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CITY of BRISBANE
Monday, June 13th, 2022 at 11:30 PM ● Virtual Meeting
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Infrastructure, Utilities & Franchise
Subcommittee Agenda
1 - 2 -
SUBCOMMITTEE MEMBERS:
Mayor Mackin, Mayor Pro-tem Lentz
PRESENTATIONS AND DISCUSSION ITEMS
A. Review Projected Water and Sewer Rate Increases
PUBLIC COMMENT
ADJOURNMENT
2 File Attachments for Item:
A. Review Projected Water and Sewer Rate Increases
3 A.
CITY OF BRISBANE
SEWER RATE STUDY 2022
Draft Tables
June 7, 2022
4 A.
Table 1: Utility Reserves
City of Brisbane
Water and Sewer Utility Rate Study 2022
Current Assets As of June 30, 2020 As of June 30, 2021
50% of Current
Assets
Cash and investments (1) $7,378,892 $7,656,890 $3,689,446 Restricted cash and investments 1,884,484 0 $942,242
Accounts receivable, net 1,097,729 1,076,741 $548,865
Taxes receivable 1,246 536 $623
Interest receivable 13,890 3,660 $6,945
Total Current Assets 10,376,241 8,737,827 $5,188,121
Source: Proprietry Funds, Statement of Net Position, June 30, 2020 and June 30, 2022 (1) Estimated total utility reserves
Reserves by Utility As of June 30, 2021 % of Total
Water Utility Beginning Reserve Fund Balance $2,828,445 36.9% Sewer Utility Beginning Reserve Fund Balance 4,828,445 63.1% Total Reserves 7,656,890 100.0%
5 A.
Table 2: Combined Water and Sewer Cash Flow Projection (Water Rate Annual Increases = 8%, Sewer Rate Annual Increases = 24%) DRAFT - 6/7/22 City of Brisbane
Water & Sewer Utility Rate Study 2022
Budget
2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 2031/32 1 BEGINNING FUND BALANCE $7,656,890 $6,575,087 $4,449,056 $2,622,712 $3,692,556 $2,803,087 $2,608,406 $3,371,999 $4,085,412 $4,736,734 $5,305,377 2 3 REVENUES
4 Water Sales (1) 3,000,000 3,120,000 3,370,000 3,640,000 3,931,000 4,245,000 4,670,000 5,044,000 5,448,000 5,884,000 6,355,000 5 Sewer Service Charges (1) 2,000,000 2,240,000 2,778,000 3,445,000 4,272,000 5,297,000 5,615,000 5,952,000 6,309,000 6,688,000 7,089,000 6 Drought Reserve Charge 100,000 100,000 100,000 100,000 100,000 100,000 0 0 0 0 0 7 Capital Charge (2) 365,000 515,000 515,000 515,000 515,000 515,000 815,000 815,000 815,000 815,000 815,000 8 Investment Earnings 50,000 51,000 52,000 53,000 54,000 55,000 56,000 57,000 58,000 59,000 60,000 9 Account Open/Reconnection Fees 3,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 10 Late Payment Charges 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 11 Sewer & Meter Connection Fees 23,000 25,000 27,000 29,000 31,000 33,000 36,000 39,000 42,000 45,000 48,000 12 Fire Service Charges 115,000 124,000 134,000 145,000 157,000 170,000 187,000 202,000 218,000 235,000 254,000 13 Altamar Meter Reading Fee 7,500 8,000 9,000 10,000 11,000 12,000 13,000 14,000 15,000 16,000 17,000 14 Transfers from Other Funds 75,000 75,000 75,000 75,000 75,000 75,000 75,000 75,000 75,000 75,000 75,000 15 Less: Low Income Rate Assistance (75,000) (75,000) (75,000) (75,000) (75,000) (75,000) (75,000) (75,000) (75,000) (75,000) (75,000) 16 Projected Grant Revenue 0 0 0 2,500,000 0 0 0 0 0 0 0 17 Total Revenues 5,673,500 6,197,000 6,999,000 10,451,000 9,085,000 10,441,000 11,406,000 12,137,000 12,919,000 13,756,000 14,652,000 18 19 EXPENSES
20 Operating & Maintenance
21 Salaries 949,583 987,000 1,027,000 1,068,000 1,110,000 1,154,000 1,200,000 1,248,000 1,298,000 1,350,000 1,404,000 22 Payroll Taxes 13,300 13,000 13,000 13,000 13,000 13,000 13,000 13,000 13,000 13,000 13,000 23 Benefits 523,326 544,000 566,000 589,000 613,000 637,000 663,000 689,000 717,000 745,000 775,000 24 Insurance 110,225 121,000 127,000 133,000 140,000 147,000 154,000 162,000 170,000 179,000 188,000 25 Supplies and Services 3,585,356 4,057,000 4,463,000 4,910,000 5,401,000 5,942,000 6,536,000 7,190,000 7,909,000 8,700,000 9,570,000 26 Admin Charges and Credit 936,825 969,000 1,003,000 1,038,000 1,075,000 1,113,000 1,152,000 1,192,000 1,233,000 1,276,000 1,321,000 27 Subtotal O&M 6,118,616 6,691,000 7,199,000 7,751,000 8,352,000 9,006,000 9,718,000 10,494,000 11,340,000 12,263,000 13,271,000 28 29 Net Operating Revenue (445,116) (494,000) (200,000) 2,700,000 733,000 1,435,000 1,688,000 1,643,000 1,579,000 1,493,000 1,381,000 30 31 Debt Service
32 2015 Utility Bonds 636,688 632,031 626,344 630,156 622,469 629,681 624,406 629,588 627,678 624,356 635,813 33 New Bonds (3) 0 0 0 0 0 0 300,000 300,000 300,000 300,000 300,000 34 Subtotal Debt Service 636,688 632,031 626,344 630,156 622,469 629,681 924,406 929,588 927,678 924,356 935,813 35 36 Capital Projects 0 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 0 0 0 0 0 37 38 Total Expenses 6,755,303 8,323,031 8,825,344 9,381,156 9,974,469 10,635,681 10,642,406 11,423,588 12,267,678 13,187,356 14,206,813 39 40 Total Net Revenues (1,081,803) (2,126,031) (1,826,344) 1,069,844 (889,469) (194,681) 763,594 713,413 651,322 568,644 445,188 41 42 ENDING FUND BALANCE 6,575,087 4,449,056 2,622,712 3,692,556 2,803,087 2,608,406 3,371,999 4,085,412 4,736,734 5,305,377 5,750,565 43 44
45 Reserve Funds
46 Operating Reserve Target (25% of O&M) 1,529,700 1,672,800 1,799,800 1,937,800 2,088,000 2,251,500 2,429,500 2,623,500 2,835,000 3,065,800 3,317,800 47 Drought Reserve ($700,000?) 447,499 547,499 647,499 747,499 847,499 947,499 947,499 947,499 947,499 947,499 947,499 48 Total Combined Reserves 1,977,199 2,220,299 2,447,299 2,685,299 2,935,499 3,198,999 3,376,999 3,570,999 3,782,499 4,013,299 4,265,299 49 Target Met? yes yes yes yes yes yes yes yes yes yes yes 50 51 Debt Service Coverage - 1.25x (4) -0.70 -0.78 -0.32 0.32 1.18 2.28 1.83 1.77 1.70 1.62 1.48 52 Target Met? no no no no no yes yes yes yes yes yes
53 1 - Water Sales & Sewer Service Charges for 2022/23 have been adjusted for September 1, 2022 implementation date 2 - Assumes Capital Charge will increase in 2022/23 by half 3 - Total debt service for New Bonds is estimated at $300,000 Years 1 -5: Proposition 218 Years 6 - 10: Extended Projection 6 A.
Table 3: Scenario 1: No Rate Increases - Sewer Cash Flow Projection DRAFT - 6/7/22 City of Brisbane
Sewer Utility Rate Study 2022
Budget
2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 2031/32 1 Overall Revenue Adjustment 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 2 Rate Increase Effective Jan 1, 2023 Jul 1, 2023 Jul 1, 2024 Jul 1, 2025 Jul 1, 2026 Jul 1, 2027 Jul 1, 2028 Jul 1, 2029 Jul 1, 2030 Jul 1, 2031 3 4
5 BEGINNING FUND BALANCE $4,828,445 $3,591,447 $1,686,916 ($476,928) ($1,677,584) ($4,434,553) ($7,532,734) ($10,497,640) ($13,866,728) ($17,673,906) ($21,957,762) 6 7 Sewer Service Charges Based on 12 Mos. of Rev 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 2,000,000 2,000,000 8 9 REVENUES
10 Sewer Service Charges (1) 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 2,000,000 2,000,000 11 Investment Earnings 25,000 26,000 27,000 28,000 29,000 30,000 31,000 32,000 33,000 34,000 35,000 12 Sewer Connection Fees 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 13 Account Open/Reconnections 1,500 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 14 Late Payment Charges 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 15 Capital Charge (2) 182,500 257,500 257,500 257,500 257,500 257,500 407,500 407,500 407,500 407,500 407,500 16 Transfers from Other Funds 37,500 37,500 37,500 37,500 37,500 37,500 37,500 37,500 37,500 37,500 37,500 17 Less: Low Income Rate Assistance (37,500) (37,500) (37,500) (37,500) (37,500) (37,500) (37,500) (37,500) (37,500) (37,500) (37,500) 18 Projected Grant Revenue 0 0 0 1,250,000 0 0 0 0 0 0 0 19 Total Revenues 2,217,000 2,293,500 2,294,500 3,545,500 2,296,500 2,297,500 2,448,500 2,449,500 2,450,500 2,451,500 2,452,500 20 21 EXPENSES
22 Operating & Maintenance
23 Salaries 450,458 468,000 487,000 506,000 526,000 547,000 569,000 592,000 616,000 641,000 667,000 24 Payroll Taxes 6,188 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 25 Benefits 245,581 255,000 265,000 276,000 287,000 298,000 310,000 322,000 335,000 348,000 362,000 26 Insurance 51,287 56,000 59,000 62,000 65,000 68,000 71,000 75,000 79,000 83,000 87,000 27 Supplies and Services 1,918,359 2,115,000 2,327,000 2,560,000 2,816,000 3,098,000 3,408,000 3,749,000 4,124,000 4,536,000 4,990,000 28 Admin Charges and Credit 463,781 482,000 501,000 521,000 542,000 564,000 587,000 610,000 634,000 659,000 685,000 29 Subtotal O&M 3,135,654 3,382,000 3,645,000 3,931,000 4,242,000 4,581,000 4,951,000 5,354,000 5,794,000 6,273,000 6,797,000 30 31 Net Operating Revenues (918,654) (1,088,500) (1,350,500) (385,500) (1,945,500) (2,283,500) (2,502,500) (2,904,500) (3,343,500) (3,821,500) (4,344,500) 32 33 Debt Service
34 2015 Utility Bonds 318,344 316,031 313,344 315,156 311,469 314,681 312,406 314,588 313,678 312,356 317,813 35 New Bonds (3) 0 0 0 0 0 0 150,000 150,000 150,000 150,000 150,000 36 Subtotal Debt Service 318,344 316,031 313,344 315,156 311,469 314,681 462,406 464,588 463,678 462,356 467,813 37 38 Capital Projects 0 500,000 500,000 500,000 500,000 500,000 0 0 0 0 0 39 40 Total Expenses 3,453,998 4,198,031 4,458,344 4,746,156 5,053,469 5,395,681 5,413,406 5,818,588 6,257,678 6,735,356 7,264,813 41 42 Net Revenues (1,236,998) (1,904,531) (2,163,844) (1,200,656) (2,756,969) (3,098,181) (2,964,906) (3,369,088) (3,807,178) (4,283,856) (4,812,313) 43 44 ENDING FUND BALANCE 3,591,447 1,686,916 (476,928) (1,677,584) (4,434,553) (7,532,734) (10,497,640) (13,866,728) (17,673,906) (21,957,762) (26,770,075) 45 46
47 Reserve Funds
48 Operating Reserve Target (25% of O&M) 783,900 845,500 911,300 982,800 1,060,500 1,145,300 1,237,800 1,338,500 1,448,500 1,568,300 1,699,300 49 Target Met? yes yes no no no no no no no no no
50 51 Debt Service Coverage - 1.25x (4) (2.89) (3.44) (4.31) (5.19) (6.25) (7.26) (5.41) (6.25) (7.21) (8.27) (9.29) 52 Target Met? no no no no no no no no no no no
53 1 - Sewer Service Charges projection adjusted for September 1, 2022 implementation date 2 - Assumes Capital Charge will increase every 5 years. First increase is planned for 2022/23 in which the Capital Charge will increase by half. Second increase is anticipated in 2027/28 and assumes that the City will issue $5 million in new debt (combined water & sewer).
3 - Total debt service for New Bonds is estimated at $300,000 and is split evenly with the Sewer Utility.
Years 1 -5: Proposition 218 Years 6 - 10: Extended Projection 7 A.
