2025-02-11; City Council; 08; 2025 Cost of Service Studies for Water and Wastewater, Setting a Public Hearing to Approve Rate Changes, Issuing a Written Notice of the Public Hearing and Establishing P — Carlsbad City Council, February 11, 2025 (part 2 of 2)

CITY OF CARLSABAD
Potable Water and Recycled Water Financial Model
Recycled Water O&M
FYE 2023 FYE 2024 FYE 2025 FYE 2026 FYE 2027 FYE 2028
7713 Audio-Visual Materials General Inflation - - - - - - 7715 Printing General Inflation 4,000 4,000 4,200 4,368 4,477 4,589 7720 Postage General Inflation 1,000 1,000 1,050 1,092 1,119 1,147 7725 Office Supplies General Inflation 1,000 1,000 1,050 1,092 1,119 1,147 7726 Office Furniture & Equipment General Inflation 2,500 2,500 2,625 2,730 2,798 2,868 7730 Computer Software General Inflation 5,000 5,000 5,250 5,460 5,597 5,736 7731 Misc. Computer Hardware General Inflation 2,000 3,000 3,150 3,276 3,358 3,442 7735 Promo Materials General Inflation 1,000 1,000 1,050 1,092 1,119 1,147 7741 Preschool General Inflation - - - - - - 7750 Heat and Light Utilities Inflation 329,400 362,340 387,704 407,089 427,443 448,816 7751 Telephone & Communications Utilities Inflation 900 900 963 1,011 1,062 1,115 7752 Waste Dispoal Services Utilities Inflation - - - - - - 7753 Water Utilities Inflation 4,500 4,500 4,815 5,056 5,309 5,574 7801 Building Maintenance General Inflation - - - - - - 7810 Electrical Supplies General Inflation 500 500 525 546 560 574 7811 Janitorial Supplies General Inflation - - - - - - 7820 Parts-Vehicles General Inflation - - 7821 Parts-Equip General Inflation 67,500 61,436 64,508 67,088 68,765 70,484 7830 Rock and Mineral Products General Inflation 1,000 1,000 1,050 1,092 1,119 1,147 7831 Asphalt General Inflation 1,000 1,000 1,050 1,092 1,119 1,147 7850 Small Tools General Inflation 600 600 630 655 672 688 7851 Safety Equipment General Inflation 17,050 17,050 17,903 18,619 19,084 19,561 7852 Uniforms and Accessories General Inflation 3,000 3,000 3,150 3,276 3,358 3,442 7853 Meters/Fittings - New General Inflation 19,300 20,000 21,000 21,840 22,386 22,946 7863 Meters/Fittings - Replacement General Inflation 20,000 20,000 21,000 21,840 7855 Fire Hose and Appliances General Inflation - - - - - - 7856 Rescue Equipment General Inflation - - - - - - 7857 Personal Protective Equipment General Inflation - - - - - - 7858 Breathing Apparatus Equipment General Inflation - - - - - - 7860 Shooting Range Supplies General Inflation - - - - - - 7880 Gasoline and Oil Utilities Inflation - - - - - - 7883 Chemicals General Inflation - - - - - - Feb. 11, 2025
Item #8 Page 218 of 265

CITY OF CARLSABAD
Potable Water and Recycled Water Financial Model
Recycled Water O&M
FYE 2023 FYE 2024 FYE 2025 FYE 2026 FYE 2027 FYE 2028
7890 CMWD Purc Water-Outside Agency [ Calculated ] 2,761,924 2,850,000 2,935,500 3,925,800 4,122,900 4,329,045 7891 CMWD Purch Water-From City Utilities Inflation 18,000 18,000 18,900 19,845 20,837 21,879 7899 Misc Supplies General Inflation 7,000 7,000 7,280 7,462 7,649 7,840 8110 Employee Training General Inflation 750 750 780 800 819 840 8120 Tuition Reimbursement General Inflation - - - - - - 8130 Training/Training Related Travel General Inflation 6,670 6,030 6,271 6,428 6,589 6,753 8500 Depreciation Depreciation Funding 1,500,000 1,500,000 1,517,400 1,534,850 1,552,501 1,570,355 Depreciation - Phase III Expansion Construction Inflation - - - - - - 8510 Prop Taxes PD General Inflation - - - - - - 8520 Conference/Meeting Travel General Inflation 2,500 1,335 1,388 1,423 1,459 1,495 8522 Misc. Meals/Miles General Inflation 4,500 2,296 2,387 2,447 2,508 2,571 8530 Bad Debt Exp - Other Inv/Bills General Inflation 7,000 7,000 7,280 7,462 7,649 7,840 8534 Reg Over/Short General Inflation - - - - - - 8610 Settlements General Inflation - - - - - - 8612 Prior Period Adjustment One Time Expense - - - - - - 8614 Repayments General Inflation - - - - - - 8615 Interest on Deposit General Inflation - - - - - - 8699 Misc Expenditures General Inflation - - - - - - 8700 Contingencies General Inflation - - - - - - 8809 Vehicle Direct Charges General Inflation - - 8810 Vehicle Mainteance General Inflation 24,484 47,598 49,502 50,739 52,008 53,308 8811 Vehicle Replacement General Inflation 26,098 29,404 30,580 31,345 32,128 32,932 8820 Street Lighting General Inflation - - - - - - 8822 Median Maintenace General Inflation - - - - - - 8830 General Liab General Inflation 100,720 221,500 230,360 236,119 242,022 248,073 8855 Records Management Interdept General Inflation - - - - - - 8860 Information Technologies General Inflation 178,750 235,389 244,805 250,925 257,198 263,628 8890 Misc Interdepartmental Charges General Inflation 606,853 634,112 659,476 675,963 692,862 710,184 8891 Mis Chg Back General Inflation - - - - - - 8892 Utility Billing Chargeback General Inflation - - - - - - 8910 Fiscal Agent Fees General Inflation - - - - - - 8911 Arbitrage Costs General Inflation - - - - - - 8920 Principal [ Calculated ] 1,698,146 2,029,530 2,159,900 1,696,689 1,728,931 532,223 8921 Interest Expense [ Calculated ] 178,336 239,345 225,219 227,727 195,486 162,571 8922 Int Exp-Capitalized Interest One Time Expense - - - - - - Other General Inflation - - - - - - Meter Replacements General Inflation - - - 6,000 6,150 6,304 Additional Maintenance & Equipment [ Calculated Below ] - (406,240) (199,160) (222,441) (230,204) (238,753) Total Maintenance & Equipment Costs 9,751,377$ 10,406,777$ 10,865,749$ 11,410,199$ 11,711,522$ 10,816,962$ Feb. 11, 2025
Item #8 Page 219 of 265

CITY OF CARLSABAD
Potable Water and Recycled Water Financial Model
Recycled Water O&M
FYE 2023 FYE 2024 FYE 2025 FYE 2026 FYE 2027 FYE 2028
Capital Outlay
9006 Non-Budgeted Cap Equip <$10K General Inflation -$ - -$ -$ -$ -$ 9005 Capital Outlay <$10K New General Inflation 4,000 1,150 1,196 1,226 1,257 1,288 9010 Cap Outlay - Vehicles General Inflation 7,400 8,217 8,546 8,759 8,978 9,203 9020 Computer Equip > $10K - Repl General Inflation - - - - - - 9021 Office Equipment General Inflation - - - - - - 9022 Other Equipment General Inflation - - - - - - 9050 Capitalized Assets One Time Expense - - - - - - 9060 Capital Projects One Time Expense - - - - - - Other Capital Outlay General Inflation - - - - - - Total Capital Outlay Costs 11,400$ 9,367$ 9,742$ 9,985$ 10,235$ 10,491$ Other Financing Uses
9999 Transfers Out One Time Expense 1,000,000$ - -$ -$ -$ -$ Other Other Financing Uses General Inflation - - - - - - Total Other Financing Uses Costs 1,000,000$ -$ -$ -$ -$ -$ TOTAL EXPENDITURES 12,677,325$ 12,227,444$ 12,840,486$ 13,448,046$ 13,814,218$ 12,986,309$ RATE REVENUES without INCREASES FYE 2023 FYE 2024 FYE 2025 FYE 2026 FYE 2027 FYE 2028 Commodity Usage Customer Growth 6,337,458$ 6,384,904$ 7,858,815$ 7,875,301$ 7,904,886$ 7,982,788$ Water Delivery Charges Customer Growth 1,208,817 1,217,868 1,443,348$ 1,446,376 1,451,809 1,466,117 Total Rate Revenues Without Increases 7,546,275$ 7,602,772$ 9,302,163$ 9,321,677$ 9,356,695$ 9,448,905$ Feb. 11, 2025
Item #8 Page 220 of 265
2025 POTABLE AND RECYCLED WATER RATE STUDY
FEBRUARY 2025 / FINAL / CAROLLO

CARLSBAD MUNICIPAL WATER DISTRICT

POTABLE AND RECYCLED WATER COST-OF-SERVICE STUDY

APPENDIX E REVENUE REQUIREMENT ANALYSIS
Feb. 11, 2025
Item #8 Page 221 of 265

CITY OF CARLSABAD
Potable Water and Recycled Water Financial Model
Potable Water Revenue Requirement
FYE 2024 FYE 2025 FYE 2026 FYE 2027 FYE 2028 FYE 2029

CASH FLOW TESTS

REVENUES
Commodity Charges 29,170,239$ 6,735,943$ 7,486,632$ 8,266,233$ 9,182,466$ 9,972,265$ Delivery Charges 13,373,002 7,492,817 8,327,857 9,195,056 10,214,240 11,092,784 SDCWA Variable Pass-Throughs 23,594,936 26,868,459 29,491,788 30,947,570 32,395,140 SDCWA Fixed Pass-Throughs 8,000,718 9,517,206 10,431,873 10,874,330 11,278,085 Non-Rate Charges for Services 360,603 410,168 455,640 469,168 485,531 502,625 Developer Fees - - - - - - Tax Revenues 3,574,352 3,679,796 3,798,285 3,924,388 4,041,728 4,165,809 Licenses and Permits - - - - - - Intergovernmental 24,150 25,116 25,744 26,387 27,047 27,723 Fines & Forfeitures 169,838 176,631 181,047 185,573 190,212 194,968 Income from Prop & Investments 2,825,754 2,456,976 1,901,873 1,703,851 1,571,976 1,435,925 Interdepartmental 46,200 48,048 49,249 50,480 51,742 53,036 Other Revenues 94,500 98,280 100,737 103,255 105,837 108,483 Other Financing Sources - - - - - - TOTAL REVENUES 49,638,638$ 52,719,429$ 58,712,728$ 63,848,053$ 67,692,679$ 71,226,842$ Feb. 11, 2025
Item #8 Page 222 of 265

CITY OF CARLSABAD
Potable Water and Recycled Water Financial Model
Potable Water Revenue Requirement
FYE 2024 FYE 2025 FYE 2026 FYE 2027 FYE 2028 FYE 2029

EXPENDITURES
Ongoing Operating Expenses
Personnel 4,782,779$ 5,185,660$ 5,356,027$ 5,531,016$ 5,710,819$ 5,896,955$ Maintenance & Equipment (w/o depreciation) 43,641,754 48,152,994 54,231,372 58,207,497 60,560,394 62,887,697 Capital Outlay 49,302 51,274 52,556 53,870 55,217 56,597 Other Financing Uses - - - - - - Other Operating Expenses
Debt Service - - - - - - Rate-Funded Capital - - - - - 4,143,533 Total Operating Expenditures 48,473,835$ 53,389,928$ 59,639,956$ 63,792,383$ 66,326,429$ 72,984,783$ Policy Expenditures
Replacement Funding 5,000,000$ -$ -$ -$ -$ -$ Transfer to Capital Fund 5,000,000 - - - - - Additions to Meet Minimum Fund Balances - - - - - - Total Policy Expenditures 10,000,000$ -$ -$ -$ -$ -$ TOTAL EXPENDITURES for Cash Flow Test 58,473,835$ 53,389,928$ 59,639,956$ 63,792,383$ 66,326,429$ 72,984,783$ CASH FLOW SURPLUS (DEFICIT) (8,835,197)$ (670,500)$ (927,227)$ 55,671$ 1,366,250$ (1,757,941)$ Feb. 11, 2025
Item #8 Page 223 of 265

CITY OF CARLSABAD
Potable Water and Recycled Water Financial Model
Potable Water Revenue Requirement
FYE 2024 FYE 2025 FYE 2026 FYE 2027 FYE 2028 FYE 2029

DEBT COVERAGE TEST

1.2 x Bond Coverage
Calculation of Net Revenues
Operating Revenues
User Charges 51,433,440$ 55,126,577$ 61,941,306$ 67,602,694$ 72,001,376$ 76,121,690$ Tax Revenues 4,376,217 4,505,315 4,650,386 4,804,779 4,948,442 5,100,359 Other/Misc Revenues - Excludes Interest Earnings 1,100,868 1,179,598 1,244,579 1,278,155 1,314,953 1,353,033 Yes Connection Fees 1,580,594 1,296,472 448,913 825,736 2,228,691 2,397,852 Yes Grants 2,672,307 2,750,000 1,800,000 - - - Modeled Interest Earnings
Yes Operating Funds 717,733 540,672 323,563 297,214 302,747 327,680 Yes Capital Funds 1,941,347 1,727,038 1,391,653 1,213,406 1,038,106 841,477 Total Revenues Included in Test 63,822,506$ 67,125,672$ 71,800,401$ 76,021,984$ 81,834,316$ 86,142,092$ Less: Operating Expenses
Potable (48,424,533)$ (53,338,654)$ (59,587,399)$ (63,738,513)$ (66,271,213)$ (68,784,652)$ Recycled (8,449,202)$ (8,928,225)$ (9,978,794)$ (10,327,065)$ (10,710,670)$ (11,110,034)$ Net Operating Revenues Avaiable for Debt Service 6,948,771$ 4,858,793$ 2,234,208$ 1,956,406$ 4,852,434$ 6,247,406$ Debt Service - Potable Water - - - - - - Debt Service - Recycled Water 2,268,875 2,385,119 1,924,417 1,924,417 694,794 694,794 Coverage 453,775 477,024 384,883 384,883 138,959 138,959 Subtotal: Debt Service and Coverage 2,722,650$ 2,862,143$ 2,309,300$ 2,309,300$ 833,753$ 833,753$ BOND COVERAGE SURPLUS (DEFICIT) 4,226,121$ 1,996,650$ (75,092)$ (352,894)$ 4,018,681$ 5,413,654$ Coverage Deficit Attributable to Potable Water $0 $0 $0 $0 $0 $0 Feb. 11, 2025
Item #8 Page 224 of 265

CITY OF CARLSABAD
Potable Water and Recycled Water Financial Model
Potable Water Revenue Requirement
FYE 2024 FYE 2025 FYE 2026 FYE 2027 FYE 2028 FYE 2029
FYE 2024 FYE 2025 FYE 2026 FYE 2027 FYE 2028 FYE 2029

REVENUE REQUIREMENT
Revenue Shortfalls (8,835,197)$ (670,500)$ (927,227)$ -$ -$ (1,757,941)$ Cash Flow Driven Cash Flow Driven Cash Flow Driven Coverage Driven Coverage Driven Cash Flow Driven Month of implementation January January January January January January Calculated Revenue Increase (%) 41.54% 9.42% 11.73% 0.00% 0.00% 16.69% Carlsbad Portion Revenue Increase Override (INPUT in Dashboard)2.00% 10.91% 10.00% 10.00% 7.50% 7.50% Implemented Rate Increase 2.00% 10.91% 10.00% 10.00% 7.50% 7.50% Cumulative Rate Increase 4.0% 15.4% 26.9% 39.6% 50.1% 61.4% Feb. 11, 2025
Item #8 Page 225 of 265

CITY OF CARLSABAD
Potable Water and Recycled Water Financial Model
Potable Water Revenue Requirement
FYE 2024 FYE 2025 FYE 2026 FYE 2027 FYE 2028 FYE 2029

