Carlsbad City Council
April 22, 2025

Docusign Envelope ID: 2EE35CDA-4EA8-4B02-8290 -D02A8FACC334 2025 WASTEWATER COST-OF-SERVICE STUDY
JANUARY 2025 /FINAL/ CAROLLO
Appendices

APPENDIX A PROJECTED O&M

APPENDIX B CAPITAL IMPROVEMENT PLAN

APPENDIX C REVENUE REQUIREMENT ANALYSIS

APPENDIX D FUNCTIONAL ALLOCATION

APPENDIX E RATE CALCULATIONS

APPENDIX F PROJECTED FLOW AND LOADS

APPENDIX G PROJECTIONS FOR ALTERNATIVE OPTION
Tables
Table 1 Proposed Wastewater Rates by Customer Class 6
Table 2 Escalation Factors 7
Table 3 Current Rate Revenues (in millions) 10
Table 4 Offsetting Revenues (in millions) 10
Table 5 Operating Expenditures (in millions) 11
Table 6 Capital Improvement Plan Expenditures (in millions) 12 Table 7 Capital Improvement Plan Funding (in millions) 13 Table 8 Revenue Requirement Summary (in millions) 14
Table 9 Expenditures and Offsetting Revenues (in millions) 15 Table 10 Functional Allocation Factors 17
Table 11 CIP Functional Allocation (in millions, 2024 Dollars) 18 Table 12 O&M Functional Allocation (in millions) 18
Table 13 Revenue Requirements Functional Allocation (in millions) 19 Table 14 Wastewater Flow Mass Balance- FY 2021/22 Data 23 Table 15 Wastewater BOD Mass Balance - FY 2021/22 Data 24 Table 16 Wastewater TSS Mass Balance- FY 2021/22 Data 25 Table 17 Expected Billed Units by Customer Class for FY 2024/25 26 Table 18 Unit Cost per Billable Constituents 27
Table 19 Group I Unit Cost per HCF Calculation 28
Table 20 All Classes Unit Cost per HCF Calculation 29
Table 21 Group I Monthly Rate Calculation 30
Table 22 Rate per HCF of Water Consumption Calculation 30 Table 23 Schools Rates Calculation 30
Table 24 Proposed Wastewater Rates by Customer Class 31 Table 25 Alternative Option - Bond Summary 32
Table 26 Alternative Option with Bond Funding - Revenue Requirement Summary (in Table 27
Table 28

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millions) 33
Alternative Option with Bond Funding - Proposed Wastewater Rates by Customer Class 34
Comparison of Rate Revenue Increases for Baseline Option to Alternative with Additional Bonds
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Docusign Envelope ID: 2EE35CDA-4EA8-4B02-8290 -D02A8FACC334 Figures
Figure 1 Cost of Service Rate Study Process
Figure 2 Single Family Bill Comparison

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Docusign Envelope ID: 2EE35CDA-4EA8-4B02-8290 -D02A8FACC334 Abbreviations
ACFR Annual Comprehensive Financial Report
ADU Accessory Dwelling Unit
BOD biological oxygen demand
Carlsbad City of Carlsbad
Carollo Carollo Engineers, Inc.

CIP capital improvement program
DSCR Debt Service Coverage Ratio
EDU Equivalent Dwelling Unit
EWA Encina Wastewater Authority
EWPCF Encina Water Pollution Control Facility
FYE Fiscal Year Ending
gpd gallons per day
HCF hundred cubic feet
MFR Multi-Family Residential
mgd or million gallons per day
MGD
mg/L milligrams per liter
O&M Operation and maintenance
SFR Single Family Residential
SRF State Revolving Fund
Study Cost of Service Study
TSS total suspended solids
WEF Water Environment Federation

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Docusign Envelope ID: 2EE35CDA-4EA8-4B02-8290-D02A8FACC334 SECTION 1 INTRODUCTION
2025 WASTEWATER COST-OF-SERVICE STUDY
JANUARY 2025 /FINAL/ CAROLLO
The City of Carlsbad (Carlsbad) owns a wastewater system that provides wastewater service to roughly two thirds (2/3) of the City's population and is responsible for the collection and conveyance of sewer discharges to the Encina Water Pollution Control Facility (EWPCF). The EWPCF is jointly owned by the cities of Carlsbad, Vista, Encinitas, the Buena Sanitation District, Vallecitos Water District, and Leucadia Wastewater District and provides full secondary treatment, sludge handling, and disposal through a deep ocean outfall that extends along the ocean floor to a point 1.5 miles offshore .

The City's wastewater service customer base includes approximately 24,000 sewer accounts, consisting of single family residential, multi-family residential, commercial, other, breweries, industrial, and schools. The City maintains a separate wastewater enterprise fund with its own operating and capital reserves. The wastewater user rates are designed to distribute the cost of the operation and improvement of the City's collection system and the City's share of the EWPCF equitably among all users in accordance with California legal requirements as defined by Proposition 218.

1.1 Study Purpose and Key Drivers
Carlsbad retained Carollo Engineers, Inc. (Carollo) to perform a comprehensive Cost of Service Study (Study) of the City's potable water, recycled water, and wastewater systems and to develop a rate plan for the upcoming 5-year period, Fiscal Year Ending (FYE) 2025 through FYE 2029. The City has historically set rates on a calendar year basis, and the rates calculated in this assume that schedule is retained. However, to align with the proposed increased for water and recycled water rates, implementation of the first increase will be delayed to July 1, 2025.

Carollo's analysis was guided by the policies and practices of the City, industry best practices for cost-of­ service analyses as outlined by the Water Environment Federation (WEF) updated Manual of Practice No. 27, Financing and Charges for Wastewater Systems, and requirements for establishing wastewater rates within the State of California. This report summarizes the findings and recommendations of the cost­ of-service and rate analysis for the City's wastewater system. The findings of the cost-of-service analysis for potable and recycled water are provided by Carollo in a separate report.

Several matters influence the need to conduct a comprehensive cost-of-service rate design study.

Identifying these matters upfront defines the strategic intent needed to complete this project successfully.

These issues include the following:
■ The State of California requires that all utility rates meet the cost-of-service requirements imposed under Proposition 218. These principles underlie the approach to rate setting such that all customers are charged rates that are proportional to the cost of providing service attributable to a parcel based on the demands that each customer class places on the system. ■ Although there are others, the main factor driving the need for increased rate revenues for this Study is funding of the capital improvement program (CIP). Based on current projections, the City and the EWPCF have identified a total of $122.3 million (2024 dollars) in necessary capital improvements over the next 5 years. The City's share of the EWPCF projects is expected to total approximately half of the City's total CIP expenses over this time period.

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Docusign Envelope ID: 2EE35CDA-4EA8-4B02-8290-D02A8FACC334 2025 WASTEWATER COST-OF-SERVICE STUDY
JANUARY 2025 /FINAL/ CAROLLO
• In addition to anticipated CIP expenditures, the recent high inflation rates have affected operating costs of utilities dramatically in the last few years. Although the inflation rate is expected to return to a more historically "normal" rate during the Study period, FYE 2024 budget was carefully reviewed and updated to develop the appropriate 5-year financial plan.

1.2 Overview of the Rate Setting Process
Rate analyses should be performed periodically so that revenues from rates adequately fund utility operations and maintenance (O&M) and capital investments. Additionally, in California, water and wastewater rates must adhere to the cost-of-service requirements imposed by the State Constitution.

Proposition 218 requires that property related fees and charges, including wastewater rates, do not exceed the reasonable proportional cost of providing the service.

In addition to adhering to state requirements, Carollo's rate-setting methodology is consistent with industry guidelines described in the WEF Manual of Practice 27: Financial and Charges for Wastewater Systems (MOP 27).

The cost-of-service analysis presented within this report consists of the following three interconnected processes:

Cost of Service Analysis
Identifies and apportions annual revenue requirements to functional rate components based on its application of the utility system.

Rate Design
Considers both the level and structure of the rate design to collect the distributed revenue requirements from each class of service.

Figure 1 Cost of Service Rate Study Process
While the process is described in a linear step by step approach, it is better understood as an iterative process where the ultimate objective is to balance revenues with costs in an equitable manner for customers. These three processes will form the basis for the rate analyses presented within this report .

1.2.1 Revenue Requirement Analysis
The revenue requirement analysis is a comprehensive test of a utility's fiscal health, examining the adequacy of current revenues under existing rates and forecasted demands to its forecasted future O&M and capital funding needs. This analysis sets the basis for rate planning and reviews the viability of a utility's revenues against expenses, debts, and reserve policies.

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Docusign Envelope ID: 2EE35CDA-4EA8-4B02-8290-D02A8FACC334 2025 WASTEWATER COST-OF-SERVICE STUDY
JANUARY 2025 /FINAL/ CAROLLO
If revenue projections under existing rates do not meet forecasted requirements, rate revenue increases are recommended until the tests are passed. The study analyzed the revenue requirements to test the fiscal health of the City's wastewater system, evaluated the adequacy of current rates and charges, and set the basis for the 5-year rate plan for the City. No bond issuance was assumed during the Study period.

1.2.1.1 Revenue Requirements Components
Revenue requirements are the summation of expenses or costs for providing wastewater services, including collecting and treating sewage, and handling treated effluent to the environment. They are determined on an annual basis, and they include:
• O&M: Salaries and benefits, chemicals, power, vehicles, equipment, supplies, etc. Some costs vary by the volume of treatment such as chemicals and power, but other costs are fixed and independent of volume such as salaries and vehicles.
• Capital Improvements and Financing: Design and construction of new and replacement infrastructure, including labor for City employees and fees for consultants and contractors that perform this work, along with debt service payments, bond issuance costs, commercial paper fees, etc. including debt coverage. Capital requirements include the City's internal collection assets as well as the City's share of costs for Encina.
■ Encina Operating Costs: Wastewater treatment and effluent disposal costs incurred by Encina Wastewater Authority (EWA).
■ Financial Policies: Maintenance of financial policies, such as minimum reserve balances, which are supported by user rates.

1.2.1.2 Revenue Requirement Tests
There are three sufficiency tests that can be used to define the annual revenue requirement: (1) operating income, (2) debt coverage, and (3) reserves. These sufficiency tests are commonly used to determine the amount of annual revenue that must be generated from an agency's rates. • The cash flow sufficiency test examines whether a utility is generating enough revenues to meet O&M expenses, debt service payments, policy driven additions to working capital (and reserves), miscellaneous capital outlays, replacement funding, and rate- funded- capital expenditures. It requires a net positive cash flow at the end of each fiscal year. When there is a cash flow deficit, an increase in rate revenues is recommended. However, when ending reserve balance is sufficient, the rate increase can be reduced or omitted to mitigate rate payer impacts. • The debt service coverage test assesses a utility's ability to meet their annual debt service obligations. Bond issuances regularly include a stipulation that the agency must maintain sufficient cash flows to meet annual debt service payments plus an additional amount by its covenant. Typical debt service coverage ratio (DSCR) target ranges from 1.10 to 1.40 times annual debt service payment, depending on an agency's specific financial situation and the type of debt instrument issued. This means that for a utility's every $100 in debt obligation, it needs to generate $110 to $140 in net operating income. When the calculated DSCR falls below the target, an increase in rate revenues is recommended. Based on the City's State Revolving Fund loan agreement with the California State Water Resources Control Board, the DSCR target for the wastewater State Revolving Fund (SRF) loan is 1.20.

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Docusign Envelope ID: 2EE35CDA-4EA8-4B02-8290-D02A8FACC334 2025 WASTEWATER COST-OF-SERVICE STUDY
JANUARY 2025 /FINAL/ CAROLLO
• Reserves Test measures if a utility is maintaining its reserve target to ensure continuation of their operations and any financial obligations during unexpected revenue shortfalls. This test is not legally binding under Proposition 218 but provides an assurance for a utility's financial stability. The reserve target is based on the polices adopted by the City Council. When the end of the year balance falls before the target, an increase in rate revenues is recommended. However, reserve targets could be reduced in some cases in order to mitigate rate payer impacts.

1.2.2 Cost-of-Service Analysis
This step builds a link between the City's cost of wastewater service and the proposed rates for each customer. After determining the revenue requirement, this step outlines the cost to collect and treat each unit of sewage to serve each customer.

This process reviews each item in the system's budget and allocates the items based on what function is served. For example, some cost items support the collection or treatment of wastewater while other costs are incurred to provide customer service or to fund infrastructure maintenance. Organizing the budget in terms of end function allows the creation of a nexus between the budget item and the rate. This process bridges the costs incurred by the City and the unique and varied benefits delivered to each customer .

With respect to wastewater, there are two methods outlined in Manual of Practice No. 27 for distributing these costs: Wastewater Flow and Wastewater Loading Strengths. Both are considered fair and equitable because both approaches distribute revenue requirements to each class in proportion to their respective contribution to the system cost components. This study's cost of service analysis uses the Base-Extra Capacity method which uses a three-part allocation process:

1. Functionalization: Annual costs are allocated by utility functions, such as collections, treatment, and customer service.

2. Rate Components: Wastewater facilities are designed and operated to collect wastewater and treat it to remove pollutants prior to reuse or disposal. The costs can be tracked in rate components such as collection flow, treatment flow, biochemical oxygen demand (BOD), total suspended solids (TSS), and customer service. These services are the basis for allocating the functionalized costs to cost components.

3. Customer Class: Cost components are distributed to customer classes in proportion to their burden on the system based on their estimated wastewater flows and loading.

1.3 Project Findings and Recommendations
Based on the analysis projections, the City will need to increase wastewater rate revenues to implement identified capital improvement projects and, to a lesser extent, to keep pace with inflationary increases to O&M costs. While the use of reserves to fund a share of capital projects will help to mitigate the necessary level of rate increases, significant rate increases will still be required due to the magnitude of the capital improvements that are necessary. The main analysis discussed in this report assumes that the City will not be issuing bonds to support the CIP projects during the Study period, in line with the City's typical capital funding practices. An alternative analysis, assuming the use of bonds, is included in the last section of the report. It is recommended that the City review its revenues and expenditures on an annual basis to verify that the implemented rates are adequately recovering costs.

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Docusign Envelope ID: 2EE35CDA-4EA8-4B02-8290-D02A8FACC334 The key findings and recommendations are as follows:
2025 WASTEWATER COST-OF-SERVICE STUDY
JANUARY 2025 /FINAL/ CAROLLO
• Proposed Rate Increases: Given the considerable capital improvement projects for the study period (FYE 2025 - FYE 2029), increases of 14 percent per year through FYE 2027 are proposed with projected increases at ?-percent per year for FYE 2028 and FYE 2029. ■ Retain the Current Rate Structure: The proposed user rates largely retain the City's current rate structure and will include a cost-of-service adjustment on July 1, 2025 based on the updated cost-of­ service allocations followed by across the board increases on January 1, 2026 and January 1, 2027. ■ Rate Implementation Timing: Subsequent to the development of the rates proposed in this report, the City opted to delay rate increased until July 1, 2025. This will allow time to update the customer billing system to include the pass-through charges that have been developed for water rates. Rather than recalculating rates, the implementation of the rates developed based on a January 1, 2025 increase will be delayed by six months. The City will resume its typical calendar year rate increases starting January 1, 2026. The delay in 2025 will result in decreased revenues of approximately $1.8 million which will be covered with reserves. Future increases, beyond FYE 2027 may need to be higher than those presented to replenish the reserves.
■ Projected Reserves: The City's utilities reserve policy sets a minimum reserve target based on components for 90-days of O&M costs, 1 year of annual debt service payments, 25-percent of the five year annual average CIP, a rate stabilization reserve set at minimum of 5-percent of annual rate revenues, and 1-percent of the system's replacement value in an emergency reserve ($4.4 million for FYE 2025). The policy also includes general guidance to maintain total reserves equivalent to between 180 and 365 days of O&M expenditures. Due to the large anticipated CIP expenditures, the City will draw on its existing reserves to fund projects, resulting in rate increases lower than those that would be otherwise necessary. This use of reserves will result in total reserves being drawn below the minimum amount defined by the components, however they will remain within the 180 to 365 days of O&M range for all years except FYE 2028. Longer-term projections indicate that reserves would rebound above the minimum level by FYE 2030.

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Docusign Envelope ID: 2EE35CDA-4EA8-4B02-8290 -D02A8FACC334 2025 WASTEWATER COST-OF-SERVICE STUDY
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Table 1 outlines the calculated wastewater charges for FYE 2025 through FYE 2029 for Option 1.

Table 1 Proposed Wastewater Rates by Customer Class
FYE 2025 FYE 2026
Customer Class Current Rate Proposed Proposed
Delayed to Jul. 1 Jan. 1 2026
2025
FYE 2027
Proposed
Jan. 1 2027
lncrease<1J 14.00%
Group I -Residential - Monthly Flat Rate
SFR $51.74 $59.85 $68.22 $77.77
SFR w/ Second Dwelling Unit 77.60 89.77 102.33 116.66
Group I -Residential - Rates per HCF
MFR $5.95 $6.89 $7.85 $8.95
Mobile Home 5.95 6.89 7.85 8.95
Commercial - Rates per HCF
GROUP II - Commercial 2 $5.06 $6.06 $6.91 $7.88
GROUP Ill - 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 Ill 8.14 9.03 10.29 11.73 Group V -School - Monthly Rates per Student
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
Breweries - Rates per HCF
B1 - Brewery without a restaurant and hauls waste $5.06 $6.06 $6.91 $7.88 for outside treatment B2 - Brewery without a restaurant that does not haul 14.06 14.63 16.67 19.01 waste for outside treatment B3 - Brewery with a restaurant and hauls waste for 12.61 12.90 14.71 16.76 outside treatment B4 - Brewery with a restaurant that does not haul 17.34 17.76 20.25 23.08 waste for outside treatment Notes:

HCF - hundred cubic feet; MFR - multi family resident; SFR - single family resident. ( 1) Proposed rates for FYE 2025 include a cost-of-service adjustment and increases for specific rates vary from the 14.0- percent overall rate revenue increase.

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Docusign Envelope ID: 2EE35CDA-4EA8-4B02-8290-D02A8FACC334 2025 WASTEWATER COST-OF-SERVICE STUDY
JANUARY 2025 /FINAL/ CAROLLO
SECTION2 INPUTS AND ASSUMPTIONS
Financial, operational, and billing information provided by the City serve as the backbone of the revenue requirement and cost-of-service analysis. The projections developed for this analysis are based on several sources of information including the budgeted revenues and expenditures for FY 2023/24, actual revenues and expenditures from several prior fiscal years, EWPCF charge records, and other pertinent information such as the Council approved Utilities Reserve Policy. The analyses were completed by adding supplemental information and calculations to the City's existing financial model.

2.1 Growth and Wastewater Usage
The escalation factors used in this analysis are based on a review of both long-term and recent cost escalation factors from the Engineering News-Record Index Construction Cost Index, an industry benchmarking resource, and based on input from Carlsbad staff based on realized cost escalations. Other costs were escalated based on recent and specific cost trends. A customer growth escalation factor, used to project revenues, wastewater accounts, and wastewater discharge, is included based on the City's planning growth estimates. These factors are presented in Table 2.

Table 2 Escalation Factors
Escalation Factor
General Inflation
Labor Inflation
Labor - PERS (Normal Cost)
Labor - PERS (UAL)
Labor - Health Insurance
EWA Operating
Chemicals Inflation
Utilities Inflation
Depreciation Funding
Interest Earnings
Customer Demand Growth
Gnrl lnfltn + Cstmr Dmnd Grwth
No Annual Increase
One Time Expense

CITY OF CARLSBAD
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I FYE 2025 I FYE 2026

4.0% 2.5%

4.0% 3.0%

13.2% 13.2%

17.0% 16.8%

6.4% 6.1%

3.0% 3.0%

4.0% 4.0%

4.0% 4.0%

1.2% 1.2%

2.5% 2.5%

0.6% 0.2%

4.6% 2.7%

0.0% 0.0%
-100.0% -100.0%
I FYE 2027 I

2.5%

3.0%

13.2%

16.6%

5.9%

3.0%

4.0%

4.0%

1.2%

2.5%

0.4%

2.9%

0.0%
-100.0%
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FYE 2028 I FYE 2029

2.5% 2.5%

3.0% 3.0%

13.2% 13.2%

16.5% 16.3%

5.7% 5.7%

3.0% 3.0%

4.0% 4.0%

4.0% 4.0%

1.2% 1.2%

2.5% 2.5%

1.0% 1.0%

3.5% 3.5%

0.0% 0.0%
-100.0% -100.0%
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Docusign Envelope ID: 2EE35CDA-4EA8-4B02-8290-D02A8FACC334

2.2 User Rate Categories
Carlsbad classifies its wastewater customers as follows :
• Group I:
» SFR.
» Single family residential with second dwelling unit.
» Mobile Home.
» Multi-Family Residential.
• Group II - Commercial 2.
• Group Ill - Commercial 3.
• Group IV - Commercial 4.
■ Group V - Schools:
» Elementary Schools.
» Junior High Schools.
» High Schools.
» Boarding Schools.
• Group VI - Large volume (no accounts).
• Breweries:
2025 WASTEWATER COST-OF-SERVICE STUDY
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» B1 - Brewery without a restaurant and hauls waste for outside treatment. » B2 - Brewery without a restaurant that does not haul waste for outside treatment. » B3 - Brewery with a restaurant and hauls waste for outside treatment. » B4 - Brewery with a restaurant that does not haul waste for outside treatment. • Industrial pretreatment class Ill.

SFR customers are charged a fixed monthly fee. SFR with an accessory-dwelling unit (ADU) has a higher fixed monthly fee to account for the additional discharges associated with the ADU as compared to a normal SFR account. All commercial groups and group VI customers are subject to a volumetric charge based on water usage. Schools are charged based on the number of students, as that influences a school's impact on the wastewater system.

The volumetric charges vary between customer classes based on each class's assumed flow and loadings.

Wastewater customers' effluent discharges are not individually metered; instead, each user's discharges are estimated using wastewater billing records and/or metered water consumption records and assumed strength characteristics. The City's billing system has a detailed listing of historic water consumption by customer, property use classification, and month.

Commercial customers are grouped into Group 11, Group Ill and Group IV depending on their discharge characteristics. Customers in the Brewery category are split into separate rate classes based on whether or not they also operate as a restaurant, and whether they haul their brewing waste offsite for treatment.

The Group VI - Large Volume rate category is currently not in use as the only customer in this category is located outside the service area and no longer has a business presence within the City.

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Docusign Envelope ID: 2EE35CDA-4EA8-4B02-8290-D02A8FACC334 2025 WASTEWATER COST-OF-SERVICE STUDY
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SECTION 3 REVENUE REQUIREMENT ANALYSIS
The revenue requirement analysis is a comprehensive test of a utility's fiscal health, scrutinizing the adequacy of current revenues, and setting the basis for rate planning. It reviews the utility's revenues, expenses, debts, and reserve policies, and other requirements assessing the viability of each metric going forward. Where cash flows and balances are insufficient, the revenue requirement analysis determines the needed additional cash flows to meet all funding goals.

The City's FYE 2024 budget expenses serve as the base year for O&M costs. Furthermore, Carollo collected information related to current cash and restricted fund balances and policies, the budgeted capital improvement program expenditures, and all other operating and non-operating future revenues and expenditures.

Once the revenue requirement is established by compiling all of the City's cost drivers, three tests are utilized to define the annual revenues necessary.
• The Cash Flow Sufficiency Test looks for a net positive cash flow at the end of each fiscal year to examine whether a utility is generating enough revenues to meet O&M expenses, debt service payments, policy driven additions to working capital (and reserves), miscellaneous capital outlays, replacement funding, and rate funded capital expenditures. When revenues exceed expenses, an increase in rate revenues is recommended.
• The Debt Service Coverage Test assesses a utility's ability to meet their annual debt service obligations. Bond issuances regularly include a stipulation that the agency must maintain sufficient cash flows to meet annual debt service payments plus an additional amount by its covenant. Typical debt service coverage ratio (DSCR) target ranges from 1.25 to 1 .40 times annual debt service payment, depending on an agency's specific financial situation and the type of debt instrument issued. This means that for a utility's every $100 in debt obligation, it needs to generate $125 to $140 in net operating income. When the calculated DSCR falls below the target, an increase in rate revenues is recommended. The City's DSCR requirement is 1.20. The main analysis presented in this report assumes that the City has no plan to issue additional debt other than the planned State Revolving Fund (SRF) debt service loans for FYE 2025 and FYE 2026. ■ The Reserves Test determines whether sufficient cash balances are maintained to ensure continuation of their operations and any financial obligations in the event of unforeseen costs or revenue shortfalls.

This test is not legally binding but provides an assurance for a utility's financial stability. When the end of the year balance falls before the target, an increase in rate revenues is recommended. However, reserve targets can be reduced in some cases in order to mitigate rate payer impacts.

3.1 Fiscal Policies
Utility fund policies are intended to be implemented as a measure of safety and security against future events that may negatively impact the utility's financial health. Fund balances can address variability and timing of expenditures and receipts, as well as occasional disruptions in activities, costs, or revenues. The general objectives of these policies are to facilitate stable and predictable rates and funding sources, along with equitable recovery of costs from customers as they are being incurred (or accrued).

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Docusign Envelope ID: 2EE35CDA-4EA8-4B02-8290-D02A8FACC334 2025 WASTEWATER COST-OF-SERVICE STUDY
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Overall, a utility's fund policies are a collection of rules and guidelines. The collective use of individual funds will allow the utility to minimize its exposure to revenue shortfalls and to mitigate the rate increases that would otherwise be necessary to fund the CIP. As a part of the Revenue Requirement Analysis, the utility's fiscal policies were incorporated to assess their impact on rates in relation to capital funding and reserves.