Table 4: Scenario 2: 14% Annual Rate Increases - Sewer Cash Flow Projection DRAFT - 6/7/22 City of Brisbane
Sewer Utility Rate Study 2022
Budget
2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 2031/32 1 Overall Revenue Adjustment 14.0% 14.0% 14.0% 14.0% 14.0% 14.0% 14.0% 14.0% 14.0% 14.0% 2 Rate Increase Effective Jan 1, 2023 Jul 1, 2023 Jul 1, 2024 Jul 1, 2025 Jul 1, 2026 Jul 1, 2027 Jul 1, 2028 Jul 1, 2029 Jul 1, 2030 Jul 1, 2031 3 4
5 BEGINNING FUND BALANCE $4,828,445 $3,591,447 $1,826,916 $103,072 ($315,584) ($1,901,553) ($3,384,734) ($4,078,640) ($4,599,728) ($4,900,906) ($4,928,762) 6 7 Sewer Service Charges Based on 12 Mos. of Rev 2,000,000 2,280,000 2,440,000 2,782,000 3,171,000 3,615,000 4,121,000 4,698,000 5,356,000 6,106,000 6,961,000 8 9 REVENUES
10 Sewer Service Charges (1) 2,000,000 2,140,000 2,440,000 2,782,000 3,171,000 3,615,000 4,121,000 4,698,000 5,356,000 6,106,000 6,961,000 11 Investment Earnings 25,000 26,000 27,000 28,000 29,000 30,000 31,000 32,000 33,000 34,000 35,000 12 Sewer Connection Fees 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 13 Account Open/Reconnections 1,500 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 14 Late Payment Charges 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 15 Capital Charge (2) 182,500 257,500 257,500 257,500 257,500 257,500 407,500 407,500 407,500 407,500 407,500 16 Transfers from Other Funds 37,500 37,500 37,500 37,500 37,500 37,500 37,500 37,500 37,500 37,500 37,500 17 Less: Low Income Rate Assistance (37,500) (37,500) (37,500) (37,500) (37,500) (37,500) (37,500) (37,500) (37,500) (37,500) (37,500) 18 Projected Grant Revenue 0 0 0 1,250,000 0 0 0 0 0 0 0 19 Total Revenues 2,217,000 2,433,500 2,734,500 4,327,500 3,467,500 3,912,500 4,569,500 5,147,500 5,806,500 6,557,500 7,413,500 20 21 EXPENSES
22 Operating & Maintenance
23 Salaries 450,458 468,000 487,000 506,000 526,000 547,000 569,000 592,000 616,000 641,000 667,000 24 Payroll Taxes 6,188 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 25 Benefits 245,581 255,000 265,000 276,000 287,000 298,000 310,000 322,000 335,000 348,000 362,000 26 Insurance 51,287 56,000 59,000 62,000 65,000 68,000 71,000 75,000 79,000 83,000 87,000 27 Supplies and Services 1,918,359 2,115,000 2,327,000 2,560,000 2,816,000 3,098,000 3,408,000 3,749,000 4,124,000 4,536,000 4,990,000 28 Admin Charges and Credit 463,781 482,000 501,000 521,000 542,000 564,000 587,000 610,000 634,000 659,000 685,000 29 Subtotal O&M 3,135,654 3,382,000 3,645,000 3,931,000 4,242,000 4,581,000 4,951,000 5,354,000 5,794,000 6,273,000 6,797,000 30 31 Net Operating Revenues (918,654) (948,500) (910,500) 396,500 (774,500) (668,500) (381,500) (206,500) 12,500 284,500 616,500 32 33 Debt Service
34 2015 Utility Bonds 318,344 316,031 313,344 315,156 311,469 314,681 312,406 314,588 313,678 312,356 317,813 35 New Bonds (3) 0 0 0 0 0 0 0 0 0 0 0
36 Subtotal Debt Service 318,344 316,031 313,344 315,156 311,469 314,681 312,406 314,588 313,678 312,356 317,813 37 38 Capital Projects 0 500,000 500,000 500,000 500,000 500,000 0 0 0 0 0 39 40 Total Expenses 3,453,998 4,198,031 4,458,344 4,746,156 5,053,469 5,395,681 5,263,406 5,668,588 6,107,678 6,585,356 7,114,813 41 42 Net Revenues (1,236,998) (1,764,531) (1,723,844) (418,656) (1,585,969) (1,483,181) (693,906) (521,088) (301,178) (27,856) 298,688 43 44 ENDING FUND BALANCE 3,591,447 1,826,916 103,072 (315,584) (1,901,553) (3,384,734) (4,078,640) (4,599,728) (4,900,906) (4,928,762) (4,630,075) 45 46
47 Reserve Funds
48 Operating Reserve Target (25% of O&M) 783,900 845,500 911,300 982,800 1,060,500 1,145,300 1,237,800 1,338,500 1,448,500 1,568,300 1,699,300 49 Target Met? yes yes no no no no no no no no no
50 51 Debt Service Coverage - 1.25x (4) (2.89) (3.00) (2.91) (2.71) (2.49) (2.12) (1.22) (0.66) 0.04 0.91 1.94 52 Target Met? no no no no no no no no no no yes
53 1 - Sewer Service Charges projection adjusted for September 1, 2022 implementation date 2 - Assumes Capital Charge will increase every 5 years. First increase is planned for 2022/23 in which the Capital Charge will increase by half. Second increase is anticipated in 2027/28 and assumes that the City will issue $5 million in new debt (combined water & sewer).
3 - Total debt service for New Bonds is estimated at $300,000 and is split evenly with the Sewer Utility.
Years 1 -5: Proposition 218 Years 6 - 10: Extended Projection 8 A.
Table 5: Scenario 3: 24% Annual Rate Increases - Sewer Cash Flow Projection DRAFT - 6/7/22 City of Brisbane
Sewer Utility Rate Study 2022
Budget
2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 2031/32 1 Overall Revenue Adjustment 24.0% 24.0% 24.0% 24.0% 24.0% 6.0% 6.0% 6.0% 6.0% 6.0% 2 Rate Increase Effective Jan 1, 2023 Jul 1, 2023 Jul 1, 2024 Jul 1, 2025 Jul 1, 2026 Jul 1, 2027 Jul 1, 2028 Jul 1, 2029 Jul 1, 2030 Jul 1, 2031 3 4
5 BEGINNING FUND BALANCE $4,828,445 $3,591,447 $1,926,916 $541,072 $785,416 $300,447 $499,266 $1,149,360 $1,732,272 $2,234,094 $2,638,238 6 7 Sewer Service Charges Based on 12 Mos. of Rev 2,000,000 2,480,000 2,778,000 3,445,000 4,272,000 5,297,000 5,615,000 5,952,000 6,309,000 6,688,000 7,089,000 8 9 REVENUES
10 Sewer Service Charges (1) 2,000,000 2,240,000 2,778,000 3,445,000 4,272,000 5,297,000 5,615,000 5,952,000 6,309,000 6,688,000 7,089,000 11 Investment Earnings 25,000 26,000 27,000 28,000 29,000 30,000 31,000 32,000 33,000 34,000 35,000 12 Sewer Connection Fees 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 13 Account Open/Reconnections 1,500 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 14 Late Payment Charges 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 15 Capital Charge (2) 182,500 257,500 257,500 257,500 257,500 257,500 407,500 407,500 407,500 407,500 407,500 16 Transfers from Other Funds 37,500 37,500 37,500 37,500 37,500 37,500 37,500 37,500 37,500 37,500 37,500 17 Less: Low Income Rate Assistance (37,500) (37,500) (37,500) (37,500) (37,500) (37,500) (37,500) (37,500) (37,500) (37,500) (37,500) 18 Projected Grant Revenue 0 0 0 1,250,000 0 0 0 0 0 0 0 19 Total Revenues 2,217,000 2,533,500 3,072,500 4,990,500 4,568,500 5,594,500 6,063,500 6,401,500 6,759,500 7,139,500 7,541,500 20 21 EXPENSES
22 Operating & Maintenance
23 Salaries 450,458 468,000 487,000 506,000 526,000 547,000 569,000 592,000 616,000 641,000 667,000 24 Payroll Taxes 6,188 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 25 Benefits 245,581 255,000 265,000 276,000 287,000 298,000 310,000 322,000 335,000 348,000 362,000 26 Insurance 51,287 56,000 59,000 62,000 65,000 68,000 71,000 75,000 79,000 83,000 87,000 27 Supplies and Services 1,918,359 2,115,000 2,327,000 2,560,000 2,816,000 3,098,000 3,408,000 3,749,000 4,124,000 4,536,000 4,990,000 28 Admin Charges and Credit 463,781 482,000 501,000 521,000 542,000 564,000 587,000 610,000 634,000 659,000 685,000 29 Subtotal O&M 3,135,654 3,382,000 3,645,000 3,931,000 4,242,000 4,581,000 4,951,000 5,354,000 5,794,000 6,273,000 6,797,000 30 31 Net Operating Revenues (918,654) (848,500) (572,500) 1,059,500 326,500 1,013,500 1,112,500 1,047,500 965,500 866,500 744,500 32 33 Debt Service
34 2015 Utility Bonds 318,344 316,031 313,344 315,156 311,469 314,681 312,406 314,588 313,678 312,356 317,813 35 New Bonds (3) 0 0 0 0 0 0 150,000 150,000 150,000 150,000 150,000 36 Subtotal Debt Service 318,344 316,031 313,344 315,156 311,469 314,681 462,406 464,588 463,678 462,356 467,813 37 38 Capital Projects 0 500,000 500,000 500,000 500,000 500,000 0 0 0 0 0 39 40 Total Expenses 3,453,998 4,198,031 4,458,344 4,746,156 5,053,469 5,395,681 5,413,406 5,818,588 6,257,678 6,735,356 7,264,813 41 42 Net Revenues (1,236,998) (1,664,531) (1,385,844) 244,344 (484,969) 198,819 650,094 582,913 501,822 404,144 276,688 43 44 ENDING FUND BALANCE 3,591,447 1,926,916 541,072 785,416 300,447 499,266 1,149,360 1,732,272 2,234,094 2,638,238 2,914,925 45 46
47 Reserve Funds
48 Operating Reserve Target (25% of O&M) 783,900 845,500 911,300 982,800 1,060,500 1,145,300 1,237,800 1,338,500 1,448,500 1,568,300 1,699,300 49 Target Met? yes yes no no no no no yes yes yes yes
50 51 Debt Service Coverage - 1.25x (4) (2.89) (2.68) (1.83) (0.60) 1.05 3.22 2.41 2.25 2.08 1.87 1.59 52 Target Met? no no no no no yes yes yes yes yes yes
53 1 - Sewer Service Charges projection adjusted for September 1, 2022 implementation date 2 - Assumes Capital Charge will increase every 5 years. First increase is planned for 2022/23 in which the Capital Charge will increase by half. Second increase is anticipated in 2027/28 and assumes that the City will issue $5 million in new debt (combined water & sewer).
3 - Total debt service for New Bonds is estimated at $300,000 and is split evenly with the Sewer Utility.
Years 1 -5: Proposition 218 Years 6 - 10: Extended Projection 9 A.
Table 6: Sewer Scenario Comparison
City of Brisbane
Sewer Utility Rate Study 2022
GOAL 1 : MEET DEBT SERVICE COVERAGE
Current
2021/22 2022/23 2023/24 2024/25 2025/26 2026/27
Debt Service Coverage Ratio Required 1.25 1.25 1.25 1.25 1.25 1.25 Scenario 1: No Rate Increases (2.89) (3.44) (4.31) (5.19) (6.25) (7.26) Target Met? no no no no no no
Scenario 2: 14% Annual Rate Increases (2.89) (3.00) (2.91) (2.71) (2.49) (2.12) Target Met? no no no no no no
Scenario 3: 24% Annual Rate Increases (2.89) (2.68) (1.83) (0.60) 1.05 3.22 Target Met? no no no no no yes
GOAL 2: MEET SEWER RESERVE FUND TARGETS
Current Proposed
2021/22 2022/23 2023/24 2024/25 2025/26 2026/27
Sewer Fund Reserve Target $691,000 $783,900 $845,500 $911,300 $982,800 $1,060,500 Scenario 1: No Rate Increases $3,591,447 $1,686,916 ($476,928) ($1,677,584) ($4,434,553) ($7,532,734) Target Met? no no no no no no
Scenario 2: 14% Annual Rate Increases $3,591,447 $1,826,916 $103,072 ($315,584) ($1,901,553) ($3,384,734) Target Met? no no no no no no
Scenario 3: 24% Annual Rate Increases $3,591,447 $1,926,916 $541,072 $785,416 $300,447 $499,266 Target Met? no no no no no no
GOAL 3: POSITIVE TOTAL NET REVENUES
Current Proposed
2021/22 2022/23 2023/24 2024/25 2025/26 2026/27
Scenario 1: No Rate Increases ($1,236,998) ($1,904,531) ($2,163,844) ($1,200,656) ($2,756,969) ($3,098,181) Target Met? no no no no no no
Scenario 2: 14% Annual Rate Increases ($1,236,998) ($1,764,531) ($1,723,844) ($418,656) ($1,585,969) ($1,483,181) Target Met? no no no no no no
Scenario 3: 24% Annual Rate Increases ($1,236,998) ($1,664,531) ($1,385,844) $244,344 ($484,969) $198,819 Target Met? no no no yes no yes