CASH FLOW
Revenues Before Rate Increase 49,638,638$ 52,719,429$ 58,712,728$ 63,848,053$ 67,692,679$ 71,226,842$ Revenues From Rate Increase 850,865 1,552,624 1,581,449 1,746,129 1,454,753 1,579,879 LESS: Rate Increase Delay (425,432) (776,312) (790,724) (873,064) (727,376) (789,939) Adjustment for Implementation Delay (2,885,674)
LESS: Expenditures (58,473,835) (53,389,928) (59,639,956) (63,792,383) (66,326,429) (72,984,783) Cash Flow (8,409,765)$ (2,779,862)$ (136,503)$ 928,735$ 2,093,626$ (968,001)$ Total Available Fund - Potable Water
Beginning Balance 131,516,346$ 85,584,657$ 75,291,105$ 65,049,698$ 61,352,473$ 50,674,790$ Ending Fund Balance 85,584,657 75,291,105 65,049,698 61,352,473 50,674,790 41,248,174 Fund change (45,931,689)$ (10,293,552)$ (10,241,407)$ (3,697,225)$ (10,677,682)$ (9,426,616)$ 645 days 515 days 398 days 351 days 279 days 219 days
Operating Fund - Potable Water
Beginning Balance 34,901,468$ 16,252,452$ 13,472,590$ 13,336,088$ 14,264,823$ 16,358,449$ Cash Flow (8,409,765) (2,779,862) (136,503) 928,735 2,093,626 (968,001) Transfer to Capital Reserve (10,239,251) - - - - - Ending Fund Balance 16,252,452$ 13,472,590$ 13,336,088$ 14,264,823$ 16,358,449$ 15,390,448$ Days of O&M 122 days 92 days 82 days 82 days 90 days 82 days Feb. 11, 2025
Item #8 Page 226 of 265

CITY OF CARLSABAD
Potable Water and Recycled Water Financial Model
Potable Water Revenue Requirement
FYE 2024 FYE 2025 FYE 2026 FYE 2027 FYE 2028 FYE 2029
Combined Coverage Tests - Post Rate Increase
FYE 2024 FYE 2025 FYE 2026 FYE 2027 FYE 2028 FYE 2029
Calculation of Net Revenues
Operating Revenues
User Charges 52,036,677$ 53,017,214$ 62,951,206$ 68,705,658$ 72,971,365$ 77,167,757$ Tax Revenues 4,376,217 4,505,315 4,650,386 4,804,779 4,948,442 5,100,359 Other/Misc Revenues 1,100,868 1,179,598 1,244,579 1,278,155 1,314,953 1,353,033 Yes Connection Fees 1,580,594 1,296,472 448,913 825,736 2,228,691 2,397,852 Yes Grants 2,672,307 2,750,000 1,800,000 - - - Modeled Interest Earnings
Yes Operating Funds 717,733 540,672 323,563 297,214 302,747 327,680 Yes Capital Funds 1,941,347 1,727,038 1,391,653 1,213,406 1,038,106 841,477 Total Revenues Included in Test 64,425,742$ 65,016,310$ 72,810,302$ 77,124,948$ 82,804,305$ 87,188,158$ Less: Operating Expenses
Potable (48,424,533)$ (53,338,654)$ (59,587,399)$ (63,738,513)$ (66,271,213)$ (68,784,652)$ Recycled (8,449,202)$ (8,928,225)$ (9,978,794)$ (10,327,065)$ (10,710,670)$ (11,110,034)$ Net Operating Revenues Avaiable for Debt Service 7,552,008$ 2,749,430$ 3,244,108$ 3,059,369$ 5,822,423$ 7,293,473$ Existing Debt Test - Includes debt service only for debt that has been issued and has been input into the model.

Net Operating Revenues Avaiable for Debt Service 7,552,008$ 2,749,430$ 3,244,108$ 3,059,369$ 5,822,423$ 7,293,473$ Less: Existing Debt Service (1,876,482)$ (1,876,482)$ (1,415,780)$ (1,415,779)$ (186,157)$ (186,157)$ Revenues Avaiable for Coverage 5,675,526$ 872,948$ 1,828,328$ 1,643,590$ 5,636,266$ 7,107,316$ Existing Debt Service Coverage Ratio 4.02 x 1.47 x 2.29 x 2.16 x 31.28 x 39.18 x Total Debt Test - Includes exiting and projected debt.

Net Operating Revenues Avaiable for Debt Service 7,552,008$ 2,749,430$ 3,244,108$ 3,059,369$ 5,822,423$ 7,293,473$ Less: Existing Debt Service (1,876,482)$ (1,876,482)$ (1,415,780)$ (1,415,779)$ (186,157)$ (186,157)$ Less: Projected Debt Service (392,393)$ (508,637)$ (508,637)$ (508,637)$ (508,637)$ (508,637)$ Revenues Avaiable for Coverage 5,283,133$ 364,311$ 1,319,691$ 1,134,953$ 5,127,629$ 6,598,679$ Total Debt Service Coverage Ratio 3.33 x 1.15 x 1.69 x 1.59 x 8.38 x 10.50 x Feb. 11, 2025
Item #8 Page 227 of 265

CITY OF CARLSABAD
Potable Water and Recycled Water Financial Model
Recycled Water Revenue Requirement
FYE 2024 FYE 2025 FYE 2026 FYE 2027 FYE 2028 FYE 2029

CASH FLOW TEST

REVENUES
Commodity Charges 7,510,773$ 7,858,815$ 8,229,690$ 8,632,333$ 9,109,687$ 9,617,137$ Delivery Charges 1,379,426 1,443,348 1,511,462 1,585,412 1,673,083 1,766,281 Non-Rate Charges for Services 1,254 1,312 1,348 1,386 1,435 1,485 Developer Fees - - - - - - Intergovernmental (CWA) - - - - - - Fines and Forfeitures 82,226 85,515 87,652 89,844 92,090 94,392 Income from Property & Investments 108,360 96,700 106,459 107,212 76,832 48,885 Interdepartmental 10,500 10,920 11,193 11,473 11,760 12,054 Other Revenues 838,428 863,162 890,956 920,536 948,060 977,165 Other Financing Sources - - - - - - TOTAL REVENUES 9,930,968$ 10,359,772$ 10,838,760$ 11,348,195$ 11,912,946$ 12,517,398$

EXPENDITURES
Ongoing Operating Expenses
Personnel 1,811,300$ 1,964,995$ 2,027,862$ 2,092,461$ 2,158,857$ 2,227,506$ Maintenance & Equipment (w/o depreciation) 6,637,902 6,963,230 7,950,932 8,234,605 8,551,813 8,882,528 Capital Outlay 9,367 9,742 9,985 10,235 10,491 10,753 Other Financing Uses - - - - - - Other Operating Expenses
Debt Service - Recycled Water 2,268,875 2,385,119 1,924,417 1,924,417 694,794 694,794 Rate-Funded Capital - Recycled Water - - - - 1,085,030 928,037 Total Operating Expenditures 10,727,444$ 11,323,086$ 11,913,196$ 12,261,717$ 12,500,984$ 12,743,617$ Policy Expenditures
Replacement Funding -$ -$ -$ -$ -$ -$ Transfer to Capital Fund - - - - - - Additions to Meet Minimum Fund Balances - - - - - - Total Policy Expenditures -$ -$ -$ -$ -$ -$ TOTAL EXPENDITURES for Cash Flow Test 10,727,444$ 11,323,086$ 11,913,196$ 12,261,717$ 12,500,984$ 12,743,617$ CASH FLOW SURPLUS (DEFICIT) (796,476)$ (963,314)$ (1,074,436)$ (913,522)$ (588,039)$ (226,219)$ Feb. 11, 2025
Item #8 Page 228 of 265

CITY OF CARLSABAD
Potable Water and Recycled Water Financial Model
Recycled Water Revenue Requirement
FYE 2024 FYE 2025 FYE 2026 FYE 2027 FYE 2028 FYE 2029
DEBT COVERAGE TEST - Combined

1.25 x Bond Coverage
Calculation of Net Revenues
Operating Revenues
User Charges 51,433,440$ 55,126,577$ 61,941,306$ 67,602,694$ 72,001,376$ 76,121,690$ Tax Revenues 4,376,217 4,505,315 4,650,386 4,804,779 4,948,442 5,100,359 Other/Misc Revenues 1,100,868 1,179,598 1,244,579 1,278,155 1,314,953 1,353,033 Change selection on Water REV Requirement
Yes Connection Fees 1,580,594 1,296,472 448,913 825,736 2,228,691 2,397,852 Yes Grants 2,672,307 2,750,000 1,800,000 - - - Modeled Interest Earnings
Yes Operating Funds 717,733 540,672 323,563 297,214 302,747 327,680 Yes Capital Funds 1,941,347 1,727,038 1,391,653 1,213,406 1,038,106 841,477 Total Revenues Included in Test 63,822,506$ 67,125,672$ 71,800,401$ 76,021,984$ 81,834,316$ 86,142,092$ Less: Operating Expenses
Potable (48,424,533)$ (53,338,654)$ (59,587,399)$ (63,738,513)$ (66,271,213)$ (68,784,652)$ Recycled (8,449,202)$ (8,928,225)$ (9,978,794)$ (10,327,065)$ (10,710,670)$ (11,110,034)$ Net Operating Revenues Avaiable for Debt Service 6,948,771$ 4,858,793$ 2,234,208$ 1,956,406$ 4,852,434$ 6,247,406$ Debt Service - Recycled Water 2,268,875 2,385,119 1,924,417 1,924,417 694,794 694,794 Debt Service - Potable Water - - - - - - Coverage 567,219 596,280 481,104 481,104 173,698 173,698 Subtotal: Debt Service and Coverage 2,836,094$ 2,981,399$ 2,405,521$ 2,405,521$ 868,492$ 868,492$ Combined - BOND COVERAGE SURPLUS (DEFICIT) 4,112,678$ 1,877,394$ (171,313)$ (449,115)$ 3,983,941$ 5,378,914$ Coverage Deficit Attributable to Recycled Water $0 $0 ($171,313) ($449,115) $0 $0 Feb. 11, 2025
Item #8 Page 229 of 265

CITY OF CARLSABAD
Potable Water and Recycled Water Financial Model
Recycled Water Revenue Requirement
FYE 2024 FYE 2025 FYE 2026 FYE 2027 FYE 2028 FYE 2029
FYE 2024 FYE 2025 FYE 2026 FYE 2027 FYE 2028 FYE 2029

REVENUE REQUIREMENT
Revenue Shortfalls (796,476)$ (963,314)$ (1,074,436)$ (913,522)$ (588,039)$ (226,219)$ Cash Flow Driven Cash Flow Driven Cash Flow Driven Cash Flow Driven Cash Flow Driven Cash Flow Driven Month of implementation January January January January January January Calculated Revenue Increase (%) 17.92% 20.71% 22.06% 17.88% 10.91% 3.97% Carlsbad Portion Revenue Increase Override (INPUT in Dashboard) 4.00% 4.50% 4.50% 4.50% 4.50% 4.50% Implemented Rate Increase 4.00% 4.50% 4.50% 4.50% 4.50% 4.50% Cumulative Rate Increase 12.5% 17.5% 22.8% 28.4% 34.1% 40.2% SFR Rate $25.36 $27.37 $28.61 $29.89 $31.24 $32.64
Feb. 11, 2025
Item #8 Page 230 of 265

CITY OF CARLSABAD
Potable Water and Recycled Water Financial Model
Recycled Water Revenue Requirement
FYE 2024 FYE 2025 FYE 2026 FYE 2027 FYE 2028 FYE 2029

CASH FLOW
Revenues Before Rate Increase 9,930,968$ 10,359,772$ 10,838,760$ 11,348,195$ 11,912,946$ 12,517,398$ Revenues From Rate Increase 355,608 418,597 438,352 459,799 485,225 512,254 LESS: Rate Increase Delay (177,804) (209,299) (219,176) (229,899) (242,612) (256,127) Adjustment for Implementation Delay (209,299)
LESS: Expenditures (10,727,444) (11,323,086) (11,913,196) (12,261,717) (12,500,984) (12,743,617) Cash Flow (618,672)$ (963,314)$ (855,260)$ (683,623)$ (345,427)$ 29,908$ Total Available Fund - Recycled Water
Beginning Balance 5,140,538$ 4,529,480$ 6,116,412$ 4,604,767$ 3,078,421$ 1,810,052$ Ending Fund Balance (includes Capital Fund) 4,529,480 6,116,412 4,604,767 3,078,421 1,810,052 1,839,960 Fund Change (611,058)$ 1,586,933$ (1,511,645)$ (1,526,347)$ (1,268,368)$ 29,908$ 195 Days 250 Days 168 Days 109 Days 62 Days 60 Days
Operating Fund
Beginning Balance 1,765,963$ 1,147,291$ 1,483,976$ 1,428,716$ 1,245,093$ 899,667$ Cash Flow (618,672) (963,314) (855,260) (683,623) (345,427) 29,908 Transfers to Capital Fund - 1,300,000 800,000 500,000 - - Ending Fund Balance 1,147,291$ 1,483,976$ 1,428,716$ 1,245,093$ 899,667$ 929,574$ Operating Balance in Days of Expenditures 50 days 61 days 52 days 44 days 31 days 31 days Feb. 11, 2025
Item #8 Page 231 of 265

CITY OF CARLSABAD
Potable Water and Recycled Water Financial Model
Recycled Water Revenue Requirement
FYE 2024 FYE 2025 FYE 2026 FYE 2027 FYE 2028 FYE 2029
Combined Coverage Tests - Post Rate Increase
FYE 2024 FYE 2025 FYE 2026 FYE 2027 FYE 2028 FYE 2029
Calculation of Net Revenues
Operating Revenues
User Charges 52,036,677$ 53,017,214$ 62,951,206$ 68,705,658$ 72,971,365$ 77,167,757$ Tax Revenues 4,376,217 4,505,315 4,650,386 4,804,779 4,948,442 5,100,359 Other/Misc Revenues 1,100,868 1,179,598 1,244,579 1,278,155 1,314,953 1,353,033 Change selection on Water REV Requirement
Yes Connection Fees 1,580,594 1,296,472 448,913 825,736 2,228,691 2,397,852 Yes Grants 2,672,307 2,750,000 1,800,000 - - - Modeled Interest Earnings
Yes Operating Funds 717,733 540,672 323,563 297,214 302,747 327,680 Yes Capital Funds 1,941,347 1,727,038 1,391,653 1,213,406 1,038,106 841,477 Total Revenues Included in Test 64,425,742$ 65,016,310$ 72,810,302$ 77,124,948$ 82,804,305$ 87,188,158$ Less: Operating Expenses
Potable (48,424,533)$ (53,338,654)$ (59,587,399)$ (63,738,513)$ (66,271,213)$ (68,784,652)$ Recycled (8,449,202)$ (8,928,225)$ (9,978,794)$ (10,327,065)$ (10,710,670)$ (11,110,034)$ Net Operating Revenues Available for Debt Service 7,552,008$ 2,749,430$ 3,244,108$ 3,059,369$ 5,822,423$ 7,293,473$ Existing Debt Test - Includes debt service only for debt that has been issued and has been input into the model.

Net Operating Revenues Available for Debt Service 7,552,008$ 2,749,430$ 3,244,108$ 3,059,369$ 5,822,423$ 7,293,473$ Less: Existing Debt Service (1,876,482)$ (1,876,482)$ (1,415,780)$ (1,415,779)$ (186,157)$ (186,157)$ Revenues Available for Coverage 5,675,526$ 872,948$ 1,828,328$ 1,643,590$ 5,636,266$ 7,107,316$ Existing Debt Service Coverage Ratio 4.02 x 1.47 x 2.29 x 2.16 x 31.28 x 39.18 x Total Debt Test - Includes exiting and projected debt.