The City's utilities reserve policy sets a minimum reserve target based on components for 90-days of O&M costs, 1 year of annual debt service payments, 25-percent of the five year annual average CIP, a rate stabilization reserve set at 5-percent of annual rate revenues, and 1-percent of the system's replacement value in an emergency reserve ($4.4 million for FYE 2025). The policy also includes general guidance to maintain total of these component reserves equivalent to between 180 and 365 days of O&M expenditures.

3.2 Operating Revenues
Operating revenues are projected from budgeted revenues based on the escalation factors shown in Table 2. Table 3 below shows the projected user rate revenues based on the current rates and prior to the inclusion of any rate increases for FYE 2025 through FYE 2029. This base level of rate revenue is expected to increase modestly over the study period based on the expected level of growth in customer accounts.

Table 3 Current Rate Revenues (in millions)
Sewer Pre-Treat 0.012 0.012 0.013 0.013 0.013 0.014
Total Wastewater Rate Revenues j $23.569 $25.920 $25.974 $26.072 $26.329 $26.599 Notes:
(1) Line or column totals may not tie due to rounding.

In addition to rate revenues, the City also receives other offsetting revenues that can be used to decrease the amount of revenues needed from user rates. Table 4 summarizes the projected offsetting revenues for the wastewater fund .

Table 4 Offsetting Revenues (in millions)
I ~b~dt~~4 I FYE 2025 I FYE 2026 I FYE 2027 I FYE 2028 I FYE 2029 Fines & Forfeitures '.I I ',I '.I ',I '.I -
Income from Property & lnvestments(1) 0.744 0.503 0.205 0.177 j Interdepartmental 0.120 0.125 0.128 0.131
Other Revenues 0.067 0.070 0.071 0.073
Total Offsetting Revenues j $1.051 $0.819 $0.525 $0.503 Notes:
(1) Includes interest earned on the City's fund balance based on the rate implementation. (2) Line or column totals may not tie due to rounding.

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0.176 0.156

0.134 0.138

0.075 0.077
$0.508 $0.495
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Docusign Envelope ID: 2EE35CDA-4EA8-4B02-8290-D02A8FACC334 2025 WASTEWATER COST-OF-SERVICE STUDY
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3.3 Operations and Maintenance Expenditures
The cost-of-service analysis utilizes the wastewater fund's FYE 2024 budget as the basis for forecasting future revenue needs. O&M expenditures are assumed to increase commensurate with cost inflation and projected cost increases associated with increases in wastewater flows due to growth and higher treatment standards. Revenues and expenses are projected for future fiscal years using the annual escalation factors shown in Table 2. Table 5 presents a summary of the projected operating expenditures for FYE 2025 through FYE 2029. Detailed O&M projections are included in Appendix A.

Table 5 Operating Expenditures (in millions)
I
FYE 2024
I
FYE 2025 FYE 2026 I FYE 2027 I FYE 2028 I FYE 2029 (budget) Personnel $3.322 $3.608 $3.726 $3.848 $3.973 $4.102
Encina (EWPCF) Operations 6.000 6.180 6.365 6.556 6.753 6.956 Maintenance & Equipment 4.100 3.981 4.086 4.194 4.305 4.419 Capital Outlay 0.025 0.026 0.026 0.027 0.028 0.028
Budget Adjustment (1.425) (1.456) (1.491) (1 .528) (1 .566) (1 .605) Total Operating Expenses $12.022 $12.340 $12.713 $13.097 $13.492 $13.900 Notes:
(1) Line or column totals may not tie due to rounding.

3.4 Capital Improvement Program Funding
The City completed a wastewater master plan update in 2019 as well as an asset management master plan and a SCADA master plan. The plans developed capital improvement strategies, and the City has continually worked to refine the CIP based on project execution timelines, system needs, and funding availability. The City categorizes its capacity expansion-related projects as 'connection projects' and replacement-related projects as 'replacement projects.' Along with the City identified collection system projects, the EWPCF expects to continue its own reinvestment through rehabilitation and replacement projects.

The City has budgeted $53.22 million (in 2024 dollars) for 15 replacement projects for the next 5 years. In addition, there are projects associated with the EWA's general improvement projects and planned asset replacements totaling approximately $40.69 million. The City also has budgeted $13.56 million for 7 connection (expansion related) projects for the next 5 years. Table 6 shows the projected CIP project costs for FYE 2025 through FYE 2029. The capital costs develop by the City are adjusted to the midpoint of construction. Based on discussion with the City, the funding analysis includes additional 2.0-percent annual cost escalation factor for FYE 2025 and FYE 2026 to account for increases in construction and contracting costs. Project level detail of the CIP is included in Appendix B.

CITY OF CARLSBAD
April 22, 2025 Item #5
11

Docusign Envelope ID: 2EE35CDA-4EA8-4B02-8290-D02A8FACC334 Table 6 Capital Improvement Plan Expenditures (in millions) Connection Fee Fund Projects
Replacement Fund Projects 6.598
Encina Projects 8.450
Total Sewer Projects $16.469
Total Escalated Cost $16.798
Notes:
(1) Line or column totals may not tie due to rounding.

13.102

8.003
$22.417
$25.187
2025 WASTEWATER COST-OF-SERVICE STUDY
JANUARY 2025 /FINAL/ CAROLLO

9.325 12.615 11.580

7.757 7.952 8.529
$19.189 $25.267 $22.140
$22.316 $30.412 $27.581
The City frequently adjusts this CIP based on engineering and planning needs for the wastewater system.

Prior to the completion of the wastewater master plan and asset management master plan, the City's CIP spending had been limited. The City continued to set aside funds for capital projects throughout that time in anticipation of increased investments, however, not to the level required by the wastewater master plan. While the use of these reserves to fund a share of capital projects will help to mitigate the necessary level of rate increases, significant rate increases will still be required due to the magnitude of the capital improvements that are necessary based on the recommendations of the sewer master plan and on the EWPCF's CIP needs.

As shown in Table 6, the escalated CIP is projected to total approximately $122.29 million over the next 5 years. Table 7, on the next page, illustrates the anticipated funding sources to support these capital projects. At the beginning of FYE 2025, the City is expected to have a combined balance of $6.143 million between connection fee fund and replacement fund. Due to the level of capital spending needed, capital reserves will be drawn below the minimum of 25-percent of five year rolling average costs starting in FYE 2025 as they are spent to mitigate rate increases. Longer-term projections show the capital reserves rebounding above the minimum level in FYE 2030.

CITY OF CARLSBAD
April 22, 2025 Item #5
12

Docusign Envelope ID: 2EE35CDA-4EA8-4B02-8290-D02A8FACC334 Table 7 Capital Improvement Plan Funding (in millions)
Amount to be Rate Funded
Amount to be Funded with Reserves and
Loans
Beginning Capital Funds Balance
(Connection Fee and Replacement)
Transfers and Replacement Funding
Connection Fees
Loan Proceeds
Use of Replacement Funds
Year-End Transfer from Operating Fund
Year-End Balance
Notes:

4.594

12.204
$6.442

5.361

0.401

0.500
(12.204)

4.067
$4.567
(1) Line or column totals may not tie due to rounding.

14.868

10.319
$4.567

5.423

0.329

4.101
(10.319)

0.000
$4.101
2025 WASTEWATER COST-OF-SERVICE STUDY
JANUARY 2025 /FINAL/ CAROLLO

12.615 21.131 21.278

9.700 9.281 6.303
$4.101 $3.528 $0.152

5.486 5.549 5.612

0.114 0.204 0.538

0.000 0.000 0.000
(9.700) (9.281) (6.303)

3.528 0.152 2.765
$3.528 $0.152 $2.765
An important aspect of the capital funding plan is that the City intends to draw on both existing replacement reserves and existing connection fee reserves to fund capital projects. Since the implementation of the City's existing connection fees, reduced volumetric discharges due to conservation and changes in planned developments have reshaped the CIP projects that are necessary to serve new users. While some of the projects initially conceived and included in the connection fees have changed, other projects have been modified or expanded to take their place. Further, replacements and upgrades to the City's existing infrastructure are required to maintain the assets that serve new users and to maintain the excess system capacity that will be needed to serve users that have not yet connected to the system. To these ends, the City plans to allocate existing connection fee reserves, as well as a share of future connection fees, to pay for replacement projects that have an excess capacity component.

3.5 Recommended Revenue Requirements
Rate revenue increases will be necessary in order to meet the City's projected revenue requirements, with funding of the capital program as the primary driver. Table 8, on the next page, summarizes the revenue requirement projection. Additional details of the revenue requirement calculations are shown in Appendix C.

CITY OF CARLSBAD
April 22, 2025 Item #5
13

Docusign Envelope ID: 2EE35CDA-4EA8-4B02-8290 -D02A8FACC334 Table 8 Revenue Requirement Summary (in millions)
1:::a.·•=-'JI
Pre-Rate Increase
Rate Revenues without Increases $25.907
Revenues from Prior Years' Increases 0.000
Offsetting Revenues (Inc. Pre Treatment) 0.831
Revenues $26.738
LESS:

Operating Expenditures $13.795
One-time Funding (Budget Analysis Amount) (1.456)
Rate Funded Capital 4.594
Debt Service (SRF Loan) 0.000
Replacement Funding 5.361
Expenses $22.295
Cash Flow Surplus/(Deficit) $4.443
Rate Revenue Increase 14.00%
Post-Rate Increase
Revenues from Rate Increases $3.627
Less: Rate Increase Delay(1l ($1.814)
Adjustment for Implementation Delay(2l ($1.814)
Total Operating Revenues With Increases $26.738
Operating Cash Flows Available for Capital $4.443 and Reserves Operating Fund Reserve
Beginning Operating Fund Balance $4.546
Cash Flow 4.443
Transfers to Capital Reserve (4.067)
Ending Operating Fund Balance $4.922
Ending Capital Fund Balance 4.567
Combined Ending Balance $9.489
Total Days of O&M Costs 281 days
Operating Reserve Days of O&M Costs 130 days
Notes:
1:::a.·•=-'JI •
$25.962

3.635

0.538
$30.134
$14.204
(1.491)

14.868

0.000

5.423
$33.004
($2.870)

14.00%
$4.143
($2.072)
$0.000
$32.206
($0.798)
$4.922
(0.798)

0.000
$4.123

4.101
$8.224
236 days
106 days
2025 WASTEWATER COST-OF-SERVICE STUDY
JANUARY 2025 /FINAL/ CAROLLO
'~"---
$26.059 $26.316 $26.586

7.807 12.672 15.559

0.516 0.522 0.509
$34.383 $39.510 $42.654
$14.625 $15.058 $15.505
(1 .528) (1 .566) (1 .605)

12.615 21 .131 21 .278

0.294 0.294 0.294

5.486 5.549 5.612
$31.492 $40.466 $41.084
$2.891 ($0.956) $1.570

14.00% 7.00% 7.00%
$4.741 $2.729 $2.950
($2.371) ($1.365) ($1.475)
$0.000 $0.000 $0.000
$36.753 $40.874 $44.129
$5.261 $0.409 $3.045
$4.123 $5.856 $6.113

5.261 0.409 3.045
(3.528) (0.152) (2.765)
$5.856 $6.113 $6.393

3.528 0.152 2.765
$9.385 $6.265 $9.158
261 days 170days 240days
146 days 148 days 151 days
( 1) Adjustment to account for rate implementation on January 1 of each fiscal year. (2) Adjustment to reflect delay of rate implementation from January 1, 2025 to July 1, 2025. (3) Line or column totals may not tie due to rounding.

CITY OF CARLSBAD
April 22, 2025 Item #5
14

Docusign Envelope ID: 2EE35CDA-4EA8-4B02-8290-D02A8FACC334 2025 WASTEWATER COST-OF-SERVICE STUDY
JANUARY 2025 /FINAL/ CAROLLO
SECTION 4 COST-OF-SERVICE ANALYSIS
The purpose of a cost-of-service (COS) analysis is to provide a rational basis for distributing the full costs of wastewater service to each customer in proportion to the demands they place on the system. The COS analysis yields an appropriate method for allocating costs, which could be continued until substantial changes in cost drivers or customer flow or loading patterns occur.

Using a COS analysis, user rates are developed to allocate O&M, debt service, and rehabilitation and replacement costs to system users. Allocating costs begins by developing unit costs for each billable constituent: treatment flow, BOD, TSS, and collections flow. Unit costs are then applied to the flow and loading of each customer category in order to allocate the costs to each customer. The City's current rate structure was developed using a COS analysis. The overall procedure used to develop the user rates is as follows:
• Revenue Needs. Define the annual revenue that must be recovered from user rates and permit users. ■ Functional Allocation. Determine the percentage allocation of O&M and capital costs to the billable constituents: treatment flow, BOD, TSS, and collection flow. • Unit Costs. Develop unit costs for each billable constituent by dividing the total cost allocated to that constituent by the total wastewater flow or loadings of that constituent. ■ Customer Category Rates. Calculate customer rates based on each customer type's wastewater discharge characteristics .

Note: The cost-of-service analysis values presented and discussed in this section are included for reference in Appendix 0.

4.1 Revenue Needs
The revenue needs are defined as the amount of revenues that must be recovered through user rates and industrial user rates in order to cover annual expenditures less any offsetting revenues. Expenditures and offsetting revenues for FYE 2025 are shown in Table 9 below .

Table 9 Expenditures and Offsetting Revenues (in millions) O&M Expenses
One-Time Funding (Budget Analysis Amount)
Rate-Funded capital
Debt Service
Replacement Funding
Adjustment to Reflect Full Year Increase
Operating Cash Flows (Available for Capital and Reserves) Less: Offsetting Revenues (Inc. Pre Treatment)
Notes:
(1) Line or column totals may not tie due to rounding.

CITY OF CARLSBAD
April 22, 2025
Rate Revenues Required
I
Item #5
FYE 2025
$13.795
(1.456)

4.594

0.000

5.361

3.627

4.443
(0.831)
$29.534
15

Docusign Envelope ID: 2EE35CDA-4EA8-4B02-8290-D02A8FACC334 2025 WASTEWATER COST-OF-SERVICE STUDY
JANUARY 2025 /FINAL/ CAROLLO
For FYE 2025, wastewater rates must be set to recover $29.53 million in annual revenue requirements.

Because the calculated rate revenue increases reflected a January 1, 2025 implementation, and will be further delayed to July 1, 2025, the rate revenue requirements for each year include an "Adjustment to Reflect Full Year Increase." This line item adjusts the required rate revenue to reflect a full year increase to match the full year of projected discharges and customer bills that are used to calculate the rates for each year.

4.2 Functional Allocation
The American Water Works Association (AWWA) defines a two-step process for recovering costs for wastewater services. First, capital and O&M costs should be allocated to applicable functional categories.

A functional category is a primary function of the utility that costs can be allocated to, then recovered based on how customers utilize the system. For this study, four functional categories were assumed as follows :
• Treatment flow costs are associated with the treatment of sewage at the EWPCF based on volume and regardless of strength . The City does not meter sewage discharges. Instead, flows by each customer class are estimated using water consumption. The flow component is measured in assumed flow in HCF.
• BOD costs are associated with providing the transportation and treatment of dissolved organisms within sewage effluent. BOD costs are allocated based on assumed BOD strength in a user class's discharges. BOD is measured in pounds.
■ TSS costs relate to providing the transportation and treatment of solid matter within sewage effluent.

TSS costs are allocated based on assumed TSS strength in a user class's discharges. TSS is measured in pounds.
■ Collection flow costs represent the collection and transportation of sewage discharges to the EWPCF for treatment. The City does not meter sewage discharges. Instead, flows by each customer class are estimated using water consumption. The flow component is measured in assumed flow in HCF.

Once the functional categories have been defined, each operating and capital cost is allocated on a line item basis to one or more of these functional categories. The functional costs are then used to develop unit costs for each category's billable constituent.

CITY OF CARLSBAD
April 22, 2025 Item #5
16

Docusign Envelope ID: 2EE35CDA-4EA8-4B02-8290-D02A8FACC334

4.2.1 Functional Allocation Factors
2025 WASTEWATER COST-OF-SERVICE STUDY
JANUARY 2025 /FINAL/ CAROLLO
Annual expenditures and off-setting non-rate revenues are allocated on a line-by-line item basis between the functional components outlined in Table 10. The allocation metrics shown above are consistent with industry standards. Items that cannot be reasonably allocated between these functional categories are allocated "As-All-Others" and costs are split proportionally based on the allocation split of all other items.

Table 10 Functional Allocation Factors
I
I I
AsAII I
Allocation Factor
I
Treatment I BOD TSS Collection Other Total Flow Flow (Weighted Average)
Treatment Flow/8OD/TSS 40.3% 28.6% 31 .1% 0.0% - 100.0% Collections - 5.0% 5.0% 90.0% - 100.0%
Staff Allocation - 3.3% 3.3% 60.2% 33.1% 100.0%
Vehicles - 5.0% 5.0% 90.0% - 100.0%
Capital Improvement Plan 13.6% 12.6% 13.6% 60.2% - 100.0% Weighted Average O&M 26.6% 20.6% 22.3% 30.5% - 100.0%
Weighted Average Total Rate Revenue 20.8% 17.0% 18.4% 43.8% - 100.0% Requirements Notes:
(1) Line or column totals may not tie due to rounding.

The allocation factors shown in Table 10 were determined as follows:

Treatment Flow/BOD/TSS: This allocation factor is used to allocate the ongoing costs the City pays to the EWPCF for wastewater treatment. It represents the estimated average allocation of the City's EWPCF charges and was determined based on detailed records of the City's EWPCF invoices by allocating specific invoice elements to Treatment Flow, BOD, and TSS.

Collections: This allocation factor is applied to line item costs that are specifically attributable to the City's wastewater collection activities. Collections costs are driven primarily by flow, and therefore they are allocated 90 percent to collections flow . The City's collections staff also spend time and resources reacting to and preventing issues within the collection system that are related to the BOD and TSS carried in the wastewater. These issues include material buildup, pipe degradation, and odor problems among others.

To recognize these activities, a small share of collections costs is allocated to BOD and TSS at 5 percent each.

Staff Allocation: The staff allocation was determined using an analysis of the City's wastewater staff positions and the typical costs for each position. Operations and maintenance staff as well as asset management staff were allocated to the functional categories using the collections allocation, as their responsibilities relate to the collection system. All other staff costs are allocated to the As All Other category to be redistributed based on the weighted average O&M costs.

Vehicles: The vehicles allocation was determined based on the responsibilities of the staff members who typically utilize City vehicles. These include predominantly operations and maintenance personnel and as such, the majority of vehicle costs are allocated based on the collections allocation and split between Collection Flow, BOS, and TSS.

CITY OF CARLSBAD
April 22, 2025 Item #5
17

Docusign Envelope ID: 2EE35CDA-4EA8-4B02-8290-D02A8FACC334 2025 WASTEWATER COST-OF-SERVICE STUDY
JANUARY 2025 /FINAL/ CAROLLO
Capital Improvement Plan: Costs related to capital improvements are allocated to reflect the proposed CIP over the next 10 years. As shown in Table 11, capital costs for the collection system are assigned to the Collection Flow component. Capital costs for EWPCF projects are split between Treatment Flow, BOD, and TSS based on a typical allocation for municipal wastewater treatment plants. Using the 10-year CIP rather than a single year reflects that CIP projects are long-lived investments and helps to avoid large swings in cost allocations that could result from changes in the types of projects being completed from year-to-year.

Weighted Average - O&M: This allocation reflects the overall allocation of O&M costs.

Weighted Average - Total Revenue Requirements: This allocation reflects the overall allocation of total revenue requirements.

4.2.2 Functional Allocation Results
Table 11 shows the functional allocation of projected O&M costs for FYE 2025. The resulting allocated O&M is then included along with the other revenue requirement elements to determine the overall revenue requirements allocation as shown in Table 13. The total allocated revenue requirements for each functional category are then used to determine the unit costs by billable constituent and subsequently the rates. Additional detail showing the line item allocations is included in Appendix D.

Table 11 CIP Functional Allocation (in millions, 2024 Dollars) CIP Allocation
Encina Projects - Treatment
Carlsbad Projects - Collections
Treatment
Flow
I '

0.000
Allocated Cash Funded CIP Costs $27.024
CIP Percentage Allocation 13.6%
Notes:
(1) Line or column totals may not tie due to rounding.

Table 12 O&M Functional Allocation (in millions)
O&M Cost Allocation I
Treatment I
Flow
Personnel $0.000
Maintenance & Equipment 0.000
Encina Services 2.376
Capital Outlay 0.003
Budget Adjustment 0.000
Allocated Costs $2.380
Reallocation of "As All Other" 0.906
Total O&M Allocation $3.286
O&M Percentage Allocation 26.63%
Notes:
(1) Line or column totals may not tie due to rounding.

CITY OF CARLSBAD
April 22, 2025
BOD
$24.975

0.000
$24.975

12.6%
BOD
I
$0.121

0.064

1.687

0.003
(0.034)
$1.841

0.701
$2.542

20.60%
TSS
$0.121

0.064

1.835

0.003
(0.034)
$1.989

0.758
$2.747

22.26%
TSS Collection
Flow I Ten-Year Total
$26.923 $0.000 $78.922

0.000 119.361 119.361
$26.923 $119.361 $198.283

13.6% 60.2% 100.0%
I
. I As All Other I Co~~~on (Weighted Total
Average)
$2.172 $1 .195 $3.608

1.154 2.981 4.263

0.000 0.000 5.898

0.015 0.000 0.026
(0.615) (0.772) (1.456)
$2.726 $3.404 $12.340

1.038
$3.765 $12.340

30.51% 100.0%
Item #5
18

Docusign Envelope ID: 2EE35CDA-4EA8-4B02-8290 -D02A8FACC334 Table 13 Revenue Requirements Functional Allocation (in millions) . . I Treatment I Revenue Requirements Allocation Flow
Allocated O&M $3.286
Replacement Funding 0.731
Rate Funded Capital 0.626
Debt Service 0.000
Adj. to Reflect Full Year Increase 0.000
Operating Cash Flows 0.000
LESS: Offsetting Revenues 0.000
Allocated Costs $4.643
Reallocation of "As All Other'' 1.507
Total Allocation $6.150
O&M Percentage Allocation 20.82%
Notes:
(1) Line or column totals may not tie due to rounding.

CITY OF CARLSBAD
April 22, 2025
BOD
I
TSS
$2.542 $2.747

0.675 0.728

0.579 0.624

0.000 0.000

0.000 0.000

0.000 0.000

0.000 0.000
$3.796 $4.099

1.233 1.331
$5.029 $5.429

17.03% 18.38%
2025 WASTEWATER COST-OF-SERVICE STUDY
JANUARY 2025 /FINAL/ CAROLLO
I
. I As All Other I Co~~~on (Weighted Total
Average)
$3.765 $12.340

3.227 0.000 5.361

2.766 0.000 4.594

0.000 0.000 0.000

0.000 3.627 3.627

0.000 4.443 4.443

0.000 (0.831) (0.831)
$9.758 $7.239 $29.534

3.168 7.239
$12.926 $29.534

43.77%
Item #5
19

Docusign Envelope ID: 2EE35CDA-4EA8-4B02-8290-D02A8FACC334 SECTION 5 RATE DESIGN ANALYSIS

5.1 Customer Characteristics
2025 WASTEWATER COST-OF-SERVICE STUDY
JANUARY 2025 /FINAL/ CAROLLO
The City does not individually meter wastewater usage by its customers. Metering wastewater is an expensive and generally inefficient process. Single family residential customers, including duplex and flat billed multi-family customers tracked as 'M1' customers in the billing system data, incur a flat monthly charge for service. Schools are charged on a per student basis, and all other customer classes are charged based on a percentage of water consumption, which is outlined in this report.

For the purposes of this study, City staff provided wastewater billing records, including January 2019 through June 2022. FY 2021/22 data were utilized to develop usage information by customer class and by month. Wastewater billing records list monthly charges by customer as well as the amount of water used by each customer. Water consumption was not provided for those customers who receive a flat monthly bill (i.e., single family residences and schools). For these customers, data from the water utility billing system was used to estimate discharges to the sewer system. In order to test the validity of the customer data, two tests were performed: an accuracy test and a reliability test.

The accuracy test verifies that the correct data is being used by performing a price out on the provided data set in order to calculate revenues and compare the result to the City's actual revenues. An acceptable margin of error for this test is +/-3 percent (actual revenues compared to revenues calculated from the billing records). Based on preliminary actuals for FYE 2022, the actual wastewater rate revenues collected by the City amounted to $16.057 million. Using the customer data set provided, the calculated amount came to $15.699 million, a difference of $0.36 million or 2.24 percent. This minimal level of discrepancy validates that the data provided is sufficiently accurate to be used in the model and calculations.

Performing a reliability test is also necessary in order to confirm that the correct data is being used. From a statistical standpoint, the definition of reliability is the consistency of a set of measurements. In other words, "Can the provided data be considered a 'normal' year?" It is important to verify that a normalized year of data is being used as the foundation for developing rates; otherwise, revenues may be over or under collected. For example, during a wet year, consumption may be reduced. If a test for reliability is not performed under these circumstances, then the customer base may be understated. Rates would then be set at a level higher than needed and revenues would be over collected. While there is no guarantee that a 'normal' year will occur in the years addressed by this study, for the sake of projections, it is prudent to assume that this will be the case.