Proposed
10 A.
Table 7: Sewer Scenario Comparison Graph - Ending Sewer Fund Reserve Fund Balance City of Brisbane
Sewer Utility Rate Study 2022
Average Use - 16 hcf
($4,000,000)
($3,000,000)
($2,000,000)
($1,000,000)
$0
$1,000,000
$2,000,000
$3,000,000
$4,000,000
$5,000,000
2021/22 2022/23 2023/24 2024/25 2025/26 2026/27
Sewer Scenario Comparison
Ending Sewer Reserve Fund Balance
Sewer Fund Reserve Target
Scenario 1: No Rate Increases
Scenario 2: 14% Annual Rate Increases
Scenario 3: 24% Annual Rate Increases
11 A.
Table 8: Scenario 3: 24% Annual Rate Increases - Sewer Cost Allocation FY2022/23
Expenses Budget Base Flow BOD TSS Total Base Flow BOD TSS Total Operating Expenses
Salaries $468,000 30% 23% 23% 23% 100% $140,400 $109,200 $109,200 $109,200 $468,000 Payroll Taxes $6,000 30% 23% 23% 23% 100% $1,800 $1,400 $1,400 $1,400 $6,000 Benefits $255,000 30% 23% 23% 23% 100% $76,500 $59,500 $59,500 $59,500 $255,000 Insurance $56,000 30% 23% 23% 23% 100% $16,800 $13,067 $13,067 $13,067 $56,000 Supplies and Services $2,115,000 30% 23% 23% 23% 100% $634,500 $493,500 $493,500 $493,500 $2,115,000 Admin Charges and Credit $482,000 30% 23% 23% 23% 100% $144,600 $112,467 $112,467 $112,467 $482,000 Subtotal Operating Expenses $3,382,000 $1,014,600 $789,133 $789,133 $789,133 $3,382,000 Debt Service
2015 Utility Bonds $316,031 30% 23% 23% 23% 100% $94,809 $73,741 $73,741 $73,741 $316,031 New Bonds $0 30% 23% 23% 23% 100% $0 $0 $0 $0 $0
Subtotal Debt Service $316,031 $94,809 $73,741 $73,741 $73,741 $316,031 Total Allocation $3,698,031 30.0% 23.3% 23.3% 23.3% 100.0% $1,109,409 $862,874 $862,874 $862,874 $3,698,031 City of Brisbane
Sewer Utility Rate Study 2022
Cost Allocation - % Cost Allocation - $
12 A.
Table 9: Scenario 3: 24% Annual Rate Increases: Sewer Flat Charge Rate Derivation City of Brisbane
Sewer Utility Rate Study 2022
Current 2022/23 2023/24 2024/25 2025/26 2026/27
TOTAL REVENUE REQUIREMENT (1) $2,480,000 $2,778,000 $3,445,000 $4,272,000 $5,297,000 Fixed/Variable Allocation
Fixed Charge 30.0% 30.0% 30.0% 30.0% 30.0%
Variable Charge 70.0% 70.0% 70.0% 70.0% 70.0%
FIXED SERVICE CHARGE CALCULATION
Fixed Revenue Requirement $744,000 $833,400 $1,033,500 $1,281,600 $1,589,100 Total Number of Accounts 1,918 1,947 1,957 1,966 1,976 1,986 Bimonthly Flat Charge per Account $68.87 $63.69 $70.99 $87.60 $108.08 $133.35 % Change -7.5% 11.5% 23.4% 23.4% 23.4%
1 - Table 8, Line 5
PROJECTED - RATE STUDY PERIOD
13 A.
Table 10: Sewer Flow and Loadings
City of Brisbane
Sewer Utility Rate Study 2022
Customer Class Accounts Flow (ccf) (1) Flow (MG) Strength (mg/l) Loadings (lbs) Strength (mg/l) Loadings (lbs) Residential 1,669 89,719 67.1 175 97,947 175 97,947
Standard Commercial 208 37,290 27.9 200 46,525 200 46,525 Medium Commercial 6 4,261 3.2 300 7,974 300 7,974
Heavy Commercial 28 41,651 31.2 400 103,933 400 103,933 Total 1,911 172,921 129.3 256,380 256,380
BASE FLOW BOD TSS
14 A.
Table 11: Projected Growth, Flow and Loadings
City of Brisbane
Sewer Utility Rate Study 2022
CURRENT
2019/20 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27
NUMBER OF ACCOUNTS
Increase % 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50%
Residential 1,669 1,677 1,686 1,694 1,703 1,711 1,720 1,728 Standard Commercial 215 216 217 218 219 220 222 223
Medium Commercial 8 8 8 8 8 8 8 8
Heavy Commercial 26 26 26 26 27 27 27 27
Total Sewer Accounts 1,918 1,928 1,937 1,947 1,957 1,966 1,976 1,986 SEWER FLOW (ccf)
Increase % 0.00% 0.00% 2.00% 2.00% 2.00% 2.00% 2.00%
Residential 89,719 90,000 90,000 92,000 94,000 96,000 98,000 100,000 Standard Commercial 37,290 37,000 37,000 38,000 39,000 40,000 41,000 42,000 Medium Commercial 4,261 4,000 4,000 4,000 4,000 4,000 4,000 4,000 Heavy Commercial 41,651 42,000 42,000 43,000 44,000 45,000 46,000 47,000 Total Estimated Flow (ccf) 172,921 173,000 173,000 177,000 181,000 185,000 189,000 193,000 SEWER LOADINGS (mg/l)
Increase % 0.00% 0.00% 2.00% 2.00% 2.00% 2.00% 2.00%
Residential 97,947 98,000 98,000 100,000 102,000 104,000 106,000 108,000 Standard Commercial 46,525 47,000 47,000 48,000 49,000 50,000 51,000 52,000 Medium Commercial (1) 7,974 8,000 8,000 8,000 8,000 8,000 8,000 8,000 Heavy Commercial 103,933 104,000 104,000 106,000 108,000 110,000 112,000 114,000 Total Estimated Loadings 256,380 257,000 257,000 262,000 267,000 272,000 277,000 282,000
PROJECTED PROJECTED - RATE STUDY PERIOD
15 A.
Table 12: Scenario 3: 24% Annual Rate Increases - Sewer Variable Unit Rate Derivation for 2022/23 City of Brisbane
Sewer Utility Rate Study 2022
Allocation to Variable Charges
FY2022/23 Revenue Requirement (1) $2,480,000
Variable Charge Recovery % 70%
Variable Charge Recovery $ $1,736,000
Allocation to Flow, BOD, SS Flow BOD SS
Cost Allocation % 50% 25% 25%
Cost Allocation $ $868,000 $434,000 $434,000
Total Annual Loadings (2) 177,000 262,000 262,000
Units ccf lbs lbs
Unit Cost $4.90 $1.66 $1.66
per ccf per lb per lb
1 - Table 5, Line 10
2 - Table 11
16 A.
Table 13: Scenario 3: 24% Annual Rate Increases - Volume Rate by Customer Classes for 2022/23 City of Brisbane
Sewer Utility Rate Study 2022
2022/23
Total
Flow BOD SS Rate
Customer Class BOD SS $4.90 $1.66 $1.66 per ccf
Residential 175 175 $4.90 $1.81 $1.81 $8.52
Standard Commercial 200 200 $4.90 $2.07 $2.07 $9.04
Medium Commercial 300 300 $4.90 $3.10 $3.10 $11.10
Heavy Commercial 400 400 $4.90 $4.13 $4.13 $13.17
1 - Table 12
Strength (mg/l)
Wastewater Unit Rates ($ per ccf or lb) (1)
17 A.
Table 14: Scenario 3: 24% Annual Rate Increases - Proposed Bi-Monthly Sewer Rates City of Brisbane
Sewer Utility Rate Study 2022
Current
Rates 2022/23 2023/24 2024/25 2025/26 2026/27
RESIDENTIAL
Flat Charge $68.87 $63.69 $70.99 $87.60 $108.08 $133.35 Variable Charge (1)
Tier 1: 0 - 8 ccf $2.81 $8.52 $9.34 $11.36 $13.81 $16.78 Tier 2: Over 8 ccf $7.66 $8.52 $9.34 $11.36 $13.81 $16.78
COMMERCIAL
Standard
Flat Charge $68.87 $63.69 $70.99 $87.60 $108.08 $133.35 Variable Charge
Tier 1: 0 - 8 ccf $3.84 $9.04 $9.91 $12.05 $14.65 $17.81 Tier 2: Over 8 ccf $7.66 $9.04 $9.91 $12.05 $14.65 $17.81 Medium
Flat Charge $68.87 $63.69 $70.99 $87.60 $108.08 $133.35 Variable Charge
Tier 1: 0 - 8 ccf $5.68 $11.10 $12.18 $14.82 $18.02 $21.91 Tier 2: Over 8 ccf $9.74 $11.10 $12.18 $14.82 $18.02 $21.91 Heavy
Flat Charge $68.87 $13.17 $70.99 $87.60 $108.08 $133.35 Variable Charge
Tier 1: 0 - 8 ccf $7.59 $13.17 $14.45 $17.58 $21.39 $26.01 Tier 2: Over 8 ccf $11.82 $13.17 $14.45 $17.58 $21.39 $26.01 1 - Residential bill is based on winter consumption (Oct, Nov, Dec & Jan)
PROJECTED - RATE STUDY PERIOD
18 A.
Table 15: Scenario 3: 24% Annual Rate Increases - Sample Bimonthly Sewer Bill Impacts City of Brisbane
Sewer Utility Rate Study 2022
RESIDENTIAL BILL IMPACTS
Bimonthly Current
Use (ccf) Bill 2022/23 2023/24 2024/25 2025/26 2026/27
Residential - 4 ccf
Fixed Charge $68.87 $63.69 $70.99 $87.60 $108.08 $133.35 Variable Charge
Tier 1: 0 - 8 ccf 4 $11.24
Tier 2: Over 8 ccf 0 $0.00
Subtotal Variable Charge 4 $11.24
Total Bimonthly Sewer Bill $80.11 $97.77 $108.37 $133.04 $163.30 $200.48 $ Change $17.66 $10.59 $24.67 $30.27 $37.18
% Change 22.0% 10.8% 22.8% 22.8% 22.8%
Residential - 10 ccf
Fixed Charge $68.87 $63.69 $70.99 $87.60 $108.08 $133.35 Variable Charge
Tier 1: 0 - 8 ccf 8 $22.48
Tier 2: Over 8 ccf 2 $15.32
Subtotal Variable Charge 10 $37.80
Total Bimonthly Sewer Bill $106.67 $148.90 $164.43 $201.19 $246.14 $301.19 $ Change $42.23 $15.54 $36.76 $44.95 $55.05
% Change 39.6% 10.4% 22.4% 22.3% 22.4%
Residential - 20 ccf
Fixed Charge $68.87 $63.69 $70.99 $87.60 $108.08 $133.35 Variable Charge
Tier 1: 0 - 8 ccf 8 $22.48
Tier 2: Over 8 ccf 12 $91.92
Subtotal Variable Charge 20 $114.40
Total Bimonthly Sewer Bill $183.27 $234.11 $257.88 $314.79 $384.20 $469.02 $ Change $50.84 $23.77 $56.91 $69.41 $84.82
% Change 27.7% 10.2% 22.1% 22.1% 22.1%
STANDARD COMMERCIAL
Bimonthly Current
Use (ccf) Bill 2022/23 2023/24 2024/25 2025/26 2026/27
Standard Commercial - 10 ccf
Fixed Charge $68.87 $63.69 $70.99 $87.60 $108.08 $133.35 Variable Charge
Tier 1: 0 - 8 ccf 8 $30.72
Tier 2: Over 8 ccf 2 $15.32
Subtotal Variable Charge 10 $46.04
Total Bimonthly Sewer Bill $114.91 $154.06 $170.11 $208.11 $254.56 $311.44 $ Change $39.15 $16.05 $38.00 $46.45 $56.88
% Change 34.1% 10.4% 22.3% 22.3% 22.3%
Standard Commercial - 20 ccf
Fixed Charge $68.87 $63.69 $70.99 $87.60 $108.08 $133.35 Variable Charge
Tier 1: 0 - 8 ccf 8 $30.72
Tier 2: Over 8 ccf 12 $91.92
Subtotal Variable Charge 20 $122.64
Total Bimonthly Sewer Bill $191.51 $244.44 $269.23 $328.62 $401.05 $489.53 $ Change $52.93 $24.80 $59.38 $72.43 $88.48