Net Operating Revenues Available for Debt Service 7,552,008$ 2,749,430$ 3,244,108$ 3,059,369$ 5,822,423$ 7,293,473$ Less: Existing Debt Service (1,876,482)$ (1,876,482)$ (1,415,780)$ (1,415,779)$ (186,157)$ (186,157)$ Less: Projected Debt Service (392,393)$ (508,637)$ (508,637)$ (508,637)$ (508,637)$ (508,637)$ Revenues Available for Coverage 5,283,133$ 364,311$ 1,319,691$ 1,134,953$ 5,127,629$ 6,598,679$ Total Debt Service Coverage Ratio 3.33 x 1.15 x 1.69 x 1.59 x 8.38 x 10.50 x Feb. 11, 2025
Item #8 Page 232 of 265
2025 POTABLE AND RECYCLED WATER RATE STUDY
FEBRUARY 2025 / FINAL / CAROLLO

CARLSBAD MUNICIPAL WATER DISTRICT

POTABLE AND RECYCLED WATER COST-OF-SERVICE STUDY

APPENDIX F POTABLE COST OF SERVICE ANALYSIS
Feb. 11, 2025
Item #8 Page 233 of 265

CITY OF CARLSBAD
Water Financial Model
Potable Water Functional Allocation
COST ALLOCATION BASIS FYE 2025

CUSTOMER

ACCOUNT

SERVICE
METERS and

SERVICES
ADMIN and

MGMT DISTRIBUTION TREATMENT SDCWA
Variable SDCWA Fixed SDCWA IAC DESAL CONSERVATIO
N
FIRE

PROTECTION
CROSS

CONNECTION

CONTROL

ENGINEERING GENERAL AS ALL OTHERS

ALLOCATION BASIS
CUSTOMER ACCOUNT SERVICE 100.0% 0%
METERS and SERVICES 100.0% 0%
ADMIN and MGMT 100.0% 0%
DISTRIBUTION 100.0% 0%
TREATMENT 100.0% 0%
SDCWA Variable 100.0%
SDCWA Fixed 100.0% 0%
SDCWA IAC 100.0% 0%
DESAL 100.0% 0%
CONSERVATION 100.0% 0%
FIRE PROTECTION 100.0% 0%
CROSS CONNECTION CONTROL 100.0% 0%
ENGINEERING 100.0% 0%
GENERAL 100.0% 0%
Staff Allocation Determined based on detailed staff cost allocation. 0.0% 7.8% 23.5% 35.0% 0.0% 0.0% 0.0% 0.0% 0.0% 2.1% 0.0% 6.9% 12.1% 12.7% 0% Vehicle Costs Allocation Determined based on typical CMWD vehicle use 0.0% 22.3% 0.0% 65.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 12.7% 0.0% 0.0% 0% Uniforms Cost Allocation Determined based on uniformed staff positions 0.0% 22.3% 0.0% 65.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 12.7% 0.0% 0.0% 0% MISCELLANEOUS PROFESSIONAL SERVICES (7490) Determined based on line item allocation 4.6% 7.6% 23.6% 26.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.1% 0.0% 0.2% 28.3% 9.6% 0% MISCELLANEOUS OUTSIDE SERVICES (7550) Determined based on line item allocation 0.4% 3.0% 0.1% 88.5% 6.9% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 1.2% As Weighed Average 100%

O&M EXPENDITURES

CUSTOMER

ACCOUNT

SERVICE
METERS and

SERVICES
ADMIN and

MGMT DISTRIBUTION TREATMENT SDCWA
Variable SDCWA Fixed SDCWA IAC DESAL CONSERVATIO
N
FIRE

PROTECTION
CROSS

CONNECTION

CONTROL

ENGINEERING GENERAL AS ALL OTHERS

WATER OPERATING EXPENDITURES
Personnel
Reg Salaries 3,145,241$ Staff Allocation -$ 244,635$ 740,441$ 1,100,154$ -$ -$ -$ -$ -$ 64,490$ -$ 216,385$ 379,741$ 399,395$ -$ Hazard Pay 44,370 Staff Allocation - 3,451 10,445 15,520 - - - - - 910 - 3,053 5,357 5,634 - Incentive Pay - Staff Allocation - - - - - - - - - - - - - - - Other Personnel - Staff Allocation - - - - - - - - - - - - - - - IOD Worker's Comp - Staff Allocation - - - - - - - - - - - - - - - Overtime Salaries 130,000 Staff Allocation - 10,111 30,604 45,472 - - - - - 2,666 - 8,944 15,696 16,508 - Standby Pay 24,492 Staff Allocation - 1,905 5,766 8,567 - - - - - 502 - 1,685 2,957 3,110 - Parttime Salaries - Staff Allocation - - - - - - - - - - - - - - - Intern Salaries 13,270 Staff Allocation - 1,032 3,124 4,642 - - - - - 272 - 913 1,602 1,685 - Elected Officials' Salaries 8,320 Staff Allocation - 647 1,959 2,910 - - - - - 171 - 572 1,005 1,057 - Temporary Help 62,400 Staff Allocation - 4,853 14,690 21,827 - - - - - 1,279 - 4,293 7,534 7,924 - Health Insurance 638,354 Staff Allocation - 49,651 150,279 223,286 - - - - - 13,089 - 43,917 77,072 81,061 - Life Insurance 2,172 Staff Allocation - 169 511 760 - - - - - 45 - 149 262 276 - AD&D City Paid 1,086 Staff Allocation - 84 256 380 - - - - - 22 - 75 131 138 - Vision Insurance - Staff Allocation - - - - - - - - - - - - - - - Medicare 47,842 Staff Allocation - 3,721 11,263 16,734 - - - - - 981 - 3,291 5,776 6,075 - MTG Physicals - Staff Allocation - - - - - - - - - - - - - - - Cell Phone Allowance - Staff Allocation - - - - - - - - - - - - - - - Auto Allowance 1,690 Staff Allocation - 131 398 591 - - - - - 35 - 116 204 215 - Earned Leave Accrual - Staff Allocation - - - - - - - - - - - - - - - Healthy Emp Awards - Staff Allocation - - - - - - - - - - - - - - - Final Vacation Pay - Staff Allocation - - - - - - - - - - - - - - - Final Sick Leave Pay - Staff Allocation - - - - - - - - - - - - - - - Disability 18,934 Staff Allocation - 1,473 4,457 6,623 - - - - - 388 - 1,303 2,286 2,404 - Unemployment 16,490 Staff Allocation - 1,283 3,882 5,768 - - - - - 338 - 1,134 1,991 2,094 - FYE 2025
Feb. 11, 2025
Item #8 Page 234 of 265

CITY OF CARLSBAD
Water Financial Model
Potable Water Functional Allocation
COST ALLOCATION BASIS FYE 2025

CUSTOMER

ACCOUNT

SERVICE
METERS and

SERVICES
ADMIN and

MGMT DISTRIBUTION TREATMENT SDCWA
Variable SDCWA Fixed SDCWA IAC DESAL CONSERVATIO
N
FIRE

PROTECTION
CROSS

CONNECTION

CONTROL

ENGINEERING GENERAL AS ALL OTHERS
Worker's Compensation 82,212 Staff Allocation - 6,394 19,354 28,756 - - - - - 1,686 - 5,656 9,926 10,440 - PERS 415,172 Staff Allocation - 32,292 97,738 145,220 - - - - - 8,513 - 28,563 50,126 52,720 - PERS (GASB 68 Contra Account) - Staff Allocation - - - - - - - - - - - - - - - PERS - Repayment - Staff Allocation - - - - - - - - - - - - - - - OPEB Expense - Staff Allocation - - - - - - - - - - - - - - - PERS Unfunded Liability Expense 533,118 Staff Allocation - 41,466 125,505 186,476 - - - - - 10,931 - 36,677 64,366 67,697 - Social Security - Staff Allocation - - - - - - - - - - - - - - - Deferred Comp 497 Staff Allocation - 39 117 174 - - - - - 10 - 34 60 63 - Def Comp Match - Staff Allocation - - - - - - - - - - - - - - - Other Personnel - Staff Allocation - - - - - - - - - - - - - - - Maintenance & Equipment
Office Equip Rental -$ Staff Allocation -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Other Mach & Equip 11,019 DISTRIBUTION - - - 11,019 - - - - - - - - - - - Vehicle Rentals 17,836 Vehicle Costs Allocation - 3,976 - 11,588 - - - - - - - 2,272 - - - Misc Rentals 53,040 General - - - - - - - - - - - - - 53,040 - Misc Leases - General - - - - - - - - - - - - - - - Office Equip Maintenance - ADMIN and MGMT - - - - - - - - - - - - - - - Communication Equip Maintenance 3,120 ADMIN and MGMT - - 3,120 - - - - - - - - - - - - Software Maintenance 24,728 ADMIN and MGMT - - 24,728 - - - - - - - - - - - - Computer Maintenance - General - - - - - - - - - - - - - - - Vehicle Maint 31,200 Vehicle Costs Allocation - 6,955 - 20,270 - - - - - - - 3,975 - - - Wash and Wax 24,388 Vehicle Costs Allocation - 5,437 - 15,844 - - - - - - - 3,107 - - - Other Equip Maintenance 104 General - - - - - - - - - - - - - 104 - Car Wash Repairs - Staff Allocation - - - - - - - - - - - - - - - Pipeline Maintenance 56,680 Distribution - - - 56,680 - - - - - - - - - - - Fire Hydrant Maintenance - City 40,521 Fire Protection - - - - - - - - - - 40,521 - - - - FIRE HYDRANT MAINTENANCE - OTHER 15,600 Fire Protection - - - - - - - - - - 15,600 - - - - Routine Building Maintenance 5,200 General - - - - - - - - - - - - - 5,200 - Asphalt Repairs 104,000 Distribution - - - 104,000 - - - - - - - - - - - Street Sweeping - General - - - - - - - - - - - - - - - Maintenance, Repair and Rehab 13,270 General - - - - - - - - - - - - - 13,270 - Audit - General - - - - - - - - - - - - - - - Legal 60,223 ADMIN and MGMT - - 60,223 - - - - - - - - - - - - Administrative 46,800 ADMIN and MGMT - - 46,800 - - - - - - - - - - - - Claims Admin - General - - - - - - - - - - - - - - - Misc Professional Services 777,255 MISCELLANEOUS PROFESSIONAL SERVICES (7490) 35,621 59,132 183,152 201,970 - - - - - 564 - 1,892 220,190 74,733 - Encina Services - General - - - - - - - - - - - - - - - City Generated - General - - - - - - - - - - - - - - - Citizen Generated - General - - - - - - - - - - - - - - - Miscellaneous Outside Services 553,199 MISCELLANEOUS OUTSIDE SERVICES (7550) 2,171 16,373 281 489,364 37,987 - - - - 24 - 82 144 6,772 - Bank Services 54,552 ADMIN and MGMT - - 54,552 - - - - - - - - - - - - Book Binding - ADMIN and MGMT - - - - - - - - - - - - - - - Comm Arts Support - ADMIN and MGMT - - - - - - - - - - - - - - - Regulatory/Permitting Fees 164,589 ADMIN and MGMT - - 164,589 - - - - - - - - - - - - Misc Services - General - - - - - - - - - - - - - - - Customer Service Charge 963,174 SDCWA Fixed - - - - - - 963,174 - - - - - - - - Emergency Storage Charge 2,229,492 SDCWA Fixed - - - - - - 2,229,492 - - - - - - - - Infrastructure Access Charge 2,071,374 SDCWA IAC - - - - - - - 2,071,374 - - - - - - - Supply Reliability Charge 1,646,526 SDCWA Fixed - - - - - - 1,646,526 - - - - - - - - Fixed Transportation Charge 520,794 SDCWA Fixed - - - - - - 520,794 - - - - - - - - MWD Capacity Reservation Charge 262,836 SDCWA Fixed - - - - - - 262,836 - - - - - - - - MWD Readiness to Service Charge 395,556 SDCWA Fixed - - - - - - 395,556 - - - - - - - - Laundry and Uniform Maintenance 8,320 Uniforms Cost Allocation - 1,855 - 5,405 - - - - - - - 1,060 - - - Feb. 11, 2025
Item #8 Page 235 of 265

CITY OF CARLSBAD
Water Financial Model
Potable Water Functional Allocation
COST ALLOCATION BASIS FYE 2025

CUSTOMER

ACCOUNT

SERVICE
METERS and

SERVICES
ADMIN and

MGMT DISTRIBUTION TREATMENT SDCWA
Variable SDCWA Fixed SDCWA IAC DESAL CONSERVATIO
N
FIRE

PROTECTION
CROSS

CONNECTION

CONTROL

ENGINEERING GENERAL AS ALL OTHERS
Electrical/Scada Services 112,132 Distribution - - - 112,132 - - - - - - - - - - - Water Sampling Services 182,753 TREATMENT - - - - 182,753 - - - - - - - - - - Water Conservation Services 11,700 Conservation - - - - - - - - - 11,700 - - - - - Landscaping Services 176,871 GENERAL - - - - - - - - - - - - - 176,871 - Ads and Publishing 520 ADMIN and MGMT - - 520 - - - - - - - - - - - - Dues and Subscriptions 44,840 ADMIN and MGMT - - 44,840 - - - - - - - - - - - - Books and Publications 624 ADMIN and MGMT - - 624 - - - - - - - - - - - - Audio-Visual Materials - General - - - - - - - - - - - - - - - Printing 12,480 Customer Account Service 12,480 - - - - - - - - - - - - - - Postage 9,360 Customer Account Service 9,360 - - - - - - - - - - - - - - Office Supplies 11,440 ADMIN and MGMT - - 11,440 - - - - - - - - - - - - Office Furniture & Equipment 15,600 ADMIN and MGMT - - 15,600 - - - - - - - - - - - - Computer Software 10,400 ADMIN and MGMT - - 10,400 - - - - - - - - - - - - Misc. Computer Hardware 8,320 ADMIN and MGMT - - 8,320 - - - - - - - - - - - - Promo Materials 6,240 ADMIN and MGMT - - 6,240 - - - - - - - - - - - - Preschool - General - - - - - - - - - - - - - - - Food Expense - General - - - - - - - - - - - - - - - Heat and Light 142,692 DISTRIBUTION - - - 142,692 - - - - - - - - - - - Telephone & Communications 14,280 Staff Allocation - 1,111 3,362 4,995 - - - - - 293 - 982 1,724 1,813 - Waste Disposal Services 19,106 Staff Allocation - 1,486 4,498 6,683 - - - - - 392 - 1,314 2,307 2,426 - Water 20,288 Staff Allocation - 1,578 4,776 7,096 - - - - - 416 - 1,396 2,449 2,576 - Building Maintenance - General - - - - - - - - - - - - - - - Electrical Supplies - General - - - - - - - - - - - - - - - Janitorial Supplies - General - - - - - - - - - - - - - - - Sign Materials - General - - - - - - - - - - - - - - - Parts-Vehicles - General - - - - - - - - - - - - - - - Parts-Equip 214,997 Distribution - - - 214,997 - - - - - - - - - - - Rock and Mineral Products 15,600 Distribution - - - 15,600 - - - - - - - - - - - Asphalt 5,200 Distribution - - - 5,200 - - - - - - - - - - - Small Tools 8,320 Distribution - - - 8,320 - - - - - - - - - - - Safety Equipment 46,696 Staff Allocation - 3,632 10,993 16,333 - - - - - 957 - 3,213 5,638 5,930 - Uniforms and Accessories 7,575 Uniforms Cost Allocation - 1,689 - 4,922 - - - - - - - 965 - - - Meters/Fittings - New Development 65,461 Meters and Services - 65,461 - - - - - - - - - - - - - Meters/Fittings - Replacement 169,613 Meters and Services - 169,613 - - - - - - - - - - - - - Fire Hose and Appliances - General - - - - - - - - - - - - - - - Rescue Equipment - General - - - - - - - - - - - - - - - Personal Protective Equipment - General - - - - - - - - - - - - - - - Breathing Apparatus Equipment - General - - - - - - - - - - - - - - - Automated Meter Program - General - - - - - - - - - - - - - - - Gasoline and Oil 2,625 Distribution - - - 2,625 - - - - - - - - - - - Propane 520 Distribution - - - 520 - - - - - - - - - - - Other Petrol Products - General - - - - - - - - - - - - - - - Chemicals 71,909 TREATMENT - - - - 71,909 - - - - - - - - - - CMWD Purc Water-Outside Agency 23,594,936 SDCWA Variable - - - - - 23,594,936 - - - - - - - - - Desal Costs 9,984,419 Desal - - - - - - - - 9,984,419 - - - - - - Misc Supplies 46,800 General - - - - - - - - - - - - - 46,800 - Employee Training 6,240 Staff Allocation - 485 1,469 2,183 - - - - - 128 - 429 753 792 - Tuition Reimbursement - General - - - - - - - - - - - - - - - Training/Training Related Travel 16,006 Staff Allocation - 1,245 3,768 5,598 - - - - - 328 - 1,101 1,932 2,032 - EXCLUDED Depreciation 5,058,000
Prop Taxes PD 2,984$ General -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 2,984$ -$ Conference Travel 3,900 Staff Allocation - 303 918 1,364 - - - - - 80 - 268 471 495 - Misc. Meals/Miles 4,030 Staff Allocation - 313 949 1,410 - - - - - 83 - 277 487 512 - Bad Debt Exp - Other Inv/Bills 23,920 ADMIN and MGMT - - 23,920 - - - - - - - - - - - - Feb. 11, 2025
Item #8 Page 236 of 265

CITY OF CARLSBAD
Water Financial Model
Potable Water Functional Allocation
COST ALLOCATION BASIS FYE 2025