CITY OF CARLSBAD
April 22, 2025 Item #5
20

Docusign Envelope ID: 2EE35CDA-4EA8-4B02-8290 -D02A8FACC334 2025 WASTEWATER COST-OF-SERVICE STUDY
JANUARY 2025 /FINAL/ CAROLLO
After the provided customer data sets were validated, the number of accounts, the amount of flow, BOD, and TSS for each customer class were determined. This allowed for the allocation of costs from the various functional categories (as described in the previous section) to each customer class. The customer classes are defined as follows:
• Single Family Residential includes single family residences, duplexes and M1 (multiple PDUs) accounts. These users are charged a flat monthly wastewater bill. The analysis of water usage was used to determine an estimated wastewater discharge of 164.54 gallons per day (gpd) or 6.69 HCF per month . The estimated discharge was calculated by applying an 80-percent return to sewer factor to the average water use for minimum two months of each of the last three fiscal years. This amount represents the estimated monthly indoor water use that is discharged to the sewer by each single family customer .
• Multi-Family Residential includes multi-family residences and mobile homes. These users are charged based on their water usage (per HCF).
• Group II Commercial includes soft water services, car washes, office buildings, professional buildings, laundromats, department and retail stores, warehouses, hospital convalescent homes and indoor theaters. These users are charged based on their water usage (per HCF). • Group Ill Commercial includes hotels and motels without restaurants, repair and service stations, shopping centers, amusement parks, nightclubs, nurseries and greenhouses, commercial laundries, manufacturing and lumber yards. These users are charged based on their water usage (per HCF). • Group IV Commercial includes hotels and motels with restaurants, wholesale bakeries, supermarkets, mortuaries, and restaurants. These users are charged based on their water usage (per HCF). • Group V includes schools:
» Elementary Schools are billed on a per-student basis. » Middle Schools are billed on a per-student basis.
» High Schools are billed on a per-student basis.
» Boarding Schools are billed on a per-student basis.
• Group VI Large Volume includes organizations and social services. These users are charged based on their water usage (per HCF). Currently, there is no accounts under this class. • Breweries include all businesses where beer or beverage brewing takes place. Breweries are split into four classes based on the strength of their discharge. Each brewery class has specific concentration assumptions depending on whether or not they have an attached restaurant and whether or not they haul their brewing waste offsite for treatment. The brewery classes are:
» B1 - Brewery without a restaurant and hauls waste for outside treatment. These users are charged based on their water usage (per HCF).
» B2 - Brewery without a restaurant that does not haul waste for outside treatment. These users are charged based on their water usage (per HCF).
» B3 - Brewery with a restaurant and hauls waste for outside treatment. These users are charged based on their water usage (per HCF).
» B4 - Brewery with a restaurant and hauls waste for outside treatment. These users are charged based on their water usage (per HCF).

CITY OF CARLSBAD
April 22, 2025 Item #5
21

Docusign Envelope ID: 2EE35CDA-4EA8-4B02-8290 -D02A8FACC334 2025 WASTEWATER COST-OF-SERVICE STUDY
JANUARY 2025 /FINAL/ CAROLLO
• Industrial Pretreatment Class Ill includes any user discharging waste other than domestic waste, having a reasonable potential to adversely affect the Encina Water Pollution Control Facility and requires annual inspection and permits every three years. These users are charged based on their water usage.

5.1.1 Class Flow and Loading Assumptions
Return to sewer factors and loading assumptions for each class are based on typically expected values for each type of customer as well as additional analysis completed for previous rate planning efforts. The loading assumptions for most classes are source from the California Revenue Program Guidelines, Appendix G. Assumptions for breweries were developed during previous studies and reflect typical values for breweries published by brewing industry groups. The baseline assumptions are adjusted using a mass­ balance calculation that compares the flow and loading estimated based on metered water use, return to sewer assumptions, and loading concentration assumptions to the City's flow and loads measured by Encina for billing purposes.

Table 14 shows the flow mass balance for the FY 2021/22 billing data. Based on the billing data, the calculated flow per Equivalent Dwelling Unit (EDU) for single family customers, the assumed flow per student for schools, and assumed return to sewer factors for volumetric billed classes, estimated wastewater flows are 6.71 million gallons per day (MGD). EWA's billing records (based on their FYE 2022 Annual Comprehens ive Financial Report [ACFR]) indicated billed flow for Carlsbad at 5.74 MGD, 14.5- percent below the estimated amount. Based on this comparison, estimated flows for all customer classes and return to sewer factors for volumetric classes are reduced by 14.5-percent for subsequent calculations .

The mass balance analysis indicated the need for significant adjustments to BOD and TSS concentration assumptions . This level of discrepancy is typical for agencies whose concentration assumptions are based on Appendix G of the California Revenue Program Guidelines. Since those guidelines were developed agencies have experienced significant indoor water conservation leading to increased constituent concentrations in their wastewater. To account for this discrepancy, adjustments will be applied proportionally for all customer classes.

Table 15 shows the BOD mass balance for the FY 2021/22 billing data. Based on the adjusted flows from Table 14 and the assumed BOD concentration for each customer class, total BOD is estimated at 11,706 pounds per day. EWA's billing records (based on their FYE 2022 ACFR) indicated billed BOD for Carlsbad at 17,639 pounds per day, 50.7-percent above the estimated amount. Based on this comparison, estimated BOD for all customer classes and assumed concentrations are increased by 50.7-percent for subsequent calculations.

Table 16 shows the TSS mass balance for the FY 2021/22 billing data. Based on the adjusted flows from Table 14 and the assumed TSS concentration for each customer class, total TSS is estimated at 10,962 pounds per day. EWA's billing records (based on their FYE 2022 ACFR) indicated billed TSS for Carlsbad at 20,790 pounds per day, 89.6-percent above the estimated amount. Based on this comparison, estimated TSS for all customer classes and assumed concentrations are increased by 89.6-percent for subsequent calculations.

CITY OF CARLSBAD
April 22, 2025 Item #5
22

0 0
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C
2025 WASTEWATER COST-OF-SERVICE STUDY en
cc·
JANUARY 2025 / FINAL/ CAROLLO
:::,
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"C Table 14 Wastewater Flow Mass Balance-FY 2021/22 Data "C
(I)
~ - 9 N
I
Estimated Estimated
I Adjusted RTS
I\.)
N m '
I Billed/Estimated I Initial RTS Wastewater
I Mass Balance I Wastewater m
N (;)
0 Customer Class Water Use (HCF) Assumption Flow Adjustment Flow 01 ()
N 0 u, :i=-.i,.

GROUP I-SFR (inc. M1): m
1,735,877 (251,498) 1,484,378 0.0%
)>
<f'
Est. Flow= 6.69 HCF/month/EDU x 252,817 EDUs billed/year .i,.

CD
GROUP I -MFR/Mobile Homes 646,426 90.0% 581,783 (84,290) 497,493 77.0% 0 I\.)
co
GROUP II - Commercial 2 383,006 90.0% 344,706 (49,942) 294,764 77.0% I\.)
CD
0 I
GROUP Ill - Commercial 3 90.0% (52,842) 77.0% 405,248 364,723 311,881 0 0 I\.)
GROUP IV - Commercial 4 199,917 90.0% 179,925 (26,068) 153,857 77.0% )> co
Institutional 680 90.0% 612 (89) 523 77.0% ~
()
GROUP V -Elementary Schools
()
(;)
14,770 (2,140) 12,630 0.0%
(;)
Est. Flow = 6,905 Students x 8 gpd/student x 200 days / 7 48 gal/HCF .i,.

GROUP V -Junior High Schools
I 8,6371 (1,251) I 7,386 I 0.0% Est. Flow= 2,692 Students x 12 gpd/student x 200 days/ 748 gal/HCF GROUP V -High Schools
I 16,963 I (2,458) I 14,505 I 0.0% Est. Flow = 3,965 Students x 16 gpd/student x 200 days / 7 48 gal/HCF GROUP V -Boarding Schools 3,922 (568) 3,354 0.0% Est. Flow= 180 Students x 44.7 gpd/student x 365 days/ 748 gal/HCF GROUP VI - Large Volume (no accounts) 0 90.0% 0 0 0 77.0% Brewery-B2 4,786 82.5% 3,948 (572) 3,376 70.5%
;::;- Brewery-B3 9,939 90.0% 8,945 (1,296) 7,649 77.0%
(t)
3 Brewery-B4 3,088 82.5% 2,548 (369) 2,178 70.5%
=1:1: Industrial Pretreatment Class Ill 0 90.0% 8,140 (1,179) 6,960 77.0% u, Total (HCF) 1,653,090 3,275,498 (474,562) 2,800,936
Total MGD 6.71 (0.97) 5.74
"'tl QJ Total Flows From EWA Billing (MGD) (FYE 2022 adjustment: -14.5% I 0Q 5.74 (t) ACFR) N 0 Notes: w
0 (1) Line or column totals may not tie due to rounding. -u,
....
00 CITY OF CARLSBAD 23
)>
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00 Table 15 Wastewater BOD Mass Balance-FY 2021/22 Data Customer Class
I

GROUP I-SFR
GROUP I -MFR/Mobile Homes
GROUP II - Commercial 2
GROUP Ill - Commercial 3
GROUP IV - Commercial 4
Institutional
GROUP V -Elementary Schools
GROUP V -Junior High Schools
GROUP V - High Schools
GROUP V -Boarding Schools
GROUP VI - Large Volume (no accounts)
Brewery-B2
Brewery-B3
Brewery-B4
Industrial Pretreatment Class Ill
Total (lbs)
Pounds per Day
Pounds per Day Measured by EWA
I (FYE 2022 ACFR)
Notes:
mg/L - milligrams per liter.

Estimated Wastewater Flow with
Mass Balance Adjustment
.. -. I ···-
1,484,378 1,110.32
497,493 372.12
294,764 220.48
311,881 233.29
153,857 115.09
523 0.39
12,630 9.45
7,386 5.52
14,505 10.85
3,354 2.51
0 0.00
3,376 2.53
7,649 5.72
2,178 1.63
6,960 5.21
2,800,936 2,095
(!) Line or column totals may not tie due to rounding.

CITY OF CARLSBAD
Estimated BOD
Prior to Mass Balance
200 1,853,206
200 621,106
130 239,816
328 639,224
820 787,554
130 425
130 10,249
130 5,994
130 11 ,771
130 2,721
80 0
1,265 26,665
820 39,154
1,610 21,894
299 12,972
4,272,752
11,706
I adjustment: I
2025 WASTEWATER COST-OF-SERVICE STUDY
BOD Mass
Balance
Adjustment
JANUARY 2025 / FINAL/ CAROLLO
Estimated BOD
With to Mass Balance
I lbs mg/L I
939,228 2,792,433 301 I
314,784 935,891 301
121,542 361,358 196
323,967 963 ,191 495
399,142 1,186,695 1,236
215 640 196
5,195 15,444 196
3,038 9,032 196
5,966 17,737 196
1,379 4,101 196
0 0 121
13,514 40,180 1,906
19,844 58,997 1,236
11,096 32,991 2,426
6,574 19,546 450
2,165,483 6,438,235
17,639

50.7% I 17,639
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2025 WASTEWATER COST-OF-SERVICE STUDY en
cc·
JANUARY 2025 / FINAL/ CAROLLO
:::,
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9 I
Estimated Wastewater Flow I TSS Mass N I\.)
!'-' with Mass Balance Estimated TSS Balance Estimated TSS (lbs) m m N Customer Class Adjustment Prior to Mass Balance Adjustment With to Mass Balance (;)
0 01
()
N 0 u, :i=-.i,.

GROUP I-SFR 1,484,378 1,110.32 200 1,853,206 1,661,375 3,514,580 379 m )>
<f'
GROUP I -MFR/Mobile Homes 497,493 372.12 200 621,106 556,814 1,177,920 379 .i,.

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0 GROUP II - Commercial 2 294,764 220.48 121 221,825 198,863 420,688 229 I\.)
co
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GROUP Ill - Commercial 3 311,881 233.29 279 542,962 486,758 1,029,720 529 CD
0 ,
0 GROUP IV - Commercial 4 153,857 115.09 680 653,093 585,490 1,238,583 1,290 0 I\.)
)>
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Institutional 523 0.39 100 327 293 620 190 ~
()
GROUP V -Elementary Schools 12,630 9.45 100 7,884 7,068 14,952 190 () (;)
(;)
GROUP V -Junior High Schools 7,386 5.52 100 4,611 4,133 8,744 190 .i,.

GROUP V -High Schools 14,505 10.85 100 9,055 8,117 17,172 190 GROUP V -Boarding Schools 3,354 2.51 100 2,093 1,877 3,970 190 GROUP VI - Large Volume (no accounts) 0 0 .00 80 0 0 0 152 Brewery-82 3,376 2.53 810 17,078 15,310 32,388 1,537
Brewery-83 7,649 5.72 680 32,469 29,108 61,577 1,290
Brewery-84 2,178 1.63 1,090 14,823 13,289 28,111 2,067
Industrial Pretreatment Class Ill 6,960 5.21 477 20,735 18,589 39,324 905 ;::;- Total (lbs) 2,800,936 1,110.32 4,001,267 3,587,083 7,588,350 (t) 3 Pounds per Day 10,962 20,790
=1:1: u,
Pounds per Day Measured by EWA
I I I adjustment: I 89.6% I 20,790 (FYE 2022 ACFR)
"'tl Notes: QJ
0Q (1) Line or column totals may not tie due to rounding. (t) N
0 u,
0 -u,
....
00 CITY OF CARLSBAD 25
Docusign Envelope ID: 2EE35CDA-4EA8-4B02-8290-D02A8FACC334 2025 WASTEWATER COST-OF-SERVICE STUDY
JANUARY 2025 /FINAL/ CAROLLO
Using these assumptions and adjusted flow and loading discussed above, and wastewater billing records, the number of accounts, flows, and loading were projected for each customer class based on the City's account growth assumptions. Projected statistics for FYE 2025 for each customer class are summarized in Table 17.

The City's rate structure includes a minimum monthly bill provision in which volumetric users are charged for a minimum of 1 EDU (the single family charge) for months where their otherwise calculated bill would be less than that amount. The incremental flow and loads associated with those minimum charges is accounted for in the unit cost calculations so that the rates accurately reflect the amount of units billed, inclusive of those indicated by the minimum charges.

The incremental flow associated with the minimum charges is calculated by applying the flow per EDU to the number of minimum charges occurring. Incremental loading is calculated by applying the adjusted residential concentrations for BOD and TSS to the incremental flow. The incremental amount billed in minimum charges is shown in Table 17.

Table 17 Expected Billed Units by Customer Class for FY 2024/25 Customer Class I Monthly Account I
GROUP I-SFR 21,844
GROUP I-MFR/Mobile Homes 784
GROUP 11- Commercial 2 1,102
GROUP 111- Commercial 3 247
GROUP IV - Commercial 4 167
Institutional 3
Elementary School 20
Middle School 4
High School 4
Boarding School 1
GROUP VI - Large Volume (no accounts) 0
Breweries
B1 0
B2 7
B3 12
B4 4
Industrial Pretreatment Class Ill 1
Incremental Amount Billed in Minimum Charges
Total 24,200
Notes:
(1) Line or column totals may not tie due to rounding.

CITY OF CARLSBAD
April 22, 2025
Flow (HCF)
1,499,777
502,654
297,822
315,117
155,453
529
12,761
7,463
14,655
3,388
0 0
3,411
7,728
2,201
7,033
308,704
3,138,696
I BOD (lbs) I TSSb(lbs)
2,821,402 3,551,041
945,600 1,190,140
365,107 425,052
973,183 1,040,402
1,199,006 1,251,432
647 626
15,604 15,107
9,125 8,835
17,921 17,350
4,143 4,011
0 0
0 0
40,597 32,724
59,609 62,216
33,333 28,403
19,749 39,732
580,737 730,921
7,085,763 8,397,992
Item #5
26

Docusign Envelope ID: 2EE35CDA-4EA8-4B02-8290-D02A8FACC334

5.2 Unit Cost Calculation
2025 WASTEWATER COST-OF-SERVICE STUDY
JANUARY 2025 /FINAL/ CAROLLO
Unit costs for each billable constituent are calculated by dividing the total allocated revenue requirements from Table 13 by the billed units from Table 17. Table 18 shows the calculation of unit costs for FYE 2025.

Table 18 Unit Cost per Billable Constituents
Estimated Sewer Estimated BOD EStimated TSS
Unit Basis for Rate Design Flows (HCF) Discharges (lbs) Discharges (lbs)
Estimated Sewer
Flows (HCF)
FYE 2025 Billed Units 3,138,696 7,085,763 8,397,992 3,138,696 FYE 2025 Unit Costs $1.959 per HCF $0. 710 per lb $0.646 per lb $4.118 per HCF Notes:
(1) Line or column totals may not tie due to rounding.

5.3 Rate Design
Based on the rate evaluation performed under the previous tasks, it was determined that in general, the City's current rate structure is capable of meeting the City's goals. The recommended rates are based on "cost-of-service" principles that incorporate the work performed in previous tasks and adhere to Proposition 218 requirements .

Rates for each class are determined using two general steps:
• First, a unit cost per HCF of wastewater discharge is determined for each class based on the unit costs per billable constituent from Table 18 and the assumed BOD and TSS concentrations from Tables 15 and 16.
• Next, each class's unit cost per HCF of discharge is used along with other assumptions to determine the proposed rate.
» For single family and other flat rate customers, the class unit cost per HCF is multiplied by the assumed flow per month to determine the monthly charge. » For customers charged based on water usage, each class's unit cost per HCF is multiplied by its adjusted return-to-sewer factor to determine the rate per HCF of water consumption . » For schools, the class unit cost per HCF is multiplied by the assumed flow per student to determine the monthly rate per student.

The following sections outline the calculations used to determine rates for each customer class.

5.3.1 Class Unit Costs per HCF Discharges
As noted above, the first step in the rate calculations is determining each class's unit cost per HCF of sewage discharged. This calculation is performed by converting the BOD and TSS mg/L concentrations from Tables 15 and 16 to a mass load concentration in lb/HCF. Next, the mass load in lb/HCF is multiplied by its respective unit cost per lb from Table 16 to calculate a component unit cost per HCF. Finally, the component unit costs per HCF for BOD and TSS are added to the unit costs for Treatment Flow and Collection Flow from Table 18 (already in terms of per HCF) to determine the total unit cost per HCF.

CITY OF CARLSBAD
April 22, 2025 Item #5
27

Docusign Envelope ID: 2EE35CDA-4EA8-4B02-8290-D02A8FACC334 2025 WASTEWATER COST-OF-SERVICE STUDY
JANUARY 2025 /FINAL/ CAROLLO
An example of this calculation for Group 1 residential customers is shown in Table 19. An identical calculation is used to determine the $/HCF unit cost for each class as summarized in Table 20.

Table 19 Group I Unit Cost per HCF Calculation
Group I SFR Unit Cost per HCF Example I Concentration
I
Mass Load
I
Unit Cost $/lb I
Unit Cost $/HCF
(mg/L) lb/HCF Discharged
Item A B C D
BOD 301 1.881 $0.710 $1.34
TSS 379 2.367 $0.646 $1.53
Treatment Flow N/A N/A N/A $1.96
Collections Flow N/A N/A N/A $4.12
Total Unit Cost per HCF N/A N/A N/A $8.94
Mass Load, lb per HCF (B) = [Concentration, mg/L (A)] x [3.785 gallons per L] x [748 gallons per HCF] / [453,592 mg per lb]
Unit Cost, $/HCF (D) = [Mass Load, lb/HCF (B)] x [Unit Cost, $/lb (C)] Notes:
(1) Line or column totals may not tie due to rounding.

CITY OF CARLSBAD
April 22, 2025 Item #5
28

0 0
()
C
2025 WASTEWATER COST-OF-SERVICE STUDY en
cc·
JANUARY 2025 / FINAL/ CAROLLO
:::,
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"C Table 20 All Classes Unit Cost per HCF Calculation
"C
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(Collection Total$ Per m
N (;)
0 . . . • . • •• • •• and HCF
01 :11 • :11 •
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m
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GROUP I -MFR/Mobile Homes 301 1.881 $1.34 379 2.367 $1.53 $6.08 $8.94 0 I\.)
co
$0.87 $0.92 $6.08
I\.)
GROUP II - Commercial 2 196 1.226 229 1.427 $7.87 CD
0 I
GROUP Ill - Commercial 3 495 3.088 $2.19 529 3.301 $2.13 $6.08 $10.40 0 0
I\.)
)>
GROUP IV - Commercial 4 1,236 7.712 $5.47 1,290 8.049 $5.20 $6.08 $16.76 co ~
Institutional 196 1.223 $0.87 190 1.184 $0.77 $6.08 $7.71 ()
()
(;)
Elementary Schools 196 1.223 $0.87 190 1.184 $0.77 $6.08 $7.71 (;)
.i,.

Junior High Schools 196 1.223 $0.87 190 1.184 $0.77 $6.08 $7.71 High Schools 196 1.223 $0.87 190 1.184 $0.77 $6.08 $7.71 Boarding Schools 196 1.223 $0.87 190 1.184 $0.77 $6.08 $7.71 GROUP VI - Large Volume (no accounts) 121 0.752 $0.53 152 0.947 $0.61 $6.08 $7.22 Breweries
81 196 1.226 $0.87 229 1.427 $0.92 $6.08 $7.87
82 1,906 11.899 $8.45 1,537 9.591 $6.20 $6.08 $20.73
;::;- 83 1,236 7.712 $5.47 1,290 8.049 $5.20 $6.08 $16.76 (t)
3 84 2,426 15.142 $10.75 2,067 12.903 $8.34 $6.08 $25.17 =1:1:

Industrial Pretreatment Class Ill 450 2.808 $1.99 905 5.649 $3.65 $6.08 $11.72 u, Notes:
"'tl (1) Line or column totals may not tie due to rounding.

QJ
0Q
(t)
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0 I.D
0 -u,
....
00 CITY OF CARLSBAD 29
Docusign Envelope ID: 2EE35CDA-4EA8-4B02-8290-D02A8FACC334 2025 WASTEWATER COST-OF-SERVICE STUDY
JANUARY 2025 /FINAL/ CAROLLO

5.3.2 Customer Class Rate Calculations
Charges for customers that pay flat monthly fees are determined by multiplying their $/HCF unit cost by their assumed monthly flow. The calculation of monthly charges for single-family and applicable multi­ family, duplex, and flat charges is shown in Table 21. The calculated FYE 2025 charge for a single EDU customer is $59.85, equal to the $/HCF unit cost multiplied by the estimated monthly flow of 6.69 HCF.

For single family customers with an ADU, and EDU flow factor of 1.5 is applied to reflect the additional sewage discharged by the ADU. This results in a calculated charge for FYE 2025 of $89.77.

Table 21 Group I Monthly Rate Calculation
GROUP I - Single-Family & Minimum Charges
Single Family with ADU
Unit Cost
$/HCF
Discharged
$8.94
EDU Flow Monthly Proposed Monthly
Factor Discharge (HCF) Rate (per Account)

1.0 6 .69 $59.85
IIIIIIIBIII 10.04 $89.77
Table 22 shows the rate calculation for classes that pay rates based on their billed water consumption in HCF. The rates are determined by multiplying each class's $/HCF unit cost by the adjusted return to sewer factor to determine the rate per HCF of water consumed.

Table 22 Rate per HCF of Water Consumption Calculation
Usage Based Rates
I
Unit Cost $/HCF I Return to Sewer I Calculated Monthly Rate Discharged Factor (per HCF of Water Used)
GROUP I - Multi-Family/Mobile Homes $8.94 76.96% $6.89
GROUP II - Commercial 2 $7.87 76.96% $6.06
GROUP Ill - Commercial 3 $10.40 76.96% $8.01
GROUP IV - Commercial 4 $16.76 76.96% $12.90
Brewery-B1 $7.87 76.96% $6.06
Brewery-B2 $20.73 70.55% $14.63
Brewery-B3 $16.76 76.96% $12.90
Brewery-B4 $25.17 70.55% $17.76
GROUP VI - Large Volume (no accounts) $7.22 76.96% $5.56 Industrial Pretreatment Class Ill $11.72 76.96% $9.03
Charges for schools that pay rates on a per-student basis are determined by multiplying their $/HCF unit cost by their assumed monthly flow per student. The calculation of monthly charges for each type of school is shown in Table 23.

Table 23 Schools Rates Calculation
Group V -Schools Rates
GROUP V -Elementary Schools
GROUP V -Junior High Schools
GROUP V -High Schools
GROUP V -Boarding Schools

CITY OF CARLSBAD
April 22, 2025
I
Unit Cost $/HCF I Assumed Flow I Assumed Flow I Proposed D. h d per Student per Student Monthly Rate Isc arge (per Student) (gpd) (HCF per Month) $7.71 6.84
$7.71 10.26
$7.71 13.68
$7.71 38.18

0.15 0.23

0.30 1.55
Item #5
$1.18
$1 .77
$2.36
$11 .98
30

Docusign Envelope ID: 2EE35CDA-4EA8-4B02-8290 -D02A8FACC334

5.3.3 Proposed Rates
2025 WASTEWATER COST-OF-SERVICE STUDY
JANUARY 2025 /FINAL/ CAROLLO
Table 24 shows the proposed rates for January 1, 2025 (delayed to July 1, 2025), which are determined based on the COS analysis and Rate Design analysis as discussed above. Effective rates for each customer class in the first year vary from the overall 14-percent increase due to the updated cost allocation and rate design calculations. Rates for 2026 through 2029 are determined by applying the proposed rate revenue increases for those years to the 2025 rates.

Table 24 Proposed Wastewater Rates by Customer Class
Customer Class
lncrease(1)
Group I • Residential • Monthly Flat Rate
Single Family Resident (SFR)
SFR w/ Second Dwelling Unit
Group I • Residential • Rates per HCF
Multi Family Resident (MFR)
Mobile Home
Commercial • Rates per HCF
GROUP 11- Commercial 2
GROUP 111- Commercial 3
GROUP IV - Commercial 4
Industrial Pretreatment Class Ill
Group V • School - Monthly Rates per Student
Elementary School (per student)
Junior High School (per student)
High School (per student)
Boarding School (per student)
Breweries • Rates per HCF
B1 - Brewery without a restaurant and hauls
waste for outside treatment
B2 - Brewery without a restaurant that does
not haul waste for outside treatment
B3 - Brewery with a restaurant and hauls
waste for outside treatment
B4 - Brewery with a restaurant that does not
haul waste for outside treatment
Notes:
(1) Rates are rounded to the nearest $0.01.

