAS, BCC Section 21-75 and HSC Section 5473.2 require that the City Council hold the public hearing, consider any objections or protests to the annual report, and if a majority protest is not made, BCC Section 21-77 and HSC Section 5473.3 provides that upon the conclusion of the hearing, the City Council may (for purposes of collection on the tax roll) adopt, revise, change, reduce, or modify any charge or overrule all objections and make a determination upon each charge as described in the report, which determination shall be final; and, WHEREAS, if the report is adopted, BCC Section 21-78 and HSC Section 5473.4 require the City Clerk to forward the annual report to the County Assessor by August 10th of each year; and,
WHEREAS, if the majority of the owners of separate parcels of property protest the report, BCC Section 21-76 requires that the City Council not adopt the report, and the charges must be collected separately from the tax roll; and,
WHEREAS, a Public Hearing was held on June 11, 2024 and all objections and protests to the above reference report were heard.

NOW, THEREFORE, the City Council of the City of Belmont resolves as follows:

SECTION 1. The City Council finds that:
(a) The public hearing on the Annual Report was duly noticed and held in accordance with the law; and,
(b) Protest was not made by the owners of a majority of separate parcels of 124

Page 2 of 2 ends

property described in the Annual Report.

SECTION 2. Any and all objections to the Annual Report are overruled.

SECTION 3. The Annual Report is adopted and the City Clerk is directed to file the report with the San Mateo County Tax Collector for purposes of having the charges shown in the report collected on the property tax rolls.
* * *
ADOPTED June 11, 2024 by the City of Belmont City Council by the following vote:

Ayes:

Noes:

Absent:

Abstain:

ATTEST:

City Clerk Mayor
APPROVED AS TO FORM:

