CITY OF CALIFORNIA CITY
CITY COUNCIL MEETING
THURSDAY JUNE 29, 2023
NOTICE OF CANCELLATION
NOTICE IS HEREBY GIVEN that the Special Meeting of the City Council meeting scheduled for Thursday, June 29, 2023, at 5:00 p.m. in the Council Chambers, 21000 Hacienda Boulevard is cancelled due to no quorum. City Manager opened the meeting as informational only for public discussion.
Affidavit of Posting: This agenda was posted on all official City bulletin boards and the City website.
Socorro Chavez, City Clerk
Kelly Kulikoff
Mayor
Ronald Smith
Mayor Pro Tem
Jim Creighton
Councilmember
Karen Macedonio
Councilmember
Michael Kulikoff
Councilmember AGENDA
CITY OF CALIFORNIA CITY
CITY COUNCIL/ HOUSING AUTHORITY/ SUCCESSOR AGENCY
SPECIAL MEETING
THURSDAY, JUNE 29, 2023
SPECIAL MEETING @ 5:00PM
COUNCIL CHAMBERS & VIA ZOOM
21000 HACIENDA BLVD., CALIFORNIA CITY, CA 93505
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June 29, 2023 1
** At this time, please take a moment to turn off your cell phones ** SPECIAL MEETING @ 5:00 PM
CALL TO ORDER
ROLL CALL
Councilmembers: Kulikoff, Creighton, Macedonio, Mayor Pro Tem Smith, Mayor Kulikoff
PLEDGE OF ALLEGIANCE/ INVOCATION
ADOPT AGENDA
DISCUSSION ITEM
DI 1. Water and Sewer Rate Study – by Public Works Director, Joe Barragan
PUBLIC COMMENTS
Members of the public are welcome to address the City Council only on those items the discussion item section. Each member of the public will be given (3) three minutes to speak.
ADJOURNMENT
AFFIDAVIT OF POSTING: This agenda was posted on all official City bulletin boards and the city website at least 24 hours prior to the Special City Council Meeting. Socorro Chavez, City Clerk June 29, 2023 2
Water and Sewer Rate
Study
City of California City
ROBE RT D. NIE HA US, INC.
J UNE 29, 2023
June 29, 2023 3
Agenda Key Assumptions Inflation Customer Growth Water Use Water Financial Plan Proposed Water Rates Sewer Financial Plan Proposed Sewer Rates Next Steps 2 June 29, 2023 4
Inflation Factors 3
~Average of 3.3% increase
per year for water
operating expenses
~Average of 3.5% increase
per year for sewer
operating expenses
3.0%
3.2%
4.5%
5.0%
5.0%
4.5%
7.0%
5.5%
4.5%
3.4%
4.3%
0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0% 8.0%
Payroll
Other Employee
Utilities
Chemicals
Water Treatment
Wastewater Treatment
Water Purchase
Fuel/Automobile
Construction
Insurance
Overall
June 29, 2023 5
Customer Growth 4
4,762 4,831 4,901 4,972 5,044 5,117 5,191 5,267 5,344 5,422 5,501 0 1,000
2,000
3,000
4,000
5,000
6,000
FY
2023
FY
2024
FY
2025
FY
2026
FY
2027
FY
2028
FY
2029
FY
2030
FY
2031
FY
2032
FY
2033
3/4" 1" 1 1/2" 2" 3" 4" 6" 8"
Water Sewer
4,264 4,290 4,316 4,343 4,370 4,397 4,425 4,453 4,481 4,510 4,539 -