CITY OF CARLSBAD
April 22, 2025
FYE 2025
Current Rate Proposed
$51.74

77.60 $5.95

5.95 $5.06

7.21 12.61

8.14 $1.02

1.53 2.03

10.56 $5.06

14.06 12.61

17.34 Delayed to Jul. 1
2025
$59.85

89.77 $6.89

6.89 $6.06

8.01 12.90

9.03 $1.18

1.77 2.36
11 .98
$6.06

14.63 12.90

17.76 FYE 2026
Proposed
Jan. 1 2026

14.00%
$68.22
102.33
$7.85

7.85 $6.91

9.13 14.71

10.29 $1.34

2.01 2.68

13.65 $6.91

16.67 14.71

20.25 Item #5
FYE 2027
Proposed
Jan. 1 2027

14.00%
$77.77
116.66
$8.95

8.95 $7.88

10.41 16.76

11.73 $1.53

2.30 3.06

15.56 $7.88

19.01 16.76

23.08 31

Docusign Envelope ID: 2EE35CDA-4EA8-4B02-8290-D02A8FACC334 SECTION 6 ALTERNATIVE OPTION
2025 WASTEWATER COST-OF-SERVICE STUDY
JANUARY 2025 /FINAL/ CAROLLO
Using the same FYE 2024 budget, CIP, and assumptions, Carollo developed a scenario should the City decide to utilize bonds to mitigate impact of CIP funding on the rate payers. This chapter summarizes the findings and results of the alternative option with bond issuance.

6.1 Bond Issuance
Issuing bonds could help to mitigate immediate impact of CIP funding on the rate payers by recovering the cost over the future years. City has a SRF loan in the amount of $4,601,000 entering repayment in FYE 2027 with annual debt service of $293,749. Anticipated draws on this loan are in Table 25 below. The calculated coverage during the Study period is shown well above the requirement of 1.20 x, indicating the City's capacity to issue additional debt if appropriate.

For the alternative option, additional debt issuances totaling $40.0M are assumed as shown in the table below. These potential bonds are assumed with loan terms of 30 years, 5.0 percent interest rates, and

1.0 percent of issuance cost. The debt service payments are calculated based on the assumptions shown in the table below . The table also illustrates the City's capacity to meet its debt service coverage ratio requirement of 1.20 x with the assumed bonds.

Table 25 Alternative Option - Bond Summary
I FYE 2025 I FYE 2026 I FYE 2027 I FYE 2028 I FYE 2029
Assumptions SRF Loan SRF Loan Bond Bond
Term 20 years 20 years 30 years n/a 30 years
Interest Rate 2.45% 2.45% 5.00% n/a 5.00%
Issuance Costs n/a n/a 1.00% n/a 1.00%
Total Proceeds $500,0001 $4, 101,0001 $25,000,000 n/a $15,000,000 Annual Debt Service Payment3 $- $- $1,936,462 $1,936,462 $2,922,090 DSCR (Target of 1.25x) No Debt No Debt 8.71 X 9.24x 6.55x Notes:
( 1) Planned draws for the existing SRF loan.
(2) Annual debt service payment shows the combined payments for all of the loans and bonds issued at any given year.

6.2 Recommended Revenue Requirements - Alternative Option With the additional debt issuances lower rate increases, as compared to those discussed in the previous sections, could be implemented. With the assumed debt issuances, the alternative option includes rate increases at 8-percent per year for FYE 2025 and FYE 2026 and at 3-percent per year thereafter. Though the combined fund balance in FYE 2026 falls below the minimum targets due to bond issuance timing, reserves would rebound in the following year. Table 26 below summarizes the revenue requirement projection.

CITY OF CARLSBAD
April 22, 2025 Item #5
32

Docusign Envelope ID: 2EE35CDA-4EA8-4B02-8290 -D02A8FACC334 2025 WASTEWATER COST-OF-SERVICE STUDY
JANUARY 2025 /FINAL/ CAROLLO
Table 26 Alternative Option with Bond Funding-Revenue Requirement Summary (in millions) ·~·•~J, ·~·•~J, .
~·---Pre-Rate Increase
Rate Revenues without Increases $25.907 $25.962 $26.059 Revenues from Prior Years' Increases 0.000 2.077 4.336
Offsetting Revenues (Inc. Pre Treatment) 0.831 0.538 0.491 Revenues $26.738 $28.576 $30.886
LESS:

Operating Expenditures $13.795 $14.204 $14.625
One-time Funding (Budget Analysis Amount) (1.456) (1.491) (1 .528) Rate Funded Capital 4.594 14.788 0.000
Debt Service 0.000 0.000 1.936
Replacement Funding 5.361 5.423 5.486
Expenses $22.295 $32.924 $20.519
Cash Flow Surplus/(Deficit) $4.443 ($4.348) $10.367
Rate Revenue Increase 8.00% 8.00% 3.00%
Post-Rate Increase
Revenues from Rate Increases $2.073 $2.243 $0.912
Less: Rate Increase Delay(1l ($1.036) ($1.122) ($0.456) Adjustment for Implementation Delay(2) ($1.036) $0.000 $0.000 Total Operating Revenues With Increases $26.738 $29.698 $31.342 Operating Cash Flows Available for Capital $4.443 ($3.226) $10.823 and Reserves Operating Fund Reserve
Beginning Operating Fund Balance $4.546 $4.842 $1.615
Cash Flow 4.443 (3.226) 10.823
Transfers to Capital Reserve (4.147) 0.000 (5.302)
Ending Operating Fund Balance $4.842 $1.615 $7.136
Ending Capital Fund Balance 4.647 4.100 15.002
Combined Ending Balance $9.489 $5.715 $22.138
Days of O&M Costs - Total Reserves 281 days 164 days 617 days Days of O&M Costs - Operating Reserve Only 128 days 42 days 178 days Notes:
( 1) Adjustment to account for rate implementation on January 1 of each fiscal year. (2) Adjustment to reflect delay of rate implementation from January 1, 2025 to July 1, 2025. (3) Line or column totals may not tie due to rounding.

CITY OF CARLSBAD
April 22, 2025 Item #5
$26.316 $26.586

5.300 6.312

0.624 0.693
$32.240 $33.591
$15.058 $15.505
(1 .566) (1 .605)

6.973 1.843

1.936 2.922

5.549 5.612
$27.951 $24.278
$4.289 $9.313

3.00% 3.00%
$0.948 $0.987
($0.474) ($0.493)
$0.000 $0.000
$32.714 $34.084
$4.763 $9.806
$7.136 $7.313

4.763 9.806
(4.587) (8.646)
$7.313 $8.473

4.587 8.646
$11.900 $17.119
322 days 450days
177 days 199 days
33

Docusign Envelope ID: 2EE35CDA-4EA8-4B02-8290-D02A8FACC334 2025 WASTEWATER COST-OF-SERVICE STUDY
JANUARY 2025 /FINAL/ CAROLLO

6.3 Proposed Rates - Alternative Option
Based on the adjusted revenue requirement shown in Table 27, the cost of service analysis and rate designs are conducted in similar matter detailed in Sections 4 and 5. The resulting rates for alternative options are summarized in the table below. The proposed rates for January 1, 2025 (delayed to July 1, 2025), are determined based on the COS analysis and Rate Design analysis as discussed above.

Effective rates for each customer class in the first year vary from the overall 8-percent increase due to the updated cost allocation and rate design calculations. Rates for 2026 through 2029 are determined by applying the proposed rate revenue increases for those years to the 2025 rates.

Table 27 Alternative Option with Bond Funding - Proposed Wastewater Rates by Customer Class Customer Class Current Rate
lncrease(1)
Group I -Residential - Monthly Flat Rate
Single Family Resident (SFR) $51.74
SFR w/ Second Dwelling Unit 77.60
Group I -Residential - Rates per HCF
Multi Family Resident (MFR) $5.95
Mobile Home 5.95
Commercial - Rates per HCF
GROUP II - Commercial 2 $5.06
GROUP Ill - Commercial 3 7.21
GROUP IV - Commercial 4 12.61
Industrial Pretreatment Class Ill 8.14
Group V - School - Monthly Rates per Student
Elementary School (per student) $1 .02
Junior High School (per student) 1.53
High School (per student) 2.03
Boarding School (per student) 10.56
Breweries - Rates per HCF
81 - Brewery without a restaurant and $5.06 hauls waste for outside treatment 82 - Brewery without a restaurant that 14.06 does not haul waste for outside treatment 83 - Brewery with a restaurant and hauls 12.61 waste for outside treatment 84 - Brewery with a restaurant that does 17.34 not haul waste for outside treatment Notes:
( 1) Rates are rounded to the nearest $0.01.

CITY OF CARLSBAD
April 22, 2025
FYE 2025
Proposed
Delayed to Jul. 1
2025

8.00% Cos Adj.
$56.70

85.04 $6.53

6.53 $5.74

7.59 12.22

8.55 $1 .12

1.68 2.23
11 .35
$5.74

13.86 12.22

16.83 FYE 2026
Proposed
Jan. 1 2026
FYE 2027
Proposed
Jan. 1 2027

8.00% 3.00%
$61.23 $63.07

91.84 94.60
$7.05 $7.26

7.05 7.26
$6.20 $6.39

8.20 8.44

13.20 13.60

9.24 9.51
$1.21 $1 .24

1.81 1.86

2.41 2.48

12.25 12.62
$6.20 $6.39

14.96 15.41

13.20 13.60

18.17 18.72
34 Item #5 Page 214 of 518
Docusign Envelope ID: 2EE35CDA-4EA8-4B02-8290 -D02A8FACC334 2025 WASTEWATER COST-OF-SERVICE STUDY
JANUARY 2025 /FINAL/ CAROLLO
Table 28 compares the rate revenue increases required for the baseline option presented in the previous section to those required for the alternative option.

Table 28 Comparison of Rate Revenue Increases for Baseline Option to Alternative with Additional Bonds Financial Forecast Option I FYE 2025 I FYE 2026 I
Baseline Option - No Additional Bonds 14.0% 14.0%
Alternative Option - $40 million in Additional Bonds 8.0% 8.0% Figure 2 compares the monthly single family bill for the baseline and alternative options. $90
$80
$70
$60
$50
$40
$30
$20
$10
$0
$51.74 $51.74
Monthly Single Family Bill
$77.77
$59•8\ 56.70
FYE 2027

14.0%

3.0%
FYE 2025 FYE 2026 FYE 2027
■ Baseline Option - No Additional Bonds
■ Alternative Option - $40 million in Additional Bonds
Figure 2 Single Family Bill Comparison

CITY OF CARLSBAD
April 22, 2025 Item #5
35

Docusign Envelope ID: 2EE35CDA-4EA8-4B02-8290-D02A8FACC334

APPENDIX A

CITY OF CARLSBAD
April 22, 2025

PROJECTED O&M
2025 WASTEWATER COST-OF-SERVICE STUDY
JANUARY 2025 /FINAL/ CAROLLO
Item #5 Page 216 of 518
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CITY OF CARLSBAD
Wastewater Financial Model
Operation & Maintenance
O&M Escalators
General Inflation
Labor Inflation
Labor - PERS (Normal Cost)
Labor - PERS (UAL)
Labor - Health Insurance
EWA Operating
Chemicals Inflation
Utilities Inflation
Construction Inflation
Depreciation Funding
Interest Earnings
Customer Demand Growth
Gnrl lnfltn + Cstmr Dmnd Grwth
No Annual Increase
One Time Expense
O&M Summary

REVENUES
TOTAL
Charges for Services
Fines and Forfeitures
Income from Property & Investments
Interdepartmental
Other Revenues

EXPENDITURES
Personnel
TOTAL
Maintenance & Equipment
Capital Outlay
Other Financing Uses

NET OPERATING SURPLUS (DEFICIT)
$
$
$
$
$

5.00% 4.00%

5.00% 4.00%

13.20% 13.20%

16.66% 16.95%

6.63% 6.38%

10.00% 3.00%

7.00% 4.00%

7.00% 4.00%

3.50% 3.50%

1.17% 1.16%

2.30% 2.50%

0.75% 0.61%

5.75% 4.61%

0.00% 0.00%
-100.00% -100.00%
23,568,818 $ 25,919,790 $
120,000 120,730
744,011 503,337
120,000 124,800
67,000 69,680
24,619,830 $ 26,738,337 $
3,322,088 $ 3,608,180 $
13,975,595 14,067,207
24,651 25,637
10,090 ,113
27,412,447 $ 17,701,025 $
(2,792,617) $ 9,037,312 $

2.50% 2.50%

3.00% 3.00%

13.20% 13.20%

16.79% 16.63%

6.13% 5.90%

3.00% 3.00%

4.00% 4.00%

4.00% 4.00%

3.50% 3.50%

1.15% 1.15%

2.50% 2.50%

0.21% 0.38%

2.71% 2.88%

0.00% 0.00%
-100.00% -100.00%
29,609,082 $ 33,879 ,632 $
120,980 121,430
204,758 177,128
127,920 131,120
71,422 73,205
30,134,162 $ 34,382,515 $
3,726,452 $ 3,847,915 $
14,383,443 14,707 ,878
26,278 26,935
18,136,173 $ 18,582,727 $
11,997,989 $ 15,799,788 $

2.50%

3.00%

13.20%

16.47%

5.70%

3.00%

4.00%

4.00%

3.50%

1.15%

2.50%

0.99%

3.49%

0.00%
-100.00%
39,001 ,750 $
122,630
176,089
134,400
75,040
39,509,908 $
3,972,679 $
15,040,746
27,608
19,041,034 $
20,468,874 $

2.50%

3.00%

13.20%

16.31%

5.70%

3.00%

4.00%

4.00%

3.50%

1.15%

2.50%

1.02%

3.52%

0.00%
-100.00%
42,158,596
123,890
156,499
137,760
76,916
42,653,661
4,101,841
15,382,190
28,299
19,512,330
23,141,331
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Wastewater Financial Model
Operation & Maintenance

LINE ITEM

REVENUES
Charges for Services
5100 Commodity Usage
5112 Sewer Pre-Treat
5121 Sewer Laterals
Other Charges for Services
Total Charges for Services
Fines and Forfeitures
5225 Late Charges
Other Fines and Forfeitures
Total Fines and Forfeitures
Income from Property & Investments
5300 Interest Income - Pooled Cash
5305 lnterest-Unrealzd Gains/Losses
5310 Interest Income Frm Othr Inv
5360 Sale of Capital Assets (cash adj)
5361 Donated Assets
Other Income from Property & Investments
Total Income from Property & Investments
Interdepartmental
5430 Eng Labor
Other Interdepartmental
Total Interdepartmental
Other Revenues
FYE 2024
ESCALATOR FYE 2024
Working Budget
Customer Demand Growth $ 23,556,818 $
General Inflation 12,000
General Inflation -
General Inflation -
$ 23,568,818 $
Customer Demand Growth $ 120,000 $
Customer Demand Growth
$ 120,000 $
Calculated $ 744,011 $
General Inflation
General Inflation
General Inflation
General Inflation
General Inflation
$ 744,011 $
General Inflation $ 120,000 $
General Inflation
$ 120,000 $
FYE 2025
FYE 2025
0 r-01ect10
25,907,310
12,480
-
-
25,919,790
120,730
120,730
$
$
$
$
503,337 $
503,337 $
124,800 $
124,800 $
FYE 2026
FYE 2026
or-01ect10
29,596,290
12,792
-
-
29,609,082
120,980
120,980
$
$
$
$
204,758 $
204,758 $
127,920 $
127,920 $
FYE 2027
FYE 2027
11"01ecuo
33,866,520
13,112
-
-
33,879,632
121,430
121,430
$
$
$
$
177,128 $
177,128 $
131,120 $
131,120 $
FYE 2028
FYE 2028
[)ro1ect10
38,988,310
13,440
-
-
39,001,750
122,630
122,630
$
$
$
$
176,089 $
176,089 $
134,400 $
134,400 $
FYE 2029
FYE 2029
1>.-01ecuo
42,144,820
13,776
-
-
42,158,596
123,890
123,890
156,499
156,499
137,760
137,760
5550 Prior Year Fee Refunds General Inflation $ --- - $ - $ - $ - $ - $ - 5636 Loss Recovery General Inflation - - - - - -
5639 Misc Reimbursement Exp. General Inflation 65,000 67,600 69,290 71,020 72,800 74,620 5664 MISC AR Write Offs General Inflation - - - - - -
5674 Misc Revenues General Inflation 2,000 2,080 2,132 2,185 2,240 2,296 4691 MISC OTHER FED One Time Expense - - - - - -
4750 MISC RV FROM OTHER AGENCIES One Time Expense - I - - - - - Other General Inflation - - - - - -
Total Other Revenues $ 67,000 $ 69,680 $ 71,422 $ 73,205 $ 75,040 $ 76,916 TOTAL REVENUES $ 24,619,830 $ 26,738,337 $ 30,134,162 $ 34,382,515 $ 39,509,908 $ 42,653,661

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CITY OF CARLSBAD
Wastewater Financial Model
Operation & Maintenance

EXPENDITURES
Personnel
6100 Reg Salaries
6101 Incentive Pay
6135 Hazard Pay
6150 IOD Worker's Comp
6200 Overtime Sa la ries
6210 Standby Pay
6300 Parttimes Salaries
6305 Intern Salaries
6400 Temporary Help
6501 Health Insurance
6510 Life Insurance
6511 AD&D - City Paid
6520 Vision Insurance
6530 Medicare
6629 Cell Phone Reimbursement
6630 Auto Allowance
6640 Earned Leave Accrual
6651 Healthy Emp Awards
6653 Final Vacation Pay
6654 Final Sick Leave Pay
6655 Disability
6656 Unemployment
6657 Worker's Compensation
6720 PERS
6723 PERS Unfunded Liab Exp
6721 PERS (GASB 68 CONTRA ACCOUNT)
6722 Operation Expense
6730 Social Security
6740 Deferred Comp
Other Personnel
Labor Inflation
Labor Inflation
Labor Inflation
Labor Inflation
Labor Inflation
Labor Inflation
Labor Inflation
Labor Inflation
Labor Inflation
Labor - Health Insurance
General Inflation
General Inflation
General Inflation
General Inflation
General Inflation
General Inflation
Labor Inflation
General Inflation
Labor Inflation
Labor Inflation
General Inflation
General Inflation
General Inflation
Labor - PERS (Normal Cost)
Labor - PERS (Normal Cost)
One Time Expense
One Time Expense
One Time Expense
One Time Expense
One Time Expense
Total Personnel Costs Total Costs
$ 2,130,695 $
-
49,586
-
65,000
25,470
-
3,646
-
428,473
1,438
716
-
32,138
-
1,138
-
: I
-
12,829
11,079
55,000
212,212 I
232,411 I
-
-
-
137
-
$ 3,322,088 $
Page3
2,215,920 $ 2,282,400 $ 2,350,870 $
- - -
51,570 53,120 54,710
- -
67,600 69,630 71,720
26,490 27,280 28,100
- - -
3,790 3,900 4,020
- - -
455,810 483,750 512,290
1,500 1,540 1,580
740 760 780
- - -
33,420 34,260 35,120
- -
1,180 1,210 1,240
- - -
- - -
- - -
- - -
13,340 13,670 14,010
11,520 11,810 12,110
57,200 58,630 60,100
292,so1 I 301,211 I 310,31s I
37s,s9s I 3s3,21s I 390,9so I
- -
- - -
- - -
- - -
- - -
3,608,180 $ 3,726,452 $ 3,847,915 $
2,421,400 $
-
56,350
-
73,870
28,940
-
4,140
-
541,490
1,620
800
-
36,000
-
1,270
-
-
-
-
14,360
12,410
61,600
319,625 I
39s,sos I
-
-
-
-
-
3,972,679 $
2,494,040
-
58,040
-
76,090
29,810
-
4,260
-
572,350
1,660
820
-
36,900
-
1,300
-
-
-
-
14,720
12,720
63,140
329,213 I
406,778 I
-
-
-
-
-
4,101,841
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CITY OF CARLSBAD
Wastewater Financial Model
Operation & Maintenance
Maintenance & Equipment
7111 Other Mach & Equip
7115 Vehicle Rentals
7119
7120
7210
7211
7215
7216
7220
7221
7222
7226
7230
7241
7249
7400
7410
7435
7490
7500
7550
7551
7S53
7554
7S56
7558
7559
7560
7562
7563
7564
7710
7711
7712
7713
Misc Rentals
Misc Leases
Office Equip Maint
Communication Equip Maintenance
Software Maintenance
Computer Maintenance
Vehicle Maintenance
Wash and Wax
Other Equip Maint
Pipeline Maintenance
Routine Building Maintenance
Asphalt Repairs
Maintenance , Repair and Rehab
Audit
Legal
Administrative
Misc Professional Services
Encina Services
Encina Services (Pension Payoff)
Miscellaneous Outside Services
Bank Services
Comm Arts Support
Regulatory/Permitting Fees
Misc Services
Laundry and Uniform Mainteance
Electrical/SCADA Services
Water Sampling Services
FOG Inspection Services
Smartcover WI Fl/Alarm Services
Landscaping Services
Ads and Publishing
Dues and Subscriptions
Books and Publications
Audio Visual Materials
General Inflation $ $
General Inflation
General Inflation 10,000
General Inflation
General Inflation
General Inflation 1,000
General Inflation 27,228
General Inflation
General Inflation 15,000
General Inflation 4,500
General Inflation
General Inflation 84,600
General Inflation
General Inflation 10,000
General Inflation 3,000
General Inflation
General Inflation
General Inflation
General Inflation 417,278
EWA Operating 6,000,000
No Annual Increase I
General Inflation 450,520
General Inflation 43,213
General Inflation
General Inflation 38,350
General Inflation
General Inflation 5,000
General Inflation 33,443
General Inflation
General Inflation 20,000
General Inflation 50,000
General Inflation 130,280
General Inflation 2,000
General Inflation 10,500
General Inflation 500
General Inflation
Page4
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3,120 3,200 3,280 3,360 3,440
433,970 444,820 455,940 467,340 479,020
6,180,000 6,365,400 6,556,360 6,753,050 6,955,640
(281,750) 1 (289,850) 1 (298,183) 1 (306,756) 1 (315,575) 1 468,540 480,250 492,260 504,570 517,180
44,940 46,060 47,210 48,390 49,600
39,880 40,880 41,900 42,950 44,020
5,200 5,330 5,460 5,600 5,740
34,780 35,650 36,540 37,450 38,390
20,800 21,320 21,850 22,400 22,960
52,000 53,300 54,630 56,000 57,400
135,490 138,880 142,350 145,910 149,560
2,080 2,130 2,180 2,230 2,290
10,920 11,190 11,470 11,760 12,050
520 530 540 550 560
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N FYE 2024 FYE 2025 FYE 2026 FYE 2027 FYE 2028 FYE 2029 (;) 0 01
N 7715 Printing General Inflation 7,500 7,800 8,000 8,200 8,410 8,620 () 0 u, 7720 Postage General Inflation 4,500 4,680 4,800 4,920 5,040 5,170 :i=- 7725 Office Supplies General Inflation 5,000 5,200 5,330 5,460 5,600 5,740 .i,. m
7726 Office Furniture & Equipment General Inflation 5,000 5,200 5,330 5,460 5,600 5,740 )> 7730 Computer Software General Inflation 10,000 10,400 10,660 10,930 11,200 11,480 <f' .i,.
7731 Misc. Computer Hardware General Inflation 4,000 4,160 4,260 4,370 4,480 4,590 CD 0 7735 Promo Materials General Inflation 5,000 5,200 5,330 5,460 5,600 5,740 I\.)
00 7745 Food Expense General Inflation I\.)
CD
7750 Heat and Light Utilities Inflation 310,551 322,970 335,890 349,330 363,300 377,830 0 I 7751 Telephone & Communications Utilities Inflation 12,000 12,480 12,980 13,500 14,040 14,600 0 0 7752 Waste Dispoal Services Utilities Inflation 10,696 11,120 11,560 12,020 12,500 13,000 I\.) )>
7753 Water Utilities Inflation 37,440 38,940 40,500 42,120 43,800 45,550 co 7801 Building Maintenance General Inflation ~
7810 Electrical Supplies General Inflation 500 520 530 540 550 560 ()
()
7811 Janitorial Supplies General Inflation 300 310 320 330 340 350 (;)
(;)
7820 Parts-Vehicles General Inflation 500 520 530 540 550 560 .i,.
7821 Parts-Equip General Inflation 209,255 217,620 223,060 228,640 234,360 240,220 7830 Rock and Mineral Products General Inflation 4,000 4,160 4,260 4,370 4,480 4,590 7831 Asphalt General Inflation 500 520 530 540 550 560
7850 Small Tools General Inflation 1,500 1,560 1,600 1,640 1,680 1,720 7851 Safety Equipment General Inflation 21,750 22,620 23,190 23,770 24,360 24,970 7852 Uniforms and Accessories General Inflation 5,000 5,200 5,330 5,460 5,600 5,740 7853 Meters/Fittings General Inflation
7857 Personal Protective Equipment General Inflation
7880 Gasoline and Oil Utilities Inflation I 2,000 2,080 2,160 2,250 2,340 2,430 7883 Chemicals Chemicals Inflation 82,340 85,630 89,060 92,620 96,320 100,170 7886 Training Supplies General Inflation
7896 Medical Supplies - Disposable General Inflation
7899 Misc Supplies General Inflation I 16,400 17,060 17,490 17,930 18,380 18,840 ;::;- 8110 Employee Training General Inflation J 3,000 3,120 3,200 3,280 3,360 3,440 (t) 8120 Tuition Reimbursement General Inflation
3 8130 Training/Training Related Travel General Inflation 4,500 4,680 4,800 4,920 5,040 5,170 =1:1: 8520 Conference Travel General Inflation 3,171 3,300 3,380 3,460 3,550 3,640 u, 8522 Misc. Meals/Miles General Inflation 3,211 3,340 3,420 3,510 3,600 3,690 8530 Bad Debt Exp - Other Inv/Bills General Inflation 20,000 20,800 21,320 21,850 22,400 22,960 "'tl QJ
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·arlsbad