% Change 27.6% 10.1% 22.1% 22.0% 22.1%
Proposed
Proposed
$85.21 $93.44 $113.59 $138.06 $167.84
$34.08 $37.38 $45.44 $55.22 $67.13
$170.42 $186.89 $227.19 $276.12 $335.67
$90.37 $99.12 $120.51 $146.48 $178.09
$180.75 $198.24 $241.02 $292.97 $356.18
19 A.
MEDIUM COMMERCIAL
Bimonthly Current
Use (ccf) Bill 2022/23 2023/24 2024/25 2025/26 2026/27
Medium Commercial - 30 ccf
Fixed Charge $68.87 $63.69 $70.99 $87.60 $108.08 $133.35 Variable Charge
Tier 1: 0 - 8 ccf 8 $45.44
Tier 2: Over 8 ccf 22 $214.28
Subtotal Variable Charge 30 $259.72
Total Bimonthly Sewer Bill $328.59 $396.82 $436.49 $532.10 $648.60 $790.66 $ Change $68.23 $39.67 $95.62 $116.50 $142.05
% Change 20.8% 10.0% 21.9% 21.9% 21.9%
Medium Commercial - 50 ccf
Fixed Charge $68.87 $63.69 $70.99 $87.60 $108.08 $133.35 Variable Charge
Tier 1: 0 - 8 ccf 8 $45.44
Tier 2: Over 8 ccf 42 $409.08
Subtotal Variable Charge 50 $454.52
Total Bimonthly Sewer Bill $523.39 $618.90 $680.15 $828.44 $1,008.95 $1,228.87 $ Change $95.51 $61.25 $148.29 $180.51 $219.91
% Change 18.2% 9.9% 21.8% 21.8% 21.8%
HEAVY COMMERCIAL
Bimonthly Current
Use (ccf) Bill 2022/23 2023/24 2024/25 2025/26 2026/27
Heavy Commercial - 80 ccf
$68.87 $13.17 $70.99 $87.60 $108.08 $133.35
Variable Charge
Tier 1: 0 - 8 ccf 8 $60.72
Tier 2: Over 8 ccf 72 $848.51
Subtotal Variable Charge 80 $909.23
Total Bimonthly Sewer Bill $978.10 $1,066.84 $1,227.33 $1,494.22 $1,819.01 $2,214.28 $ Change $88.74 $160.49 $266.89 $324.79 $395.27
% Change 9.1% 15.0% 21.7% 21.7% 21.7%
Heavy Commercial - 100 ccf
Fixed Charge $68.87 $13.17 $70.99 $87.60 $108.08 $133.35 Variable Charge
Tier 1: 0 - 8 ccf 8 $60.72
Tier 2: Over 8 ccf 92 $1,084.91
Subtotal Variable Charge 100 $1,145.63
Total Bimonthly Sewer Bill $1,214.50 $1,330.26 $1,516.42 $1,845.88 $2,246.74 $2,734.52 $ Change $115.76 $186.16 $329.46 $400.87 $487.77
% Change 9.5% 14.0% 21.7% 21.7% 21.7%
Proposed
Proposed
$333.13 $365.50 $444.50 $540.52 $657.31
$555.21 $609.16 $740.84 $900.87 $1,095.52
$1,053.67 $1,156.34 $1,406.62 $1,710.93 $2,080.93
$1,317.09 $1,445.43 $1,758.28 $2,138.66 $2,601.17
20 A.
Table 16: Comparison of Bimonthly Sewer Bill for Typical Residential Customer City of Brisbane
Sewer Utility Rate Study 2022
* Does not include Capital Charge $106.67
$148.90
$164.43
$201.19
$246.14
$301.19
$0.00
$50.00
$100.00
$150.00
$200.00
$250.00
$300.00
$350.00
Current
2021/22
2022/23 2023/24 2024/25 2025/26 2026/27
Comparison of Bimonthly Sewer Bill for
Typical Residential Customer (10 ccf)*
Proposed
21 A.
Table 17: Bimonthly Sewer Bill Survey
City of Brisbane
Sewer Utility Rate Study 2022
3707
1886
5593
$90.20 $90.20 $91.63 $98.70
$129.17 $132.92
$164.91
$175.15
$188.24
$236.30 $238.28
$0
$50
$100
$150
$200
$250
$300
Colma Daly City Burlingame Westborough
Water District
South San
Francisco
Brisbane
(current)
San Francisco Brisbane
(Proposed
Jan 1, 2023)
San Bruno Millbrae San Mateo
Bimonthly Sewer Bill Survey - July 2021
Single Family Residential (10 ccf)
Other Charges (1)
Variable Charges
Fixed Charge
Scenario 3 - Proposed 7/1/22
Current
Scenario 2 - Proposed 7/1/22
Current
Proposed - Jan 1, 2023
1 - Includes proposed 2022 Capital Charge
22 A.
Table 18: Comparison of Sewer Rate Structures
City of Brisbane
Sewer Utility Rate Study 2022
City/Agency RESIDENTIAL COMMERCIAL NOTES COMMERCIAL CATEGORIES South San Francisco Flat Rate (per dwelling unit) Variable Charge per ccf or based on effluent
For Residential, assumes average annual effluent flow of 8,400 cubic feet. Commercial Rates are calculated by: a) Measuring the annual water use at each property and multiplying this usage by the inflow rate; or by B) Measuring the annual sewer flow from each property and multiplying by the effluent rate.
Commercial - 5 categories (low-strength, moderate strength, restaurant, industrial, and institutitions)
Colma Variable Charge per ccf with a
minimum charge
Variable Charge per ccf with a
minimum charge
Charge is calculated on the basis of two months’ average annualized water usage per CCF. Colma is currently considering adding a $3.22/ccf new sewer collection system charge to the bill. In the process of holding public outreach meetings.
Commercial and residential customers have the same charge San Mateo Fixed Charge + Variable Charge per ccf Variable Charge per ccf with a minimum charge
Commercial rates based on customer class and metered usage, subject to a minimum charge. Variable charge for both Residential & Commercial are based on average metered water use from November through March. Minimum charge is residential fixed monthly charge.
Commercial - 4 categories (standard, medium, high, and special (determined on a case-by-case basis)
Westborough Water District Variable Charge per ccf Variable Charge per ccf Consumption is calculated on the basis of the total use during the preceding winter months of January and February, with a minimum of 2 units of one hundred (100) cubic feet of water per two-month period.
Commercial and residential customers have the same charge Millbrae Variable Charge per ccf Variable Charge per ccf In addition to the sewer rate, Millbrae charges a separate Clean Bay Fee to comply with BayKeeper Settlement Agreement. For
Residential, the Clean Bay Fee is a flat fee. For Commercial, the fee is a variable charge based on average metered winter water use.
Commercial - 7 categories (1. restaurants, 2. hotels/motels & food processors, 3. supermarkets & schools with food service,
4. auto-service stations, 5. schools with no food service, 6. commercial, and 7. groundwater). Also has separate lower rate for commercial customers who do pretreatment.
San Francisco Fixed Charge + Variable Charge per ccf Fixed Charge + Variable Charge a) Per ccf + b) COD + c) TSS + d) Oil & Grease Variable charge is based on 90% of water use. All commercial customers charged the same rates.
Daly City Variable Charge per ccf with a
minimum charge
Variable Charge per ccf with a
minimum charge
Annual Charge = Bi-monthly winter water use x 6 (billing cycles) x Sewer Rate per ccf Commercial and residential customers have the same charge San Bruno Fixed Charge + Variable Charge per ccf Fixed Charge + Variable Charge per ccf For Residential, variable charge is based on the average metered water use consumed through November through April. For
Commercial, fixed charge is based on meter size, and the variable charge is based on customer type.
Commercial - 4 categories (low, standard, medium, high).
Industrial - 2 categories.
Burlingame Variable Charge per 1,000 gallons with
a minimum charge
Variable Charge per 1,000 gallons with
a minimum charge
Consumption for the billing months of January-April for the previous three years is averaged, then multiplied by the current sewer rate. Commercial rate varies by customer class and is based on actual water use. Minimum charge is residential rate.
Commercial - 4 categories (1. light, 2. moderate/heavy, 3. food related, 4. institution/church/schools)
Brisbane Fixed Charge + Variable Charge per ccf
based on 2 tiers
Fixed Charge + Variable Charge per ccf
based on 2 tiers
Residential bill is based on winter consumption (Oct, Nov, Dec & Jan). Commercial rate varies based on customer class. Commercial - 3 categories (standard, medium, heavy).
SEWER RATE STRUCTURE
23 A.
Table 19: Sewer Low Income Discount
City of Brisbane
Sewer Utility Rate Study 2022
Proposed Rates
Jan 1, 2023
Total Number of Residential Sewer Customers 1,669
Estimated Number of Customers Eligible for Discount 400 Total 2020/21 Sewer Low Income Discount Revenue $37,500 Annual Discount per Customer $93.80
Bimonthly Discount per Customer $15.60
Bimonthly Fixed Charge $63.69
Less Proposed Bimonthly Discount per Customer $15.60
Bimonthly Fixed Charge less Discount $48.09
% of Discount 24.5%
24 A.
CITY OF BRISBANE
WATER RATE STUDY 2022
Draft Tables
June 7, 2022
25 A.
Table 1: Utility Reserves
City of Brisbane
Water and Sewer Utility Rate Study 2022
Current Assets As of June 30, 2020 As of June 30, 2021
50% of Current
Assets
Cash and investments (1) $7,378,892 $7,656,890 $3,689,446 Restricted cash and investments 1,884,484 0 $942,242
Accounts receivable, net 1,097,729 1,076,741 $548,865
Taxes receivable 1,246 536 $623
Interest receivable 13,890 3,660 $6,945
Total Current Assets 10,376,241 8,737,827 $5,188,121
Source: Proprietry Funds, Statement of Net Position, June 30, 2020 and June 30, 2022 (1) Estimated total utility reserves
Reserves by Utility As of June 30, 2021 % of Total
Water Utility Beginning Reserve Fund Balance $2,828,445 36.9% Sewer Utility Beginning Reserve Fund Balance 4,828,445 63.1% Total Reserves 7,656,890 100.0%
26 A.
Table 2: Combined Water and Sewer Cash Flow Projection (Water Rate Annual Increases = 8%, Sewer Rate Annual Increases = 24%) DRAFT - 6/7/22 City of Brisbane
Water & Sewer Utility Rate Study 2022
Budget
2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 2031/32 1 BEGINNING FUND BALANCE $7,656,890 $6,575,087 $4,449,056 $2,622,712 $3,692,556 $2,803,087 $2,608,406 $3,371,999 $4,085,412 $4,736,734 $5,305,377 2 3 REVENUES
4 Water Sales (1) 3,000,000 3,120,000 3,370,000 3,640,000 3,931,000 4,245,000 4,670,000 5,044,000 5,448,000 5,884,000 6,355,000 5 Sewer Service Charges (1) 2,000,000 2,240,000 2,778,000 3,445,000 4,272,000 5,297,000 5,615,000 5,952,000 6,309,000 6,688,000 7,089,000 6 Drought Reserve Charge 100,000 100,000 100,000 100,000 100,000 100,000 0 0 0 0 0 7 Capital Charge (2) 365,000 515,000 515,000 515,000 515,000 515,000 815,000 815,000 815,000 815,000 815,000 8 Investment Earnings 50,000 51,000 52,000 53,000 54,000 55,000 56,000 57,000 58,000 59,000 60,000 9 Account Open/Reconnection Fees 3,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 10 Late Payment Charges 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 11 Sewer & Meter Connection Fees 23,000 25,000 27,000 29,000 31,000 33,000 36,000 39,000 42,000 45,000 48,000 12 Fire Service Charges 115,000 124,000 134,000 145,000 157,000 170,000 187,000 202,000 218,000 235,000 254,000 13 Altamar Meter Reading Fee 7,500 8,000 9,000 10,000 11,000 12,000 13,000 14,000 15,000 16,000 17,000 14 Transfers from Other Funds 75,000 75,000 75,000 75,000 75,000 75,000 75,000 75,000 75,000 75,000 75,000 15 Less: Low Income Rate Assistance (75,000) (75,000) (75,000) (75,000) (75,000) (75,000) (75,000) (75,000) (75,000) (75,000) (75,000) 16 Projected Grant Revenue 0 0 0 2,500,000 0 0 0 0 0 0 0 17 Total Revenues 5,673,500 6,197,000 6,999,000 10,451,000 9,085,000 10,441,000 11,406,000 12,137,000 12,919,000 13,756,000 14,652,000 18 19 EXPENSES
20 Operating & Maintenance
21 Salaries 949,583 987,000 1,027,000 1,068,000 1,110,000 1,154,000 1,200,000 1,248,000 1,298,000 1,350,000 1,404,000 22 Payroll Taxes 13,300 13,000 13,000 13,000 13,000 13,000 13,000 13,000 13,000 13,000 13,000 23 Benefits 523,326 544,000 566,000 589,000 613,000 637,000 663,000 689,000 717,000 745,000 775,000 24 Insurance 110,225 121,000 127,000 133,000 140,000 147,000 154,000 162,000 170,000 179,000 188,000 25 Supplies and Services 3,585,356 4,057,000 4,463,000 4,910,000 5,401,000 5,942,000 6,536,000 7,190,000 7,909,000 8,700,000 9,570,000 26 Admin Charges and Credit 936,825 969,000 1,003,000 1,038,000 1,075,000 1,113,000 1,152,000 1,192,000 1,233,000 1,276,000 1,321,000 27 Subtotal O&M 6,118,616 6,691,000 7,199,000 7,751,000 8,352,000 9,006,000 9,718,000 10,494,000 11,340,000 12,263,000 13,271,000 28 29 Net Operating Revenue (445,116) (494,000) (200,000) 2,700,000 733,000 1,435,000 1,688,000 1,643,000 1,579,000 1,493,000 1,381,000 30 31 Debt Service
32 2015 Utility Bonds 636,688 632,031 626,344 630,156 622,469 629,681 624,406 629,588 627,678 624,356 635,813 33 New Bonds (3) 0 0 0 0 0 0 300,000 300,000 300,000 300,000 300,000 34 Subtotal Debt Service 636,688 632,031 626,344 630,156 622,469 629,681 924,406 929,588 927,678 924,356 935,813 35 36 Capital Projects 0 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 0 0 0 0 0 37 38 Total Expenses 6,755,303 8,323,031 8,825,344 9,381,156 9,974,469 10,635,681 10,642,406 11,423,588 12,267,678 13,187,356 14,206,813 39 40 Total Net Revenues (1,081,803) (2,126,031) (1,826,344) 1,069,844 (889,469) (194,681) 763,594 713,413 651,322 568,644 445,188 41 42 ENDING FUND BALANCE 6,575,087 4,449,056 2,622,712 3,692,556 2,803,087 2,608,406 3,371,999 4,085,412 4,736,734 5,305,377 5,750,565 43 44
45 Reserve Funds
46 Operating Reserve Target (25% of O&M) 1,529,700 1,672,800 1,799,800 1,937,800 2,088,000 2,251,500 2,429,500 2,623,500 2,835,000 3,065,800 3,317,800 47 Drought Reserve ($700,000?) 447,499 547,499 647,499 747,499 847,499 947,499 947,499 947,499 947,499 947,499 947,499 48 Total Combined Reserves 1,977,199 2,220,299 2,447,299 2,685,299 2,935,499 3,198,999 3,376,999 3,570,999 3,782,499 4,013,299 4,265,299 49 Target Met? yes yes yes yes yes yes yes yes yes yes yes 50 51 Debt Service Coverage - 1.25x (4) -0.70 -0.78 -0.32 0.32 1.18 2.28 1.83 1.77 1.70 1.62 1.48 52 Target Met? no no no no no yes yes yes yes yes yes
53 1 - Water Sales & Sewer Service Charges for 2022/23 have been adjusted for September 1, 2022 implementation date 2 - Assumes Capital Charge will increase in 2022/23 by half 3 - Total debt service for New Bonds is estimated at $300,000 Years 1 -5: Proposition 218 Years 6 - 10: Extended Projection 27 A.