City Attorney
125
City of Belmont
Sewer Service Charges
Fiscal Year 2024-25
126
City of Belmont
Sewer Service Charges
Fiscal Year 2024/25
APN Dwelling Units
Annualized Water
Consumption (HCF) (1)
Base Collection
Charge
Flow Collection
Charge
Base Treatment
Charge
Flow Treatment
Charge
Total Sewer
Service Charge
040-241-010 1 86.69 $447.88 $553.06 $235.38 $273.06 $1,509.38 040-241-020 1 59.31 447.88 378.40 235.38 186.82 1,248.48 040-241-030 1 82.13 447.88 523.94 235.38 258.68 1,465.88 040-242-010 1 173.38 447.88 1,106.12 235.38 546.12 2,335.50 040-242-020 1 114.06 447.88 727.70 235.38 359.28 1,770.24 040-242-030 1 136.88 447.88 873.26 235.38 431.14 1,987.66 040-242-040 1 18.25 447.88 116.42 235.38 57.48 857.16
040-242-050 1 41.06 447.88 261.96 235.38 129.34 1,074.56 040-242-060 1 41.06 447.88 261.96 235.38 129.34 1,074.56 040-243-010 1 150.56 447.88 960.58 235.38 474.26 2,118.10 040-243-020 1 27.38 447.88 174.64 235.38 86.22 944.12
040-243-030 1 82.13 447.88 523.94 235.38 258.68 1,465.88 040-243-040 1 95.81 447.88 611.28 235.38 301.80 1,596.34 040-243-050 1 209.88 447.88 1,339.00 235.38 661.10 2,683.36 040-243-060 1 50.19 447.88 320.18 235.38 158.08 1,161.52 040-243-070 1 59.31 447.88 378.40 235.38 186.82 1,248.48 040-243-080 1 63.88 447.88 407.52 235.38 201.20 1,291.98 040-243-090 1 191.63 447.88 1,222.56 235.38 603.60 2,509.42 040-243-100 1 63.88 447.88 407.52 235.38 201.20 1,291.98 040-243-110 1 18.25 447.88 116.42 235.38 57.48 857.16
040-243-120 1 91.25 447.88 582.16 235.38 287.42 1,552.84 040-244-040 1 36.50 447.88 232.86 235.38 114.96 1,031.08 040-244-060 1 41.06 447.88 261.96 235.38 129.34 1,074.56 040-244-070 1 22.81 447.88 145.54 235.38 71.84 900.64