CITY OF CARLSBAD
Wastewater Financial Model
Operation & Maintenance
8542 NED Rental Assistance Payments
8544 Lateral Assistance Program
8610 Settlements
8700 Contingencies
8809 Vehicle Direct Charges
8810 Vehicle Maintenance (2)
8811 Vehicle Replacement
8830 General Liab
8860 Information Technologies
8890 Misc Interdepartmental Charges
8891 Mis Chg Back
8892 Utility Billing Chargeback
8910 Fiscal Agent Fees
8911 Arbitrage Costs
8922 Int Exp-Capitalized Interest
Other - Heat & Light
Other - Parts & Equipment
Other - Smart Covers
Addt'I Maintenance & Equipment
Other Maintenance & Equipment
Total Maintenance & Equipment Costs
Capital Outlay
No Annual Increase
No Annual Increase 25,000
General Inflation
No Annual Increase
General Inflation 2,628
General Inflation 138,960
General Inflation 179,573
General Inflation 441,210
General Inflation 322,955
General Inflation 843,808
General Inflation
General Inflation
General Inflation
General Inflation
One Time Expense
No Annual Increase
No Annual Increase
No Annual Increase
General Inflation
Calculated Below 11,424,566) I
$ 13,975,595 $
25,000 25,000 25,000 25,000 25,000
2,730 2,800 2,870 2,940 3,010
144,520 148,130 151,830 155,630 159,520
186,760 191,430 196,220 201,130 206,160
458,860 470,330 482,090 494,140 506,490
335,870 344,270 352,880 361,700 370,740
877,560 899,500 921,990 945,040 968,670
11,4ss,673) I 11,491,4s11 I 11.szs,1191 I 11.s6s,s6s1 I 11,604,62s1 I 14,067,207 $ 14,383,443 $ 14,707,878 $ 15,040,746 $ 15,382,190 9005 Capital Outlay< $10k - New General Inflation $ --- - $ - $ - $ - $ - $ - 9006 Capital Outlay< $10k - Repl General Inflation - - - - - - 9010 Cap Outlay - Vehicles General Inflation 24,651 25,637 26,278 26,935 27,608 28,299 9020 Computer Equip> $10k - Repl General Inflation - - - - - - 9021 Office Equipment General Inflation - - - - - -
9022 Other Equipment General Inflation - - - - -
9030 Office Furniture General Inflation - - - - - -
9050 Capitalized Assets One Time Expense - - - - - -
Other Capital Outlay General Inflation - - - - - -
Total Capital Outlay Costs $ 24,651 $ 25,637 $ 26,278 $ 26,935 $ 27,608 $ 28,299 Page6
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Carlsbad
Wastewater Financial Model
Operation & Maintenance
Other Financing Uses
9999 Replacement Funding One Time Expense
Transfer Out - Debt Service General Inflation
Total Other Financing Uses Costs

TOTAL EXPENDITURES
PW Director Salary - est. 10% labor Inflation
~
Addt'I O&M 2 General Inflation
One-time (EWA spill costs) One Time Expense
One-time (Optimization, etc.) One Time Expense
less: Added Revenue General Inflation
less: Budget Analysis Amount One Time Expense
AddedO&M General Inflation
Commodity Usage Customer Demand Growth
Sewer Pre-Treat General Inflation
Sewer Laterals General Inflation
Other Charges for Services General Inflation
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I (1,424,566) (1,455,673) (1,491,457) (1,528,179) (1,565,868) (1,604,625) I
$ (1,424,566) $ (1,455,673) $ (1,491,457) $ (1,528,179) $ (1,565,868) $ (1,604,625) $ 23,556,818 $ 25,907,310 $ 25,961,657 $ 26,059,185 $ 26,315,997 $ 26,585,563 $ 12,000 $ 12,480 12,792 13,112 13,440 13,776
- - - - - -
- - - - - -
$ 23,568,818 $ 25,919,790 $ 25,974,449 $ 26,072,297 $ 26,329,437 $ 26,599,339 Page7
Docusign Envelope ID: 2EE35CDA-4EA8-4B02-8290-D02A8FACC334 2025 WASTEWATER COST-OF-SERVICE STUDY
JANUARY 2025 /FINAL/ CAROLLO

APPENDIX B CAPITAL IMPROVEMENT PLAN

CITY OF CARLSBAD
April 22, 2025 Item #5 Page 224 of 518
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1 CITY OF CARLSBAD
Wastewater Financial Model
Capital Improvement Plan
Project ID Project Title
34922 Vista Carlsbad Interceptor - Agua Hedionda LS and Forcemain (VC12-VC13) 35723 Orion Center
38401 Sewer Lift Station Repairs and Upgrades
39502 Vista Carlsbad Interceptor - Reach VC3
40153 Village and Barrio Traffic Circles
55011 Buena Interceptor Sewer Improvements
55031 Sewer System Rehabilitation and Replacement
55131 Sewer Condition Assessment
55201 Odor and Corrosion Prevention Program
55261 Foxes Landing Lift Station Wetwell and Pump Replacement 55352 Vista Carlsbad Interceptor - Buena Vista Lift Station Improvements 55361 North Batiquitos Lift Station Forcemain Rehabilitation 55371 Buena Interceptor Sewer Access Road Improvements
55421 SCADA Improvements
55441 Buena Interceptor Sewer Realignment - East Segment 55451 Agua Hedionda Lift Station Biological Monitoring and Maintenance 55471 North Batiquitos Access Road Improvement
55481 Sewer Line Capacity Improvements
55491 Vallecitos Interceptor Sewer Cleaning and CCTV
55501 Villas Sewer Lift Station Replacement
55511 Vista Carlsbad Interceptor - Rehabilitation (VCl and VC2) 55521 Cannon Road Lift Station Improvements
55541 Chinquapin Lift Station Improvements
55551 Vista/Carlsbad Interceptor - Point Repair Reaches (VC13 & VC14) 55561 Poinsettia Lift Station Rehabilitation
58011 Encina Capital Projects (EWPCF)
60544 Terramar Area Coastal Improvements
NEW Vallecitos Land Outfall Replacement - Segment B
Spend Down of Available Balance
Adjust for Burn Rate on New Appropriations
Project Adjustments From Dashboard

TOTAL SEWER REPLACEMENT PROJECTS
City of Carlsbad Amount (total - EWA)

- $
(3,778,500)
150,000
500,000
2,500,000
100,000
85,700
(125,000)
(650,000)
380,734
400,000
25,500
200,000
75,000
90,000
50,000
920,000
650,000
6,277,600
28,077,196
-
- I
$ 35,928,230 $
$
104,000 $ 75,000 $
(204,985)
150,000 150,000
1,500,000 1,500,000
1,850,000 1,850,000
100,000 100,000
35,000 50,000
(200,000) -
800,000
694,000 1,057,000
70,000 120,000
1,200,000
300,000 8,000,000
8,450,000 8,002,500
200,000 200,000
- -
-I - I
15,048,015 $ 21,104,500 $
6,598,015 $ 13,102,000 $
-75,000
150,000
2,950,000
1,850,000
100,000
400,000
3,600,000
7,757,200
200,000
-
- I
17,082,200 $
9,325,000 $
75,000
150,000
3,540,000
1,850,000
100,000
100,000
1,800,000
7,952,000
5,000,000
-
- I
20,567,000 $
12,615,000 $
-
-
150,000
-
-
3,540,000
2,670,000
100,000
-
-
120,000
-
-
-
-
-
-
-
-
-
-
-
-
-
-
8,528,800
-
5,000,000
-
-
20,108,800
11,580,000
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CITY OF CARLSBAD
Wastewater Financial Model
Capital Improvement Plan
Project ID
34921
38861

UNESCALATED
R&R
Expansion
TOTAL:

ESCALATED
R&R
Expansion
TOTAL:

Project Title
Vista Carlsbad Interceptor - Agua Hedionda LS and Forcemain (VC12-VC13) Vista Carlsbad Interceptor - Lagoon Bridge Replacement (VCllB) 39491 Vista Carlsbad Interceptor - Reach VC14 To VC15
39501 Vista Carlsbad Interceptor - Reach VC3
55012
55041
Buena Interceptor Sewer Improvements
Sewer Monitoring Program (Capacity)
55351 Vista Carlsbad Interceptor - Buena Vista Lift Station Improvements 55391 Faraday and El Camino Real Sewer Replacement - Orion to Palomar Airport Road 55401 Las Palmas Trunk Sewer
55461 Sewer Modeling
55531 El Fuerte Lift Station Pump Addition
NEW Vallecitos Land Outfall Replacement - Segment B
PA031 Loan Repay - Sewer Conn to Sewer Repl
Spend Down of Available Balance
Adjust for Burn Rate on New Appropriations
Project Adjustments From Dashboard

TOTAL SEWER CONNECTION PROJECTS

UNESCALATED
R&R
Expansion
TOTAL:

ESCALATED
R&R
Expansion
TOTAL:

$
$
$
$
$
$
$
$
$
$
35,928,230 $ 15,048,015 $ 21,104,500 $ 17,082,200
35,928,230 $ 15,048,015 $ 21,104,500 $ 17,082,200
35,928,230 $ 15,348,975 $ 23,713,016 $ 19,865,335
$ 20,567,000 $
$ 20,567,000 $
$ 24,755,026 $
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220,000
30,000 387,000 405,000
500,000
44,000
67,000
1,100,000
(255,000) 800,000
(100,000)
200,000 450,000
40,000 40,000
4,304,931
5,499,931 $ 1,421,000 $ 1,312,000 $
$ - $ - $
5,499,931 1,421,000 1,312,000
5,499,931 $ 1,421,000 $ 1,312,000 $
$ - $ $
5,499,931 1,449,420 1,474,163
5,499,931 $ 1,449,420 $ 1,474,163 $
19,865,335 $
67,000
2,000,000
40,000
2,107,000 $
- $
2,107,000
2,107,000 $
- $
2,450,285
2,450,285 $
24,755,026 $
3,700,000
1,000,000
4,700,000 $
- $
4,700,000
4,700,000 $
$
5,657,054
5,657,054 $
25,050,646 6
30,800
2,000,000
2,030,800
2,030,800
2,030,800
2,529,880
2,529,880
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Docusign Envelope ID: 2EE35CDA-4EA8-4B02-8290-D02A8FACC334 2025 WASTEWATER COST-OF-SERVICE STUDY
JANUARY 2025 /FINAL/ CAROLLO

APPENDIX C REVENUE REQUIREMENT ANALYSIS

CITY OF CARLSBAD
April 22, 2025 Item #5 Page 227 of 518
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Rate Revenues 23,556,818 25,907,310 29,596,290 33,866,520 38,988,310 42,144,820 00 I\.)
Other Charges for Services 12,000 12,480 12,792 13,112 13,440 13,776 CD 0 Fines and Forfeitures 120,000 120,730 120,980 121,430 122,630 123,890 I
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Income from Property & Investments 744,011 503,337 204,758 177,128 176,089 156,499 I\.)
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Interdepartmental 120,000 124,800 127,920 131,120 134,400 137,760 co ~
Other Revenues 67,000 69,680 71,422 73,205 75,040 76,916 () ()
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TOTAL REVENUES $ 24,619,830 $ 26,738,337 $ 30,134,162 $ 34,382,515 $ 39,509,908 $ 42,653,661 (;)
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EXPENDITURES
Ongoing Operating Expenses
Personnel $ 3,322,088 $ 3,608,180 $ 3,726,452 $ 3,847,915 $ 3,972,679 $ 4,101,841 Encina Operations 6,000,000 6,180,000 6,365,400 6,556,360 6,753,050 6,955,640 Maintenance & Equipment 4,100,161 3,981,400 4,086,360 4,194,187 4,304,974 4,418,775 Capital Outlay 24,651 25,637 26,278 26,935 27,608 28,299 Replacement Funding 10,090,113
Transfer Out - Debt Service
Other Operating Expenses
One-time Funding {Budget Analysis Amount} (1,424,566) (1,455,673) (1,491,457) (1,528,179) (1,565,868) (1,604,625) ;::;- Rate Funded Capital 14,868,096 12,615,227 21,130,721 21,277,733 (t) 3 Debt Service 293,749 293,749 293,749
=1:1: u, Total Operating Expenditures $ 24,909,552 $ 16,933,923 $ 27,581,129 $ 26,006,193 $ 34,916,913 $ 35,471,412 "'tl Policy Expenditures
QJ Replacement Funding $ 5,300,000 $ 5,361,480 $ 5,423,140 $ 5,485,510 $ 5,548,590 $ 5,612,400 0Q (1) Transfers to Capital Fund
N Additions to Meet Minimum Fund Balances N
00 0 Total Policy Expenditures $ 5,300,000 $ 5,361,480 $ 5,423,140 $ 5,485,510 $ 5,548,590 $ 5,612,400 -u,
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Wastewater Financial Model
Revenue Requirement
POLICY OVERRIDES (input in Dashboard)
Replacement Funding
Transfers to Capital Fund
Additions to Meet Minimum Fund Balances(*)

TOTAL EXPENDITURES
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No Override I No Override I
1$ - 1$ - I $
1$ - 1$ - I $
$ 30,209,552 $ 22,295,403 $
$ (5,589,723) $ 4,442,933 $

No Override I No Override I
- I $ - I $
- I $ - I $
33,004,269 $ 31,491,703 $
(2,870,107) $ 2,890,812 $
No Override I
- I $
- I $
40,465,503 $
(955,595) $
No Override I
- I
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41,083,812
1,569,849
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I 1.25 x I Bond Coverage
Calculation of Net Revenues
Operating Revenues
User Charges
Other/Misc Revenues - Excludes Interest Earnings
~ Connection Fees
~ Grants
Modeled Interest Earnings
~ Operating Funds
~ Capital Funds
Total Revenues Included in Test
Less: Operating Expenses
Net Operating Revenues Avaiable for Debt Service
Debt Service
Coverage
Subtotal: Debt Service and Coverage
BOND COVERAGE SURPLUS {DEFICIT)
$
$
$
$
$
$
$
$
$
23,556,818 $
319,000
471,438 $
265,571 $
478,440
25,091,268 $
(13,422,249) $
11,669,019 $
- $
- $
11,669,019 $

25,907,310 $
327,690
400,974 $
211,226 $
292,111
27,139,311 $
(13,769,580) $
13,369,731 $
- $
- $
13,369,731 $
29,596,290 $
333,114
328,896 $
94,672 $
110,086
30,463,059 $
(14,178,212) $
16,284,847 $
- $
- $
16,284,847 $
33,866,520 $
338,867
113,883 $
90,448 $
86,680
34,496,398 $
(14,598,462) $
19,897,936 $
293,749 $
367,186
660,935 $
19,237,002 $
38,988,310 $
345,510
204,368 $
99,795 $
76,294
39,714,276 $
(15,030,703) $
24,683,573 $
293,749 $
367,186
660,935 $
24,022,638 $
42,144,820
352,342
538,144
119,693
36,806
43,191,804
(15,476,256)
27,715,548
293,749
367,186
660,935
27,054,614
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CD
0 I\.)
Cash Flow Driven Surplus Cash Flow Driven Surplus Cash Flow Driven Surplus 00 I\.)
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0 Month of implementation I January I January I January I January I January I January I I
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Calculated Increase(%) I 47.46% I 0.00% I 19.40% I 0.00% I 4.90% I 0.00% I co
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Cumulative Rate Increase {%) 86.0% 115.2% 145.3% 179.6% 199.2% 220.2% SFR Rate $51.74 $59.85 $68.22 $77.77 $83.22 $89.04

CASH FLOW
Revenues Before Rate Increase $ 24,619,830 $ 26,738,337 $ 30,134,162 $ 34,382,515 $ 39,509,908 $ 42,653,661 Revenues From Rate Increase 3,627,023 4,143,481 4,741,313 2,729,182 2,950,137 Less: Rate Increase Delay (1,813,512) (2,071,740) (2,370,656) (1,364,591) (1,475,069) Less: Adjustment for Implementation Delay (1,813,512)
;::;- Less: Expenditures (30,209,552) (22,295,403) (33,004,269) (31,491,703) (40,465,503) (41,083,812) (t)
3 Cash Flow $ (5,589,723) $ 4,442,933 $ (798,366) $ 5,261,469 $ 408,996 $ 3,044,918 =1:1: u,
RATE REVENUE REQUIREMENT $ 23,556,818 $ 29,534,333 $ 33,739,771 $ 38,607,833 $ 41,717,492 $ 45,094,957 "tl Total Ending Balance $ 10,987,236 $ 9,488,607 $ 8,224,194 $ 9,384,662 $ 6,265,258 $ 9,157,926 QJ 0Q
161 days 205 days 109days 132days 65 days 94days (t)
N Operating Fund w ....

Beginning Balance $ 0 16,576,959 $ 4,545,674 $ 4,921,560 $ 4,123,194 $ 5,856,262 $ 6,113,008 - Cash Flow (5,589,723) 4,442,933 (798,366) 5,261,469 408,996 3,044,918 u, .... Transfers from Operating to Capital Fund (6,441,562) (4,067,047) (3,528,400) (152,249) (2,764,885) 00 Ending Operating Fund Balance $ 4,545,674 $ 4,921,560 $ 4,123,194 $ 5,856,262 $ 6,113,008 $ 6,393,041 Page4
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Operating Revenues 00
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User Charges $ 23,556,818 $ 25,907,310 $ 31,668,030 $ 36,237,176 $ 40,352,901 $ 43,619,889 CD 0 I
Other/Misc Revenues 319,000 327,690 333,114 338,867 345,510 352,342 0 0 Change selection above
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$ $ $ $ $ $
co
BE
Connection Fees 471,438 400,974 328,896 113,883 204,368 538,144 ~ Grants ()
()
(;)
(;)
Modeled Interest Earnings
.i,.

BE
Operating Funds $ 265,571 $ 211,226 $ 94,672 $ 90,448 $ 99,795 $ 119,693 Capital Funds 478,440 292,111 110,086 86,680 76,294 36,806 Total Revenues Included in Test $ 25,091,268 $ 27,139,311 $ 32,534,799 $ 36,867,054 $ 41,078,867 $ 44,666,873 LESS: Operating Expenses $ (13,422,249) $ (13,769,580) $ (14,178,212) $ (14,598,462) $ (15,030,703) $ (15,476,256) Net Operating Revenues Available for Debt Service $ 11,669,019 $ 13,369,731 $ 18,356,587 $ 22,268,593 $ 26,048,164 $ 29,190,617 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 $ 11,669,019 $ 13,369,731 $ 18,356,587 $ 22,268,593 $ 26,048,164 $ 29,190,617 ;::;- LESS: Existing Debt Service (293,749) (293,749) (293,749) (t)
Revenues Available for Coverage $ 11,669,019 $ 13,369,731 $ 18,356,587 $ 21,974,844 $ 25,754,415 $ 28,896,868 3 =1:1:

Existing Debt Service Coverage Ratio No Existing Debt No Existing Debt No Existing Debt u, 75.Blx 88.67x 99.37x "'tl Total Debt Test - Includes existing and projected debt.

QJ
Net Operating Revenues Available for Debt Service $ $ $ $ $ $ 0Q 11,669,019 13,369,731 18,356,587 22,268,593 26,048,164 29,190,617 (1)
Less: Existing Debt Service (293,749) (293,749) (293,749) N w Less: Projected Debt Service N
0 Revenues Available for Coverage $ 11,669,019 $ 13,369,731 $ 18,356,587 $ 21,974,844 $ 25,754,415 $ 28,896,868 -u,
.... Total Debt Service Coverage Ratio No Debt No Debt 00 No Debt 75.81 X 88.67x 99.37x

Docusign Envelope ID: 2EE35CDA-4EA8-4B02-8290-D02A8FACC334 2025 WASTEWATER COST-OF-SERVICE STUDY
JANUARY 2025 /FINAL/ CAROLLO

APPENDIX D FUNCTIONAL ALLOCATION

CITY OF CARLSBAD
April 22, 2025 Item #5 Page 233 of 518
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Wastewater Financial Model
Functional Allocation
TEST YEAR IIIIIIB!IIIII
ALLOCATION INDEX FYE 2025 TREATMENT FLOW BOD TSS COLLECTION FLOW AS All OTHERS NOTES Treatment Flow/B00/TSS
50 Percent Customer
Admin
Allocation 4
Allocation 5
Allocation 6
Allocation 7
Flow Only
Customer Only
As Weighted Average
Collections
Staff Allocation
Vehicles
Uniforms
Miscellaneous Professional Services - 7490
Miscellaneous Outside Services - 7550
Capital Improvement Plan
Weighted Average O&M
Weighed Average Revenue Requirements

40.3% I 28.6%

0.0% 0.0%

0.0% 0.0%

0.0% 0.0%

0.0% 0.0%

0.0% 0.0%

0.0% 0.0%
100.0% 0.0%

0.0% 0.0%

0.0% 0.0%

5.0%

0.0% 3.3%

0.0% 5.0%

0.0% 5.0%

0.0% 0.0%

0.0% 0.0%

13.6% 12.6%

26.6% 20.6%

20.8% 17.0%
I 31.1% I

0.0%

0.0%

0.0%

0.0%

0.0%

0.0%

0.0%

0.0%

0.0%

5.0%

3.3%

5.0%

5.0%

0.0%

0.0%

13.6%

22.3%

18.4%

0.0%

0.0%

0.0%

0.0%

0.0%

0.0%

0.0%

0.0%

0.0%

0.0%

90.0%

60.2%

90.0%

90.0%

0.0%

0.0%

60.2%

30.5%

43.8%

0.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%

0.0%
100.0%
100.0%

0.0%

33.1%

0.0%

0.0%
100.0%
100.0%

0.0%

0.0%

0.0%
See "Op Exp for Encino Services" tab for breakdown
PLANT IN SERVICE RCNLD TREATMENT FLOW BOD TSS COLLECTION FLOW AS All OTHERS NOTES IM - IMPROVEMENTS $ 7,187,260 100.0% 0%
JV -JOINT VENTURE 52,S84,214 40.3% 28.6% 31.1% 0%
LO-LAND 2,629,102 100%
ME - MACHINERY & EQUIPMENT 806,073 100%
PP - PIPES & PUMPING 70,927,459 S.0% S.0% 90.0% 0%
Plant•ln•Servlce Sub Total $ 134,134,107 $ 21,182,642 $ 18,588,265 $ 19,906,053 $ 71,021,973 $ 3,435,175 Reallocation of "As All Others" $ 556,746 $ 488,557 $ 523,193 $ 1,866,678 $ 13,435,175) Total Allocation $ 134,134,107 $ 21,739,387 $ 19,076,823 $ 20,429,246 $ 72,888,651 $ Percentage Allocation 100% 16.2% 14.2% 15.2% 54.3% 0.0%

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Wastewater Financial Model
Functional Allocation
TEST YEAR IIIIIIB!IIIII
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ALLOCATION INDEX FYE 2025 TREATMENT FLOW BOD TSS COLLECTION FLOW AS All OTHERS NOTES

EXPENDITURES
Personnel
Reg Salaries
Incentive Pay
Hazard Pay
1OD Worker's Comp
Overtime Salaries
Standby Pay
Parttimes Salaries
Intern Salaries
Temporary Help
Health Insurance
life Insurance
AD&D - City Paid
Vision Insurance
Medicare
Cell Phone Reimbursement
Auto Allowance
Earned Leave Accrual
Healthy Emp Awards
Final Vacation Pay
Final Sick Leave Pay
Disability
Unemployment
Worker's Compensation
PERS
PERS Unfunded liab Exp
PERS (GASB 68 CONTRA ACCOUNT)
Operation Expense
Social Security
Deferred Comp
Other Personnel
;:::; Maintenance & Equipment
(t) Other Mach & Equip
3 Vehicle Rentals
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Misc Leases
Office Equip Maint
Communication Equip Maintenance
Software Maintenance
Computer Maintenance
Vehicle Maintenance
Wash and Wax
Other Equip Maint
FYE 2025 ALLOCATION TREATMENT FLOW BOD TSS COLLECTION FLOW AS ALL OTHERS NOTES 2,21S,920
Sl,S70
67,600
26,490
3,790
4SS,810
1,S00
740
33,420
1,180
13,340
11,520
57,200
292,S0l
37S,S98
10,400
1,040
28,320
lS,600
4,680
Staff Allocation 0.0%
Staff Allocation 0.0%
Staff Allocation 0.0%
Staff Allocation 0.0%
Staff Allocation 0.0%
Staff Allocation 0.0%
Staff Allocation 0.0%
Staff Allocation 0.0%
Staff Allocation 0.0%
Staff Allocation 0.0%
Staff Allocation 0.0%
Staff Allocation 0.0%
Staff Allocation 0.0%
Staff Allocation 0.0%
Staff Allocation 0.0%
Staff Allocation 0.0%
Staff Allocation 0.0%
Staff Allocation 0.0%
Staff Allocation 0.0%
Staff Allocation 0.0%
Staff Allocation 0.0%
Staff Allocation 0.0%
Staff Allocation 0.0%
Staff Allocation 0.0%
Staff Allocation 0.0%
Staff Allocation 0.0%
Staff Allocation 0.0%
Staff Allocation 0.0%
Staff Allocation 0.0%
Staff Allocation 0.0%
As Weighted Average 0.0%
As Weighted Average 0.0%
Collections 0.0%
As Weighted Average 0.0%
As Weighted Average 0.0%
As Weighted Average 0.0%
As Weighted Average 0.0%
As Weighted Average 0.0%
Collections 0.0%
Collections 0.0%
Collections 0.0%