Table 3: Scenario 1: No Rate Increases - Water Cash Flow Projection DRAFT - 6/7/22 City of Brisbane
Water Utility Rate Study 2022
Budget
2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 2031/32 1 Overall Revenue Adjustment 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 2 Rate Increase Effective Jan 1, 2023 Jul 1, 2023 Jul 1, 2024 Jul 1, 2025 Jul 1, 2026 Jul 1, 2027 Jul 1, 2028 Jul 1, 2029 Jul 1, 2030 Jul 1, 2031 3 4
5 BEGINNING FUND BALANCE $2,828,445 $2,983,640 $2,391,140 $1,556,640 $1,704,140 $315,640 ($1,391,860) ($2,888,360) ($4,760,860) ($7,038,360) ($9,757,860) 6 7 Water Sales Based on 12 Mos. of Rev 3,000,000 3,000,000 3,000,000 3,000,000 3,000,000 3,000,000 3,000,000 3,000,000 3,000,000 3,000,000 3,000,000 8 9 REVENUES
10 Water Sales (1) 3,000,000 3,000,000 3,000,000 3,000,000 3,000,000 3,000,000 3,000,000 3,000,000 3,000,000 3,000,000 3,000,000 11 Meter Connection Fees 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 12 Fire Service Charges 115,000 115,000 115,000 115,000 115,000 115,000 115,000 115,000 115,000 115,000 115,000 13 Altamar Meter Reading Fee 7,500 8,000 8,000 8,000 8,000 8,000 8,000 8,000 8,000 8,000 8,000 14 Drought Reserve Charge 100,000 100,000 100,000 100,000 100,000 100,000 0 0 0 0 0 15 Capital Charge (2) 182,500 257,500 257,500 257,500 257,500 257,500 407,500 407,500 407,500 407,500 407,500 16 Investment Earnings 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 17 Account Open/Reconnection Fees 1,500 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 18 Late Payment Charges 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 19 Transfers from Other Funds 37,500 37,500 37,500 37,500 37,500 37,500 37,500 37,500 37,500 37,500 37,500 20 Less: Low Income Rate Assistance (37,500) (37,500) (37,500) (37,500) (37,500) (37,500) (37,500) (37,500) (37,500) (37,500) (37,500) 21 Projected Grant Revenue 0 0 0 1,250,000 0 0 0 0 0 0 0 22 Total Revenues 3,456,500 3,532,500 3,532,500 4,782,500 3,532,500 3,532,500 3,582,500 3,582,500 3,582,500 3,582,500 3,582,500 23 24 EXPENSES
25 Operating & Maintenance
26 Salaries 499,125 519,000 540,000 562,000 584,000 607,000 631,000 656,000 682,000 709,000 737,000 27 Payroll Taxes 7,112 7,000 7,000 7,000 7,000 7,000 7,000 7,000 7,000 7,000 7,000 28 Benefits 277,746 289,000 301,000 313,000 326,000 339,000 353,000 367,000 382,000 397,000 413,000 29 Insurance 58,938 65,000 68,000 71,000 75,000 79,000 83,000 87,000 91,000 96,000 101,000 30 Supplies and Services 1,666,998 1,942,000 2,136,000 2,350,000 2,585,000 2,844,000 3,128,000 3,441,000 3,785,000 4,164,000 4,580,000 31 Admin Charges and Credit 473,044 487,000 502,000 517,000 533,000 549,000 565,000 582,000 599,000 617,000 636,000 32 Subtotal O&M 2,982,962 3,309,000 3,554,000 3,820,000 4,110,000 4,425,000 4,767,000 5,140,000 5,546,000 5,990,000 6,474,000 33 34 Net Operating Revenue 473,538 223,500 (21,500) 962,500 (577,500) (892,500) (1,184,500) (1,557,500) (1,963,500) (2,407,500) (2,891,500) 35 36 Debt Service
37 2015 Utility Bonds (3) 318,344 316,000 313,000 315,000 311,000 315,000 312,000 315,000 314,000 312,000 318,000 38 New Bonds 0 0 0 0 0 0 0 0 0 0 0
39 Subtotal Debt Service 318,344 316,000 313,000 315,000 311,000 315,000 312,000 315,000 314,000 312,000 318,000 40 41 Capital Projects 0 500,000 500,000 500,000 500,000 500,000 0 0 0 0 0 42 43 Total Expenses 3,301,305 4,125,000 4,367,000 4,635,000 4,921,000 5,240,000 5,079,000 5,455,000 5,860,000 6,302,000 6,792,000 44 45 Total Net Revenues 155,195 (592,500) (834,500) 147,500 (1,388,500) (1,707,500) (1,496,500) (1,872,500) (2,277,500) (2,719,500) (3,209,500) 46 47 ENDING FUND BALANCE 2,983,640 2,391,140 1,556,640 1,704,140 315,640 (1,391,860) (2,888,360) (4,760,860) (7,038,360) (9,757,860) (12,967,360) 48 49
50 Reserve Funds
51 Operating Reserve Target (25% of O&M) 745,700 827,300 888,500 955,000 1,027,500 1,106,300 1,191,800 1,285,000 1,386,500 1,497,500 1,618,500 52 Drought Reserve ($700,000?) 447,499 547,499 647,499 747,499 847,499 947,499 947,499 947,499 947,499 947,499 947,499 53 Total Water Reserves 1,193,199 1,374,799 1,535,999 1,702,499 1,874,999 2,053,799 2,139,299 2,232,499 2,333,999 2,444,999 2,565,999 54 Target Met? yes yes yes yes no no no no no no no
55 56 Debt Service Coverage - 1.25x (4) 1.49 0.71 -0.07 -0.91 -1.86 -2.83 -3.80 -4.94 -6.25 -7.72 -9.09 57 Target Met? yes no no no no no no no no no no
58 1 - Water Sales projection adjusted for September 1, 2022 implementation date 2 - Assumes Capital Charge will increase every 5 years. First increase is planned for 2022/23 in which the Capital Charge will increase by half. Second increase is anticipated in 2027/28 and assumes that the City will issue $5 million in new debt (combined water & sewer). 3 - Total debt service for New Bonds is estimated at $300,000 and is split evenly with the Sewer Utility.
Years 1 -5: Proposition 218 Years 6 - 10: Extended Projection 28 A.
Table 4: Scenario 2: 5% Annual Rate Increases - Water Cash Flow Projection DRAFT - 6/7/22 City of Brisbane
Water Utility Rate Study 2022
Budget
2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 2031/32 1 Overall Revenue Adjustment 5.0% 5.0% 5.0% 5.0% 5.0% 5.0% 5.0% 5.0% 5.0% 5.0% 2 Rate Increase Effective Jan 1, 2023 Jul 1, 2023 Jul 1, 2024 Jul 1, 2025 Jul 1, 2026 Jul 1, 2027 Jul 1, 2028 Jul 1, 2029 Jul 1, 2030 Jul 1, 2031 3 4
5 BEGINNING FUND BALANCE $2,828,445 $2,983,640 $2,473,140 $1,881,640 $2,440,140 $1,640,640 $708,140 $31,640 -$815,860 -$1,853,360 -$3,106,860 6 7 Water Sales Based on 12 Mos. of Rev 3,000,000 3,150,000 3,229,000 3,390,000 3,560,000 3,738,000 3,925,000 4,121,000 4,327,000 4,543,000 4,770,000 8 9 REVENUES
10 Water Sales (1) 3,000,000 3,075,000 3,229,000 3,390,000 3,560,000 3,738,000 3,925,000 4,121,000 4,327,000 4,543,000 4,770,000 11 Meter Connection Fees 20,000 21,000 22,000 23,000 24,000 25,000 26,000 27,000 28,000 29,000 30,000 12 Fire Service Charges 115,000 121,000 127,000 133,000 140,000 147,000 154,000 162,000 170,000 179,000 188,000 13 Altamar Meter Reading Fee 7,500 8,000 8,000 8,000 8,000 8,000 8,000 8,000 8,000 8,000 8,000 14 Drought Reserve Charge 100,000 100,000 100,000 100,000 100,000 100,000 0 0 0 0 0 15 Capital Charge (2) 182,500 257,500 257,500 257,500 257,500 257,500 407,500 407,500 407,500 407,500 407,500 16 Investment Earnings 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 17 Account Open/Reconnection Fees 1,500 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 18 Late Payment Charges 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 19 Transfers from Other Funds 37,500 37,500 37,500 37,500 37,500 37,500 37,500 37,500 37,500 37,500 37,500 20 Less: Low Income Rate Assistance (37,500) (37,500) (37,500) (37,500) (37,500) (37,500) (37,500) (37,500) (37,500) (37,500) (37,500) 21 Projected Grant Revenue 0 0 0 1,250,000 0 0 0 0 0 0 0 22 Total Revenues 3,456,500 3,614,500 3,775,500 5,193,500 4,121,500 4,307,500 4,552,500 4,757,500 4,972,500 5,198,500 5,435,500 23 24 EXPENSES
25 Operating & Maintenance
26 Salaries 499,125 519,000 540,000 562,000 584,000 607,000 631,000 656,000 682,000 709,000 737,000 27 Payroll Taxes 7,112 7,000 7,000 7,000 7,000 7,000 7,000 7,000 7,000 7,000 7,000 28 Benefits 277,746 289,000 301,000 313,000 326,000 339,000 353,000 367,000 382,000 397,000 413,000 29 Insurance 58,938 65,000 68,000 71,000 75,000 79,000 83,000 87,000 91,000 96,000 101,000 30 Supplies and Services 1,666,998 1,942,000 2,136,000 2,350,000 2,585,000 2,844,000 3,128,000 3,441,000 3,785,000 4,164,000 4,580,000 31 Admin Charges and Credit 473,044 487,000 502,000 517,000 533,000 549,000 565,000 582,000 599,000 617,000 636,000 32 Subtotal O&M 2,982,962 3,309,000 3,554,000 3,820,000 4,110,000 4,425,000 4,767,000 5,140,000 5,546,000 5,990,000 6,474,000 33 34 Net Operating Revenue 473,538 305,500 221,500 1,373,500 11,500 (117,500) (214,500) (382,500) (573,500) (791,500) (1,038,500) 35 36 Debt Service
37 2015 Utility Bonds (3) 318,344 316,000 313,000 315,000 311,000 315,000 312,000 315,000 314,000 312,000 318,000 38 New Bonds 0 0 0 0 0 0 150,000 150,000 150,000 150,000 150,000 39 Subtotal Debt Service 318,344 316,000 313,000 315,000 311,000 315,000 462,000 465,000 464,000 462,000 468,000 40 41 Capital Projects 0 500,000 500,000 500,000 500,000 500,000 0 0 0 0 0 42 43 Total Expenses 3,301,305 4,125,000 4,367,000 4,635,000 4,921,000 5,240,000 5,229,000 5,605,000 6,010,000 6,452,000 6,942,000 44 45 Total Net Revenues 155,195 (510,500) (591,500) 558,500 (799,500) (932,500) (676,500) (847,500) (1,037,500) (1,253,500) (1,506,500) 46 47 ENDING FUND BALANCE 2,983,640 2,473,140 1,881,640 2,440,140 1,640,640 708,140 31,640 (815,860) (1,853,360) (3,106,860) (4,613,360) 48 49
50 Reserve Funds
51 Operating Reserve Target (25% of O&M) 745,700 827,300 888,500 955,000 1,027,500 1,106,300 1,191,800 1,285,000 1,386,500 1,497,500 1,618,500 52 Drought Reserve ($700,000?) 447,499 547,499 647,499 747,499 847,499 947,499 947,499 947,499 947,499 947,499 947,499 53 Total Water Reserves 1,193,199 1,374,799 1,535,999 1,702,499 1,874,999 2,053,799 2,139,299 2,232,499 2,333,999 2,444,999 2,565,999 54 Target Met? yes yes yes yes yes no no no no no no
55 56 Debt Service Coverage - 1.25x (4) 1.49 0.97 0.71 0.39 0.04 -0.37 -0.46 -0.82 -1.24 -1.71 -2.22 57 Target Met? yes no no no no no no no no no no
58 1 - Water Sales projection adjusted for September 1, 2022 implementation date 2 - Assumes Capital Charge will increase every 5 years. First increase is planned for 2022/23 in which the Capital Charge will increase by half. Second increase is anticipated in 2027/28 and assumes that the City will issue $5 million in new debt (combined water & sewer). 3 - Total debt service for New Bonds is estimated at $300,000 and is split evenly with the Sewer Utility.