1,000
2,000
3,000
4,000
5,000
FY
2023
FY
2024
FY
2025
FY
2026
FY
2027
FY
2028
FY
2029
FY
2030
FY
2031
FY
2032
FY
2033
Residential Residential + Commerical Restaurants Prison (Bed) June 29, 2023 6
Water Use 5
938 947 955 964 973 982 991 1,000 1,009 1,019 1,029
-
200
400
600
800
1,000
1,200
FY 2023FY 2024FY 2025FY 2026FY 2027FY 2028FY 2029FY 2030FY 2031FY 2032FY 2033 hcf Thousands
3/4" 1" 1 1/2" 2" 3" 4" 6" 8"
June 29, 2023 7
6 Water Financial
Plan
June 29, 2023 8
Current Water Rates 7
Customer Class Meter Size Monthly Fee
All Customers 3/4" $30.00
1" $70.00
1 1/2" $160.00
2" $270.00
3" $610.00
4" $1,110.00
6" $2,470.00
8" $4,240.00
Fixed Charges Customer Class Tier - Width Unit Cost
3/4" Tier 1 - 6 hcf $0.00
Tier 2 - 3 hcf $5.00
Tier 3 - 6 hcf $1.00
Tier 4 - 10 hcf $2.00
Tier 5 - 15 hcf $3.00
Tier - All Additional hcf $4.00
1" Tier 1-12 hcf $0.00
Tier 2-3 hcf $6.00
Tier 3-10 hcf $1.00
Tier 4-17 hcf $2.00
Tier 5-25 hcf $3.00
Tier 6 - All Additional hcf $4.00
1 1/2" Tier 1-25 hcf $0.00
Tier 2-5 hcf $4.00
Tier 3-20 hcf $1.00
Tier 4-33 hcf $2.00
Tier 5-50 hcf $3.00
Tier 6 - All Additional hcf $4.00
Variable Charges 2" Tier 1-40 hcf $0.00
Tier 2-10 hcf $2.00
Tier 3-30 hcf $1.00
Tier 4-53 hcf $2.00
Tier 5-80 hcf $3.00
Tier 6 - All Additional hcf $4.00
3" Tier 1-90 hcf $0.00
Tier 2-15 hcf $1.00
Tier 3-70 hcf $1.00
Tier 4-117 hcf $2.00
Tier 5-175 hcf $3.00
Tier 6 - All Additional hcf $4.00
4" Tier 1-160 hcf $0.00
Tier 2-30 hcf $1.00
Tier 3-125 hcf $1.00
Tier 4-210 hcf $2.00
Tier 5-315 hcf $3.00
Tier 6 - All Additional hcf $4.00
6" Tier 1-360 hcf $0.00
Tier 2-60 hcf $1.00
Tier 3-280 hcf $1.00
Tier 4-467 hcf $2.00
Tier 5-700 hcf $3.00
Tier 6 - All Additional hcf $4.00
8" Tier 1-620 hcf $0.00
Tier 2-100 hcf $1.00
Tier 3-480 hcf $1.00
Tier 4-800 hcf $2.00
Tier 5-1200 hcf $3.00
Tier 6 - All Additional hcf $4.00
June 29, 2023 9
Revenue Summary 8
Meter Size Customer Count Rate Revenue
3/4" 4481 $30.00 $1,613,160
1" 195 $70.00 $163,800
1 1/2" 21 $160.00 $40,320
2" 43 $270.00 $139,320
3" 1 $610.00 $7,320
4" 12 $1,110.00 $159,840
6" 5 $2,470.00 $148,200
8" 4 $4,240.00 $203,520
Use Category Volume (hcf) Rate Revenue
3/4" - Tier 1 244,900 $0.00 $0
3/4" - Tier 2 71,263 $5.00 $356,315
3/4" - Tier 3 84,361 $1.00 $84,361
3/4" - Tier 4 66,399 $2.00 $132,798
3/4" - Tier 5 39,300 $3.00 $117,900
3/4" - Tier 6 38,676 $4.00 $154,704
1" - Tier 1 19,051 $0.00 $0
1" - Tier 2 $6.00 $8,196 1,366
1" - Tier 3 $1.00 $3,223 3,223
1" - Tier 4 $2.00 $5,394 2,697
1" - Tier 5 $3.00 $4,338 1,446
1" - Tier 6 $4.00 $9,876 2,469
1 1/2" - Tier 1 $0.00 2,065 $0
1 1/2" - Tier 2 $4.00 $1,820 455
1 1/2" - Tier 3 $1.00 $1,196 1,196
1 1/2" - Tier 4 $2.00 $2,032 1,016