040-244-080 1 45.63 447.88 291.08 235.38 143.70 1,118.04 040-244-090 1 36.50 447.88 232.86 235.38 114.96 1,031.08 040-244-100 1 59.31 447.88 378.40 235.38 186.82 1,248.48 040-244-110 1 54.75 447.88 349.30 235.38 172.46 1,205.02 040-244-120 1 50.19 447.88 320.18 235.38 158.08 1,161.52 040-244-130 1 18.25 447.88 116.42 235.38 57.48 857.16
040-244-140 1 59.31 447.88 378.40 235.38 186.82 1,248.48 040-244-150 1 63.88 447.88 407.52 235.38 201.20 1,291.98 040-244-160 1 31.94 447.88 203.76 235.38 100.60 987.62
040-245-010 1 9.13 447.88 58.20 235.38 28.74 770.20
040-245-020 1 59.31 447.88 378.40 235.38 186.82 1,248.48 040-245-030 1 64.44 447.88 411.10 235.38 202.98 1,297.34 040-245-040 1 159.69 447.88 1,018.80 235.38 503.00 2,205.06 040-245-050 1 77.56 447.88 494.84 235.38 244.32 1,422.42 040-245-060 1 41.06 447.88 261.96 235.38 129.34 1,074.56 040-245-070 1 18.25 447.88 116.42 235.38 57.48 857.16
040-245-080 1 141.44 447.88 902.36 235.38 445.52 2,031.14 040-245-090 1 27.38 447.88 174.64 235.38 86.22 944.12
040-246-010 1 73.00 447.88 465.74 235.38 229.94 1,378.94 040-246-020 1 45.63 447.88 291.08 235.38 143.70 1,118.04 040-246-030 1 68.44 447.88 436.62 235.38 215.56 1,335.44 040-246-040 1 132.31 447.88 844.14 235.38 416.78 1,944.18 040-246-050 1 27.38 447.88 174.64 235.38 86.22 944.12
040-246-060 1 73.00 447.88 465.74 235.38 229.94 1,378.94 040-246-070 1 68.44 447.88 436.62 235.38 215.56 1,335.44 040-246-080 1 54.75 447.88 349.30 235.38 172.46 1,205.02 040-246-090 1 118.63 447.88 756.82 235.38 373.66 1,813.74 040-246-100 1 41.06 447.88 261.96 235.38 129.34 1,074.56 040-246-110 1 177.94 447.88 1,135.24 235.38 560.50 2,379.00 040-246-270 0 27.38 447.88 174.64 235.38 86.22 944.12
040-246-280 0 13.69 447.88 87.32 235.38 43.10 813.68
040-246-290 0 41.06 447.88 261.96 235.38 129.34 1,074.56 040-246-300 124 8,641.38 55,538.36 55,131.96 29,188.36 27,220.32 167,079.00 040-251-010 1 95.81 447.88 611.28 235.38 301.80 1,596.34 040-251-020 1 50.19 447.88 320.18 235.38 158.08 1,161.52