Years 1 -5: Proposition 218 Years 6 - 10: Extended Projection 29 A.
Table 5: Scenario 3: 8% Annual Rate Increases - Water Cash Flow Projection DRAFT - 6/7/22 City of Brisbane
Water Utility Rate Study 2022
Budget
2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 2031/32 1 Overall Revenue Adjustment 8.0% 8.0% 8.0% 8.0% 8.0% 10.0% 8.0% 8.0% 8.0% 8.0% 2 Rate Increase Effective Jan 1, 2023 Jul 1, 2023 Jul 1, 2024 Jul 1, 2025 Jul 1, 2026 Jul 1, 2027 Jul 1, 2028 Jul 1, 2029 Jul 1, 2030 Jul 1, 2031 3 4
5 BEGINNING FUND BALANCE $2,828,445 $2,983,640 $2,522,140 $2,081,640 $2,907,140 $2,502,640 $2,109,140 $2,222,640 $2,353,140 $2,502,640 $2,667,140 6 7 Water Sales Based on 12 Mos. of Rev 3,000,000 3,240,000 3,370,000 3,640,000 3,931,000 4,245,000 4,670,000 5,044,000 5,448,000 5,884,000 6,355,000 8 9 REVENUES
10 Water Sales (1) 3,000,000 3,120,000 3,370,000 3,640,000 3,931,000 4,245,000 4,670,000 5,044,000 5,448,000 5,884,000 6,355,000 11 Meter Connection Fees 20,000 22,000 24,000 26,000 28,000 30,000 33,000 36,000 39,000 42,000 45,000 12 Fire Service Charges 115,000 124,000 134,000 145,000 157,000 170,000 187,000 202,000 218,000 235,000 254,000 13 Altamar Meter Reading Fee 7,500 8,000 9,000 10,000 11,000 12,000 13,000 14,000 15,000 16,000 17,000 14 Drought Reserve Charge 100,000 100,000 100,000 100,000 100,000 100,000 0 0 0 0 0 15 Capital Charge (2) 182,500 257,500 257,500 257,500 257,500 257,500 407,500 407,500 407,500 407,500 407,500 16 Investment Earnings 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 17 Account Open/Reconnection Fees 1,500 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 18 Late Payment Charges 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 19 Transfers from Other Funds 37,500 37,500 37,500 37,500 37,500 37,500 37,500 37,500 37,500 37,500 37,500 20 Less: Low Income Rate Assistance (37,500) (37,500) (37,500) (37,500) (37,500) (37,500) (37,500) (37,500) (37,500) (37,500) (37,500) 21 Projected Grant Revenue 0 0 0 1,250,000 0 0 0 0 0 0 0 22 Total Revenues 3,456,500 3,663,500 3,926,500 5,460,500 4,516,500 4,846,500 5,342,500 5,735,500 6,159,500 6,616,500 7,110,500 23 24 EXPENSES
25 Operating & Maintenance
26 Salaries 499,125 519,000 540,000 562,000 584,000 607,000 631,000 656,000 682,000 709,000 737,000 27 Payroll Taxes 7,112 7,000 7,000 7,000 7,000 7,000 7,000 7,000 7,000 7,000 7,000 28 Benefits 277,746 289,000 301,000 313,000 326,000 339,000 353,000 367,000 382,000 397,000 413,000 29 Insurance 58,938 65,000 68,000 71,000 75,000 79,000 83,000 87,000 91,000 96,000 101,000 30 Supplies and Services 1,666,998 1,942,000 2,136,000 2,350,000 2,585,000 2,844,000 3,128,000 3,441,000 3,785,000 4,164,000 4,580,000 31 Admin Charges and Credit 473,044 487,000 502,000 517,000 533,000 549,000 565,000 582,000 599,000 617,000 636,000 32 Subtotal O&M 2,982,962 3,309,000 3,554,000 3,820,000 4,110,000 4,425,000 4,767,000 5,140,000 5,546,000 5,990,000 6,474,000 33 34 Net Operating Revenue 473,538 354,500 372,500 1,640,500 406,500 421,500 575,500 595,500 613,500 626,500 636,500 35 36 Debt Service
37 2015 Utility Bonds (3) 318,344 316,000 313,000 315,000 311,000 315,000 312,000 315,000 314,000 312,000 318,000 38 New Bonds 0 0 0 0 0 0 150,000 150,000 150,000 150,000 150,000 39 Subtotal Debt Service 318,344 316,000 313,000 315,000 311,000 315,000 462,000 465,000 464,000 462,000 468,000 40 41 Capital Projects 0 500,000 500,000 500,000 500,000 500,000 0 0 0 0 0 42 43 Total Expenses 3,301,305 4,125,000 4,367,000 4,635,000 4,921,000 5,240,000 5,229,000 5,605,000 6,010,000 6,452,000 6,942,000 44 45 Total Net Revenues 155,195 (461,500) (440,500) 825,500 (404,500) (393,500) 113,500 130,500 149,500 164,500 168,500 46 47 ENDING FUND BALANCE 2,983,640 2,522,140 2,081,640 2,907,140 2,502,640 2,109,140 2,222,640 2,353,140 2,502,640 2,667,140 2,835,640 48 49
50 Reserve Funds
51 Operating Reserve Target (25% of O&M) 745,700 827,300 888,500 955,000 1,027,500 1,106,300 1,191,800 1,285,000 1,386,500 1,497,500 1,618,500 52 Drought Reserve ($700,000?) 447,499 547,499 647,499 747,499 847,499 947,499 947,499 947,499 947,499 947,499 947,499 53 Total Water Reserves 1,193,199 1,374,799 1,535,999 1,702,499 1,874,999 2,053,799 2,139,299 2,232,499 2,333,999 2,444,999 2,565,999 54 Target Met? yes yes yes yes yes yes yes yes yes yes yes 55 56 Debt Service Coverage - 1.25x (4) 1.49 1.12 1.19 1.24 1.31 1.34 1.25 1.28 1.32 1.36 1.36 57 Target Met? yes no no no yes yes yes yes yes yes yes 58 1 - Water Sales projection adjusted for September 1, 2022 implementation date 2 - Assumes Capital Charge will increase every 5 years. First increase is planned for 2022/23 in which the Capital Charge will increase by half. Second increase is anticipated in 2027/28 and assumes that the City will issue $5 million in new debt (combined water & sewer). 3 - Total debt service for New Bonds is estimated at $300,000 and is split evenly with the Sewer Utility.
Years 1 -5: Proposition 218 Years 6 - 10: Extended Projection 30 A.
Table 6: Water Scenario Comparison
City of Brisbane
Water Utility Rate Study 2022
GOAL 1 : MEET DEBT SERVICE COVERAGE
Current
2021/22 2022/23 2023/24 2024/25 2025/26 2026/27
Debt Service Coverage Ratio Required 1.25 1.25 1.25 1.25 1.25 1.25 Scenario 1: No Rate Increases 1.49 0.71 (0.07) (0.91) (1.86) (2.83) Target Met? yes no no no no no
Scenario 2: 5% Annual Rate Increases 1.49 0.97 0.71 0.39 0.04 (0.37) Target Met? yes no no no no no
Scenario 3: 8% Annual Rate Increases 1.49 1.12 1.19 1.24 1.31 1.34 Target Met? yes no no no yes yes
GOAL 2: MEET RESERVE FUND TARGETS
Current
2021/22 2022/23 2023/24 2024/25 2025/26 2026/27
Water Fund Reserve Target $1,061,399 $1,193,199 $1,374,799 $1,535,999 $1,702,499 $1,874,999 Scenario 1: No Rate Increases $2,983,640 $2,391,140 $1,556,640 $1,704,140 $315,640 ($1,391,860) Target Met? yes yes yes yes no no
Scenario 2: 5% Annual Rate Increases $2,983,640 $2,473,140 $1,881,640 $2,440,140 $1,640,640 $708,140 Target Met? yes yes yes yes no no
Scenario 3: 8% Annual Rate Increases $2,983,640 $2,522,140 $2,081,640 $2,907,140 $2,502,640 $2,109,140 Target Met? yes yes yes yes yes yes
GOAL 3: POSITIVE TOTAL NET REVENUES
Current
2021/22 2022/23 2023/24 2024/25 2025/26 2026/27
Scenario 1: No Rate Increases $155,195 ($592,500) ($834,500) $147,500 ($1,388,500) ($1,707,500) Target Met? yes no no yes no no
Scenario 2: 5% Annual Rate Increases $155,195 ($510,500) ($591,500) $558,500 ($799,500) ($932,500) Target Met? yes no no yes no no
Scenario 3: 8% Annual Rate Increases $155,195 ($461,500) ($440,500) $825,500 ($404,500) ($393,500) Target Met? yes no no yes no no
Proposed
Proposed
Proposed
31 A.
Table 7: Water Scenario Comparison Graph - Ending Water Fund Reserve Fund Balance City of Brisbane
Water Utility Rate Study 2022
Average Use - 16 hcf
$0
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
$3,500,000
$4,000,000
2021/22 2022/23 2023/24 2024/25 2025/26 2026/27
Water Scenario Comparison
Ending Water Reserve Fund Balance
Water Fund Reserve Target
Scenario 1: No Rate Increases
Scenario 2: 5% Annual Rate Increases
Scenario 3: 8% Annual Rate Increases
32 A.
Table 8: Projected Water Consumption with 1 Unit Allotment City of Brisbane
Water Utility Rate Study 2022
CURRENT
2019/20 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 Residential
Annual Increase % 0.0% 0.0% 1.0% 1.0% 1.0% 1.0% 1.0%
Annual Consumption (ccf) 109,065 109,065 109,065 110,156 111,257 112,370 113,493 114,628 Less 1 ccf Allotment 9,655 9,655 9,655 9,752 9,849 9,948 10,047 10,148 Total Consumption for Consumption Charges 99,410 99,410 99,410 100,404 101,408 102,422 103,446 104,481 Commercial
Annual Increase % 0.0% 0.0% 3.0% 3.0% 3.0% 3.0% 3.0%
Annual Consumption (ccf) 95,700 95,700 95,700 98,571 101,528 104,574 107,711 110,943 Less 1 ccf Allotment 1,400 1,400 1,400 1,442 1,485 1,530 1,576 1,623 Total Consumption for Consumption Charges 94,300 94,300 94,300 97,129 100,043 103,044 106,135 109,320 Irrigation
Annual Increase % 0.0% 0.0% 2.0% 2.0% 2.0% 2.0% 2.0%
Annual Consumption (ccf) 79,400 79,400 79,400 80,988 82,608 84,260 85,945 87,664 Less 1 ccf Allotment 400 400 400 408 416 424 433 442
Total Consumption for Consumption Charges 79,000 79,000 79,000 80,580 82,192 83,835 85,512 87,222 Total Consumption
Total Consumption 284,165 284,165 284,165 289,715 295,393 301,204 307,150 313,235 Less 1 ccf Allotment 11,455 11,455 11,455 11,602 11,750 11,902 12,056 12,212 TOTAL CONSUMPTION (CCF) FOR CONSUMPTION CHARGES 272,710 272,710 272,710 278,113 283,643 289,302 295,094 301,023