1 1/2" - Tier 5 $3.00 $1,923 641
1 1/2" - Tier 6 $4.00 $9,248 2,312
2" - Tier 1 17,808 $0.00 $0
2" - Tier 2 $2.00 $2,734 1,367
2" - Tier 3 $1.00 $4,953 4,953
2" - Tier 4 $2.00 $11,306 5,653
2" - Tier 5 $3.00 $15,345 5,115
2" - Tier 6 17,339 $4.00 $69,356
3" - Tier 1 $0.00 84 $0
3" - Tier 2 $1.00 - $0
3" - Tier 3 $1.00 - $0
3" - Tier 4 $2.00 - $0
3" - Tier 5 $3.00 - $0
3" - Tier 6 $4.00 - $0
4" - Tier 1 18,653 $0.00 $0
4" - Tier 2 $1.00 959 $959
4" - Tier 3 $1.00 $2,158 2,158
4" - Tier 4 $2.00 $1,794 897
4" - Tier 5 $3.00 190 $570
4" - Tier 6 $4.00 - $0
6" - Tier 1 $0.00 2,179 $0
6" - Tier 2 $1.00 390 $390
6" - Tier 3 $1.00 $1,525 1,525
6" - Tier 4 $2.00 $5,040 2,520
6" - Tier 5 $3.00 $8,607 2,869
6" - Tier 6 $4.00 $1,488 372
8" - Tier 1 $0.00 1,762 $0
8" - Tier 2 $1.00 431 $431
8" - Tier 3 $1.00 $1,263 1,263
8" - Tier 4 $2.00 $4,436 2,218
8" - Tier 5 $3.00 $9,303 3,101
8" - Tier 6 261,763 $4.00 $1,047,052
Fixed
54%
Variable
46%
June 29, 2023 10
Operating Budget 9
Assumptions:
• Slight customer growth
• Stable water use
• Current Inflation trends will level out over time
Category FY 2023 FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 Total Revenue $4,742,514 $4,783,858 $4,825,782 $4,868,288 $4,911,375 $4,955,044 O&M Expense $5,244,122 $5,441,942 $5,639,260 $5,822,932 $6,012,877 $6,209,323 Inflation 3.8% 3.6% 3.3% 3.3% 3.3%
Net Income (Deficit) ($658,084) ($813,477) ($954,644) ($1,101,503) ($1,254,279) FY 2029 FY 2030 FY 2031 FY 2032 FY 2033
$4,999,296 $5,045,094 $5,091,476 $5,138,442 $5,185,993
$6,412,504 $6,622,666 $6,840,064 $7,064,961 $7,297,632
3.3% 3.3% 3.3% 3.3% 3.3%
($1,413,208) ($1,577,572) ($1,748,588) ($1,926,519) ($2,111,639) June 29, 2023 11
Other Financial 10
Reserve Policy/Targets
No Policy Included: Cash Balance Water ~$4.3 Million
$0
$1,000,000
$2,000,000
$3,000,000
$4,000,000
$5,000,000
$6,000,000
$7,000,000
$8,000,000
FY 2023 FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 FY 2030 FY 2031 FY 2032 FY 2033 PAYGO Debt Service
June 29, 2023 12
Specific Water Capital Projects 11
June 29, 2023 13
Fund Balance
with No
Adjustment
(Water)
12 -$80
-$70
-$60
-$50
-$40
-$30
-$20
-$10
$0
$10
FY 2023 FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 FY 2030 FY 2031 FY 2032 FY 2033 Millions June 29, 2023 14
Proposed Multi 13 -Year Adjustments
FY 2024 FY 2025 FY 2026 FY 2027 FY 2028
Recommended Adjustment 68.0% 30.0% 8.0% 8.0% 8.0%
Multiplier 1.68 2.36 2.18 2.55 2.75
Cumulative Adjustment 68.0% 118.4% 135.9% 154.7% 175.1% June 29, 2023 15
Suggested
Reserve
Policy
14 Operating Reserve:
6 Months Operating ~$3.1 Million in FY
2028
Capital Reserve:
1 year CIP expense average ~$4.5 Million
Emergency Reserve:
2% of Assets ~?