3.3% 3.3% 60.2% 33.1%

3.3% 3.3% 60.2% 33.1%

3.3% 3.3% 60.2% 33.1%

3.3% 3.3% 60.2% 33.1%

3.3% 3.3% 60.2% 33.1%

3.3% 3.3% 60.2% 33.1%

3.3% 3.3% 60.2% 33.1%

3.3% 3.3% 60.2% 33.1%

3.3% 3.3% 60.2% 33.1%

3.3% 3.3% 60.2% 33.1%

3.3% 3.3% 60.2% 33.1%

3.3% 3.3% 60.2% 33.1%

3.3% 3.3% 60.2% 33.1%

3.3% 3.3% 60.2% 33.1%

3.3% 3.3% 60.2% 33.1%

3.3% 3.3% 60.2% 33.1%

3.3% 3.3% 60.2% 33.1%

3.3% 3.3% 60.2% 33.1%

3.3% 3.3% 60.2% 33.1%

3.3% 3.3% 60.2% 33.1%

3.3% 3.3% 60.2% 33.1%

3.3% 3.3% 60.2% 33.1%

3.3% 3.3% 60.2% 33.1%

3.3% 3.3% 60.2% 33.1%

3.3% 3.3% 60.2% 33.1%

3.3% 3.3% 60.2% 33.1%

3.3% 3.3% 60.2% 33.1%

3.3% 3.3% 60.2% 33.1%

3.3% 3.3% 60.2% 33.1%

3.3% 3.3% 60.2% 33.1%

0.0% 0.0% 0.0% 100.0%

0.0% 0.0% 0.0% 100.0%
S.0% S.0% 90.0% 0.0%

0.0% 0.0% 0.0% 100.0%

0.0% 0.0% 0.0% 100.0%

0.0% 0.0% 0.0% 100.0%

0.0% 0.0% 0.0% 100.0%

0.0% 0.0% 0.0% 100.0%

5.0% S.0% 90.0% 0.0%

5.0% S.0% 90.0% 0.0%

5.0% 5.0% 90.0% 0.0%
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Wastewater Financial Model
Functional Allocation
Maintenance, Repair and Rehab
Audit
legal
Administrative
Misc Professional Services
Encina Services
Encina Services (Pension Payoff)
Miscellaneous Outside Services
Bank Services
Comm Arts Support
Regulatory/Permitting Fees
Misc Services
Laundry and Uniform Mainteance
Electrical/SCADA Services
Water Sampling Services
FOG Inspection Services
Smartcover WI Fl/Alarm Services
Landscaping Services
Ads and Publishing
Dues and Subscriptions
Books and Publications
Audio Visual Materials
Printing
Postage
Office Supplies
Office Furniture & Equipment
Computer Software
Misc. Computer Hardware
Promo Materials
Food Expense
Heat and Light
Telephone & Communications
Waste Dispoal Services
Water
Building Maintenance
Electrical Supplies
Janitorial Supplies
Parts-Vehicles
Parts-Equip
Rock and Mineral Products
Asphalt
Small Tools
Safety Equipment
Uniforms and Accessories
Meters/Fittings
Personal Protective Equipment
Gasoline and Oil
Chemicals
Training Supplies
Medical Supplies - Disposable
Misc Supplies
Employee Training
Tuition Reimbursement
TEST YEAR IIIIIIB!IIIII
As Weighted Average 0.0%
10,400 Collections 0.0%
3,120 Collections 0.0%
As Weighted Average 0.0%
As Weighted Average 0.0%
As Weighted Average 0.0%
433,970 As Weighted Average 0.0%
6,180,000 Treatment Flow/800/TSS 40.3%
(281,750) Treatment Flow/800/TSS 40.3%
468,540 As Weighted Average 0.0%
44,940 As Weighted Average 0.0%
As Weighted Average 0.0%
39,880 Collections 0.0%
As Weighted Average 0.0%
5,200 Collections 0.0%
34,780 Collections 0.0%
As Weighted Average 0.0%
20,800 Collections 0.0%
52,000 Collections 0.0%
135,490 As Weighted Average 0.0%
2,080 As Weighted Average 0.0%
10,920 As Weighted Average 0.0%
520 As Weighted Average 0.0%
As Weighted Average 0.0%
7,800 As Weighted Average 0.0%
4,680 As Weighted Average 0.0%
5,200 As Weighted Average 0.0%
5,200 As Weighted Average 0.0%
10,400 As Weighted Average 0.0%
4,160 As Weighted Average 0.0%
5,200 As Weighted Average 0.0%
As Weighted Average 0.0%
322,970 Collections 0.0%
12,480 As Weighted Average 0.0%
11,120 As Weighted Average 0.0%
38,940 As Weighted Average 0.0%
As Weighted Average 0.0%
520 Collections 0.0%
310 As Weighted Average 0.0%
520 Collections 0.0%
217,620 Collections 0.0%
4,160 Collections 0.0%
520 Collections 0.0%
1,560 Collections 0.0%
22,620 Collections 0.0%
5,200 Collections 0.0%
As Weighted Average 0.0%
As Weighted Average 0.0%
2,080 Collections 0.0%
8S,630 Collections 0.0%
As Weighted Average 0.0%
As Weighted Average 0.0%
17,060 As Weighted Average 0.0%
3,120 As Weighted Average 0.0%
As Weighted Average 0.0%

0.0% 0.0% 0.0%

5.0% 5.0% 90.0%

5.0% 5.0% 90.0%

0.0% 0.0% 0.0%

0.0% 0.0% 0.0%

0.0% 0.0% 0.0%

0.0% 0.0% 0.0%

28.6% 31.1% 0.0%

28.6% 31.1% 0.0%

0.0% 0.0% 0.0%

0.0% 0.0% 0.0%

0.0% 0.0% 0.0%

5.0% 5.0% 90.0%

0.0% 0.0% 0.0%

5.0% 5.0% 90.0%

5.0% 5.0% 90.0%

0.0% 0.0% 0.0%

5.0% 5.0% 90.0%

5.0% 5.0% 90.0%

0.0% 0.0% 0.0%

0.0% 0.0% 0.0%

0.0% 0.0% 0.0%

0.0% 0.0% 0.0%

0.0% 0.0% 0.0%

0.0% 0.0% 0.0%

0.0% 0.0% 0.0%

0.0% 0.0% 0.0%

0.0% 0.0% 0.0%

0.0% 0.0% 0.0%

0.0% 0.0% 0.0%

0.0% 0.0% 0.0%

0.0% 0.0% 0.0%

5.0% 5.0% 90.0%

0.0% 0.0% 0.0%

0.0% 0.0% 0.0%

0.0% 0.0% 0.0%

0.0% 0.0% 0.0%

5.0% 5.0% 90.0%

0.0% 0.0% 0.0%

5.0% 5.0% 90.0%

5.0% 5.0% 90.0%

5.0% 5.0% 90.0%

5.0% 5.0% 90.0%

5.0% 5.0% 90.0%

5.0% 5.0% 90.0%

5.0% 5.0% 90.0%

0.0% 0.0% 0.0%

0.0% 0.0% 0.0%

5.0% 5.0% 90.0%

5.0% 5.0% 90.0%

0.0% 0.0% 0.0%

0.0% 0.0% 0.0%

0.0% 0.0% 0.0%

0.0% 0.0% 0.0%

0.0% 0.0% 0.0%

100.0%

0.0%

0.0%
100.0%
100.0%
100.0%
100.0%

0.0%

0.0%
100.0%
100.0%
100.0%

0.0%
100.0%

0.0%

0.0%
100.0%

0.0%

0.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%

0.0%
100.0%
100.0%
100.0%
100.0%

0.0%
100.0%

0.0%

0.0%

0.0%

0.0%

0.0%

0.0%

0.0%
100.0%
100.0%

0.0%

0.0%
100.0%
100.0%
100.0%
100.0%
100.0%
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Wastewater Financial Model
Functional Allocation
TEST YEAR IIIIIIB!IIIII
Conference Travel
Misc. Meals/Miles
Bad Debt Exp - Other Inv/Bills
Disposal of Assets
Reg Over/Short
NED Rental Assistance Payments
lateral Assistance Program
Settlements
Contingencies
Vehicle Direct Charges
Vehicle Maintenance (2)
Vehicle Replacement
General Liab
Information Technologies
Misc Interdepartmental Charges
Mis Chg Back
Utility Billing Chargeback
Fiscal Agent Fees
Arbitrage Costs
Principal
Interest Expense
Int Exp-Capitalized Interest
Other - Heat & Light
Other - Parts & Equipment
Other - Smart Covers
Addt'I Maintenance & Equipment
Other Maintenance & Equipment
capital Outlay
Operating Expenditures Sub Total
Reallocation of "As All Others"
Total Allocation
Percentage Allocation
s
$
$
3,300
3,340
20,800
25,000
2,730
144,520
186,760
458,860
335,870
877,560
(1,455,673)
25,637
12,339,545
12,339,545
100.0'6
As Weighted Average 0.0%
As Weighted Average 0.0%
As Weighted Average 0.0%
As Weighted Average 0.0%
As Weighted Average 0.0%
As Weighted Average 0.0%
As Weighted Average 0.0%
As Weighted Average 0.0%
As Weighted Average 0.0%
Vehicles 0.0%
Vehicles 0.0%
Vehicles 0.0%
As Weighted Average 0.0%
As Weighted Average 0.0%
As Weighted Average 0.0%
As Weighted Average 0.0%
As Weighted Average 0.0%
As Weighted Average 0.0%
As Weighted Average 0.0%
As Weighted Average 0.0%
As Weighted Average 0.0%
As Weighted Average 0.0%
As Weighted Average 0.0%
As Weighted Average 0.0%
As Weighted Average 0.0%
As Weighted Average 0.0%
(Non-Enema O&M] 0.0%
Caoital lmorovement Plan 13.6%
Caoital lmorovement Plan 13.6%
Caoital lmorovement Plan 13.6%
Canital lmnrovement Plan 13.6%
Caoital lmorovement Plan 13.6%
Caoital lmorovement Plan 13.6%
Caoital lmorovement Plan 13.6%
Canital lmnrovement Plan 13.6%
Caoital lmorovement Plan 13.6%
$ 2,379,502
$ 906,311
$ 3,285,814

26.6'6
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0.0% 0.0% 0.0% 100.0%
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0.0% 0.0% 0.0% 100.0%

0.0% 0.0% 0.0% 100.0%

0.0% 0.0% 0.0% 100.0%

0.0% 0.0% 0.0% 100.0%

0.0% 0.0% 0.0% 100.0%

0.0% 0.0% 0.0% 100.0%

0.0% 0.0% 0.0% 100.0%

0.0% 0.0% 0.0% 100.0%

2.3% 2.3% 42.3% 53.1%

12.6% 13.6% 60.2% 0.0%

12.6% 13.6% 60.2% 0.0%

12.6% 13.6% 60.2% 0.0%

12.6% 13.6% 60.2% 0.0%

12.6% 13.6% 60.2% 0.0%

12.6% 13.6% 60.2% 0.0%

12.6% 13.6% 60.2% 0.0%

12.6% 13.6% 60.2% 0.0%

12.6% 13.6% 60.2% 0.0%
$ 1,841,048 $ 1,989,113 $ 2,726,319 $ 3,403,562
$ 701,224 $ 757,619 $ 1,038,408 $ (3,403,562)
$ 2,542,272 $ 2,746,732 $ 3,764,727 $

20.6% 22.3% 30.5%
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Wastewater Financial Model
Functional Allocation
TEST YEAR IIIIIIB!IIIII
ALLOCATION INDEX FYE 2025 TREATMENT FLOW BOD TSS COLLECTION FLOW AS All OTHERS NOTES RATE REVENUE REQUIREMENT FYE 2025 ALLOCATION TREATMENT FLOW BOD TSS COLLECTION FLOW AS ALL OTHERS NOTES OPERATING EXPENSES lfrom above)

NON-OPERATING EXPENSES
Replacement Funding (Depreciation)
Rate Funded Capital
Debt Service
Transfers to Capital Fund
Replacement Funding
Transfer Out - Debt Service
Adj. to Reflect Full Year Increase
LESS: Offsetting Revenues
Over/Under Collection of Revenues (Available for Capital S Other Charges for Services
Fines and Forfeitures
Income from Property & Investments
Interdepartmental
Other Revenues
Total Rate Revenues to be Collected $
Reallocation of "As All Others"
Total Allocation $
Percentage Allocation
9!fil
Rate Revenues from Revenue Requirement $
Rate Revenues from Functional Allocation $
Difference
12,339,545
5,361,480
4,594,379
3,627,023.3
4,442,933
(12,480)
(120,730)
(503,337)
(124,800 )
(69,680)
29,534,333
29,534,333
100'6
29,534,333
29,534,333

26.6% 20.6% 22.3% 30.5% 0.0%
Capital Improvement Plan 13.6% 12.6% 13.6% 60.2% 0.0%
Capital Improvement Plan 13.6% 12.6% 13.6% 60.2% 0.0%
Capital Improvement Plan 13.6% 12.6% 13.6% 60.2% 0.0%
Capital Improvement Plan 13.6% 12.6% 13.6% 60.2% 0.0%
Capital Improvement Plan 13.6% 12.6% 13.6% 60.2% 0.0%
As Weighted Average 0.0% 0.0% 0.0% 0.0% 100.0%
As Weighted Average 0.0% 0.0% 0.0% 0.0% 100.0%
As Weighted Average 0.0% 0.0% 0.0% 0.0% 100.0%
As Weighted Average 0.0% 0.0% 0.0% 0.0% 100.0%
As Weighted Average 0.0% 0.0% 0.0% 0.0% 100.0%
As Weighted Average 0.0% 0.0% 0.0% 0.0% 100.0%
As Weighted Average 0.0% 0.0% 0.0% 0.0% 100.0%
As Weighted Average 0.0% 0.0% 0.0% 0.0% 100.0%
$ 4,642,700 $ 3,796,267 $ 4,098,566 $ 9,757,870 $ 7,238,930 $ 1,507,404 $ 1,232,582 $ 1,330,733 $ 3,168,211 $ (7,238,930) $ 6,150,104 $ 5,028,848 $ 5,429,300 $ 12,926,081 $

20.8'6 17.0'6 18.4'6 43.8'6 0.0'6

UNIT COST CALCULATIONS TREATMENT FLOW BOD TSS COLLECTION FLOW AS ALL OTHERS Amount Allocable to Constituent
Total Units

PER UNIT COSTS
ccfs
6,150,104
3,138,696

1.959 $

lbs
5,028,848 $
7,085,763

0.710 $
lbs
5,429,300
8,397,992

0.646 $
lbs
12,926,081
3,138,696

4.118
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Wastewater Financial Model
Staff Allocation
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**Utility Locator•• CCEA 5116310 0.3
Accounting Technician CCEA 5116310 0.1
Administrative Secretary CCEA 5116310 0.3
Asset Management Program Specialist CCEA 5116310 0.5
Associate Engineer CCEA 5116310 0.35 --
BUYER/CONTRACT ADMINISTRATOR CCEA 5116310 0.2 --
Engineering Technician II CCEA 5116310 0.35
GIS Associate Analyst CCEA 5116310 0.35
Management Analyst MGT 5116310 0.2
Sanitation Systems Operator II CCEA 5116310 1
Sanitation Systems Operator II CCEA 5116310 1
Sanitation Systems Operator Ill CCEA 5116310 1
Sanitation Systems Operator II CCEA 5116310 1
SENIOR SCADA & IMPLEMENTATION TECH.103 SE MGT 5116310 0.45 SCADA & IMPLEMENTATION Technician CCEA 5116310 1
Secretary CCEA 5116310 0.1
Secretary CCEA 5116310 0.5
Senior Engineer MGT 5116310 0.3
Senior Management Analyst MGT 5116310 0.25
Senior Office Specialist CCEA 5116310 0.3
ASSISTANT ENGINEER CCEA 5116310 0.35
Utilities Director MGT 5116310 0.35
Utilities Engineering Manager MGT 5116310 0.35
Utilities Maintenance Planner MGT 5116310 0.3
Utilities Manager MGT 5116310 0.4
Utilities Senior Engineer MGT 5116310 0.35
Utilities Senior Engineer MGT 5116310 0.35
Utilities Superintendent MGT 5116310 1
Utilities Technical Services Manager MGT 5116310 0.5
Utility Worker II CCEA 5116310 1
Warehouse Technician CCEA 5116310 0.3
Wastewater Utility Worker I - UF CCEA 5116310 1
Wastewater Utility Worker II CCEA 5116310 1
Wastewater Utility Worker II CCEA 5116310 1
Wastewater Utility Worker II CCEA 5116310 1
Wastewater Utility Worker II CCEA 5116310 1
Wastewater Utility Worker II CCEA 5116310 1
Wastewater Utility Worker Ill CCEA 5116310 1
All Staff Allocation 21.8
Note: Total salary cost indicated here is based on assuming midpoint of range for each FTE and posit ion as a reasonab le 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.

Staff with CMWD Vehicle Use
FTEs with Uniforms

RANGE MID-POINT
66 76,211
47 63,128
43 60,611
84 91,208
98 104,811
63 74,006
60 71,802
70 79,331
89,108
89 95,846
89 95,846
103 110,178
89 95,846
72 80,891
98 104,811
35 56,014
35 56,014
127,254
108,560
27 51,709
82 89,398
193,465
166,392
89,108
166,392
127,254
127,254
127,254
142,921
66 76,211
43 60,611
54 67,683
66 76,211
66 76,211
66 76,211
66 76,211
66 76,211
77 85,051
$ 3,593,239
Resulting Allocation
Vehicle Costs Allocation
Uniforms Cost Allocation
FY 2023 MID-PT CMWD TREATMENT SALARY/ WAGE UNIFORM BOD

COST VEHICLE USE FLOW
22,863
6,313
18,183
45,604
36,684
14,801
25,131 5.0%
27,766
17,822
95,846 y y 5.0%
95,846 y y 5.0%
110,178 y y 5.0%
95,846 y y 5.0%
36,401
104,811
5,601
28,007
38,176 5.0%
27,140
15,513
31,289 5.0%
67,713
58,237 5.0%
26,732 5.0%
66,557 5.0%
44,539 5.0%
44,539 5.0%
127,254
71,461
76,211 y y 5.0%
18,183 y y 5.0%
67,683 y y 5.0%
76,211 y y 5.0%
76,211 y y 5.0%
76,211 y y 5.0%
76,211 y y 5.0%
76,211 y y 5.0%
85,051 y y 5.0%
$ 2,03S,039 $ $ 68,055 $
100% 0.0% 3.3%
Vehicle Use Units (Assumed equal to allocated FTEs) 0.62

0.096 5.0%
Uniform Units {Assumed equal to allocated FTEs) 0.62

0.0% 5.0%

COLLECTION TSS FLOW

5.0% 90.0%

5.0% 90.0%

5.0% 90.0%

5.0% 90.0%

5.0% 90.0%

5.0% 90.0%

5.0% 90.0%

5.0% 90.0%

5.0% 90.0%

5.0% 90.0%

5.0% 90.0%

5.0% 90.0%

5.0% 90.0%

5.0% 90.0%

5.0% 90.0%

5.0% 90.0%

5.0% 90.0%

5.0% 90.0%

5.0% 90.0%

5.0% 90.0%

5.0% 90.0%
68,055 $ 1,224,992

3.3% 60.2%

0.62 11.07

5.0% 90.096

0.62 11.07

5.0% 90.0%
AS All OTHERS
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%

0.0%
100.0%
100.0%

0.0%

0.0%

0.0%

0.0%
100.0%
100.0%
100.0%
100.0%

0.0%
100.0%
100.0%

0.0%
100.0%

0.0%

0.0%

0.0%

0.0%

0.0%
100.0%
100.0%

0.0%

0.0%

0.0%

0.0%

0.0%

0.0%

0.0%

0.0%

0.0%
$ 673,937

33.1%

0.096

0.096
TOTAL

0.0%

0.0%

0.0%

0.0%

0.0%

0.0%
100.0%

0.0%

0.0%
100.0%
100.0%
100.0%
100.0%

0.0%

0.0%

0.0%

0.0%
100.0%

0.0%

0.0%
100.0%

0.0%
100.0%
100.0%
100.0%
100.0%
100.0%

0.0%

0.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
$ 2,035,039
100%

12.30 10096

12.30 100%
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Docusign Envelope ID: 2EE35CDA-4EA8-4B02-8290-D02A8FACC334

APPENDIX E

CITY OF CARLSBAD
April 22, 2025

RATE CALCULATIONS
2025 WASTEWATER COST-OF-SERVICE STUDY
JANUARY 2025 /FINAL/ CAROLLO
Item #5 Page 240 of 518
► (..City of
Earlsbad
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Wastewater Financial Model
Customer Allocation & Rates
ALLOCATION YEAR: FYE 2025
Customer Data Billed Units Summary
FYE 2025

ESTIMATED SEWER FLOWS (HCF)
ESTIMATED BOD DISCHARGE (lbs)
ESTIMATED TSS DISCHARGE (lbs)

CUSTOMER ACCOUNTS
Units
3,138,696
7,085,763
8,397,992
24,200

PROPOSED
Allocated Revenue Requirements TREATMENT FLOW BOD TSS COLLECTION FLOW TOTAL Rate Revenue Required $ 6,150,104 $ 5,028,848 $ 5,429,300 $ 12,926,081 $ Unit Basis for Rate Design ESTIMATED SEWER ESTIMATED BOD ESTIMATED TSS ESTIMATED SEWER FLOWS(HCF) DISCHARGE (lbs) DISCHARGE (lbs) FLOWS(HCF)
2025 Unit s 3,138,696 7,085,763 8,397,992 3,138,696
2025 Unit Cost $1.959 $0.710 $0.646 $4.118
perHCF per lb per lb perHCF
29,534,333
Rate Class Unit Costs - Per HCF Discharged BOD (mg/I) BOD ($/HCF) TSS (mg/I) TSS ($/HCF) Flow ($/HCF) Total $ Per HCF Discharged GROUP I - SFR & Minimum Charges 301 $1.34 379 $1.53 $6.08 $8.94 GROUP I - MFR/Mobile Homes 301 $1.34 379 $1.53 $6.08 $8.94 GROUP II - Commercial 2 196 $0.87 229 $0.92 $6.08 $7.87 GROUP Ill - Commercial 3 495 $2.19 529 $2.13 $6.08 $10.40 GROUP IV - Commercial 4 1236 $5.47 1290 $5.20 $6.08 $16.76 Other 0 $0.00 0 $0.00 $6.08 $6.08
Brewery- B2 1906 $8.45 1537 $6.20 $6.08 $20.73
Brewery- B3 1236 $5.47 1290 $5.20 $6.08 $16.76
Brewery- B4 2426 $10.75 2067 $8.34 $6.08 $25.17
GROUP VI - Large Volume (no accounts) 121 $0.53 152 $0.61 $6.08 $7.22 Industrial Pretreatment Class Ill 450 $1.99 905 $3.65 $6.08 $11.72 Institutional 196 $0.87 190 $0.77 $6.08 $7.71
GROUP V - Elementary Schools 196 $0.87 190 $0.77 $6.08 $7.71 GROUP V - Junior High Schools 196 $0.87 190 $0.77 $6.08 $7.71 GROUP V - High Schools 196 $0.87 190 $0.77 $6.08 $7.71
GROUP V - Boarding Schools 196 $0.87 190 $0.77 $6.08 $7.71 0 g
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Wastewater Financial Model
Customer Allocation & Rates
Calculated Monthly Rate
GROUP I - SFR & Minimum Charges Total$ Per HCF EDU Flow Factor Estimated Monthly (per Account or Dwelling Proposed Monthly Rate (per Account Discharged Discharge (HCF) Unit) or Dwelling Unit)
GROUP I - SFR & Minimum Charges
SFR with ADU
$8.94
$8.94

1.0 1.5

6.69 10.04
No Rounding Rounded
$59.84
$89.76
Calculated Monthly Rate
$S9.85
$89.77
Discharge Based Rates Total$ Per HCF Return to Sewer (per Account or Dwelling Calculated Monthly Rate (per HCF of Discharged Factor Unit) Water Used) Rounded
No Rounding
GROUP I - MFR/Mobile Homes $8.94 76.96% $6.88 $6.89
GROUP II - Commercial 2 $7.87 76.96% $6.06 $6.06
GROUP Ill - Commercial 3 $10.40 76.96% $8.01 $8.01
GROUP IV - Commercial 4 $16.76 76.96% $12.90 $12.90
Other $6.08 0.00% $0.00 $0.00
Brewery- B2 $20.73 70.55% $14.62 $14.63
Brewery- B3 $16.76 76.96% $12.90 $12.90
Brewery- B4 $25.17 70.55% $17.76 $17.76
GROUP VI - Large Volume (no accounts) $7.22 76.96% $5.56 $5.56 Industrial Pretreatment Class Ill $11.72 76.96% $9.02 $9.03 Institutional $7.71 76.96% $5.93 $5.94
Effective Flow per Calculated Monthly Rate
I . . 1 R Total$ Per HCF Assumed Flow per Adjustment for S d ( CF ( S d ) Proposed Monthly Rate nst1tut1ona ates tu ent H per per tu ent Discharged Student (gpd) Student Days M h) R d. (per Student) Rounded GROUP V - Elementary Schools
GROUP V - Junior High Schools
GROUP V - High Schools
GROUP V - Boarding Schools
$7.71
$7.71
$7.71
$7.71

6.84 10.26

13.68 38.18
55%
55%
55%
100%
ont No oun mg

0.15 0.23

0.30 1.55
$1.18
$1.76
$2.35
$11.97
$1.18
$1.77
$2.36
$11.98
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Docusign Envelope ID: 2EE35CDA-4EA8-4B02-8290-D02A8FACC334 2025 WASTEWATER COST-OF-SERVICE STUDY
JANUARY 2025 /FINAL/ CAROLLO