PROJECTED PROJECTED - RATE STUDY PERIOD
33 A.
Table 9: Projected Customer Growth & Water Consumption
City of Brisbane
Water Utility Rate Study 2022
CURRENT
2019/20 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27
NUMBER OF METERS
Growth Increase % 0.00% 0.00% 0.50% 0.50% 0.50% 0.50% 0.50% Total Water Meters 2,038 2,038 2,038 2,048 2,058 2,069 2,079 2,089 Total Meter Equivalents 3,259 3,259 3,259 3,275 3,292 3,308 3,325 3,341
WATER CONSUMPTION
Residential
Annual Increase % 0.0% 0.0% 1.0% 1.0% 1.0% 1.0% 1.0%
Consumption
Tier 1: 1 - 20 ccf 86,634 86,634 86,634 87,501 88,376 89,259 90,152 91,054 Tier 2: Over 20 ccf 12,776 12,776 12,776 12,903 13,032 13,163 13,294 13,427 Subtotal Residential 99,410 99,410 99,410 100,404 101,408 102,422 103,446 104,481 Commercial
Annual Increase % 0.0% 0.0% 3.0% 3.0% 3.0% 3.0% 3.0%
Consumption (1)
Tier 1: 1 - 20 ccf 26,948 26,948 26,948 27,757 28,590 29,447 30,331 31,241 Tier 2: Over 20 ccf 67,352 67,352 67,352 69,372 71,453 73,597 75,805 78,079 Subtotal Commercial 94,300 94,300 94,300 97,129 100,043 103,044 106,135 109,320 Irrigation
Annual Increase % 0.0% 0.0% 2.0% 2.0% 2.0% 2.0% 2.0%
Consumption
Tier 1: 1 - 20 ccf 12,344 12,344 12,344 12,591 12,843 13,100 13,362 13,629 Tier 2: Over 20 ccf 66,656 66,656 66,656 67,989 69,349 70,736 72,150 73,593 Subtotal Irrigation 79,000 79,000 79,000 80,580 82,192 83,835 85,512 87,222 Total Consumption
Annual Increase % 0.0% 0.0% 2.0% 2.0% 2.0% 2.0% 2.0%
Consumption
Tier 1: 1 - 20 ccf 125,927 125,927 125,927 127,849 129,808 131,807 133,845 135,923 Tier 2: Over 20 ccf 146,783 146,783 146,783 150,264 153,834 157,495 161,249 165,099 Total Consumption 272,710 272,710 272,710 278,113 283,643 289,302 295,094 301,023
PROJECTED PROJECTED - RATE STUDY PERIOD
34 A.
Table 10: Water Cost Allocation
City of Brisbane
Water Utility Rate Study 2022
2022/23
Budget Meters & Services Customer Service Base Extra
Salaries $519,000 10% 10% 25% 55% 100%
Payroll Taxes $7,000 10% 10% 25% 55% 100%
Benefits $289,000 10% 10% 25% 55% 100%
Insurance (2) $65,000 10% 10% 25% 55% 100%
Supplies and Services $1,942,000 2% 2% 25% 71% 100%
Admin Charges and Credits $487,000 25% 25% 25% 25% 100% Debt Service $316,000 10% 10% 25% 55% 100%
Total Water Operating Expenses $3,625,000 $280,200 $280,200 $906,300 $2,158,400 $3,625,100 Total Allocation % 7.7% 7.7% 25.0% 59.5% 100.0%
Operating Expense Total
FIXED CHARGES CONSUMPTION CHARGES
35 A.
Table 11: Scenario 3: 8% Annual Rate Increases - Annual Revenue Requirement Allocation City of Brisbane
Water Utility Rate Study 2022
2022/23 2023/24 2024/25 2025/26 2026/27
Total Revenue Requirement (1) $3,240,000 $3,370,000 $3,640,000 $3,931,000 $4,245,000
FIXED CHARGES
Meters & Services 7.7% $250,452 $260,501 $281,372 $303,866 $328,139 Customer Service Charge 7.7% $250,452 $260,501 $281,372 $303,866 $328,139 Total Fixed Charges 15.5% $500,904 $521,002 $562,744 $607,733 $656,277
CONSUMPTION CHARGES
Base 25.0% $810,000 $842,500 $910,000 $982,750 $1,061,250 Extra 59.5% $1,929,096 $2,006,498 $2,167,256 $2,340,517 $2,527,473 Total Consumption Charges 84.5% $2,739,096 $2,848,998 $3,077,256 $3,323,267 $3,588,723 TOTAL 100.0% $3,240,000 $3,370,000 $3,640,000 $3,931,000 $4,245,000 1 - From Cash Flow (Table 9, line 5)
Cost
Allocation %
PROJECTED - RATE STUDY PERIOD
36 A.
Table 12: Scenario 3: 8% Annual Rate Increases - Water Fixed Charge Derivation City of Brisbane
Water Utility Rate Study 2022
2022/23 2023/24 2024/25 2025/26 2026/27
REVENUE REQUIREMENT
Meters & Services $250,452 $260,501 $281,372 $303,866 $328,139 Customer Service Charge $250,452 $260,501 $281,372 $303,866 $328,139 Total Fixed Charge Revenue Requirement $500,904 $521,002 $562,744 $607,733 $656,277 Total Meter Equivalent Charge Revenue Requirement 7.7% $250,452 $260,501 $281,372 $303,866 $328,139 Total Number of Meter Equivalents 3,275 3,292 3,308 3,325 3,341 Total Meter Equivalent Charge $12.74 $13.19 $14.18 $15.23 $16.37 Meter Equivalent Charge by Meter Size
Meter Size Meter Ratio
5/8" 1.00 $12.74 $13.19 $14.18 $15.23 $16.37
3/4" 1.00 $12.74 $13.19 $14.18 $15.23 $16.37
1" 1.67 $21.23 $21.98 $23.63 $25.38 $27.28
1-1/2" 3.33 $42.47 $43.97 $47.27 $50.77 $54.57
2" 5.33 $67.95 $70.35 $75.63 $81.23 $87.31
3" 10.67 $135.89 $140.69 $151.25 $162.45 $174.61
4" 16.67 $212.33 $219.83 $236.33 $253.83 $272.83
6" 33.33 $424.67 $439.67 $472.67 $507.67 $545.67
Total Customer Service Charge Revenue Requirement 7.7% $250,452 $260,501 $281,372 $303,866 $328,139 Total Number of Meters 2,048 2,058 2,069 2,079 2,089
Total Customer Service Charge per Account $20.38 $21.09 $22.67 $24.36 $26.17 Meter Size
5/8" $33.12 $34.28 $36.85 $39.59 $42.54
3/4" $33.12 $34.28 $36.85 $39.59 $42.54
1" $41.61 $43.07 $46.30 $49.74 $53.45
1-1/2" $62.85 $65.06 $69.94 $75.13 $80.74
2" $88.33 $91.44 $98.30 $105.59 $113.48
3" $156.27 $161.78 $173.92 $186.81 $200.78
4" $232.71 $240.92 $259.00 $278.19 $299.00
6" $445.05 $460.76 $495.34 $532.03 $571.84
1 - Total Bimonthly Fixed Charge is the sum of the "Meter Equivalent Charge" by meter size plus the "Total Customer Service Charge per Account"
PROJECTED - RATE STUDY PERIOD
METER EQUIVALENT CHARGE
CUSTOMER SERVICE CHARGE
TOTAL BIMONTHLY FIXED CHARGE (1)
37 A.
Table 13: Scenario 3: 8% Annual Rate Increases - Consumption Charge Rate Derivation City of Brisbane
Water Utility Rate Study 2022
2022/23 2023/24 2024/25 2025/26 2026/27
REVENUE REQUIREMENT
Base Charge Revenue Requirement $810,000 $842,500 $910,000 $982,750 $1,061,250 Extra Charge Revenue Requirement $1,929,096 $2,006,498 $2,167,256 $2,340,517 $2,527,473 Total Consumption Charge Revenue Requirement $2,739,096 $2,848,998 $3,077,256 $3,323,267 $3,588,723
CONSUMPTION CHARGE DERIVATION
All Customers
Tier 1 Revenue Requirement $810,000 $842,500 $910,000 $982,750 $1,061,250 Tier 1: 1-20 ccf Consumption (ccf) 127,849 129,808 131,807 133,845 135,923 Tier 1 Rate per ccf $6.34 $6.49 $6.90 $7.34 $7.81
Tier 2 Revenue Requirement $1,929,096 $2,006,498 $2,167,256 $2,340,517 $2,527,473 Tier 2: Over 20 ccf Consumption (ccf) 146,783 146,783 150,264 153,834 157,495 Tier 2 Rate per ccf $13.14 $13.67 $14.42 $15.21 $16.05
SFPUC Rate + Bond Surcharge $5.15 $5.63 $6.15 $6.72 $7.36 Difference b/w Tier 1 Rate & SFPUC Rate $1.18 $0.86 $0.75 $0.62 $0.45
PROJECTED - RATE STUDY PERIOD
38 A.
Table 14: Scenario 3: 8% Annual Rate Increases - Proposed Bimonthly Water Rates City of Brisbane
Water Utility Rate Study 2022
2022/23 2023/24 2024/25 2025/26 2026/27
FIXED CHARGES
Meter Size
5/8" $33.12 $34.28 $36.85 $39.59 $42.54
3/4" $33.12 $34.28 $36.85 $39.59 $42.54
1" $41.61 $43.07 $46.30 $49.74 $53.45
1-1/2" $62.85 $65.06 $69.94 $75.13 $80.74
2" $88.33 $91.44 $98.30 $105.59 $113.48
3" $156.27 $161.78 $173.92 $186.81 $200.78
4" $232.71 $240.92 $259.00 $278.19 $299.00
6" $445.05 $460.76 $495.34 $532.03 $571.84
CONSUMPTION CHARGES (per ccf)
All Customers (Usage over 1 ccf)
Tier 1: 1- 20 ccf $6.34 $6.49 $6.90 $7.34 $7.81
Tier 2: Over 20 ccf $13.14 $13.67 $14.42 $15.21 $16.05
PROJECTED - RATE STUDY PERIOD
39 A.
Table 15: Scenario 3: 8% Annual Rate Increases - Sample Bimonthly Water Bill Impacts City of Brisbane
Water Utility Rate Study 2022
RESIDENTIAL BILL IMPACTS - 5/8" METER
Bimonthly Current
Use (ccf) Bill 2022/23 2023/24 2024/25 2025/26 2026/27
Residential: 5/8" meter, 1 ccf
Fixed Meter Charge - 5/8"" $22.67 $33.12 $34.28 $36.85 $39.59 $42.54 Consumption Charge
Tier 1: 0 - 1 ccf 1 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 Tier 2: 2 - 3 ccf 0 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 Tier 3: 3 ccf 0 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
Tier 4: 4 - 8 ccf 0 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 Tier 5: 9 - 16 ccf 0 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 Tier 6: Over 16 ccf 0 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 Subtotal Consumption Charge 1 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 Total Bimonthly Water Bill $22.67 $33.12 $34.28 $36.85 $39.59 $42.54 $ Change $10.45 $1.16 $2.57 $2.74 $2.95
% Change 46.1% 3.5% 7.5% 7.4% 7.5%
Residential: 5/8" meter, 4 ccf
Fixed Meter Charge - 5/8"" $22.67 $33.12 $34.28 $36.85 $39.59 $42.54 Consumption Charge
Tier 1: 0 - 1 ccf 1 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 Tier 2: 2 - 3 ccf 1 $2.17 $6.34 $6.49 $6.90 $7.34 $7.81 Tier 3: 3 ccf 1 $5.63 $6.34 $6.49 $6.90 $7.34 $7.81
Tier 4: 4 - 8 ccf 1 $7.00 $6.34 $6.49 $6.90 $7.34 $7.81 Tier 5: 9 - 16 ccf 0 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 Tier 6: Over 16 ccf 0 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 Subtotal Consumption Charge 4 $14.80 $19.01 $19.47 $20.71 $22.03 $23.42 Total Bimonthly Water Bill $37.47 $52.13 $53.75 $57.56 $61.62 $65.96 $ Change $14.66 $1.62 $3.81 $4.06 $4.35
% Change 39.1% 3.1% 7.1% 7.0% 7.1%
Residential: 5/8" meter, 10 ccf
Fixed Meter Charge - 5/8"" $22.67 $33.12 $34.28 $36.85 $39.59 $42.54 Consumption Charge
Tier 1: 0 - 1 ccf 1 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 Tier 2: 2 - 3 ccf 1 $2.17 $6.34 $6.49 $6.90 $7.34 $7.81 Tier 3: 3 ccf 1 $5.63 $6.34 $6.49 $6.90 $7.34 $7.81
Tier 4: 4 - 8 ccf 5 $35.00 $31.68 $32.45 $34.52 $36.71 $39.04 Tier 5: 9 - 16 ccf 2 $17.38 $12.67 $12.98 $13.81 $14.68 $15.62 Tier 6: Over 16 ccf 0 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 Subtotal Consumption Charge 10 $60.18 $57.02 $58.41 $62.14 $66.08 $70.27 Total Bimonthly Water Bill $82.85 $90.14 $92.69 $98.99 $105.67 $112.81 $ Change $7.29 $2.55 $6.29 $6.69 $7.14