June 29, 2023 16
Fund Balance
with
Adjustment
(Water)
15 $0.0
$1.0
$2.0
$3.0
$4.0
$5.0
$6.0
$7.0
FY 2023 FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 FY 2030 FY 2031 FY 2032 FY 2033 Millions June 29, 2023 17
Financial
Pro Forma
(Water)
16 Rate Increase 68.0% 30.0% 8.0% 8.0% 8.0%
Rate Month Implemented January July July July July
FY 2023 FY 2024 FY 2025 FY 2026 FY 2027 FY 2028
Cash Position Opening Balance $ 4,370,839 $ 3,383,599 $ 2,026,491 $ 2,566,598 $ 3,655,818 $ 5,396,726 Revenues
Water Rate Revenue $ 4,557,514 $ 7,721,749 $ 10,124,123 $ 11,028,051 $ 12,013,199 $ 13,086,885 Other Operating Revenue $ 122,000 $ 123,830 $ 125,687 $ 127,573 $ 129,486 $ 131,429 Property Tax $ 63,000 $ 63,749 $ 64,508 $ 65,276 $ 66,055 $ 66,843 Other Non-Operating Revenue -$ -$ -$ -$ -$ -$
Total Revenues $ 4,742,514 $ 7,909,328 $ 10,314,318 $ 11,220,900 $ 12,208,740 $ 13,285,157 Operating Inflation
Operating Expenses $ 5,244,122 $ 5,441,942 $ 5,639,260 $ 5,822,932 $ 6,012,877 $ 6,209,323 Current Debt Service $ 260,132 $ 259,867 $ 259,867 $ 259,867 $ 259,867 $ 259,867 Proposed Debt Service -$ -$ -$ -$ -$ -$
Total Operating and Debt Service $ 5,504,254 $ 5,701,809 $ 5,899,126 $ 6,082,799 $ 6,272,744 $ 6,469,190 Net Revenues $ (761,740) $ 2,207,519 $ 4,415,191 $ 5,138,101 $ 5,935,995 $ 6,815,967 Capital Expenditure $ 225,500 $ 3,564,627 $ 3,875,084 $ 4,048,882 $ 4,195,087 $ 4,346,572 Debt Proceeds Current -$ -$ -$ -$ -$ -$
Debt Proceeds Proposed -$ -$ -$ -$ -$ -$
Grants -$ -$ -$ -$ -$ -$
Cash $ 225,500 $ 3,564,627 $ 3,875,084 $ 4,048,882 $ 4,195,087 $ 4,346,572 Net Income $ (987,240) $ (1,357,108) $ 540,107 $ 1,089,220 $ 1,740,908 $ 2,469,395 Ending Balance $ 3,383,599 $ 2,026,491 $ 2,566,598 $ 3,655,818 $ 5,396,726 $ 7,866,121 DSCR -1.93 9.49 17.99 20.77 23.84 27.23
June 29, 2023 18
Cost of Service (Water) 17
Unit Count of
Units
Customers 4,759
EMs 5,771
Water Use 944,436
Max Month 115,587
Average Day 2,595
Max Day 3,800
Peak Hourly 5,701
Source of
Supply Base MDD PHD Meters Customer
Service
Rate Revenue Requirement $252,107 $3,020,943 $1,403,930 $460,639 $1,430,746 $1,153,384 Units 944,436 944,436 3,800 5,701 5,771 4,759
Unit Cost $0.27 $3.20 $369.42 $80.81 $247.92 $242.36
Customer Class Total Base MDD PHD Meters Customer
Service
Residential $5,445,224 $1,860,032 $822,073 $269,728 $1,218,955 $1,119,211 Non Residential $2,276,525 $1,160,911 $581,857 $190,911 $211,792 $34,173 June 29, 2023 19
18 Proposed Water
Rates
June 29, 2023 20
Rate Design (Water Option 1) 19
Customer Class Cost of
Service Variable Percent Fixed Percent
Residential $5,445,224 $1,247,026 22.9% $4,198,198 77.1% Non Residential $2,276,525 $869,650 38.2% $1,406,875 61.8% Total $7,721,749 $2,116,676 27.4% $5,605,073 72.6%