APPENDIX F PROJECTED FLOW AND LOADS

CITY OF CARLSBAD
April 22, 2025 Item #5 Page 243 of 518
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Customer Data Projection
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GROUP I - SFR & Minimum Charges Calculated Sewer Flows SFR and Duplex w/ I 1,484,3781 Additional Billed Due to Minimum Charges 305,534
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ESTIMATED BOD DISCHARGE (lbs)
GROUP I - SFR & Minimum Charges
Additional Billed Due to Minimum Charges
GROUP I - SFR & Minimum Charges Adjusted to Reflect Minimum Charges Total BOD Discharge (lbs)
1,789,912
497,493
0 294,764
311,881
153,857
0 3,376
7,649
2,178
0 6,960
523
12,630
7,386
14,505
3,354
3,106,470
2,792,433
574,775
3,367,208
935,891
0 361,358
963,191
1,186,695
0 40,180
58,997
32,991
0 19,546
640
15,444
9,032
17,737
4,101
7,013,010
1,479,614
304,553
1,784,167
3,096,498
2,783,470
572,930
3,356,400
6,990,499
1,490,691
306,833
1,797,525
3,119,681
2,804,309
577,219
3,381,528
7,042,834
1,499,777
308,704
1,808,481
3,138,696
2,821,402
580,737
3,402,139
7,085,763
1,502,923
309,351
1,812,275
3,145,280
2,827,320
581,956
3,409,276
7,100,627
1,508,569
310,513
1,819,083
3,157,096
2,837,942
584,142
3,422,083
7,127,301
1,523,436
313,573
1,837,010
3,188,209
2,865,909
589,899
3,455,808
7,197,540
1,539,042
316,785
1,855,827
3,220,867
2,895,266
595,941
3,491,207
7,271,268
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Wastewater Financial Model
Customer Data Projection
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ESTIMATED TSS DISCHARGE (lbs)
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GROUP I - SFR & Minimum Charges Adjusted to Reflect Minimum Charges r+
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CUSTOMER ACCOUNTS
GROUP I - SFR & Minimum Charges
GROUP I - MFR/Mobile Homes
COMMERCIAL, Cl Included in Group I
GROUP II - Commercial 2
GROUP Ill - Commercial 3
GROUP IV - Commercial 4
Other
Brewery- B2
Brewery - B3
Brewery- B4
GROUP VI - Large Volume (no accounts)
Industrial Pretreatment Class Ill
Institutional
GROUP V - Elementary Schools
GROUP V - Junior High Schools
GROUP V - High Schools
GROUP V - Boarding Schools
Total Accounts
3,514,580
723,416
4,237,997
1,177,920
0 420,688
1,029,720
1,238,583
0 32,388
61,577
28,111
0 39,324
620
14,952
8,744
17,172
3,970
8,311,766
21,620
776
0 1,091
244
165
0 7
12 4
0 1
3 20
4 4
1 23,952
3,503,299
721,094
4,224,393
1,174,139
0 419,338
1,026,415
1,234,607
0 32,284
61,379
28,021
0 39,198
618
14,904
8,716
17,117
3,957
8,285,087
21,550
774
0 1,087
243
164
0 7
12 4
0 1
3 20
4 4
1 23,875
3,529,527
726,493
4,256,020
1,182,929
0 422,477
1,034,099
1,243,850
0 32,526
61,839
28,231
0 39,492
622
15,016
8,781
17,245
3,987
8,347,114
21,712
779
0 1,096
245
166
0 7
12 4
0 1
3 20
4 4
1 24,054
3,551,041
730,921
4,281,962
1,190,140
0 425,052
1,040,402
1,251,432
0 32,724
62,216
28,403
0 39,732
626
15,107
8,835
17,350
4,011
8,397,992
21,844
784
0 1,102
247
167
0 7
12 4
0 1
3 20
4 4
1 24,200
3,558,490
732,454
4,290,944
1,192,636
0 425,944
1,042,585
1,254,057
0 32,793
62,346
28,463
0 39,816
627
15,139
8,853
17,386
4,020
8,415,609
21,890
786
0 1,105
247
167
0 7
12 4
0 1
3 20
4 4
1 24,251
3,571,858
735,206
4,307,064
1,197,117
0 427,544
1,046,501
1,258,768
0 32,916
62,581
28,570
0 39,965
630
15,196
8,886
17,452
4,035
8,447,224
21,972
789
0 1,109
248
168
0 7
12 4
0 1
3 20
4 4
1 24,342
3,607,058
742,451
4,349,510
1,208,914
0 431,757
1,056,815
1,271,173
0 33,240
63,197
28,851
0 40,359
636
15,346
8,974
17,624
4,075
8,530,471
22,189
796
0 1,120
250
169
0 7
12 4
0 1
3 21
4 4
1 24,582
3,644,007
750,057
4,394,063
1,221,298
0 436,180
1,067,640
1,284,194
0 33,581
63,845
29,147
0 40,772
643
15,503
9,066
17,804
4,116
8,617,852
22,416
805
0 1,131
253
171
0 7
12 4
0 1
3 21
4 4
1 24,834
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Wastewater Financial Model
Customer Data Projection
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GROUP I - SFR & Minimum Charges
Additional Billed Due to Minimum Charges Monthly
Total Minimum Charges (Monthly)

BILLED/ESTIMATED WATER USE (HCF)
GROUP I - SFR & Minimum Charges
GROUP I - MFR/Mobile Homes
COMMERCIAL, Cl
GROUP II - Commercial 2
GROUP Ill - Commercial 3
GROUP IV - Commercial 4
Other
Brewery - B2
Brewery- B3
Brewery - B4
GROUP VI - large Volume (no accounts)
Industr ial Pretreatment Class Ill
Institutional
GROUP V - Elementary Schools
GROUP V - Junior High Schools
GROUP V - High Schools
GROUP V - Boarding Schools
Total Accounts

NUMBER OF STUDENTS
GROUP V - Elementary Schools
GROUP V - Junior High Schools
GROUP V - High Schools
GROUP V - Boarding Schools
- -
21,filj20 21,550 21,712
673 671 676
22,293 22,221 22,388
-0.321% 0.749%
.
0 0 0
646,426 644,351 649,175
0 0 0
383,006 381,777 384,635
405,248 403,947 406,971
199,917 199,275 200,767
0 0 0
4,786 4,771 4,806
9,939 9,907 9,981
3,088 3,078 3,101
0 0 0
9,044 9,015 9,082
680 678 683
0 0 0
0 0 0
0 0 0
0 0 0
1,662,134 1,656,798 1,669,202
6,883 6,934
2,683 2,703
3,952 3,982
179 181
- -21,844 21,890 21,972
680 681 684
22,524 22,571 22,656

0.610% 0.210%
. .
0 0 0
653,132 654,502 656,961
0 0 0
386,979 387,791 389,248
409,452 410,311 411,852
201,991 202,414 203,175
0 0 0
4,836 4,846 4,864
10,042 10,063 10,101
3,120 3,127 3,138
0 0 0
9,138 9,157 9,191
687 689 691
0 0 0
0 0 0
0 0 0
0 0 0
1,679,377 1,682,899 1,689,222
6,977 6,991 7,018
2,720 2,726 2,736
4,006 4,015 4,030
182 182 183
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0 393,084
415,911
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0 397,111
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Docusign Envelope ID: 2EE35CDA-4EA8-4B02-8290-D02A8FACC334 2025 WASTEWATER COST-OF-SERVICE STUDY
JANUARY 2025 /FINAL/ CAROLLO

APPENDIX G PROJECTIONS FOR ALTERNATIVE OPTION

CITY OF CARLSBAD
April 22, 2025 Item #5 Page 247 of 518
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Wastewater Financial Model - Alternative Option With Bonds Functional Allocation
TEST YEAR IIIIIIB!IIIII
ALLOCATION INDEX FYE 2025 TREATMENT FLOW BOD TSS COLLECTION FLOW AS All OTHERS NOTES Treatment Flow/B00/TSS
50 Percent Customer
Admin
Allocation 4
Allocation 5
Allocation 6
Allocation 7
Flow Only
Customer Only
As Weighted Average
Collections
Staff Allocation
Vehicles
Uniforms
Miscellaneous Professional Services - 7490
Miscellaneous Outside Services - 7550
Capital Improvement Plan
Weighted Average O&M
Weighed Average Revenue Requirements

40.3% I 28.6%

0.0% 0.0%

0.0% 0.0%

0.0% 0.0%

0.0% 0.0%

0.0% 0.0%

0.0% 0.0%
100.0% 0.0%

0.0% 0.0%

0.0% 0.0%

5.0%

0.0% 3.3%

0.0% 5.0%

0.0% 5.0%

0.0% 0.0%

0.0% 0.0%

13.6% 12.6%

26.6% 20.6%

20.8% 17.0%
I 31.1% I

0.0%

0.0%

0.0%

0.0%

0.0%

0.0%

0.0%

0.0%

0.0%

5.0%

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5.0%

5.0%

0.0%

0.0%

13.6%

22.3%

18.4%

0.0%

0.0%

0.0%

0.0%

0.0%

0.0%

0.0%

0.0%

0.0%

0.0%

90.0%

60.2%

90.0%

90.0%

0.0%

0.0%

60.2%

30.5%

43.8%

0.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%

0.0%
100.0%
100.0%

0.0%

33.1%

0.0%

0.0%
100.0%
100.0%

0.0%

0.0%

0.0%
See "Op Exp for Encino Services" tab for breakdown
PLANT IN SERVICE RCNLD TREATMENT FLOW BOD TSS COLLECTION FLOW AS All OTHERS NOTES IM - IMPROVEMENTS $ 7,187,260 100.0% 0%
JV -JOINT VENTURE 52,S84,214 40.3% 28.6% 31.1% 0%
LO-LAND 2,629,102 100%
ME - MACHINERY & EQUIPMENT 806,073 100%
PP - PIPES & PUMPING 70,927,459 S.0% S.0% 90.0% 0%
Plant•ln•Servlce Sub Total $ 134,134,107 $ 21,182,642 $ 18,588,265 $ 19,906,053 $ 71,021,973 $ 3,435,175 Reallocation of "As All Others" $ 556,746 $ 488,557 $ 523,193 $ 1,866,678 $ (3,435,175) Total Allocation $ 134,134,107 $ 21,739,387 $ 19,076,823 $ 20,429,246 $ 72,888,651 $ Percentage Allocation 100% 16.2% 14.2% 15.2% 54.3% 0.0%

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Wastewater Financial Model - Alternative Option With Bonds Functional Allocation
TEST YEAR IIIIIIB!IIIII
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ALLOCATION INDEX FYE 2025 TREATMENT FLOW BOD TSS COLLECTION FLOW AS All OTHERS NOTES

EXPENDITURES
Personnel
Reg Salaries
Incentive Pay
Hazard Pay
1OD Worker's Comp
Overtime Salaries
Standby Pay
Parttimes Salaries
Intern Salaries
Temporary Help
Health Insurance
life Insurance
AD&D - City Paid
Vision Insurance
Medicare
Cell Phone Reimbursement
Auto Allowance
Earned Leave Accrual
Healthy Emp Awards
Final Vacation Pay
Final Sick Leave Pay
Disability
Unemployment
Worker's Compensation
PERS
PERS Unfunded liab Exp
PERS (GASB 68 CONTRA ACCOUNT)
Operation Expense
Social Security
Deferred Comp
Other Personnel
;:::; Maintenance & Equipment
(t) Other Mach & Equip
3 Vehicle Rentals
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Office Equip Maint
Communication Equip Maintenance
Software Maintenance
Computer Maintenance
Vehicle Maintenance
Wash and Wax
Other Equip Maint
FYE 2025 ALLOCATION TREATMENT FLOW BOD TSS COLLECTION FLOW AS ALL OTHERS NOTES 2,21S,920
Sl,S70
67,600
26,490
3,790
4SS,810
1,S00
740
33,420
1,180
13,340
11,520
57,200
292,S0l
37S,S98
10,400
1,040
28,320
lS,600
4,680
Staff Allocation 0.0%
Staff Allocation 0.0%
Staff Allocation 0.0%
Staff Allocation 0.0%
Staff Allocation 0.0%
Staff Allocation 0.0%
Staff Allocation 0.0%
Staff Allocation 0.0%
Staff Allocation 0.0%
Staff Allocation 0.0%
Staff Allocation 0.0%
Staff Allocation 0.0%
Staff Allocation 0.0%
Staff Allocation 0.0%
Staff Allocation 0.0%
Staff Allocation 0.0%
Staff Allocation 0.0%
Staff Allocation 0.0%
Staff Allocation 0.0%
Staff Allocation 0.0%
Staff Allocation 0.0%
Staff Allocation 0.0%
Staff Allocation 0.0%
Staff Allocation 0.0%
Staff Allocation 0.0%
Staff Allocation 0.0%
Staff Allocation 0.0%
Staff Allocation 0.0%
Staff Allocation 0.0%
Staff Allocation 0.0%
As Weighted Average 0.0%
As Weighted Average 0.0%
Collections 0.0%
As Weighted Average 0.0%
As Weighted Average 0.0%
As Weighted Average 0.0%
As Weighted Average 0.0%
As Weighted Average 0.0%
Collections 0.0%
Collections 0.0%
Collections 0.0%

3.3% 3.3% 60.2% 33.1%

3.3% 3.3% 60.2% 33.1%

3.3% 3.3% 60.2% 33.1%

3.3% 3.3% 60.2% 33.1%

3.3% 3.3% 60.2% 33.1%

3.3% 3.3% 60.2% 33.1%

3.3% 3.3% 60.2% 33.1%

3.3% 3.3% 60.2% 33.1%

3.3% 3.3% 60.2% 33.1%

3.3% 3.3% 60.2% 33.1%

3.3% 3.3% 60.2% 33.1%

3.3% 3.3% 60.2% 33.1%

3.3% 3.3% 60.2% 33.1%

3.3% 3.3% 60.2% 33.1%

3.3% 3.3% 60.2% 33.1%

3.3% 3.3% 60.2% 33.1%

3.3% 3.3% 60.2% 33.1%

3.3% 3.3% 60.2% 33.1%

3.3% 3.3% 60.2% 33.1%

3.3% 3.3% 60.2% 33.1%

3.3% 3.3% 60.2% 33.1%

3.3% 3.3% 60.2% 33.1%

3.3% 3.3% 60.2% 33.1%

3.3% 3.3% 60.2% 33.1%

3.3% 3.3% 60.2% 33.1%

3.3% 3.3% 60.2% 33.1%

3.3% 3.3% 60.2% 33.1%

3.3% 3.3% 60.2% 33.1%

3.3% 3.3% 60.2% 33.1%

3.3% 3.3% 60.2% 33.1%

0.0% 0.0% 0.0% 100.0%

0.0% 0.0% 0.0% 100.0%
S.0% S.0% 90.0% 0.0%

0.0% 0.0% 0.0% 100.0%

0.0% 0.0% 0.0% 100.0%

0.0% 0.0% 0.0% 100.0%

0.0% 0.0% 0.0% 100.0%

0.0% 0.0% 0.0% 100.0%

5.0% S.0% 90.0% 0.0%

5.0% S.0% 90.0% 0.0%

5.0% 5.0% 90.0% 0.0%
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Wastewater Financial Model - Alternative Option With Bonds Functional Allocation
TEST YEAR IIIIIIB!IIIII
10,400
Maintenance, Repair and Rehab 3,120
Audit
legal
Administrative
Misc Professional Services 433,970
Encina Services 6,180,000
Encina Services (Pension Payoff) (281,750)
Miscellaneous Outside Services 468,540
Bank Services 44,940
Comm Arts Support
Regulatory/Permitting Fees 39,880
Misc Services
Laundry and Uniform Mainteance 5,200
Electrical/SCADA Services 34,780
Water Sampling Services
FOG Inspection Services 20,800
Smartcover WI Fl/Alarm Services 52,000
Landscaping Services 135,490
Ads and Publishing 2,080
Dues and Subscriptions 10,920
Books and Publications 520
Audio Visual Materials
Printing 7,800
Postage 4,680
Office Supplies 5,200
Office Furniture & Equipment 5,200
Computer Software 10,400
Misc. Computer Hardware 4,160
Promo Materials 5,200
Food Expense
Heat and Light 322,970
Telephone & Communications 12,480
Waste Dispoal Services 11,120
Water 38,940
Building Maintenance
Electrical Supplies 520
Janitorial Supplies 310
Parts-Vehicles 520
Parts-Equip 217,620
Rock and Mineral Products 4,160
Asphalt 520
Small Tools 1,560
Safety Equipment 22,620
Uniforms and Accessories 5,200
Meters/Fittings
Personal Protective Equipment
Gasoline and Oil 2,080
Chemicals 8S,630
Training Supplies
Medical Supplies - Disposable
Misc Supplies 17,060
Employee Training 3,120
Tuition Reimbursement
As Weighted Average 0.0% 0.0%
Collections 0.0% 5.0%
Collections 0.0% 5.0%
As Weighted Average 0.0% 0.0%
As Weighted Average 0.0% 0.0%
As Weighted Average 0.0% 0.0%
As Weighted Average 0.0% 0.0%
Treatment Flow/800/TSS 40.3% 28.6%
Treatment Flow/800/TSS 40.3% 28.6%
As Weighted Average 0.0% 0.0%
As Weighted Average 0.0% 0.0%
As Weighted Average 0.0% 0.0%
Collections 0.0% 5.0%
As Weighted Average 0.0% 0.0%
Collections 0.0% 5.0%
Collections 0.0% 5.0%
As Weighted Average 0.0% 0.0%
Collections 0.0% 5.0%
Collections 0.0% 5.0%
As Weighted Average 0.0% 0.0%
As Weighted Average 0.0% 0.0%
As Weighted Average 0.0% 0.0%
As Weighted Average 0.0% 0.0%
As Weighted Average 0.0% 0.0%
As Weighted Average 0.0% 0.0%
As Weighted Average 0.0% 0.0%
As Weighted Average 0.0% 0.0%
As Weighted Average 0.0% 0.0%
As Weighted Average 0.0% 0.0%
As Weighted Average 0.0% 0.0%
As Weighted Average 0.0% 0.0%
As Weighted Average 0.0% 0.0%
Collections 0.0% 5.0%
As Weighted Average 0.0% 0.0%
As Weighted Average 0.0% 0.0%
As Weighted Average 0.0% 0.0%
As Weighted Average 0.0% 0.0%
Collections 0.0% 5.0%
As Weighted Average 0.0% 0.0%
Collections 0.0% 5.0%
Collections 0.0% 5.0%
Collections 0.0% 5.0%
Collections 0.0% 5.0%
Collections 0.0% 5.0%
Collections 0.0% 5.0%
Collections 0.0% 5.0%
As Weighted Average 0.0% 0.0%
As Weighted Average 0.0% 0.0%
Collections 0.0% 5.0%
Collections 0.0% 5.0%
As Weighted Average 0.0% 0.0%
As Weighted Average 0.0% 0.0%
As Weighted Average 0.0% 0.0%
As Weighted Average 0.0% 0.0%
As Weighted Average 0.0% 0.0%

0.0% 0.0%

5.0% 90.0%

5.0% 90.0%

0.0% 0.0%

0.0% 0.0%

0.0% 0.0%

0.0% 0.0%

31.1% 0.0%

31.1% 0.0%

0.0% 0.0%

0.0% 0.0%

0.0% 0.0%

5.0% 90.0%

0.0% 0.0%

5.0% 90.0%

5.0% 90.0%

0.0% 0.0%

5.0% 90.0%

5.0% 90.0%

0.0% 0.0%

0.0% 0.0%

0.0% 0.0%

0.0% 0.0%

0.0% 0.0%

0.0% 0.0%

0.0% 0.0%

0.0% 0.0%

0.0% 0.0%

0.0% 0.0%

0.0% 0.0%

0.0% 0.0%

0.0% 0.0%

5.0% 90.0%

0.0% 0.0%

0.0% 0.0%

0.0% 0.0%

0.0% 0.0%

5.0% 90.0%

0.0% 0.0%

5.0% 90.0%

5.0% 90.0%

5.0% 90.0%

5.0% 90.0%

5.0% 90.0%

5.0% 90.0%

5.0% 90.0%

0.0% 0.0%

0.0% 0.0%

5.0% 90.0%

5.0% 90.0%

0.0% 0.0%

0.0% 0.0%

0.0% 0.0%

0.0% 0.0%

0.0% 0.0%
100.0%

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0.0%
100.0%
100.0%
100.0%
100.0%

0.0%

0.0%
100.0%
100.0%
100.0%

0.0%
100.0%

0.0%

0.0%
100.0%

0.0%

0.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%

0.0%
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100.0%
100.0%
100.0%

0.0%
100.0%

0.0%

0.0%

0.0%

0.0%

0.0%

0.0%

0.0%
100.0%
100.0%

0.0%

0.0%
100.0%
100.0%
100.0%
100.0%
100.0%
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Wastewater Financial Model - Alternative Option With Bonds Functional Allocation
TEST YEAR IIIIIIB!IIIII
Conference Travel
Misc. Meals/Miles
Bad Debt Exp - Other Inv/Bills
Disposal of Assets
Reg Over/Short
NED Rental Assistance Payments
lateral Assistance Program
Settlements
Contingencies
Vehicle Direct Charges
Vehicle Maintenance (2)
Vehicle Replacement
General Liab
Information Technologies
Misc Interdepartmental Charges
Mis Chg Back
Utility Billing Chargeback
Fiscal Agent Fees
Arbitrage Costs
Principal
Interest Expense
Int Exp-Capitalized Interest
Other - Heat & Light
Other - Parts & Equipment
Other - Smart Covers
Addt'I Maintenance & Equipment
Other Maintenance & Equipment
capital Outlay
Operating Expenditures Sub Total
Reallocation of "As All Others"
Total Allocation
Percentage Allocation
s
$
$
3,300
3,340
20,800
25,000
2,730
144,520
186,760
458,860
335,870
877,560
(1,455,673)
25,637
12,339,545
12,339,545
100.0'6
As Weighted Average
As Weighted Average
As Weighted Average
As Weighted Average
As Weighted Average
As Weighted Average
As Weighted Average
As Weighted Average
As Weighted Average
Vehicles
Vehicles
Vehicles
As Weighted Average
As Weighted Average
As Weighted Average
As Weighted Average
As Weighted Average
As Weighted Average
As Weighted Average
As Weighted Average
As Weighted Average
As Weighted Average
As Weighted Average
As Weighted Average
As Weighted Average
As Weighted Average
(Non-Enema O&M]
Caoital lmorovement Plan
Caoital lmorovement Plan
Caoital lmorovement Plan
Canital lmnrovement Plan
Caoital lmorovement Plan
Caoital lmorovement Plan
Caoital lmorovement Plan
Canital lmnrovement Plan
Caoital lmorovement Plan
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0.0% 0.0% 0.0% 0.0% 100.0%

0.0% 0.0% 0.0% 0.0% 100.0%

0.0% 2.3% 2.3% 42.3% 53.1%

13.6% 12.6% 13.6% 60.2% 0.0%

13.6% 12.6% 13.6% 60.2% 0.0%

13.6% 12.6% 13.6% 60.2% 0.0%

13.6% 12.6% 13.6% 60.2% 0.0%

13.6% 12.6% 13.6% 60.2% 0.0%

13.6% 12.6% 13.6% 60.2% 0.0%

13.6% 12.6% 13.6% 60.2% 0.0%

13.6% 12.6% 13.6% 60.2% 0.0%

13.6% 12.6% 13.6% 60.2% 0.0%
2,379,502 $ 1,841,048 $ 1,989,113 $ 2,726,319 $ 3,403,562 906,311 $ 701,224 $ 757,619 $ 1,038,408 $ (3,403,562)
3,285,814 $ 2,542,272 $ 2,746,732 $ 3,764,727 $

26.6'6 20.6% 22.3% 30.5%
Page4
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Wastewater Financial Model - Alternative Option With Bonds Functional Allocation
TEST YEAR IIIIIIB!IIIII
ALLOCATION INDEX FYE 2025 TREATMENT FLOW BOD TSS COLLECTION FLOW AS All OTHERS NOTES RATE REVENUE REQUIREMENT FYE 2025 ALLOCATION TREATMENT FLOW BOD TSS COLLECTION FLOW AS ALL OTHERS NOTES OPERATING EXPENSES lfrom above)

NON-OPERATING EXPENSES
Replacement Funding (Depreciation)
Rate Funded Capital
Debt Service
Transfers to Capital Fund
Replacement Funding
Transfer Out - Debt Service
Adj. to Reflect Full Year Increase
LESS: Offsetting Revenues
Over/Under Collection of Revenues (Available for Capital S Other Charges for Services
Fines and Forfeitures
Income from Property & Investments
Interdepartmental
Other Revenues
Total Rate Revenues to be Collected $
Reallocation of "As All Others"
Total Allocation $
Percentage Allocation
9!fil
Rate Revenues from Revenue Requirement $
Rate Revenues from Functional Allocation $
Difference
12,339,545
5,361,480
4,594,379
2,072,584.8
4,442,933
(12,480)
(120,730)
(503,337)
(124,800 )
(69,680)
27,979,894
27,979,894
100'6
27,979,894
27,979,894

26.6% 20.6% 22.3% 30.5% 0.0%
Capital Improvement Plan 13.6% 12.6% 13.6% 60.2% 0.0%
Capital Improvement Plan 13.6% 12.6% 13.6% 60.2% 0.0%
Capital Improvement Plan 13.6% 12.6% 13.6% 60.2% 0.0%
Capital Improvement Plan 13.6% 12.6% 13.6% 60.2% 0.0%
Capital Improvement Plan 13.6% 12.6% 13.6% 60.2% 0.0%
As Weighted Average 0.0% 0.0% 0.0% 0.0% 100.0%
As Weighted Average 0.0% 0.0% 0.0% 0.0% 100.0%
As Weighted Average 0.0% 0.0% 0.0% 0.0% 100.0%
As Weighted Average 0.0% 0.0% 0.0% 0.0% 100.0%
As Weighted Average 0.0% 0.0% 0.0% 0.0% 100.0%
As Weighted Average 0.0% 0.0% 0.0% 0.0% 100.0%
As Weighted Average 0.0% 0.0% 0.0% 0.0% 100.0%
As Weighted Average 0.0% 0.0% 0.0% 0.0% 100.0%
$ 4,642,700 $ 3,796,267 $ 4,098,566 $ 9,757,870 $ 5,684,491 $ 1,183,714 $ 967,906 $ 1,044,981 $ 2,487,891 $ (5,684,491) $ 5,826,414 $ 4,764,172 $ 5,143,547 $ 12,245,761 $

20.8'6 17.0'6 18.4'6 43.8'6 0.0'6

UNIT COST CALCULATIONS TREATMENT FLOW BOD TSS COLLECTION FLOW AS ALL OTHERS Amount Allocable to Constituent
Total Units

PER UNIT COSTS
ccfs
5,826,414
3,138,696

1.856 $

lbs
4,764,172 $
7,085,763

0.672 $
lbs
5,143,547
8,397,992

0.612 $
lbs
12,245,761
3,138,696

3.902
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REVENUES CD
0 $ $ $ $ $ $
I\.)
Rate Revenues 23,556,818 25,907,310 28,038,590 30,395,430 31,615,830 32,897,870 00 I\.)
Other Charges for Services 12,000 12,480 12,792 13,112 13,440 13,776 CD 0 Fines and Forfeitures 120,000 120,730 120,980 121,430 122,630 123,890 I
0 0
Income from Property & Investments 744,011 503,337 204,758 152,049 278,551 340,394 I\.)
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Interdepartmental 120,000 124,800 127,920 131,120 134,400 137,760 co ~
Other Revenues 67,000 69,680 71,422 73,205 75,040 76,916 () ()
(;)
TOTAL REVENUES $ 24,619,830 $ 26,738,337 $ 28,576,462 $ 30,886,346 $ 32,239,890 $ 33,590,606 (;)
.i,.