Page 1 of 142 ends

City of Belmont
Sewer Service Charges
Fiscal Year 2024/25
APN Dwelling Units
Annualized Water
Consumption (HCF) (1)
Base Collection
Charge
Flow Collection
Charge
Base Treatment
Charge
Flow Treatment
Charge
Total Sewer
Service Charge
040-251-030 1 54.75 447.88 349.30 235.38 172.46 1,205.02 040-251-040 1 45.63 447.88 291.08 235.38 143.70 1,118.04 040-251-050 1 59.31 447.88 378.40 235.38 186.82 1,248.48 040-251-060 1 41.06 447.88 261.96 235.38 129.34 1,074.56 040-251-070 1 127.75 447.88 815.04 235.38 402.40 1,900.70 040-251-080 1 77.56 447.88 494.84 235.38 244.32 1,422.42 040-251-090 1 100.38 447.88 640.38 235.38 316.18 1,639.82 040-251-100 1 132.31 447.88 844.14 235.38 416.78 1,944.18 040-251-110 1 31.94 447.88 203.76 235.38 100.60 987.62
040-252-010 1 18.25 447.88 116.42 235.38 57.48 857.16
040-252-020 1 45.63 447.88 291.08 235.38 143.70 1,118.04 040-252-030 1 22.81 447.88 145.54 235.38 71.84 900.64
040-252-040 1 59.31 447.88 378.40 235.38 186.82 1,248.48 040-252-050 1 13.69 447.88 87.32 235.38 43.10 813.68
040-252-060 1 59.31 447.88 378.40 235.38 186.82 1,248.48 040-252-070 1 31.94 447.88 203.76 235.38 100.60 987.62
040-252-080 1 82.13 447.88 523.94 235.38 258.68 1,465.88 040-252-090 1 86.69 447.88 553.06 235.38 273.06 1,509.38 040-252-100 1 31.94 447.88 203.76 235.38 100.60 987.62
040-252-110 1 36.50 447.88 232.86 235.38 114.96 1,031.08 040-252-120 1 59.31 447.88 378.40 235.38 186.82 1,248.48 040-252-130 1 22.81 447.88 145.54 235.38 71.84 900.64
040-252-140 1 22.81 447.88 145.54 235.38 71.84 900.64
040-252-150 1 104.94 447.88 669.50 235.38 330.54 1,683.30 040-252-160 1 41.06 447.88 261.96 235.38 129.34 1,074.56 040-252-170 1 73.00 447.88 465.74 235.38 229.94 1,378.94 040-252-180 1 54.75 447.88 349.30 235.38 172.46 1,205.02 040-252-190 1 68.44 447.88 436.62 235.38 215.56 1,335.44 040-252-200 1 36.50 447.88 232.86 235.38 114.96 1,031.08 040-252-210 1 45.63 447.88 291.08 235.38 143.70 1,118.04 040-252-220 1 118.63 447.88 756.82 235.38 373.66 1,813.74 040-253-010 1 45.63 447.88 291.08 235.38 143.70 1,118.04 040-253-020 1 45.63 447.88 291.08 235.38 143.70 1,118.04 040-253-030 1 86.69 447.88 553.06 235.38 273.06 1,509.38 040-253-040 1 41.06 447.88 261.96 235.38 129.34 1,074.56 040-253-050 1 45.63 447.88 291.08 235.38 143.70 1,118.04 040-253-060 1 77.56 447.88 494.84 235.38 244.32 1,422.42 040-253-070 1 63.88 447.88 407.52 235.38 201.20 1,291.98 040-253-080 1 77.56 447.88 494.84 235.38 244.32 1,422.42 040-253-090 1 54.75 447.88 349.30 235.38 172.46 1,205.02 040-253-100 1 63.88 447.88 407.52 235.38 201.20 1,291.98 040-253-110 1 86.69 447.88 553.06 235.38 273.06 1,509.38 040-253-120 1 141.44 447.88 902.36 235.38 445.52 2,031.14 040-253-130 1 86.69 447.88 553.06 235.38 273.06 1,509.38 040-254-010 1 82.13 447.88 523.94 235.38 258.68 1,465.88 040-254-020 1 22.81 447.88 145.54 235.38 71.84 900.64
040-254-030 1 22.81 447.88 145.54 235.38 71.84 900.64
040-254-040 1 136.88 447.88 873.26 235.38 431.14 1,987.66 040-254-050 1 132.31 447.88 844.14 235.38 416.78 1,944.18 040-254-060 1 73.00 447.88 465.74 235.38 229.94 1,378.94 040-254-070 1 50.19 447.88 320.18 235.38 158.08 1,161.52 040-254-080 1 73.00 447.88 465.74 235.38 229.94 1,378.94 040-254-090 1 41.06 447.88 261.96 235.38 129.34 1,074.56 040-254-100 1 91.25 447.88 582.16 235.38 287.42 1,552.84 040-254-110 1 31.94 447.88 203.76 235.38 100.60 987.62
040-254-120 1 56.78 447.88 362.24 235.38 178.84 1,224.34 040-254-130 1 54.75 447.88 349.30 235.38 172.46 1,205.02 040-254-140 1 27.38 447.88 174.64 235.38 86.22 944.12
040-254-150 1 68.44 447.88 436.62 235.38 215.56 1,335.44