Meter Size Res Non-Res
3/4" $54.79 $97.61
1" $77.97 $149.48
1 1/2" $135.39 $278.00
2" $204.58 $432.83
3" $366.12 $794.38
4" $596.86 $1,310.75
6" $1,173.17 $2,600.54
8" $1,865.02 $4,148.90
Variable rate includes all water use
Customer Class Variable Rate
(hcf)
Residential $3.93
Non Residential $3.99
June 29, 2023 21
Proposed Rates (Water Option 1) 20
Customer
Class Current FY 2024 FY 2025 FY 2026 FY 2027 FY 2028
Res 68% 30% 8% 8% 8%
3/4" $30.00 $54.79 $71.23 $76.92 $83.08 $89.72
1" $70.00 $77.97 $101.36 $109.46 $118.22 $127.68
1 1/2" $160.00 $135.39 $176.01 $190.09 $205.29 $221.72
2" $270.00 $204.58 $265.95 $287.22 $310.20 $335.02
3" $610.00 $366.12 $475.96 $514.04 $555.16 $599.57
4" $1,110.00 $596.86 $775.91 $837.98 $905.02 $977.43
6" $2,470.00 $1,173.17 $1,525.12 $1,647.13 $1,778.90 $1,921.21 8" $4,240.00 $1,865.02 $2,424.53 $2,618.49 $2,827.97 $3,054.20 Non-Res
3/4" $30.00 $97.61 $126.90 $137.05 $148.01 $159.86
1" $70.00 $149.48 $194.33 $209.88 $226.67 $244.80
1 1/2" $160.00 $278.00 $361.40 $390.31 $421.53 $455.26
2" $270.00 $432.83 $562.68 $607.70 $656.32 $708.82
3" $610.00 $794.38 $1,032.69 $1,115.30 $1,204.53 $1,300.89 4" $1,110.00 $1,310.75 $1,703.98 $1,840.30 $1,987.52 $2,146.52 6" $2,470.00 $2,600.54 $3,380.70 $3,651.16 $3,943.25 $4,258.71 8" $4,240.00 $4,148.90 $5,393.57 $5,825.05 $6,291.06 $6,794.34 Customer Class FY 2024 FY 2025 FY 2026 FY 2027 FY 2028
All Use per hcf 68.0% 30.0% 8.0% 8.0% 8.0%
Residential $3.93 $5.11 $5.52 $5.96 $6.44
Non Residential $3.99 $5.19 $5.60 $6.05 $6.53
June 29, 2023 22
Rate Design (Water Option 2) 21
Variable rate includes all water use
Customer Class Variable Rate
(hcf)
Residential $5.34
Non Residential $5.59
Meter Size Res Non-Res
3/4" $40.86 $40.86
1" $54.70 $54.70
1 1/2" $88.99 $88.99
2" $130.31 $130.31
3" $226.79 $226.79
4" $364.59 $364.59
6" $708.78 $708.78
8" $1,121.97 $1,121.97
Customer Class Cost of
Service Variable Percent Fixed Percent
Residential $5,445,224 $3,107,058 57.1% $2,338,166 42.9% Non Residential $2,276,525 $2,030,561 89.2% $245,964 10.8% Total $7,721,749 $5,137,619 66.5% $2,584,130 33.5%
June 29, 2023 23
Proposed Rates (Water Option 2) 22
Customer
Class Current FY 2024 FY 2025 FY 2026 FY 2027 FY 2028
Res 68% 30% 8% 8% 8%
3/4" $30.00 $40.86 $53.11 $57.36 $61.95 $66.91
1" $70.00 $54.70 $71.11 $76.80 $82.94 $89.57
1 1/2" $160.00 $88.99 $115.69 $124.95 $134.94 $145.74
2" $270.00 $130.31 $169.41 $182.96 $197.60 $213.40
3" $610.00 $226.79 $294.83 $318.42 $343.89 $371.40
4" $1,110.00 $364.59 $473.97 $511.89 $552.84 $597.07