CUSTOMER

ACCOUNT

SERVICE
METERS and

SERVICES
ADMIN and

MGMT DISTRIBUTION TREATMENT SDCWA
Variable SDCWA Fixed SDCWA IAC DESAL CONSERVATIO
N
FIRE

PROTECTION
CROSS

CONNECTION

CONTROL

ENGINEERING GENERAL AS ALL OTHERS
Disposal of Assets - General - - - - - - - - - - - - - - - Reg Over/Short - General - - - - - - - - - - - - - - - Settlements - General - - - - - - - - - - - - - - - Interest on Deposit - General - - - - - - - - - - - - - - - Interfund Services - General - - - - - - - - - - - - - - - Misc Expenditures - General - - - - - - - - - - - - - - - Contingencies - General - - - - - - - - - - - - - - - Vehicle Direct Charges 3,943 Vehicle Costs Allocation - 879 - 2,561 - - - - - - - 502 - - - Vehicle Maintenance 174,803 Vehicle Costs Allocation - 38,969 - 113,566 - - - - - - - 22,268 - - - Vehicle Replacement 202,028 Vehicle Costs Allocation - 45,038 - 131,254 - - - - - - - 25,736 - - - Street Lighting - General - - - - - - - - - - - - - - - Median Maintenance - General - - - - - - - - - - - - - - - General Lab 695,386 DISTRIBUTION - - - 695,386 - - - - - - - - - - - Copy Services - General - - - - - - - - - - - - - - - Records Management Interdept - General - - - - - - - - - - - - - - - Information Technologies 777,434 METERS and SERVICES - 777,434 - - - - - - - - - - - - - Misc Interdepartmental Charges 2,062,614 ADMIN and MGMT - - 2,062,614 - - - - - - - - - - - - Mis Chg Back - General - - - - - - - - - - - - - - - Utility Billing Chargeback - General - - - - - - - - - - - - - - - Fiscal Agent Fees - General - - - - - - - - - - - - - - - Arbitrage Costs - General - - - - - - - - - - - - - - - Misc Debt Expense - General - - - - - - - - - - - - - - - Principal Included separately on CoS
Interest Expense Included separately on CoS
Int Exp-Capitalized Interest - General - - - - - - - - - - - - - - - Amortization Expense - General - - - - - - - - - - - - - - - Issuance Costs - General - - - - - - - - - - - - - - - Other - General - - - - - - - - - - - - - - - Additional Maintenance & Equipment (1,010,006) As Weighed Average - - - - - - - - - - - - - - (1,010,006) Capital Outlay
Non-Budgeted Cap Equip <$10K -$ General -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Capital Outlay <$10K New - General - - - - - - - - - - - - - - - Capital Outlay < $10K - Repl - General - - - - - - - - - - - - - - - Cap Outlay - Vehicles 51,274 Vehicle Costs Allocation - 11,431 - 33,312 - - - - - - - 6,532 - - - Computer Equip > $10K - Repl - General - - - - - - - - - - - - - - - Office Equipment - General - - - - - - - - - - - - - - - Other Equipment - General - - - - - - - - - - - - - - - Office Furniture - General - - - - - - - - - - - - - - - Reclass Capital Outlay - General - - - - - - - - - - - - - - - Capitalized Assets - General - - - - - - - - - - - - - - - Other Capital Outlay - General - - - - - - - - - - - - - - - Other Financing Uses
Other Other Financing Uses -$ As Weighed Average -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Operating Expenditures Sub Total 53,389,928$ 59,631$ 1,617,732$ 3,973,484$ 4,258,750$ 292,650$ 23,594,936$ 6,018,378$ 2,071,374$ 9,984,419$ 121,292$ 56,121$ 434,133$ 862,187$ 1,054,847$ (1,010,006)$ Reallocation of "As All Others" (4,731)$ (128,344)$ (315,238)$ (337,870)$ (23,217)$ Direct Pass Through
Direct Pass
Through
Direct Pass
Through
Direct Pass
Through (9,623)$ (4,452)$ (34,442)$ (68,402)$ (83,687)$ 1,010,006$ Total Allocation 53,389,928$ 54,900$ 1,489,389$ 3,658,246$ 3,920,880$ 269,432$ 23,594,936$ 6,018,378$ 2,071,374$ 9,984,419$ 111,669$ 51,669$ 399,691$ 793,785$ 971,160$ -$ Resulting Allocation 100.00% 0.10% 2.79% 6.85% 7.34% 0.50% 44.19% 11.27% 3.88% 18.70% 0.21% 0.10% 0.75% 1.49% 1.82% - Feb. 11, 2025
Item #8 Page 237 of 265

CITY OF CARLSABAD
Potable Water and Recycled Water Financial Model
Staff Allocation - Water

TITLE BARGAINING
UNIT ORG. KEY FTE ALLOCATION RANGE MID-POINT FY 2023 MID-PT

SALARY/WAGE COST
**Utility Locator** CCEA 5016310 0.6 66 76,211$ 45,727 Accounting Technician CCEA 5016310 0.8 47 63,128 50,502 Administrative Secretary CCEA 5016310 0.55 43 60,611 33,336 ASSET MANAGEMENT PROGRAM SPECIALIST CCEA 5016310 0.35 84 91,208 31,923 Associate Engineer CCEA 5016310 0.35 98 104,811 36,684 BUYER/CONTRACT ADMINISTRATOR CCEA 5016310 0.2 63 74,006 14,801 CROSS CONNECTION CONTROL TECHNICIAN CCEA 5016310 0.5 80 87,630 43,815 CROSS CONNECTION CONTROL TECHNICIAN CCEA 5016310 0.5 80 87,630 43,815 CROSS CONNECTION CONTROL TECHNICIAN CCEA 5016310 0.5 80 87,630 43,815 CROSS CONNECTION CONTROL TECHNICIAN CCEA 5016310 0.5 80 87,630 43,815 Engineering Technician II CCEA 5016310 0.35 60 71,802 25,131 GIS Associate Analyst CCEA 5016310 0.35 70 79,331 27,766 Management Analyst MGT 5016310 0.7 89,108 62,376 Meter Services Supervisor MGT 5016310 0.8 89,108 71,286 Meter Services Worker II CCEA 5016310 0.9 37 57,117 51,405 Meter Services Worker II CCEA 5016310 0.9 37 57,117 51,405 Meter Services Worker II CCEA 5016310 0.9 37 57,117 51,405 SCADA Supervisor MGT 5016310 0.4 127,254 50,902 Secretary CCEA 5016310 0.7 35 56,014 39,210 Secretary CCEA 5016310 0.7 35 56,014 39,210 SENIOR CROSS CONN. CONTROL TECH CCEA 5016310 0.25 90 96,803 24,201 Senior Engineer MGT 5016310 0.35 127,254 44,539 Senior Management Analyst MGT 5016310 0.5 108,560 54,280 Senior Office Specialist CCEA 5016310 0.5 27 51,709 25,854 ASSOCIATE ENGINEER CCEA 5016310 0.35 98 104,811 36,684 Utilities Director MGT 5016310 0.5 193,465 96,733 Utilities Engineering Manager MGT 5016310 0.35 166,392 58,237 Utilities Maintenance Planner MGT 5016310 0.35 89,108 31,188 Utilities Manager MGT 5016310 0.8 166,392 133,114 Utilities Manager MGT 5016310 0.8 166,392 133,114 Utilities Senior Engineer MGT 5016310 0.35 127,254 44,539 Utilities Senior Engineer MGT 5016310 0.35 127,254 44,539 Feb. 11, 2025
Item #8 Page 238 of 265

CITY OF CARLSABAD
Potable Water and Recycled Water Financial Model
Staff Allocation - Water
TITLE
**Utility Locator**
Accounting Technician
Administrative Secretary

ASSET MANAGEMENT PROGRAM SPECIALIST
Associate Engineer

BUYER/CONTRACT ADMINISTRATOR

CROSS CONNECTION CONTROL TECHNICIAN

CROSS CONNECTION CONTROL TECHNICIAN
Engineering Technician II
GIS Associate Analyst
Management Analyst
Meter Services Supervisor
Meter Services Worker II
Meter Services Worker II
Meter Services Worker II
SCADA Supervisor
Secretary
Secretary
SENIOR CROSS CONN. CONTROL TECH
Senior Engineer
Senior Management Analyst
Senior Office Specialist

ASSOCIATE ENGINEER
Utilities Director
Utilities Engineering Manager
Utilities Maintenance Planner
Utilities Manager
Utilities Manager
Utilities Senior Engineer
Utilities Senior Engineer
CMWD
VEHICLE USE UNIFORM METERS and

SERVICES
ADMIN and

MGMT DISTRIBUTION CONSERVATIO
N
CROSS

CONNECTION

CONTROL

ENGINEERING GENERAL TOTAL
100% 0% 100%
100% 0% 100%
100% 0% 100%
100% 0% 100%
100% 0% 100%
100% 0% 100%
y y 100% 0% 100%
y y 100% 0% 100%
y y 100% 0% 100%
y y 100% 0% 100%
100% 0% 100%
100% 0% 100%
100% 0% 100%
y y 100% 0% 100%
y y 100% 0% 100%
y y 100% 0% 100%
y y 100% 0% 100%
100% 0% 100%
100% 0% 100%
100% 0% 100%
100% 0% 100%
100% 0% 100%
100% 0% 100%
100% 0% 100%
100% 0% 100%
100% 0% 100%
100% 0% 100%
100% 0% 100%
100% 0% 100%
100% 0% 100%
100% 0% 100%
100% 0% 100%
Feb. 11, 2025
Item #8 Page 239 of 265

CITY OF CARLSABAD
Potable Water and Recycled Water Financial Model
Staff Allocation - Water

TITLE BARGAINING
UNIT ORG. KEY FTE ALLOCATION RANGE MID-POINT FY 2023 MID-PT

SALARY/WAGE COST
Utilities Superintendent MGT 5016310 0.8 127,254 101,803 Utilities Supervisor MGT 5016310 0.85 127,254 108,166 Utilities Supervisor MGT 5016310 0.85 127,254 108,166 Utilities Technical Services Manager MGT 5016310 0.35 142,921 50,022 Utility Worker I CCEA 5016310 0.85 54 67,683 57,531 Utility Worker I CCEA 5016310 0.85 54 67,683 57,531 Utility Worker I - UF CCEA 5016310 0.85 54 67,683 57,531 Utility Worker I - UF CCEA 5016310 0.85 54 67,683 57,531 Utility Worker II CCEA 5016310 0.85 66 76,211 64,780 Utility Worker III CCEA 5016310 0.85 77 85,051 72,294 Utility Worker III CCEA 5016310 0.85 77 85,051 72,294 Warehouse Technician CCEA 5016310 0.45 43 60,611 27,275 WATER CONSERVATION SPECIALIST CCEA 5016310 1 41 59,446 59,446 Water Systems Operator II CCEA 5016310 0.85 89 95,846 81,469 Water Systems Operator II CCEA 5016310 0.85 89 95,846 81,469 Water Systems Operator II CCEA 5016310 0.85 89 95,846 81,469 Water Systems Operator II CCEA 5016310 0.85 89 95,846 81,469 Water Systems Operator III CCEA 5016310 0.85 103 110,178 93,651 All Staff Allocation 31.500 4,741,224$ 2,899,247$ Resulting Allocation 100%
Staff with CMWD Vehicle Use Vehicle Use Units (Assumed equal to allocated FTEs) Vehicle Costs Allocation
FTEs with Uniforms Uniform Units (Assumed equal to allocated FTEs) Uniforms Cost Allocation
Note: Total salary cost indicated here is based on assuming midpoint of range for each FTE and position as a reasonable means of allocating costs. This number is not a direct match to actual or budgeted costs which reflect each specific staff member's assigned compensation level.

Feb. 11, 2025
Item #8 Page 240 of 265

CITY OF CARLSABAD
Potable Water and Recycled Water Financial Model
Staff Allocation - Water
TITLE
Utilities Superintendent
Utilities Supervisor
Utilities Supervisor
Utilities Technical Services Manager
Utility Worker I
Utility Worker I
Utility Worker I - UF
Utility Worker I - UF
Utility Worker II
Utility Worker III
Utility Worker III
Warehouse Technician

WATER CONSERVATION SPECIALIST
Water Systems Operator II
Water Systems Operator II
Water Systems Operator II
Water Systems Operator II
Water Systems Operator III
All Staff Allocation
Staff with CMWD Vehicle Use
FTEs with Uniforms
Note: Total salary cost indicated here is based on assuming midpoint of range for each FTE and position as a reasonable means of allocating costs. This number is not a direct match to actual or budgeted costs which reflect each specific staff member's assigned compensation level.

CMWD
VEHICLE USE UNIFORM METERS and

SERVICES
ADMIN and

MGMT DISTRIBUTION CONSERVATIO
N
CROSS

CONNECTION

CONTROL

ENGINEERING GENERAL TOTAL
100% 100%
100% 100%
100% 100%
100% 100%
y y 100% 0% 100%
y y 100% 0% 100%
y y 100% 0% 100%
y y 100% 0% 100%
y y 100% 0% 100%
y y 100% 0% 100%
y y 100% 0% 100%
100% 0% 100%
100% 0% 100%
y y 100% 0% 100%
y y 100% 0% 100%
y y 100% 0% 100%
y y 100% 0% 100%
y y 100% 0% 100%
225,502$ 682,530$ 1,014,109$ 59,446$ 199,462$ 350,041$ 368,157$ 2,899,247$

7.8% 23.5% 35.0% 2.1% 6.9% 12.1% 12.7% 100.0%
Vehicle Use Units (Assumed equal to allocated FTEs) 3.50 - 10.20 - 2.00 - - 15.70

22.3% 0.0% 65.0% 0.0% 12.7% 0.0% 0.0% 100.0%
Uniform Units (Assumed equal to allocated FTEs) 3.50 - 10.20 - 2.00 - - 15.70

22.3% 0.0% 65.0% 0.0% 12.7% 0.0% 0.0% 100.0%
Feb. 11, 2025
Item #8 Page 241 of 265

CITY OF CARLSABAD
Potable Water and Recycled Water Financial Model
Misc Services Allocation
SOURCE: FY 24 Outside & Professional services budget.xlsx ITEM DESCRIPTION/COMMENTS FYE 2024
BUDGET

CUSTOMER

ACCOUNT

SERVICE
METERS and

SERVICES
ADMIN and

MGMT DISTRIBUTION TREATMENT CONSERVATION
CROSS

CONNECTION

CONTROL

ENGINEERING GENERAL TOTAL
MISCELLANEOUS PROFESSIONAL SERVICES (7490)
40,000$ 100.0% 0.0% 100%
100,000$ 100.0% 0.0% 100%
50,000$ 100.0% 100%
75,000$ 100.0% 0.0% 100%
75,000$ 100.0% 0.0% 100%
37,208$ 100.0% 0.0% 100%
40,000$ 100.0% 0.0% 100%
40,000$ 100.0% 0.0% 100%
20,000$ 100.0% 0.0% 100%
25,000$ 100.0% 0.0% 100%
9,000$ 100.0% 0.0% 100%
15,000$ 100.0% 0.0% 100%
10,000$ 0.0% 7.8% 23.5% 35.0% 0.0% 2.1% 6.9% 12.1% 12.7% 100% 4,600$ 0.0% 7.8% 23.5% 35.0% 0.0% 2.1% 6.9% 12.1% 12.7% 100% 2,600$ 0.0% 7.8% 23.5% 35.0% 0.0% 2.1% 6.9% 12.1% 12.7% 100% 2,100$ 0.0% 7.8% 23.5% 35.0% 0.0% 2.1% 6.9% 12.1% 12.7% 100% 2,000$ 100.0% 0.0% 100%
2,000$ 100.0% 0.0% 100%
1,200$ 100.0% 100%
550,708$ 25,000$ 41,501$ 128,544$ 141,751$ -$ 396$ 1,328$ 154,538$ 52,451$ 545,508$ 100.0% 4.6% 7.6% 23.6% 26.0% 0.0% 0.1% 0.2% 28.3% 9.6% 100.0% miscellaneous safety training
All Staff Allocation
Coaching - Staff training (charges from HR)
Railroad easement safety training
Online training platform-certification contact hours
Respirator fit testing
Underground Service Digs
County of SD for Utility billing services
Compliance w/new EPA rule on lead and copper water lines Process Safety Management/Risk Mgmt Plan
Services/Environmental Compliance
Misc. professional services re dams and reservoirs (surveying) Outreach
Ongoing financial model updates
Structural Engineer for Safety
Increase budget for phase 2 water use mapping FY 2024
Hydraulic modeling expense, offset by new fee
Update water master plan
Asset management (redoing roadmap and as needed)
Regulatory and monitoring and guidance (water efficiency standards, water loss audit validation)
Engineering - misc professional services
Feb. 11, 2025
Item #8 Page 242 of 265

CITY OF CARLSABAD
Potable Water and Recycled Water Financial Model
Misc Services Allocation
SOURCE: FY 24 Outside & Professional services budget.xlsx ITEM DESCRIPTION/COMMENTS FYE 2024
BUDGET