Page 2 of 142 ends

City of Belmont
Sewer Service Charges
Fiscal Year 2024/25
APN Dwelling Units
Annualized Water
Consumption (HCF) (1)
Base Collection
Charge
Flow Collection
Charge
Base Treatment
Charge
Flow Treatment
Charge
Total Sewer
Service Charge
040-254-160 1 50.19 447.88 320.18 235.38 158.08 1,161.52 040-254-170 1 45.63 447.88 291.08 235.38 143.70 1,118.04 040-254-180 1 36.50 447.88 232.86 235.38 114.96 1,031.08 040-254-190 1 73.00 447.88 465.74 235.38 229.94 1,378.94 040-254-200 1 4.56 447.88 29.10 235.38 14.36 726.72
040-254-210 1 86.69 447.88 553.06 235.38 273.06 1,509.38 040-254-220 1 22.81 447.88 145.54 235.38 71.84 900.64
040-254-230 1 68.44 447.88 436.62 235.38 215.56 1,335.44 040-254-240 1 68.44 447.88 436.62 235.38 215.56 1,335.44 040-254-250 1 132.31 447.88 844.14 235.38 416.78 1,944.18 040-254-260 1 31.94 447.88 203.76 235.38 100.60 987.62
040-261-010 1 73.00 447.88 465.74 235.38 229.94 1,378.94 040-261-020 1 91.25 447.88 582.16 235.38 287.42 1,552.84 040-261-030 1 36.50 447.88 232.86 235.38 114.96 1,031.08 040-261-040 1 50.19 447.88 320.18 235.38 158.08 1,161.52 040-261-050 1 91.25 447.88 582.16 235.38 287.42 1,552.84 040-261-060 1 200.75 447.88 1,280.78 235.38 632.36 2,596.40 040-261-070 1 68.44 447.88 436.62 235.38 215.56 1,335.44 040-261-080 1 41.06 447.88 261.96 235.38 129.34 1,074.56 040-261-090 1 45.63 447.88 291.08 235.38 143.70 1,118.04 040-261-100 1 18.25 447.88 116.42 235.38 57.48 857.16
040-261-110 1 104.94 447.88 669.50 235.38 330.54 1,683.30 040-261-120 1 59.31 447.88 378.40 235.38 186.82 1,248.48 040-261-130 1 41.06 447.88 261.96 235.38 129.34 1,074.56 040-261-140 1 50.19 447.88 320.18 235.38 158.08 1,161.52 040-261-150 1 66.92 447.88 426.92 235.38 210.78 1,320.96 040-261-160 1 45.63 447.88 291.08 235.38 143.70 1,118.04 040-261-170 1 59.31 447.88 378.40 235.38 186.82 1,248.48 040-261-180 1 22.81 447.88 145.54 235.38 71.84 900.64
040-261-190 0 77.56 447.88 494.84 235.38 244.32 1,422.42 040-261-200 0 9.13 447.88 58.20 235.38 28.74 770.20
040-261-330 0 86.69 447.88 553.06 235.38 273.06 1,509.38 040-261-340 0 31.94 447.88 203.76 235.38 100.60 987.62
040-261-370 96 5,671.19 42,997.44 36,182.16 22,597.44 17,864.24 119,641.28 040-261-380 0 4.56 447.88 29.10 235.38 14.36 726.72
040-261-390 0 761.94 447.88 4,861.16 235.38 2,400.10 7,944.52 040-261-400 0 22.81 447.88 145.54 235.38 71.84 900.64
040-262-010 1 59.31 447.88 378.40 235.38 186.82 1,248.48 040-262-020 1 54.75 447.88 349.30 235.38 172.46 1,205.02 040-262-030 1 50.19 447.88 320.18 235.38 158.08 1,161.52 040-262-040 1 63.88 447.88 407.52 235.38 201.20 1,291.98 040-262-050 1 - 447.88 - 235.38 - 683.26
040-262-060 1 109.50 447.88 698.60 235.38 344.92 1,726.78 040-262-070 1 - 447.88 - 235.38 - 683.26
040-262-080 1 54.75 447.88 349.30 235.38 172.46 1,205.02 040-262-090 1 22.81 447.88 145.54 235.38 71.84 900.64
040-262-100 1 36.50 447.88 232.86 235.38 114.96 1,031.08 040-262-110 1 45.63 447.88 291.08 235.38 143.70 1,118.04 040-262-120 1 27.38 447.88 174.64 235.38 86.22 944.12
040-262-130 1 86.69 447.88 553.06 235.38 273.06 1,509.38 040-262-140 1 200.75 447.88 1,280.78 235.38 632.36 2,596.40 040-262-150 1 22.81 447.88 145.54 235.38 71.84 900.64
040-262-160 1 31.94 447.88 203.76 235.38 100.60 987.62
040-262-170 1 36.50 447.88 232.86 235.38 114.96 1,031.08 040-262-180 1 31.94 447.88 203.76 235.38 100.60 987.62
040-262-190 1 54.75 447.88 349.30 235.38 172.46 1,205.02 040-262-200 1 50.19 447.88 320.18 235.38 158.08 1,161.52 040-262-210 1 31.94 447.88 203.76 235.38 100.60 987.62
040-262-220 1 68.44 447.88 436.62 235.38 215.56 1,335.44