6" $2,470.00 $708.78 $921.42 $995.13 $1,074.74 $1,160.72 8" $4,240.00 $1,121.97 $1,458.57 $1,575.25 $1,701.27 $1,837.37 Non-Res
3/4" $30.00 $40.86 $53.11 $57.36 $61.95 $66.91
1" $70.00 $54.70 $71.11 $76.80 $82.94 $89.57
1 1/2" $160.00 $88.99 $115.69 $124.95 $134.94 $145.74
2" $270.00 $130.31 $169.41 $182.96 $197.60 $213.40
3" $610.00 $226.79 $294.83 $318.42 $343.89 $371.40
4" $1,110.00 $364.59 $473.97 $511.89 $552.84 $597.07
6" $2,470.00 $708.78 $921.42 $995.13 $1,074.74 $1,160.72 8" $4,240.00 $1,121.97 $1,458.57 $1,575.25 $1,701.27 $1,837.37 Customer Class FY 2024 FY 2025 FY 2026 FY 2027 FY 2028
All Use (per hcf) 68.0% 30.0% 8.0% 8.0% 8.0%
Residential $5.34 $6.94 $7.50 $8.10 $8.74
Non Residential $5.59 $7.27 $7.85 $8.48 $9.15
June 29, 2023 24
23 Sewer Financial
Plan
June 29, 2023 25
Current Rates Sewer 24
Customer Class Annual Fee
Residential $40.00
Residential + $10.00
Commerical $0.00
Restaurants $0.00
Prison (Bed) $21.41
Sewage Truck $0.00
Fixed Charges
Customer Class Tier - Width Unit Cost
Residential All Use $0.00
Residential + All Use $0.00
Commerical All Use $2.88
Restaurants All Use $4.13
Prison (Bed) All Use $1.50
Sewage Truck All Use $5.00
Variable Charges
June 29, 2023 26
Revenue Summary 25
Fixed
78%
Variable
22%
Customer Class Customer Count Rate Revenue
Residential $40.00 $700,320 1,459
Residential + $10.00 $28,680 239
Commerical $0.00 61 $0
Restaurants $0.00 5 $0
Prison (Bed) $21.41 $642,300 2,500
Sewage Truck $0.00 - $0
Use Category Volume (hcf) Rate Revenue
Residential $0.00 - $0
Residential + $0.00 - $0
Commerical 42,334 $2.88 $121,922
Restaurants $4.13 $9,619 2,329
Prison (Bed) 172,712 $1.50 $259,068
Sewage Truck $5.00 - $0
June 29, 2023 27
Operating Budget 26
Assumptions:
• Slight customer growth
• Stable sewer flows
• Current Inflation trends will level out over time
Category FY 2023 FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 Total Revenue $1,780,909 $1,792,257 $1,803,610 $1,815,450 $1,827,295 $1,839,146 O&M Expense $1,430,350 $1,486,962 $1,543,432 $1,594,053 $1,646,424 $1,700,608 Inflation 4.0% 3.8% 3.3% 3.3% 3.3%
Net Income (Deficit) $305,295 $260,178 $221,396 $180,871 $138,538 FY 2029 FY 2030 FY 2031 FY 2032 FY 2033
$1,851,483 $1,863,826 $1,876,175 $1,889,011 $1,901,853
$1,756,671 $1,814,683 $1,874,715 $1,936,842 $2,001,140
3.3% 3.3% 3.3% 3.3% 3.3%
$94,812 $49,143 $1,460 ($47,831) ($99,287)
June 29, 2023 28
Other Financial 27
Reserve Policy/Targets
No Policy Included: Cash Balance Sewer ~$4.0 Million
$0
$200,000
$400,000
$600,000
$800,000
$1,000,000
$1,200,000
$1,400,000
FY 2023 FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 FY 2030 FY 2031 FY 2032 FY 2033 PAYGO Debt Service
June 29, 2023 29
Specific Sewer Capital Projects 28