CUSTOMER

ACCOUNT

SERVICE
METERS and

SERVICES
ADMIN and

MGMT DISTRIBUTION TREATMENT CONSERVATION
CROSS

CONNECTION

CONTROL

ENGINEERING GENERAL TOTAL
5,000$ 100.0% 0.0% 100%
125,000$ 100.0% 0.0% 100%
500$ 100.0% 100%
5,000$ 100.0% 0.0% 100%
600$ 100.0% 100%
35,000$ 100.0% 0.0% 100%
35,000$ 100.0% 0.0% 100%
40,000$ 100.0% 0.0% 100%
50,000$ 100.0% 0.0% 100%
5,000$ 100.0% 0.0% 100%
10,000$ 100.0% 0.0% 100%
5,000$ 100.0% 100%
10,000$ 100.0% 0.0% 100%
2,500$ 100.0% 0.0% 100%
4,000$ 100.0% 0.0% 100%
25,000$ 100.0% 0.0% 100%
25,000$ 100.0% 0.0% 100%
1,100$ 0.0% 7.8% 23.5% 35.0% 0.0% 2.1% 6.9% 12.1% 12.7% 100% 2,500$ 100.0% 0.0% 100%
10,000$ 100.0% 0.0% 100%
5,000$ 100.0% 0.0% 100%
1,500$ 100.0% 0.0% 100%
5,000$ 100.0% 0.0% 100%
2,000$ 100.0% 0.0% 100%
100,000$ 100.0% 0.0% 100%
509,700$ 2,000$ 15,086$ 259$ 450,885$ 35,000$ 23$ 76$ 133$ 6,240$ 509,700$ 100.0% 0.4% 3.0% 0.1% 88.5% 6.9% 0.0% 0.0% 0.0% 1.2% 100.0% Minor PW rehab and repair contracts
All Staff Allocation
MISCELLANEOUS OUTSIDE SERVICES (7550)
Crane inspection
Laser Cut (clean cut asphalt for projects)
Roof repairs and inspections (pump stations)
Weight testing & Inspection of hoist (Maerkle)
Utility markout
County of SD for Utility billing services
Meter testing
Trench shoring
Crane Service (specialty crane comes to a site)
Generator maintenance
Maerkle Hydro Generator Maintenance/Service
hearing testing
CLA-VAL Maintenance
Electrical
Emergencies
Equipment repairs
Fence and gate repair repair at facilities
Heating & Air Conditioning
Animal and Pest control (urban wildlife, bees, venomous Reservoir inspection, cleaning, maintenance, repair
Annual Fire Extinguisher Services
AMI hardware installs
Asbestos handling
Chlorinator & Chlorine Detector Maintenance
Feb. 11, 2025
Item #8 Page 243 of 265

CITY OF CARLSBAD
Water Financial Model
Potable Cost of Service Allocation

ALLOCATION BASIS CUSTOMER SERVICE BASE MAX DAY MAX HOUR PRIVATE FIRE SDCWA AS ALL OTHERS
Customer Only 96.2% 3.8% 0%
Customer Only - No Fire 100.0% 0%
Service Only 98.4% 1.6% 0%
Service Only - No Fire 100.0% 0%
SDCWA Only 100.0% 0%
Desal Fixed/Var 59.5% 40.5% 0%
Max Day 100.0% 0%
Base/Max Day 50.9% 49.1% 0%
Max Day/Hour w/ Fire 47.7% 50.7% 1.6% 0%
Plant-In-Service 0.0% 15.9% 6.0% 38.7% 37.7% 1.6% 0.0% 0% As All Others 100%

OPERATING EXPENDITURES CUSTOMER SERVICE BASE MAX DAY MAX HOUR PRIVATE FIRE SDCWA AS ALL OTHERS
Functionalized Operating Expenditures
CUSTOMER ACCOUNT SERVICE 54,900$ Customer Only - No Fire 54,900$ -$ -$ -$ -$ -$ -$ -$ METERS and SERVICES 1,489,389 Service Only - 1,464,850 - - - 24,539 - - ADMIN and MGMT 3,658,246 Customer Only 3,519,558 - - - - 138,688 - - DISTRIBUTION 3,920,880 Max Day/Hour w/ Fire - - - 1,869,090 1,987,191 64,600 - - TREATMENT 269,432 Base/Max Day - - 137,258 132,174 - - - - SDCWA Variable 23,594,936 SDCWA Only - - - - - - 23,594,936 - SDCWA Fixed 6,018,378 Service Only - 5,919,220 - - - 99,158 - - SDCWA IAC 2,071,374 Service Only - No Fire - 2,071,374 - - - - - - DESAL 9,984,419 Desal Fixed/Var - 5,937,852 4,046,567 - - - - - CONSERVATION 111,669 Max Day - - - 111,669 - - - - FIRE PROTECTION 51,669 Service Only - 50,818 - - - 851 - - CROSS CONNECTION CONTROL 399,691 Service Only - 393,106 - - - 6,585 - - ENGINEERING 793,785 Plant-In-Service - 126,464 47,429 307,547 299,267 13,078 - - GENERAL 971,160 As All Others - - - - - - - 971,160 Operating Expenditures Sub Total 53,389,928$ 3,574,458$ 15,963,684$ 4,231,253$ 2,420,480$ 2,286,457$ 347,499$ 23,594,936 $ 971,160$ Reallocation of "As All Others" 120,434$ 537,864$ 142,563$ 81,553$ 77,037$ 11,708$ Direct Pass Through (971,160)$
Total Allocation 53,389,928$ 3,694,892$ 16,501,548$ 4,373,817$ 2,502,033$ 2,363,495$ 359,208$ 23,594,936 $ - $ Resulting Allocation 100.0% 6.9% 30.9% 8.2% 4.7% 4.4% 0.7% 44.2% 0.0% Based on allocated assets
Applies total allocation to remaining line items.

Resulting allocation from system demand factor
analysis.

Resulting allocation from system demand factor
analysis with private fire.

Desal allocation based on fixed and variable costs.

Applies to high demand water functions.

NOTES
FYE 2025
Applies to customer service related functions.

Applies to customer service related functions, excludes fire.

Applies to service related functions.

Applies to service related functions, excludes fire.

Applies to costs associated with SDCWA only.

Feb. 11, 2025
Item #8 Page 244 of 265

CITY OF CARLSBAD
Water Financial Model
Potable Cost of Service Allocation

RATE REVENUE REQUIREMENT CUSTOMER SERVICE BASE MAX DAY MAX HOUR PRIVATE FIRE SDCWA AS ALL OTHERS
Operating Expenses 53,389,928$ Resulting O&M Allocation 3,694,892$ 16,501,548$ 4,373,817$ 2,502,033$ 2,363,495$ 359,208$ 23,594,936$ -$ Debt - Service Only - No Fire - - - - - - - -
Rate Funded Capital - Service Only - - - - - - - - Replacement Funding (Depreciation Funding) - Plant-In-Service - - - - - - - - Cash Funded Capital 6,982,903 Plant-In-Service - 1,112,502 417,231 2,705,481 2,632,641 115,049 - - Transfer to Capital Fund - Plant-In-Service - - - - - - - - Additions to Meet Minimum Fund Balances - Plant-In-Service - - - - - - - - Cash Flows (2,779,862) As All Others - - - - - - - (2,779,862) Less Offsetting Revenues
Adj. to Reflect Full Year Increase 3,661,987$ As All Others -$ -$ -$ -$ -$ -$ -$ 3,661,987$ SDCWA Variable Pass-Throughs (23,594,936) SDCWA Only - - - - - - (23,594,936) - SDCWA Fixed Pass-Throughs (8,000,718) Service Only - No Fire - (8,000,718) - - - - - - Non-Rate Charges for Services (410,168) As All Others - - - - - - - (410,168) Developer Fees - As All Others - - - - - - - - Tax Revenues (3,679,796) Service Only - No Fire - (3,679,796) - - - - - - Licenses and Permits - As All Others - - - - - - - - Intergovernmental (25,116) As All Others - - - - - - - (25,116) Fines & Forfeitures (176,631) As All Others - - - - - - - (176,631) Income from Prop & Investments (2,456,976) As All Others - - - - - - - (2,456,976) Interdepartmental (48,048) As All Others - - - - - - - (48,048) Other Revenues (98,280) As All Others - - - - - - - (98,280) Other Financing Sources - As All Others - - - - - - - - Use of Reserves for Capital (6,982,903) Plant-In-Service - (1,112,502) (417,231) (2,705,481) (2,632,641) (115,049) - - Total Rate Revenues to be Collected 15,781,384$ 3,694,892$ 4,821,034$ 4,373,817$ 2,502,033$ 2,363,495$ 359,208$ - $ (2,333,095)$ Reallocation of "As All Others" (475,892)$ (620,936)$ (563,336)$ (322,255)$ (304,412)$ (46,265)$ Direct Pass Through 2,333,095$
Total Allocation 15,781,384$ 3,219,000$ 4,200,098$ 3,810,481$ 2,179,778$ 2,059,083$ 312,943$ - $ - $ Resulting Allocation 100.0% 20.4% 26.6% 24.1% 13.8% 13.0% 2.0% 0.0% 0.0% FYE 2025
Feb. 11, 2025
Item #8 Page 245 of 265

CITY OF CARLSBAD
Water Financial Model
Potable Cost of Service Allocation
PLANT IN SERVICE REPLACEMENT COST % TOTAL CUSTOMER SERVICE BASE MAX DAY MAX HOUR Fire Protection SDCWA As All Others Land 11,573,857$ 0.7% 100% 0%
Buildings 12,315,032 0.8% 100% 0%
Water Service & Meters 5,503,521 0.4% 100% 0%
Machinery & Equipment 13,443,300 0.9% 100% 0%
District Fire Connections 11,802 0.0% 100% 0%
Reservoirs - From AMP Valuation 322,000,000 20.7% 0% 29% 28% 27% 16% 0% Pipes & Pumping - From AMP Valuation 0.0% 100%
Water Main 1,159,000,000 74.4% 0% 0% 43% 42% 15%
Pump Stations 34,000,000 2.2% 0% 0% 43% 42% 15%
Construction in Progress - 0.0% 100%
Plant-In-Service Sub Total 1,557,847,512$ -$ 42,835,710 $ 93,081,960$ 603,577,950$ 587,327,774$ 231,024,117$ -$ -$ Reallocation of "As All Others" -$ -$ -$ -$ -$ -$ -$ -$ Total Allocation 1,557,847,512$ -$ 42,835,710 $ 93,081,960$ 603,577,950$ 587,327,774$ 231,024,117$ -$ -$ Resulting Allocation 100.0% 0.0% 2.7% 6.0% 38.7% 37.7% 14.8% 0.0% 0.0% Feb. 11, 2025
Item #8 Page 246 of 265
2025 POTABLE AND RECYCLED WATER RATE STUDY
FEBRUARY 2025 / FINAL / CAROLLO

CARLSBAD MUNICIPAL WATER DISTRICT
POT

ABLE AND RECYCLED WATER COST-OF-SERVICE STUDY

APPENDIX G RECYCLED COST OF SERVICE ANALYSIS
Feb. 11, 2025
Item #8 Page 247 of 265

CITY OF CARLSBAD
Recycled Water Financial Model
Recycled Water Functional Allocation
COST ALLOCATION BASIS FYE 2025

CUSTOMER

ACCOUNT

SERVICE
METERS and

SERVICES ADMIN DISTRIBUTION SUPPLY
CROSS

CONNECTION

CONTROL
ENGINEERING GENERAL As All Others

ALLOCATION BASIS
Customer Account Service 100.0% 0%
Meters and Services 100.0% 0%
Admin 100.0% 0%
Distribution 100.0% 0%
Supply 100.0% 0%
General Items that provide a general benefit. 100.0% 0% Staff Allocation See Staff Allocation. 0.0% 2.6% 15.9% 19.1% 0.0% 21.7% 33.1% 7.5% 0% Vehicle Costs Allocation See Staff Allocation. 0.0% 9.3% 0.0% 30.6% 0.0% 50.9% 0.0% 9.3% 0% Uniforms Cost Allocation See Staff Allocation. 0.0% 9.3% 0.0% 30.6% 0.0% 50.9% 0.0% 9.3% 0% As All Other Allocated as weighted average of O&M. 100%

PLANT IN SERVICE ORIGINAL
COST

CUSTOMER

ACCOUNT

SERVICE
METERS and

SERVICES ADMIN DISTRIBUTION SUPPLY
CROSS

CONNECTION

CONTROL
ENGINEERING GENERAL As All Others
Recycled Mains 69,095,677$ 100% 0%
Recycled Water Stations 8,238,070 100% 0%
Recycled Water Facility 16,013,166 100% 0%
Construction in Progress - 100%
Plant-In-Service Sub Total 93,346,913$ -$ -$ -$ 77,333,748$ 16,013,166$ -$ -$ Reallocation of "As All Others" -$ -$ -$ -$ -$ -$ -$ Total Allocation 93,346,913$ - $ - $ - $ 77,333,748$ 16,013,166$ - $ - $ Resulting Allocations 100.0% 0.0% 0.0% 0.0% 82.8% 17.2% 0.0% 0.0% Operating Expenditures FYE 2025

CUSTOMER

ACCOUNT

SERVICE
METERS and

SERVICES ADMIN DISTRIBUTION SUPPLY
CROSS

CONNECTION

CONTROL
ENGINEERING GENERAL As All Others

RRECYCLED WATER OPERATING EXPENDITURES
Personnel
Reg Salaries 1,168,904$ Staff Allocation -$ 30,906 $ 186,282$ 223,224$ -$ 254,168 $ 387,094$ 87,229$ -$ Incentive Pay - Staff Allocation - - - - - - - - - Hazard Pay 7,196 Staff Allocation - 190 1,147 1,374 - 1,565 2,383 537 - Other Personnel - Staff Allocation - - - - - - - - - IOD Worker's Comp - Staff Allocation - - - - - - - - - Overtime Salaries 41,600 Staff Allocation - 1,100 6,630 7,944 - 9,046 13,776 3,104 - Standby Pay 4,378 Staff Allocation - 116 698 836 - 952 1,450 327 - Parttimes Salaries 106,930 Staff Allocation - 2,827 17,041 20,420 - 23,251 35,411 7,980 - Intern Salaries 1,896 Staff Allocation - 50 302 362 - 412 628 141 - Elected Officials' Salaries - Staff Allocation - - - - - - - - - Retired Annuitant Projects 31,200 Staff Allocation - 825 4,972 5,958 - 6,784 10,332 2,328 - Mgt Physicals - Staff Allocation - - - - - - - - - NOTES
Functions for supply produciton and purchase.

Feb. 11, 2025
Item #8 Page 248 of 265

CITY OF CARLSBAD
Recycled Water Financial Model
Recycled Water Functional Allocation
COST ALLOCATION BASIS FYE 2025

CUSTOMER

ACCOUNT

SERVICE
METERS and

SERVICES ADMIN DISTRIBUTION SUPPLY
CROSS

CONNECTION

CONTROL
ENGINEERING GENERAL As All OthersNOTES
Temproary Help - Staff Allocation - - - - - - - - - Health Insurance 186,709 Staff Allocation - 4,937 29,755 35,656 - 40,598 61,830 13,933 - Life Insurance 879 Staff Allocation - 23 140 168 - 191 291 66 - AD&D - City Paid 439 Staff Allocation - 12 70 84 - 95 145 33 - Vision Insurance - Staff Allocation - - - - - - - - - Medicare 18,014 Staff Allocation - 476 2,871 3,440 - 3,917 5,965 1,344 - Cell Phone Allowance - Staff Allocation - - - - - - - - - Auto Allowance 508 Staff Allocation - 13 81 97 - 110 168 38 - Earned Leave Accrual - Staff Allocation - - - - - - - - - Healthy Emp Awards - Staff Allocation - - - - - - - - - Final Vacation Pay - Staff Allocation - - - - - - - - - Final Sick Leave Pay - Staff Allocation - - - - - - - - - Disability 7,034 Staff Allocation - 186 1,121 1,343 - 1,529 2,329 525 - Unemployment 6,137 Staff Allocation - 162 978 1,172 - 1,334 2,032 458 - Worker's Compensation 28,735 Staff Allocation - 760 4,579 5,488 - 6,248 9,516 2,144 - PERS 154,295 Staff Allocation - 4,080 24,589 29,466 - 33,550 51,096 11,514 - OPEB Expense - Staff Allocation - - - - - - - - - PERS Unfunded Liability Exp 198,129 Staff Allocation - 5,239 31,575 37,837 - 43,082 65,612 14,785 - Social Security - Staff Allocation - - - - - - - - - Deffered Comp 2,013 Staff Allocation - 53 321 385 - 438 667 150 - Def Comp Match - Staff Allocation - - - - - - - - - Other Personnel - Staff Allocation - - - - - - - - - Maintenance & Equipment
Office Equp Rental -$ Staff Allocation -$ -$ -$ -$ -$ -$ -$ -$ -$ Other Mach & Equip - Staff Allocation - - - - - - - - - Misc Rentals 525 General - - - - - - - 525 - Misc Leases - General - - - - - - - - - Office Equip Maintenance - Staff Allocation - - - - - - - - - Communication Equip Maintenance - Staff Allocation - - - - - - - - - Software Maintenance - Admin - - - - - - - - - Computer Maintenance - Admin - - - - - - - - - Vehicle Maint - Vehicle Costs Allocation - - - - - - - - - Wash and Wax 1,575 Vehicle Costs Allocation - 146 - 481 - 8 02 - 146 - Other Equip Maintenance 525 General - - - - - - - 525 - Car Wash Repairs - General - - - - - - - - - Pipeline Maintenance 10,500 Distribution - - - 10,500 - - - - - FIRE HYDRANT MAINT - CITY 5,250 Distribution - - - 5,250 - - - - - Routine Building Mainteance 1,050 General - - - - - - - 1,050 - Asphalt Repairs 1,575 Distribution - - - 1,575 - - - - - Maintenance, Repair and Rehab 3,405 Distribution - - - 3,405 - - - - - Audit - Admin - - - - - - - - - Legal - Admin - - - - - - - - - Administrative - Admin - - - - - - - - - Claims Admin - Admin - - - - - - - - - Feb. 11, 2025
Item #8 Page 249 of 265