Page 3 of 142 ends

City of Belmont
Sewer Service Charges
Fiscal Year 2024/25
APN Dwelling Units
Annualized Water
Consumption (HCF) (1)
Base Collection
Charge
Flow Collection
Charge
Base Treatment
Charge
Flow Treatment
Charge
Total Sewer
Service Charge
040-262-230 1 41.06 447.88 261.96 235.38 129.34 1,074.56 040-262-240 1 45.63 447.88 291.08 235.38 143.70 1,118.04 040-262-250 1 123.19 447.88 785.92 235.38 388.04 1,857.22 040-262-260 1 41.06 447.88 261.96 235.38 129.34 1,074.56 040-263-010 1 100.38 447.88 640.38 235.38 316.18 1,639.82 040-263-020 1 59.31 447.88 378.40 235.38 186.82 1,248.48 040-263-030 1 63.88 447.88 407.52 235.38 201.20 1,291.98 040-263-040 1 41.06 447.88 261.96 235.38 129.34 1,074.56 040-263-050 1 95.81 447.88 611.28 235.38 301.80 1,596.34 040-263-060 1 59.31 447.88 378.40 235.38 186.82 1,248.48 040-263-070 1 59.31 447.88 378.40 235.38 186.82 1,248.48 040-263-080 1 27.38 447.88 174.64 235.38 86.22 944.12
040-263-090 1 73.00 447.88 465.74 235.38 229.94 1,378.94 040-263-100 1 41.06 447.88 261.96 235.38 129.34 1,074.56 040-263-110 1 41.06 447.88 261.96 235.38 129.34 1,074.56 040-263-120 1 104.94 447.88 669.50 235.38 330.54 1,683.30 040-263-130 1 54.75 447.88 349.30 235.38 172.46 1,205.02 040-263-140 1 59.31 447.88 378.40 235.38 186.82 1,248.48 040-263-150 1 45.63 447.88 291.08 235.38 143.70 1,118.04 040-263-160 1 27.38 447.88 174.64 235.38 86.22 944.12
040-263-170 1 45.63 447.88 291.08 235.38 143.70 1,118.04 040-263-180 0 - 245.40 - - - 245.40
040-263-240 0 27.38 447.88 174.64 235.38 86.22 944.12
040-263-250 0 22.81 447.88 145.54 235.38 71.84 900.64
040-263-260 0 22.81 447.88 145.54 235.38 71.84 900.64
040-263-300 1 36.50 447.88 232.86 235.38 114.96 1,031.08 040-263-350 0 269.19 895.78 1,717.40 470.78 847.94 3,931.90 040-263-370 0 155.13 895.78 989.68 470.78 488.64 2,844.88 040-263-400 0 95.81 447.88 611.28 235.38 301.80 1,596.34 040-263-420 0 857.75 447.88 5,472.44 235.38 2,701.90 8,857.60 040-263-440 0 22.81 447.88 145.54 235.38 71.84 900.64
040-263-450 0 22.81 447.88 145.54 235.38 71.84 900.64
040-263-460 0 73.00 447.88 465.74 235.38 229.94 1,378.94 040-271-030 0 707.19 1,343.66 4,511.84 706.16 2,227.64 8,789.30 040-271-040 1 68.44 447.88 436.62 235.38 215.56 1,335.44 040-271-050 1 100.38 447.88 640.38 235.38 316.18 1,639.82 040-271-060 1 13.69 447.88 87.32 235.38 43.10 813.68
040-271-070 1 59.31 447.88 378.40 235.38 186.82 1,248.48 040-271-080 1 118.63 447.88 756.82 235.38 373.66 1,813.74 040-271-090 1 95.81 447.88 611.28 235.38 301.80 1,596.34 040-271-100 1 - 447.88 - 235.38 - 683.26
040-271-110 1 86.69 447.88 553.06 235.38 273.06 1,509.38 040-271-120 1 73.00 447.88 465.74 235.38 229.94 1,378.94 040-271-130 1 109.50 447.88 698.60 235.38 344.92 1,726.78 040-271-140 1 50.19 447.88 320.18 235.38 158.08 1,161.52 040-271-150 1 91.25 447.88 582.16 235.38 287.42 1,552.84 040-271-160 1 31.94 447.88 203.76 235.38 100.60 987.62
040-271-170 1 63.88 447.88 407.52 235.38 201.20 1,291.98 040-271-180 1 27.38 447.88 174.64 235.38 86.22 944.12
040-271-190 1 27.38 447.88 174.64 235.38 86.22 944.12
040-271-200 1 4.56 447.88 29.10 235.38 14.36 726.72
040-271-210 1 63.88 447.88 407.52 235.38 201.20 1,291.98 040-271-220 1 36.50 447.88 232.86 235.38 114.96 1,031.08 040-271-230 1 86.69 447.88 553.06 235.38 273.06 1,509.38 040-271-240 1 27.38 447.88 174.64 235.38 86.22 944.12
040-271-250 1 59.31 447.88 378.40 235.38 186.82 1,248.48 040-271-260 1 36.50 447.88 232.86 235.38 114.96 1,031.08 040-271-270 1 164.25 447.88 1,047.90 235.38 517.38 2,248.54 040-271-280 1 73.00 447.88 465.74 235.38 229.94 1,378.94