Facility Project Timeline Cost
WWTF Headworks Upgrade
(fine screens and grit removal)
Immediate $1,000,000
WWTF Biolac Conversion of Aeration
Ponds
Immediate $1,500,000
WWTF Additional 10-acre Disposal
Pond
Immediate $1,000,000 (City staff
construction)
WWTF Secondary Disinfection &
Holding Tank (discharge to
pond)
Immediate $1,000,000
WWTF Sludge Dewatering Screw
Press
5-10 years $1,000,000
WWTF Demolition of Tertiary
Treatment Facilities
5-10 years $150,000
TOTAL $5,650,000
June 29, 2023 30
Fund Balance
with No
Adjustment
(Sewer)
29 -$4.0
-$3.0
-$2.0
-$1.0
$0.0
$1.0
$2.0
$3.0
$4.0
$5.0
FY 2023 FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 FY 2030 FY 2031 FY 2032 FY 2033 Millions June 29, 2023 31
Proposed Multi-Year Adjustments 30
FY 2024 FY 2025 FY 2026 FY 2027 FY 2028
Recommended Adjustment 6.0% 6.0% 6.0% 6.0% 6.0%
Multiplier 1.06 1.19 1.12 1.26 1.34
Cumulative Adjustment 6.0% 12.4% 19.1% 26.2% 33.8%
June 29, 2023 32
Suggested
Reserve Policy
31 Operating Reserve:
6 Months Operating ~$850,000 in FY 2028
Capital Reserve:
1 year CIP expense average ~$0.6 Million
Emergency Reserve:
2% of Assets ~?
June 29, 2023 33
Fund
Balance
with
Adjustment
32 $0.0
$0.5
$1.0
$1.5
$2.0
$2.5
$3.0
$3.5
$4.0
$4.5
FY 2023 FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 FY 2030 FY 2031 FY 2032 FY 2033 Millions June 29, 2023 34
Financial
Pro Forma
(Sewer)
33 Rate Increase 6.0% 6.0% 6.0% 6.0% 6.0%
Rate Month Implemented January July July July July
FY 2023 FY 2024 FY 2025 FY 2026 FY 2027 FY 2028
Cash Position Opening Balance $ 3,977,079 $ 4,005,463 $ 3,361,661 $ 2,744,691 $ 2,167,342 $ 1,643,729 Revenues
Sewer Rate Revenue $ 1,761,909 $ 1,879,326 $ 2,004,490 $ 2,138,480 $ 2,281,332 $ 2,433,628 Other Operating Revenue $ 12,000 $ 12,240 $ 12,485 $ 12,734 $ 12,989 $ 13,249 Property Tax $ 7,000 $ 7,068 $ 7,137 $ 7,206 $ 7,277 $ 7,348 Other Non-Operating Revenue -$ -$ -$ -$ -$ -$
Total Revenues $ 1,780,909 $ 1,898,634 $ 2,024,111 $ 2,158,420 $ 2,301,598 $ 2,454,225 Operating Inflation 4.0% 3.8% 3.3% 3.3% 3.3%
Operating Expenses $ 1,430,350 $ 1,486,962 $ 1,543,432 $ 1,594,053 $ 1,646,424 $ 1,700,608 Current Debt Service $ 112,175 $ 115,109 $ 115,109 $ 115,109 $ 115,109 $ 115,109 Proposed Debt Service -$ -$ -$ -$ -$ -$
Total Operating and Debt Service $ 1,542,525 $ 1,602,071 $ 1,658,541 $ 1,709,162 $ 1,761,533 $ 1,815,716 Net Revenues $ 238,384 $ 296,563 $ 365,571 $ 449,258 $ 540,065 $ 638,509 Capital Expenditure $ 210,000 $ 940,365 $ 982,540 $ 1,026,607 $ 1,063,678 $ 1,102,088 Debt Proceeds Current -$ -$ -$ -$ -$ -$
Debt Proceeds Proposed -$ -$ -$ -$ -$ -$
Grants -$ -$ -$ -$ -$ -$