CITY OF CARLSBAD
Recycled Water Financial Model
Recycled Water Functional Allocation
COST ALLOCATION BASIS FYE 2025

CUSTOMER

ACCOUNT

SERVICE
METERS and

SERVICES ADMIN DISTRIBUTION SUPPLY
CROSS

CONNECTION

CONTROL
ENGINEERING GENERAL As All OthersNOTES
Misc Professional Services 289,676 Distribution - - - 289,676 - - - - - Encina Services 1,926,044 Supply - - - - 1,926,044 - - - - Encina Services (Pension Payoff) (75,823) Supply - - - - (75,823) - - - - City Generated - General - - - - - - - - - Citizen Generated - General - - - - - - - - - Miscellaneous Outside Services 144,926 Distribution - - - 144,926 - - - - - Bank Services 1,638 Admin - - 1,638 - - - - - - Book Binding - Admin - - - - - - - - - Regulatory/Permitting Fees 16,832 General - - - - - - - 16,832 - Misc Services - General - - - - - - - - - MWD/CWA Fixed Charges - General - - - - - - - - - Laundry and Uniform Mainteance 3,150 Uniforms Cost Allocation - 292 - 963 - 1,604 - 292 - Electrical/SCADA services 36,120 Distribution - - - 36,120 - - - - - Landscaping Services 51,415 General - - - - - - - 51,415 - Ads and Publishing - Admin - - - - - - - - - Dues and Subscriptions 6,300 Staff Allocation - 167 1,004 1,203 - 1,370 2,086 470 - Books and Publications 525 Staff Allocation - 14 84 100 - 114 174 39 - Audio-Visual Materials - General - - - - - - - - - Printing 4,200 Customer Account Service 4,200 - - - - - - - - Postage 1,050 Customer Account Service 1,050 - - - - - - - - Office Supplies 1,050 Staff Allocation - 28 167 201 - 228 348 78 - Office Furniture & Equipment 2,625 Staff Allocation - 69 418 501 - 571 869 196 - Computer Software 5,250 Admin - - 5,250 - - - - - - Misc. Computer Hardware 3,150 Admin - - 3,150 - - - - - - Promo Materials 1,050 Admin - - 1,050 - - - - - - Preschool - Admin - - - - - - - - - Heat and Light 387,704 Distribution - - - 387,704 - - - - - Telephone & Communications 963 Staff Allocation - 25 153 184 - 209 319 72 - Waste Dispoal Services - Staff Allocation - - - - - - - - - Water 4,815 Staff Allocation - 127 767 920 - 1,047 1,595 359 - Building Maintenance - General - - - - - - - - - Electrical Supplies 525 Distribution - - - 525 - - - - - Janitorial Supplies - General - - - - - - - - - Parts-Vehicles - Distribution - - - - - - - - - Parts-Equip 64,508 Distribution - - - 64,508 - - - - - Rock and Mineral Products 1,050 Distribution - - - 1,050 - - - - - Asphalt 1,050 Distribution - - - 1,050 - - - - - Small Tools 630 Distribution - - - 630 - - - - - Safety Equipment 17,903 Staff Allocation - 473 2,853 3,419 - 3,893 5,929 1,336 - Uniforms and Accessories 3,150 Uniforms Cost Allocation - 292 - 963 - 1,604 - 292 - Meters/Fittings - New 21,000 Meters and Services - 21,000 - - - - - - - Meters/Fittings - Replacement 21,000 Meters and Services - 21,000 - - - - - - - Fire Hose and Appliances - General - - - - - - - - - Rescue Equipment - General - - - - - - - - -
Personal Protective Equipment - General - - - - - - - - - Feb. 11, 2025
Item #8 Page 250 of 265

CITY OF CARLSBAD
Recycled Water Financial Model
Recycled Water Functional Allocation
COST ALLOCATION BASIS FYE 2025

CUSTOMER

ACCOUNT

SERVICE
METERS and

SERVICES ADMIN DISTRIBUTION SUPPLY
CROSS

CONNECTION

CONTROL
ENGINEERING GENERAL As All OthersNOTES
Breathing Apparatus Equipment - General - - - - - - - - - Shooting Range Supplies - General - - - - - - - - - Gasoline and Oil - General - - - - - - - - - Chemicals - General - - - - - - - - - CMWD Purc Water-Outside Agency 2,935,500 Supply - - - - 2,935,500 - - - - CMWD Purch Water-From City 18,900 Supply - - - - 18,900 - - - - Misc Supplies 7,280 General - - - - - - - 7,280 - Employee Training 780 Staff Allocation - 21 124 149 - 170 258 58 - Tuition Reimbursement - Staff Allocation - - - - - - - - - Training/Training Related Travel 6,271 Staff Allocation - 166 999 1,198 - 1,364 2,077 468 - EXCLUDED Depreciation 1,517,400
EXCLUDED Depreciation - Phase III Expansion -
Prop Taxes PD - General - - - - - - - - - Conference/Meeting Travel 1,388 Staff Allocation - 37 221 265 - 302 460 104 - Misc. Meals/Miles 2,387 Staff Allocation - 63 380 456 - 519 791 178 - Bad Debt Exp - Other Inv/Bills 7,280 Admin - - 7,280 - - - - - - Reg Over/Short - General - - - - - - - - - Settlements - General - - - - - - - - - Prior Period Adjustment - General - - - - - - - - - Repayments - General - - - - - - - - - Interest on Deposit - General - - - - - - - - - Misc Expenditures - General - - - - - - - - - Contingencies - General - - - - - - - - - Vehicle Direct Charges - Vehicle Costs Allocation - - - - - - - - - Vehicle Mainteance 49,502 Vehicle Costs Allocation - 4,584 - 15,126 - 25,209 - 4,584 - Vehicle Replacement 30,580 Vehicle Costs Allocation - 2,832 - 9,344 - 15,573 - 2,832 - Street Lighting - General - - - - - - - - -
Median Maintenace - General - - - - - - - - -
General Liab 230,360 Distribution - - - 230,360 - - - - - Records Management Interdept - General - - - - - - - - - Information Technologies 244,805 Meters and Services - 244,805 - - - - - - - Misc Interdepartmental Charges 659,476 Admin - - 659,476 - - - - - - Mis Chg Back - General - - - - - - - - - Utility Billing Chargeback - General - - - - - - - - - Fiscal Agent Fees - General - - - - - - - - - Arbitrage Costs - General - - - - - - - - - Principal Included separately on CoS
Interest Expense Included separately on CoS
Other - General - - - - - - - - - Additional Maintenance & Equipment (199,160) As All Other - - - - - - - - (199,160) Capital Outlay
Non-Budgeted Cap Equip <$10K -$ Distribution -$ -$ -$ -$ -$ -$ -$ -$ -$ Capital Outlay <$10K New 1,196 Distribution - - - 1,196 - - - - - Cap Outlay - Vehicles 8,546 Vehicle Costs Allocation - 791 - 2,611 - 4,352 - 791 - Feb. 11, 2025
Item #8 Page 251 of 265

CITY OF CARLSBAD
Recycled Water Financial Model
Recycled Water Functional Allocation
COST ALLOCATION BASIS FYE 2025

CUSTOMER

ACCOUNT

SERVICE
METERS and

SERVICES ADMIN DISTRIBUTION SUPPLY
CROSS

CONNECTION

CONTROL
ENGINEERING GENERAL As All OthersNOTES
Computer Equip > $10K - Repl - Distribution - - - - - - - - - Office Equipment - Distribution - - - - - - - - - Other Equipment - Distribution - - - - - - - - - Capitalized Assets - Distribution - - - - - - - - - Capital Projects - Distribution - - - - - - - - - Other Capital Outlay - Distribution - - - - - - - - - Other Financing Uses
Other Other Financing Uses -$ Distribution -$ -$ -$ -$ -$ -$ -$ -$ -$ Operating Expenditures Sub Total 8,937,967$ 5,250$ 348,885$ 998,168$ 1,591,810$ 4,804,621$ 486,203$ 665,632$ 236,558$ (199,160)$ Reallocation of "As All Others" (114)$ (7,605)$ (21,757)$ (34,696)$ (104,725)$ (10,598)$ (14,509)$ (5,156)$ 199,160$ Total Allocation 8,937,967$ 5,136$ 341,280$ 976,411$ 1,557,114$ 4,699,896$ 475,606$ 651,123$ 231,401$ -$ Percentage Allocation 100.0% 0.1% 3.8% 10.9% 17.4% 52.6% 5.3% 7.3% 2.6% 0.0% Feb. 11, 2025
Item #8 Page 252 of 265

CITY OF CARLSABAD
Potable Water and Recycled Water Financial Model
Staff Allocation - Recycled Water

TITLE BARGAINING
UNIT ORG. KEY FTE

ALLOCATION RANGE MID-POINT
FY 2023 MID-PT

SALARY/WAGE
COST
CMWD

VEHICLE
USE
UNIFORM METERS and

SERVICES
ADMIN and

MGMT DISTRIBUTION
CROSS

CONNECTION

CONTROL

ENGINEERING GENERAL TOTAL
**Utility Locator** CCEA 5026310 0.1 66 76,211 $ 7,621$ 100% 100% Accounting Technician CCEA 5026310 0.1 47 63,128 6,313 100% 100% Administrative Secretary CCEA 5026310 0.15 43 60,611 9,092 100% 100% Asset Management Program Specialist CCEA 5026310 0.15 84 91,208 13,681 100% 100% Assistant Engineer CCEA 5026310 1 82 89,398 89,398 100% 100% Associate Engineer CCEA 5026310 0.3 98 104,811 31,443 100% 100% BUYER/CONTRACT ADMINISTRATOR CCEA 5026310 0.1 63 74,006 7,401 100% 100% CROSS CONNECTION CONTROL TECHNICIAN CCEA 5026310 0.5 80 87,630 43,815 y y 100% 100% CROSS CONNECTION CONTROL TECHNICIAN CCEA 5026310 0.5 80 87,630 43,815 y y 100% 100% CROSS CONNECTION CONTROL TECHNICIAN CCEA 5026310 0.5 80 87,630 43,815 y y 100% 100% CROSS CONNECTION CONTROL TECHNICIAN CCEA 5026310 0.5 80 87,630 43,815 y y 100% 100% Engineering Technician II CCEA 5026310 0.3 60 71,802 21,540 100% 100% GIS Associate Analyst CCEA 5026310 0.3 70 79,331 23,799 100% 100% Management Analyst MGT 5026310 0.1 89,108 8,911 100% 100% METER SERVICES WORKER III MGT 5026310 0.2 50 65,021 13,004 y y 100% 100% Meter Services Worker II CCEA 5026310 0.1 37 57,117 5,712 y y 100% 100% Meter Services Worker II CCEA 5026310 0.1 37 57,117 5,712 y y 100% 100% Meter Services Worker II CCEA 5026310 0.1 37 57,117 5,712 y y 100% 100% SENIOR SCADA & IMPLEMENTATION TECH.103 SENIOR STORM DRAIN MAINT. WORKERMGT 5026310 0.15 72 80,891 12,134 100% 100% Secretary CCEA 5026310 0.2 35 56,014 11,203 100% 100% Secretary CCEA 5026310 0.25 35 56,014 14,004 100% 100% SENIOR CROSS CONN. CONTROL TECH CCEA 5026310 0.75 90 96,803 72,602 y y 100% 100% Senior Engineer MGT 5026310 0.35 127,254 44,539 100% 100% Senior Management Analyst MGT 5026310 0.25 108,560 27,140 100% 100% Senior Office Specialist CCEA 5026310 0.2 27 51,709 10,342 100% 100% ASSISTANT ENGINEER CCEA 5026310 0.3 82 89,398 26,820 100% 100% Utilities Director MGT 5026310 0.15 193,465 29,020 100% 100% Utilities Engineering Manager MGT 5026310 0.3 166,392 49,918 100% 100% Utilities Maintenance Planner MGT 5026310 0.35 89,108 31,188 100% 100% Utilities Manager MGT 5026310 0.2 166,392 33,278 100% 100% Utilities Manager MGT 5026310 0.15 166,392 24,959 100% 100% Utilities Senior Engineer MGT 5026310 0.3 127,254 38,176 100% 100% Utilities Senior Engineer MGT 5026310 0.3 127,254 38,176 100% 100% Utilities Superintendent MGT 5026310 0.2 127,254 25,451 y y 100% 100% Feb. 11, 2025
Item #8 Page 253 of 265

CITY OF CARLSABAD
Potable Water and Recycled Water Financial Model
Staff Allocation - Recycled Water

TITLE BARGAINING
UNIT ORG. KEY FTE

ALLOCATION RANGE MID-POINT
FY 2023 MID-PT

SALARY/WAGE
COST
CMWD

VEHICLE
USE
UNIFORM METERS and

SERVICES
ADMIN and

MGMT DISTRIBUTION
CROSS

CONNECTION

CONTROL

ENGINEERING GENERAL TOTAL
Utilities Supervisor MGT 5026310 0.15 127,254 19,088 y y 100% 100% Utilities Supervisor MGT 5026310 0.15 127,254 19,088 y y 100% 100% Utilities Technical Services Manager MGT 5026310 0.15 142,921 21,438 100% 100% Utility Worker I CCEA 5026310 0.15 54 67,683 10,152 y y 100% 100% Utility Worker I CCEA 5026310 0.15 54 67,683 10,152 y y 100% 100% Utility Worker I - UF CCEA 5026310 0.15 54 67,683 10,152 y y 100% 100% Utility Worker I - UF CCEA 5026310 0.15 54 67,683 10,152 y y 100% 100% Utility Worker II CCEA 5026310 0.15 66 76,211 11,432 y y 100% 100% Utility Worker III CCEA 5026310 0.15 77 85,051 12,758 y y 100% 100% Utility Worker III CCEA 5026310 0.15 77 85,051 12,758 y y 100% 100% Warehouse Technician CCEA 5026310 0.25 43 60,611 15,153 100% 100% Water Systems Operator II CCEA 5026310 0.15 89 95,846 14,377 y y 100% 100% Water Systems Operator II CCEA 5026310 0.15 89 95,846 14,377 y y 100% 100% Water Systems Operator II CCEA 5026310 0.15 89 95,846 14,377 y y 100% 100% Water Systems Operator II CCEA 5026310 0.15 89 95,846 14,377 y y 100% 100% Water Systems Operator III CCEA 5026310 0.15 103 110,178 16,527 100% 100% All Staff Allocation 12.0000 4,685,313 $ 1,139,907$ 30,139$ 181,661$ 217,687$ 247,863$ 377,491$ 85,065$ 1,139,907$ Resulting Allocation 100% 2.6% 15.9% 19.1% 21.7% 33.1% 7.5% 100.0% Staff with CMWD Vehicle Use Vehicle Use Units (Assumed equal to allocated FTEs) 0.50 - 1.65 2.75 - 0.50 5.40

9.3% 0.0% 30.6% 50.9% 0.0% 9.3% 100.0%
FTEs with Uniforms Vehicle Use Units (Assumed equal to allocated FTEs) 0.50 - 1.65 2.75 - 0.50 5.40 Uniforms Cost Allocation 9.3% 0.0% 30.6% 50.9% 0.0% 9.3% 100.0% Feb. 11, 2025
Item #8 Page 254 of 265

CITY OF CARLSBAD
Recycled Water Financial Model
Recycled Cost of Service Allocation
COST ALLOCATION BASIS FYE 2025

ALLOCATION BASIS CUSTOMER SERVICE BASE SUPPLY AS ALL OTHERS TOTAL Customer Only 100.0% 0.0% 100%
Customer and Meter Service 20.0% 80.0% 0.0% 100%
Service Only 100.0% 100%
Base Only 100.0% 0.0% 100%
Service and Base 50.0% 50.0% 0.0% 100%
Supply Only 100.0% 0.0% 100%
As All Others Applies total allocation to remaining line items. 100.0% 100% Plant In Service See Plant in Service section below. 0.0% 25.0% 59.8% 15.2% 0.0% 100%