% Change 8.8% 2.8% 6.8% 6.8% 6.8%
Proposed
40 A.
Residential: 5/8" meter, 20 ccf
Fixed Meter Charge - 5/8"" $22.67 $33.12 $34.28 $36.85 $39.59 $42.54 Consumption Charge
Tier 1: 0 - 1 ccf 1 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 Tier 2: 2 - 3 ccf 1 $2.17 $6.34 $6.49 $6.90 $7.34 $7.81 Tier 3: 3 ccf 1 $5.63 $6.34 $6.49 $6.90 $7.34 $7.81
Tier 4: 4 - 8 ccf 5 $35.00 $31.68 $32.45 $34.52 $36.71 $39.04 Tier 5: 9 - 16 ccf 8 $69.52 $50.68 $51.92 $55.23 $58.74 $62.46 Tier 6: Over 16 ccf 4 $44.20 $25.34 $25.96 $27.62 $29.37 $31.23 Subtotal Consumption Charge 20 $156.52 $120.38 $123.32 $131.18 $139.51 $148.35 Total Bimonthly Water Bill $179.19 $153.50 $157.60 $168.03 $179.10 $190.89 $ Change ($25.69) $4.10 $10.43 $11.07 $11.79
% Change -14.3% 2.7% 6.6% 6.6% 6.6%
Residential: 5/8" meter, 40 ccf
Fixed Meter Charge - 5/8"" $22.67 $33.12 $34.28 $36.85 $39.59 $42.54 Consumption Charge
Tier 1: 0 - 1 ccf 1 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 Tier 2: 2 - 3 ccf 1 $2.17 $6.34 $6.49 $6.90 $7.34 $7.81 Tier 3: 3 ccf 1 $5.63 $6.34 $6.49 $6.90 $7.34 $7.81
Tier 4: 4 - 8 ccf 5 $35.00 $31.68 $32.45 $34.52 $36.71 $39.04 Tier 5: 9 - 16 ccf 8 $69.52 $50.68 $51.92 $55.23 $58.74 $62.46 Tier 6: Over 16 ccf 24 $265.20 $288.19 $299.36 $316.08 $333.66 $352.19 Subtotal Consumption Charge 40 $377.52 $383.23 $396.71 $419.64 $443.80 $469.31 Total Bimonthly Water Bill $400.19 $416.35 $430.99 $456.49 $483.39 $511.85 $ Change $16.16 $14.65 $25.49 $26.90 $28.46
% Change 4.0% 3.5% 5.9% 5.9% 5.9%
RESIDENTIAL BILL IMPACTS - 3/4" METER
Monthly Use Current
(ccf) Bill 2022/23 2023/24 2024/25 2025/26 2026/27
Residential: 3/4" meter, 1 ccf
Fixed Meter Charge - 3/4"" $22.67 $33.12 $34.28 $36.85 $39.59 $42.54 Consumption Charge
Tier 1: 0 - 3 ccf 1 $5.19 $0.00 $0.00 $0.00 $0.00 $0.00 Tier 2: 4 - 8 ccf 0 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 Tier 3: 9 - 16 ccf 0 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 Tier 4: Over 16 ccf 0 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 Subtotal Consumption Charge 1 $5.19 $0.00 $0.00 $0.00 $0.00 $0.00 Total Bimonthly Water Bill $27.86 $33.12 $34.28 $36.85 $39.59 $42.54 $ Change $5.26 $1.16 $2.57 $2.74 $2.95
% Change 18.9% 3.5% 7.5% 7.4% 7.5%
Proposed
41 A.
Residential: 3/4" meter, 4 ccf
Fixed Meter Charge - 3/4" $22.67 $33.12 $34.28 $36.85 $39.59 $42.54 Consumption Charge
Tier 1: 0 - 3 ccf 3 $15.57 $12.67 $12.98 $13.81 $14.68 $15.62 Tier 2: 4 - 8 ccf 1 $7.00 $6.34 $6.49 $6.90 $7.34 $7.81 Tier 3: 9 - 16 ccf 0 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 Tier 4: Over 16 ccf 0 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 Subtotal Consumption Charge 4 $22.57 $19.01 $19.47 $20.71 $22.03 $23.42 Total Bimonthly Water Bill $45.24 $52.13 $53.75 $57.56 $61.62 $65.96 $ Change $6.89 $1.62 $3.81 $4.06 $4.35
% Change 15.2% 3.1% 7.1% 7.0% 7.1%
Residential: 3/4" meter, 10 ccf
Fixed Meter Charge - 3/4" $22.67 $33.12 $34.28 $36.85 $39.59 $42.54 Consumption Charge
Tier 1: 0 - 3 ccf 3 $15.57 $12.67 $12.98 $13.81 $14.68 $15.62 Tier 2: 4 - 8 ccf 5 $35.00 $31.68 $32.45 $34.52 $36.71 $39.04 Tier 3: 9 - 16 ccf 2 $17.38 $12.67 $12.98 $13.81 $14.68 $15.62 Tier 4: Over 16 ccf 0 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 Subtotal Consumption Charge 10 $67.95 $57.02 $58.41 $62.14 $66.08 $70.27 Total Bimonthly Water Bill $90.62 $90.14 $92.69 $98.99 $105.67 $112.81 $ Change ($0.48) $2.55 $6.29 $6.69 $7.14
% Change -0.5% 2.8% 6.8% 6.8% 6.8%
Residential: 3/4" meter, 20 ccf
Fixed Meter Charge - 3/4" $22.67 $33.12 $34.28 $36.85 $39.59 $42.54 Consumption Charge
Tier 1: 0 - 3 ccf 3 $15.57 $12.67 $12.98 $13.81 $14.68 $15.62 Tier 2: 4 - 8 ccf 5 $35.00 $31.68 $32.45 $34.52 $36.71 $39.04 Tier 3: 9 - 16 ccf 8 $69.52 $50.68 $51.92 $55.23 $58.74 $62.46 Tier 4: Over 16 ccf 4 $44.20 $25.34 $25.96 $27.62 $29.37 $31.23 Subtotal Consumption Charge 20 $164.29 $120.38 $123.32 $131.18 $139.51 $148.35 Total Bimonthly Water Bill $186.96 $153.50 $157.60 $168.03 $179.10 $190.89 $ Change ($33.46) $4.10 $10.43 $11.07 $11.79
% Change -17.9% 2.7% 6.6% 6.6% 6.6%
Residential: 3/4" meter, 40 ccf
Fixed Meter Charge - 3/4" $22.67 $33.12 $34.28 $36.85 $39.59 $42.54 Consumption Charge
Tier 1: 0 - 3 ccf 3 $15.57 $12.67 $12.98 $13.81 $14.68 $15.62 Tier 2: 4 - 8 ccf 5 $35.00 $31.68 $32.45 $34.52 $36.71 $39.04 Tier 3: 9 - 16 ccf 8 $69.52 $50.68 $51.92 $55.23 $58.74 $62.46 Tier 4: Over 16 ccf 24 $265.20 $288.19 $299.36 $316.08 $333.66 $352.19 Subtotal Consumption Charge 40 $385.29 $383.23 $396.71 $419.64 $443.80 $469.31 Total Bimonthly Water Bill $407.96 $416.35 $430.99 $456.49 $483.39 $511.85 $ Change $8.39 $14.65 $25.49 $26.90 $28.46
% Change 2.1% 3.5% 5.9% 5.9% 5.9%
42 A.
COMMERCIAL BILL IMPACTS
Monthly Use Current
(ccf) Bill 2022/23 2023/24 2024/25 2025/26 2026/27
Commercial: 5/8" meter, 10 ccf
Fixed Meter Charge - 5/8" $35.07 $33.12 $34.28 $36.85 $39.59 $42.54 Consumption Charge
Tier 1: 0 - 8 ccf 8 $41.58 $44.35 $45.43 $48.33 $51.40 $54.65 Tier 2: 9 - 16 ccf 2 $17.38 $12.67 $12.98 $13.81 $14.68 $15.62 Tier 3: Over 16 ccf 0 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 Subtotal Consumption Charge 10 $58.96 $57.02 $58.41 $62.14 $66.08 $70.27 Total Bimonthly Water Bill $94.03 $90.14 $92.69 $98.99 $105.67 $112.81 $ Change ($3.89) $2.55 $6.29 $6.69 $7.14
% Change -4.1% 2.8% 6.8% 6.8% 6.8%
Commercial: 1-1/2" meter, 40 ccf
Fixed Meter Charge - 1-1/2" $0.00 $33.12 $34.28 $36.85 $39.59 $42.54 Consumption Charge
Tier 1: 0 - 8 ccf 8 $56.00 $44.35 $45.43 $48.33 $51.40 $54.65 Tier 2: 9 - 16 ccf 8 $69.52 $50.68 $51.92 $55.23 $58.74 $62.46 Tier 3: Over 16 ccf 24 $265.20 $288.19 $299.36 $316.08 $333.66 $352.19 Subtotal Consumption Charge 40 $390.72 $383.23 $396.71 $419.64 $443.80 $352.19 Total Bimonthly Water Bill $390.72 $416.35 $430.99 $456.49 $483.39 $394.73 $ Change $25.63 $14.65 $25.49 $26.90 ($88.66)
% Change 6.6% 3.5% 5.9% 5.9% -18.3%
IRRIGATION BILL IMPACTS
Monthly Use Current
(ccf) Bill 2022/23 2023/24 2024/25 2025/26 2026/27
Irrigation: 1-1/2" meter, 50 ccf
Fixed Meter Charge - 5/8" $92.47 $88.33 $91.44 $98.30 $105.59 $113.48 Consumption Charge
Tier 1: 0 - 8 ccf 8 $41.42 $44.35 $45.43 $48.33 $51.40 $54.65 Tier 2: 9 - 16 ccf 8 $90.80 $50.68 $51.92 $55.23 $58.74 $62.46 Tier 3: Over 16 ccf 34 $448.46 $472.19 $490.74 $518.00 $546.66 $576.86 Subtotal Consumption Charge 50 $580.68 $567.22 $588.09 $621.56 $656.80 $693.98 Total Bimonthly Water Bill $673.15 $655.55 $679.53 $719.85 $762.39 $807.45 $ Change ($17.61) $23.98 $40.33 $42.53 $45.07
% Change -2.6% 3.7% 5.9% 5.9% 5.9%
Irrigation: 2" meter, 100 ccf
Fixed Meter Charge - 2" $92.47 $88.33 $91.44 $98.30 $105.59 $113.48 Consumption Charge
Tier 1: 0 - 8 ccf 8 $41.42 $44.35 $45.43 $48.33 $51.40 $54.65 Tier 2: 9 - 16 ccf 8 $90.80 $50.68 $51.92 $55.23 $58.74 $62.46 Tier 3: Over 16 ccf 84 $1,107.96 $1,129.31 $1,174.23 $1,239.15 $1,307.39 $1,379.26 Subtotal Consumption Charge 100 $1,240.18 $1,224.35 $1,271.58 $1,342.71 $1,417.53 $1,496.37 Total Bimonthly Water Bill $1,332.65 $1,312.67 $1,363.02 $1,441.00 $1,523.12 $1,609.85 $ Change ($19.98) $50.35 $77.98 $82.11 $86.74
% Change -1.5% 3.8% 5.7% 5.7% 5.7%
Proposed
Proposed
43 A.
Table 16: Comparison of Bimonthly Water Bill for Typical Residential Customer City of Brisbane
Water Utility Rate Study 2022
* Does not include Drought Surcharge or Capital Charge $82.85 $90.14 $92.69
$98.99
$105.67
$112.81
$0.00
$20.00
$40.00
$60.00
$80.00
$100.00
$120.00
Current
2021/22
2022/23 2023/24 2024/25 2025/26 2026/27
Comparison of Bimonthly Water Bill for
Typical Residential Customer (10 ccf)*
Proposed
44 A.
Table 17: Bimonthly Water Bill Survey
City of Brisbane
Water Utility Rate Study 2022
3707
1886
5593 $101.26 $104.80
$111.42 $112.09
$118.71
$125.78 $128.56
$141.26
$161.40
$188.00
$0
$20
$40
$60
$80
$100
$120
$140
$160
$180
$200
CWS - Bay Area
Region
Westborough
Water District
Brisbane
(current)
Daly City Brisbane
(Proposed Jan
1, 23)
North Coast
County Water
District
San Francisco San Bruno Burlingame Millbrae
Bimonthly Water Bill Survey - July 2021
Single Family Residential (5/8" or 3/4" meter, 10 ccf)
Other Charges (1)
Consumption Charges
Fixed Charge
Scenario 3 - Proposed 7/1/22
Current
Scenario 2 - Proposed 7/1/22
Proposed - Jan 1, 2023
1 - Includes Drought Surcharge and proposed 2022 Capital Charge 45 A.
Table 18: Water Low Income Discount
City of Brisbane
Water and Sewer Utility Rate Study 2022
Proposed Rates
Jan 1, 2023
Total Number of Residential Water Customers 1,650
Estimated Number of Customers Eligible for Discount 400 Total 2020/21 Water Low Income Discount Revenue $37,500 Annual Discount per Customer $93.80
Bimonthly Discount per Customer $15.60
5/8" Meter Bimonthly Fixed Charge $33.12
Less Proposed Bimonthly Discount per Customer $15.60
5/8" Meter Bimonthly Fixed Charge less Discount $17.52
% of Discount 47.1%
46 A.