Cash $ 210,000 $ 940,365 $ 982,540 $ 1,026,607 $ 1,063,678 $ 1,102,088 Net Income $ 28,384 $ (643,802) $ (616,970) $ (577,349) $ (523,613) $ (463,579) Interest Adjustment -$ -$ -$ -$ -$ -$
Ending Balance $ 4,005,463 $ 3,361,661 $ 2,744,691 $ 2,167,342 $ 1,643,729 $ 1,180,151 June 29, 2023 35
Cost of Service (Sewer) 34
Unit Count of
Units
Customers 1,526
Units 4,264
Flow 352,683
BOD 562,862
TSS 543,832
Volume BOD TSS Sewer Service
Rate Revenue Requirement $810,563 $405,281 $405,281 $258,200 Units 352,683 562,862 543,832 1,526
Unit Cost $2.30 $0.72 $0.75 $169.20
Customer
Class Total Volume BOD TSS Sewer Service
SFR $709,087 $261,599 $102,329 $105,909 $239,249
MFR $96,295 $49,376 $19,314 $19,990 $7,614
Commercial $148,111 $97,295 $24,738 $15,756 $10,321
Restaurants $23,169 $5,353 $10,469 $6,501 $846
Prison $902,665 $396,940 $248,431 $257,124 $169
June 29, 2023 36
35 Proposed Sewer
Rates
June 29, 2023 37
Rate Design (Sewer) 36
Truck rates based on 5x residential sewer strength
Customer
Class
Cost of
Service
Fixed
Units
Fixed Cost
per Unit
Variable
Units
Variable
Cost per
Unit
Fixed Percent
SFR $709,087 1,414 $501.48 113,824 $0.00 $373,332 52.6% MFR $96,295 $339.07 21,484 284 $0.00 $59,697 62.0%
Commercial $148,111 $0.00 42,334 61 $3.50 $98,141 66.3% Restaurants $23,169 5 $0.00 2,329 $9.95 $5,522 23.8%
Prison $902,665 2,500 $259.95 172,712 $1.46 $396,940 44.0% Customer Class Fixed
Charge
Variable
Charge
SFR $41.79 $0.00
MFR $28.26 $0.00
Commercial $0.00 $3.50
Restaurants $0.00 $9.95
Prison $21.66 $1.46
Sewage Truck (100 gallons) $0.00 $14.10
June 29, 2023 38
Proposed Rates (Sewer) 37
Customer Class Current FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 Fixed Charge 6% 6% 6% 6% 6%
SFR $40.00 $41.79 $44.30 $46.95 $49.77 $52.76
MFR $10.00 $28.26 $29.95 $31.75 $33.65 $35.67
Commercial $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
Restaurants $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
Prison $21.41 $21.66 $22.96 $24.34 $25.80 $27.35
Customer Class Current FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 Variable Charge 6% 6% 6% 6% 6%
SFR $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
MFR $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
Commercial $2.88 $3.50 $3.71 $3.93 $4.17 $4.42
Restaurants $4.13 $9.95 $10.54 $11.18 $11.85 $12.56
Prison $1.50 $1.46 $1.55 $1.64 $1.74 $1.85
Sewage Truck (100 gallons) $5.00 $14.10 $14.95 $15.84 $16.79 $17.80 June 29, 2023 39
Moving Forward
38 June 29, 2023 40
Proposition 218 Process 39
1. Adopt recommendations
2. Provide 45-day notice
3. Rate Hearing
a. Customers given chance to protest
4. Rates implemented
June 29, 2023 41
40 Thank You
June 29, 2023 42