PLANT IN SERVICE REPLACEMENT COST CUSTOMER SERVICE BASE SUPPLY AS ALL OTHERS TOTAL Recycled Mains 99,156,271$ 25.0% 75.0% 0.0% 100%
Recycled Water Stations 11,936,536 25.0% 75.0% 0.0% 100% Recycled Water Facility 28,183,783 25.0% 75.0% 0.0% 100% Construction in Progress - 100.0% 100%
Plant-In-Service Sub Total 139,276,589$ -$ 34,819,147$ 83,319,605$ 21,137,837$ -$ Reallocation of "As All Others" -$ -$ -$ -$ -$
Total Allocation 139,276,589$ -$ 34,819,147$ 83,319,605$ 21,137,837$ -$ Resulting Allocations 100.0% 0.0% 25.0% 59.8% 15.2% 0.0%

OPERATING EXPENDITURES CUSTOMER SERVICE BASE SUPPLY AS ALL OTHERS TOTAL Functionalized Operating Expenditures
CUSTOMER ACCOUNT SERVICE 5,136$ Customer Only 5,136$ -$ -$ -$ -$ 5,136$ METERS and SERVICES 341,280 Customer and Meter Service 68,256 273,024 - - - 341,280 ADMIN 976,411 Service Only - 976,411 - - - 976,411 DISTRIBUTION 1,557,114 Base Only - - 1,557,114 - - 1,557,114 SUPPLY 4,699,896 Supply Only - - - 4,699,896 - 4,699,896 CROSS CONNECTION CONTROL 475,606 Service and Base - 237,803 237,803 - - 475,606 ENGINEERING 651,123 Plant In Service - 162,781 389,522 98,820 - 651,123 GENERAL 231,401 As All Others - - - - 231,401 231,401 Operating Expenditures Sub Total 8,937,967$ 73,392$ 1,650,019$ 2,184,439$ 4,798,716$ 231,401$ 8,937,967$ Reallocation of "As All Others" 1,951$ 43,854$ 58,058$ 127,539$ (231,401)$ Total Allocation 8,937,967$ 75,342$ 1,693,873$ 2,242,497$ 4,926,255$ -$ Percentage Allocation 100.0% 0.8% 19.0% 25.1% 55.1% 0.0% Fixed Charge
NOTES
Applies to customer and related functions
Applies to customer and service related functions
FYE 2025
Feb. 11, 2025
Item #8 Page 255 of 265

CITY OF CARLSBAD
Recycled Water Financial Model
Recycled Cost of Service Allocation
COST ALLOCATION BASIS FYE 2025

RATE REVENUE REQUIREMENT CUSTOMER SERVICE BASE SUPPLY AS ALL OTHERS TOTAL Operating Expenses 8,937,967$ As O&M 75,342$ 1,693,873$ 2,242,497$ 4,926,255$ -$ 8,937,967$ Debt Service 2,385,119 Base Only - - 2,385,119 - - 2,385,119 Rate Funded Capital - Plant In Service - - - - - - Replacement Funding - Plant In Service - - - - - - Transfer to Capital Fund - Plant In Service - - - - - - Cash Flows (963,314) As All Others - - - - (963,314) (963,314) Less Offsetting Revenues
Offsetting Recycled Water Revenues
Adj. to Reflect Full Year Increase 418,597$ As All Others -$ -$ -$ -$ 418,597$ 418,597$ Non-Rate Charges for Services (1,312) As All Others - - - - (1,312) (1,312) Developer Fees - As All Others - - - - - - Intergovernmental (CWA) - As All Others - - - - - - Fines and Forfeitures (85,515) As All Others - - - - (85,515) (85,515) Income from Property & Investments (96,700) As All Others - - - - (96,700) (96,700) Interdepartmental (10,920) As All Others - - - - (10,920) (10,920) Other Revenues (863,162) As All Others - - - - (863,162) (863,162) Other Financing Sources - As All Others - - - - - - Total Rate Revenues to be Collected 9,720,761$ 75,342$ 1,693,873$ 4,627,616$ 4,926,255$ (1,602,326)$ 9,720,761$ Reallocation of "As All Others" (10,662)$ (239,699)$ (654,852)$ (697,112)$ 1,602,326$ -$ Total Allocation 9,720,761$ 64,681$ 1,454,174$ 3,972,764$ 4,229,143$ -$ Percentage Allocation 100.0% 0.7% 15.0% 40.9% 43.5% 0.0% CHECK
Rate Revenues from Revenue Requirement 9,720,761$
Rate Revenues from Functional Allocation 9,720,761$
-$
OKAY
FYE 2025
Feb. 11, 2025
Item #8 Page 256 of 265
2025 POTABLE AND RECYCLED WATER RATE STUDY
FEBRUARY 2025 / FINAL / CAROLLO

CARLSBAD MUNICIPAL WATER DISTRICT
POT

ABLE AND RECYCLED WATER COST-OF-SERVICE STUDY

APPENDIX H POTABLE WATER CUSTOMER ALLOCATION
Feb. 11, 2025
Item #8 Page 257 of 265

CITY OF CARLSBAD
Potable Water and Recycled Water Financial Model
Customer Allocation
ALLOCATION YEAR FYE 2025

SFR MFR NR AR IR
CUSTOMER STATISTICS Single Family Multi-Family Commercial Agricultural Irrigation Fire TOTAL Number of Accounts 24,521 1,284 1,707 12 793 1,116 29,433 Number of MEUs 28,141 5,482 8,445 173 4,183 50,230 96,654 Annual Water Usage 3,361,234 817,637 1,252,320 81,534 702,011 6,214,735 ccf Max Month 335,466 72,733 125,869 9,418 85,564 629,050 ccf Max Day 17,496 3,793 6,565 491 4,463 32,808 ccf Max Hour 1,077 234 404 30 275 2,020 ccf CUSTOMER Single Family Multi-Family Commercial Agricultural Irrigation TOTAL 87% 5% 6% 0% 3% 100%
Allocation Basis: Number of Accounts 24,521 1,284 1,707 12 793 28,317 Allocated Customer Costs 2,787,475$ 145,956$ 194,027$ 1,368$ 90,174$ 3,219,000$ SERVICE Single Family Multi-Family Commercial Agricultural Irrigation TOTAL 61% 12% 18% 0% 9% 100%
Allocation Basis: Number of MEUs 28,141 5,482 8,445 173 4,183 46,424 Allocated Customer Costs 2,545,959$ 495,989$ 764,071$ 15,651$ 378,429$ 4,200,098$ BASE Single Family Multi-Family Commercial Agricultural Irrigation TOTAL

54.08% 13.16% 20.15% 1.31% 11.30% 100%
Allocation Basis: Annual Water Usage 3,361,234 817,637 1,252,320 81,534 702,011 6,214,735 Allocated Customer Costs 2,060,895$ 501,323$ 767,843$ 49,992$ 430,428$ 3,810,481$ Feb. 11, 2025
Item #8 Page 258 of 265

CITY OF CARLSBAD
Potable Water and Recycled Water Financial Model
Customer Allocation
MAX DAY Single Family Multi-Family Commercial Agricultural Irrigation TOTAL 53% 12% 20% 1% 14% 100%
Allocation Basis: Max Day 17,496 3,793 6,565 491 4,463 32,808 Allocated Customer Costs 1,162,453$ 252,035$ 436,160$ 32,635$ 296,495$ 2,179,778$ MAX HOUR Single Family Multi-Family Commercial Agricultural Irrigation TOTAL 53% 12% 20% 1% 14% 100%
Allocation Basis: Max Hour 1,077 234 404 30 275 2,020
Allocated Customer Costs 1,098,088$ 238,080$ 412,010$ 30,828$ 280,077$ 2,059,083$ PRIVATE FIRE Fire TOTAL
Allocation Basis: Number of MEUs 50,230 50,230
Allocated Customer Costs 312,943$ 312,943$ Cost Allocation Summary Single Family Multi-Family Commercial Agricultural Irrigation Fire TOTAL CUSTOMER 2,787,475 145,956 194,027 1,368 90,174 - 3,219,000 BASE 2,060,895 501,323 767,843 49,992 430,428 - 3,810,481 MAX DAY 1,162,453 252,035 436,160 32,635 296,495 - 2,179,778 MAX HOUR 1,098,088 238,080 412,010 30,828 280,077 - 2,059,083 SERVICE 2,545,959 495,989 764,071 15,651 378,429 - 4,200,098 PRIVATE FIRE - - - - - 312,943 312,943 Total 9,654,871$ 1,633,383$ 2,574,111$ 130,474$ 1,475,603$ 312,943$ 15,781,384$ Feb. 11, 2025
Item #8 Page 259 of 265
RESOLUTION NO. 1761

A RESOLUTION OF THE BOARD OF DIRECTORS OF THE CARLSBAD

MUNICIPAL WATER DISTRICT OF THE CITY OF CARLSBAD, CALIFORNIA,

ESTABLISHING A PROCEDURE FOR CUSTOMER AND PROPERTY OWNER

OBJECTIONS TO PROPOSED PROPERTY-RELATED FEES AND CHARGES FOR

WATER SERVICES
WHEREAS, the Carlsbad Municipal Water District provides property-related services, including potable and recycled water services, and assesses fees and charges for the costs of providing these services; and
WHEREAS, California law requires that any new fee or increase to an existing property -related fee must be adopted in accordance with the substantive and procedural requirements of Article XIII D, section 6 of the California Constitution, or Proposition 218; and WHEREAS, Assembly Bill 2257, codified as Government Code Sections 53759 .1 and 53759.2, or AB 2257, became effective January 1, 2025, and authorizes local agencies to adopt certain procedures for the submittal and consideration of public comments regarding proposed wastewater (sewer) or water fees; and
WHEREAS, if a local agency adopts the procedures authorized by AB 2257, then members of the public must timely submit written objections as part of the ratemaking process, to exhaust their administrative remedies as a prerequisite to later litigating the particular issue raised; and WHEREAS, the Board of the Carlsbad Municipal Water District has determined that electing to opt -in to the adoption of exhaustion of administrative procedures authorized by AB 2257 allows the Board to hear substantive concerns by members of the public prior to approving any proposed rate changes and creates a better administrative record to facilitate judicial review.

NOW, THEREFORE, BE IT RESOLVED by the Carlsbad Municipal Water District Board of Directors, of the City of Carlsbad, California, as follows :

1. That the above recitations are true and correct.

2. That the Carlsbad Municipal Water District elects to adopt the exhaustion of administrative procedures authorized by Government Codes Sections 53759.1 and 53759.2.

3. That prior to the adoption of any rates changes for water services there will be a period of at least 45 days after the Proposition 218 notice is mailed for customers and property owners to submit written objections.

4. That the Executive Manager or designee will establish a deadline for the members of the public to subm it any written objections to the proposed water fees prior to the majority-protest public hearing.

5. That the Executive Mari ager or designee will review all submitted written objections and provide written responses to all timely written object ions.

6. That prior to the close of the majority protest hearing all written objections and responses will be submitted to the Board for consideration.

7. That the required Proposition 218 notice will describe th ese objection procedures, including how to submit written objections, and the deadline by which all written objections must be received.

8. That approving a procedure for customers and property owners to raise objections to proposed water fees does not constitute a project within the meaning of the California Environmental Quality Act under Public Resources Code Section 21065 because it has no potential to cause either a direct physical change in the environment or a reasonably foreseeable indirect physical change in the environment.

PASSED, APPROVED AND ADOPTED at a Joint Special Meeting of the Board of Directors of the Carlsbad Municipal Water District of the City of Carlsbad, California, and the City Council of the City of Carlsbad, California, on the 11th day of February 2025, by the following vote, to wit:

AYES:

NAYS:

ABSTAIN:

ABSENT:

Blackburn, Bhat-Patel, Acosta, Burkholder, Shin.

None.

None .

None.

KEITH BLACKBURN, President
~ , ~ 211~-
fvzi.HERRY FREISINGER, Secretary
V ~ (SEAL)
Presorted
First Class Mail
US Postage
PAID
Carlsbad, Ca
Permit #xxxx
Public hearing
Tuesday, April 22, 2025 | 5 p.m.

City of Carlsbad
Council Chamber
1200 Carlsbad Village Drive
Carlsbad, CA 92008
You may protest or oppose the rate
increases. See information inside.

Proposed increases to water, recycled
water and wastewater rates will be
considered at an upcoming public hearing.

This notice explains:
•
Wha
t is being proposed and why
• How y
our rates would change and when
• The decision mak
ing process and how you can
protest or object to the increases
NOTICE
Proposed Rate Increases
Effective dates
If the proposed new rates are approved,
they would become effective:

July 1, 2025
Jan. 1, 2026
Jan. 1, 2027
Estimated monthly increases
The amounts below are for a typical single
family home in Carlsbad. Your rates depend
on the size of your water meter, the type of
property and other variables.

Why?
Average water bill
Rate increases are needed from time to time to pay for
increased costs to run Carlsbad’s water, wastewater and recycled water systems.

However, the main driver of the proposed water rate
increase is the increased cost to purchase water from
the San Diego County Water Authority.

See the rate studies
Rates may not be higher than the actual cost to
provide these services. Regular “Cost of Service” studies determine this cost. You can see the latest studies
two ways:
carlsbadca.gov/rates
Request a mailed copy
[email protected]
442-339-2420
San Diego County Water Authority costs
(passed through to Carlsbad customers)65%
35%
Carlsbad costs
Proposed wastewater rates
The proposed rate increase will pay for costs of
operations, maintenance and replacement of aging
infrastructure.

The City of Carlsbad owns and maintains about
$2.1 billion in utilities infrastructure, including
its own sewer system. Every day, the city collects
over 6 million gallons of wastewater from homes
and businesses and delivers it to a regional
treatment plant.

Residential customers pay a flat monthly rate
for wastewater services. Most non-residential
customers pay a rate based on how much
wastewater they put into the sewer system and
what it takes to treat that wastewater.

WASTEWATER RATES
7/1/25 1/1/26 1/1/27 Total
increase
$17.19 $12.28 $6.24 $35.71
$8.11 $8.37 $9.56 $26.04
Rates are rounded to the nearest $0.01.

Rate increases are needed to pay for maintaining and replacing aging infrastructure.

Look inside ...

Overview of proposed rates
Wa
ter
W
astewater
Rec
ycled water
Changes to water rate tiers
How to protest or object
If the proposed water rate increases are approved, Carlsbad will still have among the lowest rates in the region.

Based on average monthly bill for single family homes.

About 2/3 of the proposed water
rate increase is driven by the rising
cost of purchasing water from the
San Diego County Water Authority,
the region’s water wholesaler.

Customer Class Current Rate 7/1/25 1/1/26 1/1/27
Single Family Resident (SFR) $51.74 $59.85 $68.22 $77.77 SFR w/ Second Dwelling Unit $77.60 $89.77 $102.33 $116.66 Multi Family Resident (MFR) $5.95 $6.89 $7.85 $8.95
Mobile Home $5.95 $6.89 $7.85 $8.95
GROUP II - Commercial 2 $5.06 $6.06 $6.91 $7.88
GROUP III - Commercial 3 $7.21 $8.01 $9.13 $10.41
GROUP IV - Commercial 4 $12.61 $12.90 $14.71 $16.76
Industrial Pretreatment Class III $8.14 $9.03 $10.29 $11.73 Elementary School (per student) $1.02 $1.18 $1.34 $1.53 Junior High School (per student) $1.53 $1.77 $2.01 $2.30 High School (per student) $2.03 $2.36 $2.68 $3.06
Boarding School (per student) $10.56 $11.98 $13.65 $15.56 B1 – Brewery without a restaurant and
hauls waste for outside treatment
$5.06 $6.06 $6.91 $7.88
B2 – Brewery without a restaurant that
does not haul waste for outside treatment
$14.06 $14.63 $16.67 $19.01
B3 – Brewery with a restaurant and hauls
waste for outside treatment
$12.61 $12.90 $14.71 $16.76
B4 – Brewery with a restaurant that does
not haul waste for outside treatment
$17.34 $17.76 $20.25 $23.08
Exhibit 5
Feb. 11, 2025
Item #8 Page 262 of 265
How to protest or object
* Submitting an objection is part of the process for the “opt-in” exhaustion of administrative remedies established by Assembly Bill 2257, codified in Government Code Section 53759.1. If the proposed rates are adopted, there is a 120-day statute of limitations for challenging the proposed potable water, recycled water, and wastewater rates in court. The 120-day statute of limitations will begin the date the rates are adopted or the date the rates goes into effect, whichever is later.

Recycled water is highly treated wastewater than can be used for non drinking purposes. This drought-proof supply is available to businesses and homeowners associations for landscape irrigation and other uses. Recycled water rates are based on treatment costs, the cost to operate and maintain the distribution system, and the amount of money needed to maintain adequate reserve funds.