Page 4 of 142 ends

City of Belmont
Sewer Service Charges
Fiscal Year 2024/25
APN Dwelling Units
Annualized Water
Consumption (HCF) (1)
Base Collection
Charge
Flow Collection
Charge
Base Treatment
Charge
Flow Treatment
Charge
Total Sewer
Service Charge
040-271-290 1 27.38 447.88 174.64 235.38 86.22 944.12
040-271-300 1 9.13 447.88 58.20 235.38 28.74 770.20
040-271-310 1 36.50 447.88 232.86 235.38 114.96 1,031.08 040-271-320 1 22.81 447.88 145.54 235.38 71.84 900.64
040-271-330 1 54.75 447.88 349.30 235.38 172.46 1,205.02 040-271-380 198 16,685.06 88,682.22 106,450.68 46,607.22 52,557.94 294,298.06 040-272-010 1 59.31 447.88 378.40 235.38 186.82 1,248.48 040-272-020 1 82.13 447.88 523.94 235.38 258.68 1,465.88 040-272-030 1 100.38 447.88 640.38 235.38 316.18 1,639.82 040-272-040 1 68.44 447.88 436.62 235.38 215.56 1,335.44 040-272-050 1 45.63 447.88 291.08 235.38 143.70 1,118.04 040-272-060 1 54.75 447.88 349.30 235.38 172.46 1,205.02 040-272-070 1 22.81 447.88 145.54 235.38 71.84 900.64
040-272-080 1 41.06 447.88 261.96 235.38 129.34 1,074.56 040-272-090 1 123.19 447.88 785.92 235.38 388.04 1,857.22 040-272-100 1 27.38 447.88 174.64 235.38 86.22 944.12
040-272-110 1 63.88 447.88 407.52 235.38 201.20 1,291.98 040-272-120 1 136.88 447.88 873.26 235.38 431.14 1,987.66 040-272-130 1 73.00 447.88 465.74 235.38 229.94 1,378.94 040-272-140 1 36.50 447.88 232.86 235.38 114.96 1,031.08 040-272-150 1 41.06 447.88 261.96 235.38 129.34 1,074.56 040-272-160 1 36.50 447.88 232.86 235.38 114.96 1,031.08 040-272-170 1 45.63 447.88 291.08 235.38 143.70 1,118.04 040-273-010 1 77.56 447.88 494.84 235.38 244.32 1,422.42 040-273-020 1 54.75 447.88 349.30 235.38 172.46 1,205.02 040-273-030 1 59.31 447.88 378.40 235.38 186.82 1,248.48 040-273-040 1 13.69 447.88 87.32 235.38 43.10 813.68
040-273-050 1 123.19 447.88 785.92 235.38 388.04 1,857.22 040-273-060 1 31.94 447.88 203.76 235.38 100.60 987.62
040-273-070 1 59.31 447.88 378.40 235.38 186.82 1,248.48 040-273-080 1 73.00 447.88 465.74 235.38 229.94 1,378.94 040-273-090 1 77.56 447.88 494.84 235.38 244.32 1,422.42 040-273-100 1 31.94 447.88 203.76 235.38 100.60 987.62
040-273-110 1 18.25 447.88 116.42 235.38 57.48 857.16
040-273-120 1 36.50 447.88 232.86 235.38 114.96 1,031.08 040-273-130 1 27.38 447.88 174.64 235.38 86.22 944.12
040-273-140 1 104.94 447.88 669.50 235.38 330.54 1,683.30 040-273-150 1 77.56 447.88 494.84 235.38 244.32 1,422.42 040-273-160 1 18.25 447.88 116.42 235.38 57.48 857.16
040-273-170 1 9.13 447.88 58.20 235.38 28.74 770.20
040-273-180 1 54.75 447.88 349.30 235.38 172.46 1,205.02 040-273-190 2 202.91 895.78 1,294.56 470.78 639.16 3,300.28 040-273-200 1 22.81 447.88 145.54 235.38 71.84 900.64
040-273-210 1 68.44 447.88 436.62 235.38 215.56 1,335.44 040-274-010 1 18.25 447.88 116.42 235.38 57.48 857.16
040-274-020 1 4.02 447.88 25.60 235.38 12.64 721.50
040-274-030 1 63.88 447.88 407.52 235.38 201.20 1,291.98 040-274-040 1 150.56 447.88 960.58 235.38 474.26 2,118.10 040-274-050 1 86.69 447.88 553.06 235.38 273.06 1,509.38 040-274-060 1 45.63 447.88 291.08 235.38 143.70 1,118.04 040-274-070 1 18.25 447.88 116.42 235.38 57.48 857.16
040-274-080 1 36.50 447.88 232.86 235.38 114.96 1,031.08 040-274-090 1 41.06 447.88 261.96 235.38 129.34 1,074.56 040-274-100 1 68.44 447.88 436.62 235.38 215.56 1,335.44 040-274-110 1 59.31 447.88 378.40 235.38 186.82 1,248.48 040-274-120 1 45.63 447.88 291.08 235.38 143.70 1,118.04 040-274-130 1 68.44 447.88 436.62 235.38 215.56 1,335.44 040-274-140 1 22.81 447.88 145.54 235.38 71.84 900.64
040-274-150 1 68.44 447.88 436.62 235.38 215.56 1,335.44

Page 5 of 142 ends

Belmont City CouncilJune 11, 2024

Belmont City Council
June 11, 2024