Meter Current 7/1/25 1/1/26 1/1/27
5/8” $25.36 $27.37 $28.61 $29.89
3/4” $35.54 $38.30 $40.03 $41.83
1” $55.91 $60.16 $62.87 $65.70

1.5” $106.81 $114.81 $119.98 $125.38
2” $167.90 $180.39 $188.51 $197.00
2 1/2” $239.17 $256.91 $268.47 $280.55
3” $310.44 $333.42 $348.42 $364.10
4” $514.07 $552.02 $576.86 $602.82
6” $1,023.14 $1,098.52 $1,147.95 $1,199.61
8” $1,634.02 $1,754.33 $1,833.27 $1,915.77
10” $2,346.71 $2,519.43 $2,632.80 $2,751.28
Understanding your water rates
Your water rate has two parts: one based on the size of your water meter (most homes use 5/8” to 1”) and a charge for the amount of water you use. Water rates fund the cost of purchasing water, operating and maintaining Carlsbad’s water system (including pipes, meters, tanks, etc.).

RECYCLED WATER RATESWATER RATES
Water Authority pass through
7/1/25 1/1/26 1/1/27
$16.66 $19.17 $19.99
$22.77 $26.15 $27.27
$37.66 $43.24 $45.08
$74.43 $85.44 $89.08
$120.85 $138.78 $144.69
$173.39 $199.10 $207.58
$225.93 $259.43 $270.48
$378.31 $434.45 $452.96
$744.26 $854.35 $890.74
$1,208.47 $1,387.74 $1,446.86
$1,751.52 $2,011.75 $2,097.48
Carlsbad
Meter Current
(combined) 7/1/25 1/1/26 1/1/27
5/8” $28.94 $17.02 $18.72 $20.59
3/4” $38.84 $20.79 $22.87 $25.15
1” $58.65 $28.33 $31.16 $34.27

1.5” $108.17 $47.17 $51.89 $57.08
2” $167.60 $69.79 $76.77 $84.45

2.5” $236.93 $96.18 $105.80 $116.38
3” $306.26 $122.57 $134.82 $148.31
4” $504.35 $197.96 $217.76 $239.53
6” $999.57 $386.45 $425.09 $467.60
8” $1,593.84 $612.63 $673.89 $741.28
10” $2,287.15 $876.50 $964.15 $1,060.57
Proposed water delivery fees
Proposed water use fees
Carlsbad Water Authority pass through Total
Customer
class Tier Current
(combined) 7/1/25 1/1/26 1/1/27 7/1/25 1/1/26 1/1/27 7/1/25 1/1/26 1/1/27 Single family
residential
Tier 1 $4.00 $1.18 $1.30 $1.43 $4.01 $4.62 $4.81 $5.19 $5.92 $6.24 Tier 2 $4.97 $1.51 $1.67 $1.83 $4.01 $4.62 $4.81 $5.52 $6.29 $6.64 Tier 3 $7.69 n/a n/a n/a $4.01 $4.62 $4.81 n/a n/a n/a Multi-family
residential
Tier 1 $3.95 $1.18 $1.29 $1.42 $4.01 $4.62 $4.81 $5.19 $5.91 $6.23 Tier 2 $6.13 $1.36 $1.50 $1.65 $4.01 $4.62 $4.81 $5.37 $6.12 $6.46 Commercial n/a $4.52 $1.30 $1.42 $1.57 $4.01 $4.62 $4.81 $5.31 $6.04 $6.38 Agricultural n/a $4.89 $1.40 $1.54 $1.69 $4.01 $4.62 $4.81 $5.41 $6.16 $6.50 Irrigation n/a $5.69 $1.44 $1.58 $1.74 $4.01 $4.62 $4.81 $5.45 $6.20 $6.55 +
=
Current
$4.26
7/1/25
$4.43
1/1/26
$4.63
1/1/27
$4.84
Proposed
usage fees
+
Proposed recycled water delivery fees
Delivery charge
Flat fee based on
water meter size
Usage charge
How much water
you use
Water bill
+ =
Meter Current 7/1/25 1/1/26 1/1/27
5/8” $8.67 $9.37 $10.31 $11.34
3/4” $8.79 $9.39 $10.33 $11.36
1” $9.02 $9.46 $10.40 $11.44

1.5” $9.62 $9.70 $10.67 $11.74
2” $10.33 $10.11 $11.13 $12.24

2.5” $11.15 $10.74 $11.81 $12.99
3” $11.98 $11.60 $12.76 $14.04
4” $14.35 $14.17 $15.59 $17.15
6” $20.26 $23.39 $25.73 $28.30
8” $27.36 $39.29 $43.22 $47.54
10” $35.65 $63.20 $69.52 $76.47
12” $55.76 $96.35 $105.98 $116.58
Proposed fire service delivery fees
Protest Objection
Purpose Serves as a vote against the proposed increase(s) Raises specific concerns about the proposed rate changes
Effect If a majority of customers submit a protest, the rate increase(s) will not be passed
Preserves the right to challenge rate increases in
a legal proceeding *
Deadline April 22, 2025, by the close of the hearing April 14, 2025, 5 p.m.

F
orm Must be in writing and submitted in person or by mail Must be in writing, and submitted in person, by mail or email
Required Full name of customer (property owner or ratepayer) Specific rate(s) you are protesting
Signature
List concerns with one or more of the proposed rate
increases, rate structures or both
Full name of customer (property owner or ratepayer)
Contact information for agency to provide a written
response before the close of the public hearing
Limitations Must be submitted by a ratepayer or property owner Only 1 protest notice per parcel will be counted
Emailed protests will not be counted
Must be submitted by a ratepayer or property owner
Where to
submit
City of Carlsbad
Office of the City Clerk
1200 Carlsbad Village Drive
Carlsbad, CA 92008
City of Carlsbad
Office of the City Clerk
1200 Carlsbad Village Drive
Carlsbad, CA 92008
[email protected]
You may speak at the public hearing, but protests and objections must be made in writing (see below).

Timely protests and objections will be presented to the City Council/CMWD Board. Objections will be responded to in writing before the public hearing.

Meter 7/1/25 1/1/26 1/1/27
5/8” $19.44 $20.12 $20.82
3/4” $29.15 $30.17 $31.23
1” $48.59 $50.29 $52.05

1.5” $97.18 $100.58 $104.10
2” $155.49 $160.93 $166.56
Fire Line Connections
4” $78.12 $80.85 $83.68
6” $226.91 $234.86 $243.08
8” $483.56 $500.48 $518.00
Other proposed fees
Supplemental airport water fees
Applies only to McClellan-Palomar Airport accounts.

Applies only to commercial buildings with a
separate fire service line.

Proposed change in tiers
Single family homes are billed three different usage rates, based on how much water they use in a month. Water
use fees are calculated by multiplying the number of
units you use by the cost per unit based on your usage
tier. The Carlsbad Municipal Water District is proposing to switch the tiers.

Current tiers
Tier 1 0 to 10 units billed at lowest r ate
Tier 2 10 to 18 units billed at medium ra
te
Tier 3 18 units and over billed at highest r
ate
Proposed tiers
Tier 1 0 to 10 units billed at lowest r ate
Tier 2 Over 10 u
nits billed at medium rate
1 unit of water is about 750 gallons.

New line item = more transparency
The rate passed through to Carlsbad
customers by the San Diego County Water
Authority will now be itemized on its
own line.

Most water agencies in the county already
bill this way, allowing customers to see right
on their bills how much goes to buying water
and how much is used to operate Carlsbad’s
water system.

The Water Authority pass-through charges listed are based on assumed rate increases by the Water Authority. If adopted by CMWD’s Board at the public hearing, the rates will include the maximum pass-through charges that may be imposed for each year. If the Water Authority adopts its rates below the assumed maximum, then the pass-through charges will be adjusted down accordingly.
+
=
Total
7/1/25 1/1/26 1/1/27
$33.68 $37.89 $40.58
$43.56 $49.02 $52.42
$65.99 $74.40 $79.35
$121.60 $137.33 $146.16
$190.64 $215.55 $229.14
$269.57 $304.90 $323.96
$348.50 $394.25 $418.79
$576.27 $652.21 $692.49
$1,130.71 $1,279.44 $1,358.34
$1,821.10 $2,061.63 $2,188.14
$2,628.02 $2,975.90 $3,158.05
Feb. 11, 2025
Item #8 Page 263 of 265
Water Districts Serving the City of Carlsbad
Carlsbad Municipal Water District
General information: 442-339-2722
Billing and service: 442-339-2420
www.carlsbadca.gov/water
Olivenhain Municipal Water District
760-753-6466
www.olivenhain.com
Vallecitos Water District
760-744-0460
www.vwd.org
Exhibit 6
Feb. 11, 2025
Item #8 Page 264 of 265
Agencies Providing Sewer Services
in the City of Carlsbad
Sewer Service Area
City of Carlsbad Wastewater Division
442-339-2722 main
For sign-ups, installs, or disconnects
442-339-2420
www.carlsbadca.gov/sewer
Leucadia Wastewater District
760 753-0155
www.lcwd.org
Vallecitos Water District
760-744-0460
www.vwd.org
Vallecitos
Water
District
City of Carlsbad Wastewater Division
Leucadia
Wastewater District
Exhibit 7
Feb. 11, 2025
Item #8 Page 265 of 265
2025 Cost of Service Studies for
Water & Wastewater, Setting Public
Hearing and Establishing Procedures
for Rates
Amanda L. Flesse, Utilities Director/CMWD General Manager Shoshana Aguilar, Senior Management Analyst
February 11, 2025
1 1. Adopt a City Council resolution approving and filing the 2025 Wastewater Cost of Service Study, setting a public hearing for April 22, 2025, at 5 p.m., to approve increases to rates for wastewater services effective July 1, 2025, and directing the City Manager or designee to issue a written notice of the public hearing.

2. Adopt a City Council resolution establishing a procedure for customer and property owner objections to proposed
property-related fees and charges for wastewater services.

ITEM 8: SET RATES PUBLIC HEARING

CITY OF CARLSBAD

PROPOSED ACTIONS
2 3. Adopt a Carlsbad Municipal Water District Board of Directors resolution approving and filing the 2025 Potable and Recycled Water Cost of Service Study, Setting a public hearing for April 22, 2025, at 5 p.m., to approve increases to rates for potable and recycled water services effective July 1, 2025, and directing the Executive Manager or designee to issue written notice of the public hearing.

4. Adopt a Carlsbad Municipal Water District Board of
Directors resolution establishing a procedure for customer and property owner objections to proposed water-related fees and charges for water services.

ITEM 8: SET RATES PUBLIC HEARING

CMWD PROPOSED

ACTIONS
3 Water Recycled waterWastewater
TODAY’S PRESENTATION
ITEM 8: SET RATES PUBLIC HEARING
ITEM 8: SET RATES PUBLIC HEARING

AVERAGE MONTHLY BILL
(Water and wastewater)
5 $-
$30
$60
$90
$120
$150
$180Average Monthly Residential Water Bill
ITEM 8: SET RATES PUBLIC HEARING
Average: $114.49
$91.10$73.91

HOW CARLSBAD COMPARES-WATER
6 HOW CARLSBAD COMPARES-

WASTEWATER
$-
$30
$60
$90
$120
$150
Average Monthly Wastewater Bill
ITEM 8: SET RATES PUBLIC HEARING
Average: $66.02 $59.85
$51.74
7 BY THE NUMBERS
ITEM 8: SET RATES PUBLIC HEARING
8 TODAY’S PRESENTATION
• Background
• Rate Setting Process
• Proposed Rates
• Next Steps
ITEM 8: SET RATES PUBLIC HEARING
9 Yearly rate increases
funded services and
infrastructure repair
Public hearing
Cost-of-service studies
developed for proposed
rate updates
2022-2024 2024
Notifications mailed to
customers (Prop 218)
If approved,
new rates go
into effect
Customer/ business outreach
Jan. 2022
Council last
voted on rate
increases
Set public
hearing
Feb. 2025
Water
Authority 14%
rate increase &
Board
presentation
April 22,
2025
July 2025
ITEM 8: SET RATES PUBLIC HEARING
10 Revenue requirement analysis
Water demand analysis
Cost of service analysis
Rate design and calculation
Rate adoption

COST OF SERVICE STUDY
ITEM 8: SET RATES PUBLIC HEARING
11 Can’t make profit on utility rates
Adequately fund operations,
maintenance and capital investments
Can’t exceed cost to provide service

RATE REQUIREMENTS
ITEM 8: SET RATES PUBLIC HEARING
12 PUBLIC HEARING REQUIREMENT
California Proposition 218
Any increase in these rates requires:
• Vote to set majority-protest public hearing date and
time
• Notification of customers at least 45 days before
hearing
• A public hearing and compliance with California’s
Proposition 218
ITEM 8: SET RATES PUBLIC HEARING
13 ITEM 8: SET RATES PUBLIC HEARING
14 Why Increases?
Rising costs
Aging infrastructure
73 years
30-50 years
Carlsbad’s age
Infrastructure
lifespan
Encina Wastewater Authority
capital improvement projects
and treatment costs
Increased cost to purchase water from
San Diego County Water Authority
ITEM 8: SET RATES PUBLIC HEARING
17 WATER

COST/ACRE FOOT FROM WATER AUTHORITY
$-
$500
$1,000
$1,500
$2,000
$2,500
$3,000
$3,500
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
ITEM 8: SET RATES PUBLIC HEARING
19 • More than half the water bill is pass-through charges • Increase transparency
• Common practice among other water agencies in San
Diego County

PASS THROUGH CHARGES
ITEM 8: SET RATES PUBLIC HEARING
20 PASS THROUGH CHARGES
(Sample)
21 Simplify billing
Two tiers for single family residential customers
instead of three
San Diego County McClellan-Palomar Airport rate
A unique rate for airport accounts to cover costs
associated with water distribution mains that only
serve the airport
ITEM 8: SET RATES PUBLIC HEARING

OTHER RATE CHANGES
22 Current 7/1/25 1/1/26 1/1/27
$ 73.91 $ 91.10 $ 103.38 $ 109.62
Single Family Residential Average Bill
1 gallon of Carlsbad’s tap
water costs about a penny
ITEM 8: SET RATES PUBLIC HEARING

POTENTIAL WATER RATES
23 $-
$30
$60
$90
$120
$150
$180Average Monthly Residential Water Bill

RATES BELOW COUNTY AVERAGE
Average: $114.49
$91.10$73.91
24 WASTEWATER
Current 7/1/25 1/1/26 1/1/27
$ 51.74 $ 59.85 $ 68.22 $ 77.78
Single Family Residential Average Bill
ITEM 8: SET RATES PUBLIC HEARING

POTENTIAL WASTEWATER RATES
26 RATES BELOW COUNTY AVERAGE
$-
$30
$60
$90
$120
$150
Average Monthly Wastewater Bill
Average: $66.02 $59.85
$51.74
27 RECYCLED
WATER
• Recycled water rates are 25% lowerthan
potable irrigation rates
• $4 million in grant funding in last 5 years
• Local drought-proof supply protects potable
supply
• Rates are increasing to keep up with expenses
and inflation
ITEM 8: SET RATES PUBLIC HEARING

RECYCLED WATER INCREASES
29 FINANCIAL

RESERVES

FINANCIAL RESERVES
Potable water
ITEM 8: SET RATES PUBLIC HEARING
31 FINANCIAL RESERVES
Wastewater
ITEM 8: SET RATES PUBLIC HEARING
32 FINANCIAL RESERVES
Recycled water
ITEM 8: SET RATES PUBLIC HEARING
33 OUTREACH
Mailer to 30,000 customer accounts
Webinar for commercial customers
Flyers at city facilities
Website and social media
Direct outreach to largest customers
Public notice in the newspaper
ITEM 8: SET RATES PUBLIC HEARING
ITEM 6: SET RATES PUBLIC HEARING
ITEM 8: SET RATES PUBLIC HEARING
36 1. Adopt a City Council resolution approving and filing the 2025 Wastewater Cost of Service Study, setting a public hearing for April 22, 2025, at 5 p.m., to approve increases to rates for wastewater services effective July 1, 2025, and directing the City Manager or designee to issue a written notice of the public hearing.

2. Adopt a City Council resolution establishing a procedure for customer and property owner objections to proposed
property-related fees and charges for wastewater services.

ITEM 8: SET RATES PUBLIC HEARING

CITY OF CARLSBAD

PROPOSED ACTIONS
37 3. Adopt a Carlsbad Municipal Water District Board of Directors resolution approving and filing the 2025 Potable and Recycled Water Cost of Service Study, Setting a public hearing for April 22, 2025, at 5 p.m., to approve increases to rates for potable and recycled water services effective July 1, 2025, and directing the Executive Manager or designee to issue written notice of the public hearing.

ITEM 8: SET RATES PUBLIC HEARING

CMWD PROPOSED

ACTIONS
38 Thank you

Carlsbad City CouncilFebruary 11, 2025

Carlsbad City Council
February 11, 2025