EXPENDITURES
Ongoing Operating Expenses
Personnel $ 3,322,088 $ 3,608,180 $ 3,726,452 $ 3,847,915 $ 3,972,679 $ 4,101,841 Encina Operations 6,000,000 6,180,000 6,365,400 6,556,360 6,753,050 6,955,640 Maintenance & Equipment 4,100,161 3,981,400 4,086,360 4,194,187 4,304,974 4,418,775 Capital Outlay 24,651 25,637 26,278 26,935 27,608 28,299 Replacement Funding 10,090,113
Transfer Out - Debt Service
Other Operating Expenses
One-time Funding {Budget Analysis Amount} (1,424,566) (1,455,673) (1,491,457) (1,528,179) (1,565,868) (1,604,625) ;::;- Rate Funded Capital 14,788,096 6,972,224 1,842,321 (t) 3 Debt Service 1,936,462 2,922,090
=1:1: u, Total Operating Expenditures $ 24,909,552 $ 16,933,923 $ 27,501,129 $ 15,033,679 $ 22,401,130 $ 18,664,340 "'tl Policy Expenditures
QJ Replacement Funding $ 5,300,000 $ 5,361,480 $ 5,423,140 $ 5,485,510 $ 5,548,590 $ 5,612,400 0Q (1) Transfers to Capital Fund
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0 Total Policy Expenditures $ 5,300,000 $ 5,361,480 $ 5,423,140 $ 5,485,510 $ 5,548,590 $ 5,612,400 -u,
....
00

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Replacement Funding
Transfers to Capital Fund
Additions to Meet Minimum Fund Balances(*)

TOTAL EXPENDITURES

CASH FLOW SURPLUS (DEFICIT)
No Override I
1$ - 1$
1$ - 1$
$ 30,209,552 $
$ (5,589,723) $
No Override I
- I $
- I $
22,295,403 $
4,442,933 $

No Override I No Override I
- I $ - I $
- I $ - I $
32,924,269 $ 20,519,189 $
(4,347,807) $ 10,367,157 $
No Override I
- I $
- I $
27,949,720 $
4,290,170 $
No Override I
- I
- I
24,276,740
9,313,866
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I 1.25 x I Bond Coverage
Calculation of Net Revenues
Operating Revenues
User Charges
Other/Misc Revenues - Excludes Interest Earnings
~ Connection Fees
~ Grants
Modeled Interest Earnings
~ Operating Funds
~ Capital Funds
Total Revenues Included in Test
Less: Operating Expenses
Net Operating Revenues Avaiable for Debt Service
Debt Service
Coverage
Subtotal: Debt Service and Coverage
BOND COVERAGE SURPLUS {DEFICIT)
$
$
$
$
$
$
$
$
$
23,556,818 $
319,000
471,438 $
265,571 $
478,440
25,091,268 $
(13,422,249) $
11,669,019 $
- $
- $
11,669,019 $

25,907,310 $
327,690
400,974 $
211,226 $
292,111
27,139,311 $
(13,769,580) $
13,369,731 $
- $
- $
13,369,731 $
28,038,590 $
333,114
328,896 $
93,872 $
110,886
28,905,359 $
(14,178,212) $
14,727,147 $
- $
- $
14,727,147 $
30,395,430 $
338,867
113,883 $
64,569 $
87,480
31,000,229 $
(14,598,462) $
16,401,768 $
1,936,462 $
2,420,577
4,357,039 $
12,044,729 $
31,615,830 $
345,510
204,368 $
87,516 $
191,035
32,444,259 $
(15,030,703) $
17,413,555 $
1,936,462 $
2,420,577
4,357,039 $
13,056,516 $
32,897,870
352,342
538,144
144,493
195,902
34,128,750
(15,476,256)
18,652,494
2,922,090
3,652,612
6,574,702
12,077,792
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Revenue Requirement $ (5,589,723) $ 4,442,933 $ (4,347,807) $ 10,367,157 $ 4,290,170 $ 9,313,866 .i,.

CD
0 I\.)
Cash Flow Driven Surplus Cash Flow Driven Surplus Surplus Surplus 00 I\.)
CD
0 Month of implementation I January I January I January I January I January I January I I
0 0
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Calculated Increase(%) I 47.46% I 0.00% I 31.01% I 0.00% I 0.00% I 0.00% I co
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I I I I I I I
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Rate Increase (%) 20.00% 8.00% 8.00% 3.00% 3.00% 3.00%
(;)
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Cumulative Rate Increase {%) 86.0% 103.9% 120.2% 126.8% 133.6% 140.6% SFR Rate $51.74 $56.70 $61.23 $63.07 $64.96 $66.91

CASH FLOW
Revenues Before Rate Increase $ 24,619,830 $ 26,738,337 $ 28,576,462 $ 30,886,346 $ 32,239,890 $ 33,590,606 Revenues From Rate Increase 2,072,585 2,243,087 911,863 948,475 986,936 Less: Rate Increase Delay (1,036,292) (1,121,544) (455,931) (474,237) (493,468) Less: Adjustment for Implementation Delay (1,036,292)
;::;- Less: Expenditures (30,209,552) (22,295,403) (32,924,269) (20,519,189) (27,949,720) (24,276,740) (t)
3 Cash Flow $ (5,589,723) $ 4,442,933 $ (3,226,263) $ 10,823,088 $ 4,764,408 $ 9,807,334 =1:1: u,
RATE REVENUE REQUIREMENT $ 23,556,818 $ 27,979,894 $ 30,281,677 $ 31,307,293 $ 32,564,305 $ 33,884,806 "tl Total Ending Balance $ 10,987,236 $ 9,488,607 $ 5,716,297 $ 22,138,778 $ 11,900,670 $ 17,120,342 QJ 0Q
161 days 205 days 76days 538days 194 days 335 days (t)
N Operating Fund u,
m Beginning Balance $ 16,576,959 $ 4,545,674 $ 4,841,560 $ 1,615,297 $ 7,136,262 $ 7,313,008 0 - Cash Flow (5,589,723) 4,442,933 (3,226,263) 10,823,088 4,764,408 9,807,334 u, .... Transfers from Operating to Capital Fund (6,441,562) (4,147,047) (5,302,123) (4,587,662) (8,647,301) 00 Ending Operating Fund Balance $ 4,545,674 $ 4,841,560 $ 1,615,297 $ 7,136,262 $ 7,313,008 $ 8,473,041 Page4
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Coverage Tests - Post Rate Increase
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Operating Revenues 00
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User Charges $ 23,556,818 $ 25,907,310 $ 29,160,134 $ 30,851,361 $ 32,090,067 $ 33,391,338 CD 0 I
Other/Misc Revenues 319,000 327,690 333,114 338,867 345,510 352,342 0 0 Change selection above
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Connection Fees 471,438 400,974 328,896 113,883 204,368 538,144 ~ Grants ()
()
(;)
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Modeled Interest Earnings
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BE
Operating Funds $ 265,571 $ 211,226 $ 93,872 $ 64,569 $ 87,516 $ 144,493 Capital Funds 478,440 292,111 110,886 87,480 191,035 195,902 Total Revenues Included in Test $ 25,091,268 $ 27,139,311 $ 30,026,902 $ 31,456,160 $ 32,918,496 $ 34,622,218 LESS: Operating Expenses $ (13,422 ,249) $ (13,769,580) $ (14,178,212) $ (14,598,462) $ (15,030,703) $ (15,476,256) Net Operating Revenues Available for Debt Service $ 11,669,019 $ 13,369,731 $ 15,848,691 $ 16,857,699 $ 17,887,793 $ 19,145,962 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 $ 11,669,019 $ 13,369,731 $ 15,848,691 $ 16,857,699 $ 17,887,793 $ 19,145,962 ;::;- LESS: Existing Debt Service (293,749) (293,749) (293,749) (t)
Revenues Available for Coverage $ 11,669,019 $ 13,369,731 $ 15,848,691 $ 16,563,950 $ 17,594,044 $ 18,852,213 3 =1:1:

Existing Debt Service Coverage Ratio No Existing Debt No Existing Debt No Existing Debt u, 57.39x 60.89x 65.1Bx "tl Total Debt Test - Includes exiting and projected debt.

QJ
Net Operating Revenues Available for Debt Service $ $ $ $ $ $ 0Q 11,669,019 13,369,731 15,848,691 16,857,699 17,887,793 19,145,962 (1)
Less: Existing Debt Service (293,749) (293,749) (293,749) N u, Less: Projected Debt Service (1,642,713) (1,642,713) (2,628,341) -.J 0 Revenues Available for Coverage $ 11,669,019 $ 13,369,731 $ 15,848,691 $ 14,921,237 $ 15,951,331 $ 16,223,872 -u,
.... Total Debt Service Coverage Ratio No Debt No Debt 00 No Debt 8.71x 9.Z4x 6.55x

► (..City of
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Wastewater Financial Model - Alternative Option with Bonds Customer Allocation & Rates
ALLOCATION YEAR: FYE 2025
Customer Data Billed Units Summary
FYE 2025

ESTIMATED SEWER FLOWS (HCF)
ESTIMATED BOD DISCHARGE (lbs)
ESTIMATED TSS DISCHARGE (lbs)

CUSTOMER ACCOUNTS
Units
3,138,696
7,085,763
8,397,992
24,200

PROPOSED
Allocated Revenue Requirements TREATMENT FLOW BOD TSS COLLECTION FLOW TOTAL Rate Revenue Required $ 5,826,414 $ 4,764,172 $ 5,143,547 $ 12,245,761 $ Unit Basis for Rate Design ESTIMATED SEWER ESTIMATED BOD ESTIMATED TSS ESTIMATED SEWER FLOWS(HCF) DISCHARGE (lbs) DISCHARGE (lbs) FLOWS(HCF)
2025 Unit s 3,138,696 7,085,763 8,397,992 3,138,696
2025 Unit Cost $1.856 $0.672 $0.612 $3.902
perHCF per lb per lb perHCF
27,979,894
Rate Class Unit Costs - Per HCF Discharged BOD (mg/I) BOD ($/HCF) TSS (mg/I) TSS ($/HCF) Flow ($/HCF) Total $ Per HCF Discharged GROUP I - SFR & Minimum Charges 301 $1.26 379 $1.45 $5.76 $8.47 GROUP I - MFR/Mobile Homes 301 $1.26 379 $1.45 $5.76 $8.47 GROUP II - Commercial 2 196 $0.82 229 $0.87 $5.76 $7.46 GROUP Ill - Commercial 3 495 $2.08 529 $2.02 $5.76 $9.86 GROUP IV - Commercial 4 1236 $5.19 1290 $4.93 $5.76 $15.87 Other 0 $0.00 0 $0.00 $5.76 $5.76
Brewery- B2 1906 $8.00 1537 $5.88 $5.76 $19.63
Brewery- B3 1236 $5.19 1290 $4.93 $5.76 $15.87
Brewery- B4 2426 $10.18 2067 $7.90 $5.76 $23.84
GROUP VI - Large Volume (no accounts) 121 $0.51 152 $0.58 $5.76 $6.84 Industrial Pretreatment Class Ill 450 $1.89 905 $3.46 $5.76 $11.11 Institutional 196 $0.82 190 $0.73 $5.76 $7.31
GROUP V - Elementary Schools 196 $0.82 190 $0.73 $5.76 $7.31 GROUP V - Junior High Schools 196 $0.82 190 $0.73 $5.76 $7.31 GROUP V - High Schools 196 $0.82 190 $0.73 $5.76 $7.31
GROUP V - Boarding Schools 196 $0.82 190 $0.73 $5.76 $7.31 0 g
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Wastewater Financial Model - Alternative Option with Bonds Customer Allocation & Rates
Calculated Monthly Rate
GROUP I - SFR & Minimum Charges Total$ Per HCF EDU Flow Factor Estimated Monthly (per Account or Dwelling Proposed Monthly Rate (per Account Discharged Discharge (HCF) Unit) or Dwelling Unit)
GROUP I - SFR & Minimum Charges
SFR with ADU
$8.47
$8.47

1.0 1.5

6.69 10.04
No Rounding Rounded
$56.69
$85.04
Calculated Monthly Rate
$S6.70
$85.04
Discharge Based Rates Total$ Per HCF Return to Sewer (per Account or Dwelling Calculated Monthly Rate (per HCF of Discharged Factor Unit) Water Used) Rounded
No Rounding
GROUP I - MFR/Mobile Homes $8.47 76.96% $6.52 $6.53
GROUP II - Commercial 2 $7.46 76.96% $5.74 $5.74
GROUP Ill - Commercial 3 $9.86 76.96% $7.59 $7.59
GROUP IV - Commercial 4 $15.87 76.96% $12.22 $12.22
Other $5.76 0.00% $0.00 $0.00
Brewery- B2 $19.63 70.55% $13.85 $13.86
Brewery- B3 $15.87 76.96% $12.22 $12.22
Brewery- B4 $23.84 70.55% $16.82 $16.83
GROUP VI - Large Volume (no accounts) $6.84 76.96% $5.27 $5.27 Industrial Pretreatment Class Ill $11.11 76.96% $8.55 $8.55 Institutional $7.31 76.96% $5.62 $5.63
Effective Flow per Calculated Monthly Rate
I . . 1 R Total$ Per HCF Assumed Flow per Adjustment for S d (HCF ( S d ) Proposed Monthly Rate nst1tut1ona ates tu ent per per tu ent Discharged Student (gpd) Student Days M h) R d" (per Student) Rounded GROUP V - Elementary Schools
GROUP V - Junior High Schools
GROUP V - High Schools
GROUP V - Boarding Schools
$7.31
$7.31
$7.31
$7.31

6.84 10.26

13.68 38.18
55%
55%
55%
100%
ont No oun ong

0.15 0.23

0.30 1.55
$1.11
$1.67
$2.23
$11.34
$1.12
$1.68
$2.23
$11.35
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Docusign Envelope ID: 2EE35CDA-4EA8-4B02-8290-D02A8FACC334 City of Carlsbad
Office of City Clerk
1200 Carlsbad Village Drive
Carlsbad, CA 92008
r-REC
ZOl5
PROTEST OF ALL PROPSED RATE INCREASES FOR WATER USAGE, and WATER DELIVERY City Clerk:

Exhibit 6
I am protesting the following proposed CMWD proposed rate increases with schedule effective dates of 7 /1/25, 1/1/26 and 1/1/27.

I Protest the following:

A) All proposed increases to water delivery fees (recycled and non-recycled) for the above­ mentioned dates.

B) All proposed increases to water usage fees for the above-mentioned dates.

C) All proposed increases to airport fees and all proposed increases to fire service delivery fees for the above-mentioned dates.

D) All proposed waste water rate increases for the above-mentioned dates. 7116 Aviara Drive
Carlsbad, CA 92011
Property Owner
April 22, 2025 Item #5 Page 260 of 518
Docusign Envelope ID: 2EE35CDA-4EA8-4B02-8290 -D02A8FACC334 April 16, 2025
Ms. Diane Bedrosian and Mr. Jim Lennon
4374 Stanford St.

Carlsbad, CA 92010
Dear Mr. Miller:
{city of
Carlsbad
Thank you for your letter received April 14, 2025. The city and the Carlsbad Municipal Water District, or CMWD, received your (1) protest and (2) comments to the proposed rate increases for water delivery, water use and wastewater. Your protest has been provided to the City Clerk's office in advance of the public hearing.

The city and CMWD are providing this written response to your stated comments, included as Attachment 1. While we understand your frustration with the proposed rates, your comments do not indicate a basis for illegality. As such, while the City will count your letter as a protest against the proposed rates, your letter will not count as a "legal objection" for purposes of administrative exhaustion. Nevertheless, the city and CMWD are responding to your comments.

Staff Written Responses To Comments
The CMWD purchases all of its potable water (including desalinated water) from the San Diego County Water Authority (SDCWA) and delivers it to customers across its service area. The SDCWA sources some of its water from Metropolitan Water District. Desalinated water makes up 20% of the CMWD water portfolio and is another source of water from SDCWA. Desalinated water, while offering local supply and diversification of supply, is costly in part due to the high amount of electricity needed to remove salt from ocean water . If you would like to read more about how costs from SDCWA are incorporated into the CMWD rate structure and about desalinated ocean water, the 2025 cost of service study for water and recycled water is available on this website, www.carlsbadca.gov/rates . You could start with Section 1- lntroduction and also read more in Section 3.3 - Water Supply.

We hope this letter has provided more information. If you have any questions, you may reach me by email at [email protected] or by phone at 760-814-0241. Again, thank you for writing.

Ccarlsbad
Municipal Water District
5950 El Camino Real I Carlsbad, CA 92008 I 442-339-2722 I 760-431-2658 fax I www.carlsbadca .gov April 22, 2025 Item #5 Page 261 of 518
Docusign Envelope ID: 2EE35CDA-4EA8-4802-8290-D02A8FACC334 Mr. Miller
April 15, 2025

Respectfully,
Shoshana
Shoshana Aguilar
Senior Management Analyst
Attachment 1
April 22, 2025 Item #5 Page 262 of 518
Docusign Envelope ID: 2EE35CDA-4EA8-4B02-8290-O02A8FACC334 City of Carlsbad
Office of the City Clerk
1200 Carlsbad Village Drive
Carlsbad, CA 92008
Dear City Clerk:

EC IVE
PR 202
April 9, 2025
We are submitting this letter as a rate payer and homeowner (address below) as a PROTEST against the proposed water rate increase in 7/1/25, 1/1/26, and 1/1 /27.

We are specifically protesting the increased rates for 1. Delivery Charges, 2.

Usage Charges, 3. Water Authority Pass Through, 4. Recycled water delivery rates and wastewater rates for the dates above.

Our concerns with all of the proposed rate increases is that these rates are too high and unreasonably charge our citizenry an unfair cost. We have heard NOTHING as to why the delivery charges from the MWD of Southern CA, and the San Diego County Water Authorities, are increasing so steeply and continuously. In actuality, as the flyer states, 65% of the costs come from the San Diego County Water Authority. When we have our own water desalination plant (named after our former Mayor), why is the City of Carlsbad being penalized? The delivery costs are not explained, nor are the charges from the MWD of Southern CA, to our area. Why aren't those charges being investigated?
In the flyer it states that an explanation as to why this increase is being proposed, but nowhere in the literature is that question answered.

This email is part of the process for the "opt-in" exhaustion of administrative remedies established by Assembly Bill 2256, codified in Government Code Section 53759.1. If the proposed rates are adopted, there is a 120 day statute April 22, 2025 Item #5 Page 263 of 518
Docusign Envelope ID: 2EE35CDA-4EA8-4B02-8290-D02A8FACC334 of limitations for challenging the proposed potable water, recycled water, and wastewater rates in court.

This is our vote AGAINST the proposed increase.

Diane Bedrosian and Jim Lennon - 4374 Stanford St. - Carlsbad 92010 ~~ J/.i__;__
April 22, 2025 Item #5 Page 264 of 518
Docusign Envelope ID: 2EE35CDA-4EA8-4B02-8290 -D02A8FACC334 April 16, 2025
Mr. Gian Lauro
3919 Monroe St.

Carlsbad, CA 92008
Dear Mr. Lauro:
{city of
Carlsbad
Thank you for your letter received April 14, 2025. The city and the Carlsbad Municipal Water District, or CMWD, received your (1) protest and (2) comments to the proposed rate increases for water delivery, water use and wastewater. Your protest has been provided to the City Clerk's office in advance of the public hearing.

The city and CMWD are providing this written response to your stated comments, included as Attachment 1. While we understand your frustration with the proposed rates, your comments do not indicate a basis for illegality. As such, while the City will count your letter as a protest against the proposed rates, your letter will not count as a "legal objection" for purposes of administrative exhaustion. Nevertheless, the city and CMWD are responding to your comments.

Staff Written Responses To Comments
The CMWD purchases all of its potable water (including desalinated water) from the San Diego County Water Authority (SDCWA) and delivers it to customers across its service area. The SDCWA sources some of its water from Metropolitan Water District. Desalinated water makes up 20% of the CMWD water portfolio and is another source of water from SDCWA. Desalinated water, while offering local supply and diversification of supply, is costly in part due to the high amount of electricity needed to remove salt from ocean water . If you would like to read more about how costs from SDCWA are incorporated into the CMWD rate structure and about desalinated ocean water, the 2025 cost of service study for water and recycled water is available on this website, www.carlsbadca.gov/rates . You could start with Section 1- lntroduction and also read more in Section 3.3 - Water Supply.

We hope this letter has provided more information. If you have any questions, you may reach me by email at [email protected] or by phone at 760-814-0241. Again, thank you for writing.

Ccarlsbad
Municipal Water District
5950 El Camino Real I Carlsbad, CA 92008 I 442-339-2722 I 760-431-2658 fax I www.carlsbadca .gov April 22, 2025 Item #5 Page 265 of 518
Docusign Envelope ID: 2EE35CDA-4EA8-4802-8290-D02A8FACC334 Mr. Miller
April 15, 2025

Respectfully,
Shoshana
Shoshana Aguilar
Senior Management Analyst
Attachment 1
April 22, 2025 Item #5 Page 266 of 518
Docusign Envelope ID: 2EE35CDA-4EA8-4B02-8290-D02A8FACC334 April 14, 2025
Hello City Council Members,

RECEIVED
APR 1 4 2025

CITY OF CARLSBAD

CITY CLERK'S OFFICE
My name is Gian Lauro. I live at 3919 Monroe Street (92008). I am submitting this letter as an objection to the Water Rate Increases you are proposing at the April 22, 2025 City Council Meeting. The specific increase I am referring to are:
• Proposed Water Delivery Fee
• Proposed Water Use Fee
• Propos~d Was.te Water Rates
In 18 months, these proposed rates will increase by:
• Proposed Water Delivery Fee - 29%
• Proposed Water Use Fee - 36%
• Proposed Waste Water Rates - 33%
These increases are too high to absorb in these financially uncertain times, especially when property taxes and many other cost of living expense continue to increase with little relief for Carlsbad Residents.

I do have a question regarding the Desalination Water Facility that the City of Carlsbad built. Is this facility assisting with water consumption, lensing cost to residents, and the amount of water delivered to the City?
Thank you in advance for your time.

Cy~
Gian Lauro
[email protected]
760-573-9208
April 22, 2025 . Item #5 Page 267 of 518
Docusign Envelope ID: 2EE35CDA-4EA8-4B02-8290 -D02A8FACC334 April 16, 2025
Mr. Paul A. Miller
5133 El Arbol Dr.

Carlsbad, CA 92008
Dear Mr. Miller:
{city of
Carlsbad
Thank you for your letter received April 11, 2025. The city and the Carlsbad Municipal Water District, or CMWD, received your (1) protest and (2) comments to the proposed rate increases for water delivery, water use and wastewater. Your protest has been provided to the City Clerk's office in advance of the public hearing.

The city and CMWD are providing this written response to your stated comments, included as Attachment 1. While we understand your frustration with the proposed rates, your comments do not indicate a basis for illegality. As such, while the City will count your letter as a protest against the proposed rates, your letter will not count as a "legal objection" for purposes of administrative exhaustion. Nevertheless, the city and CMWD are responding to your comments.

Staff Written Responses To Comments
The CMWD purchases all of its potable water (including desalinated water) from the San Diego County Water Authority (SDCWA) and delivers it to customers across its service area. The SDCWA sources some of its water from Metropolitan Water District. Desalinated water makes up 20% of the CMWD water portfolio and is another source of water from SDCWA. Desalinated water, while offering local supply and diversification of supply, is costly in part due to the high amount of electricity needed to remove salt from ocean water . If you would like to read more about how costs from SDCWA are incorporated into the CMWD rate structure and about desalinated ocean water, the 2025 cost of service study for water and recycled water is available on this website, www.carlsbadca .gov/rates . You could start with Section 1- lntroduction and also read more in Section 3.3 - Water Supply.

We hope this letter has provided more information. If you have any questions, you may reach me by email at [email protected] or by phone at 760-814-0241. Again, thank you for writing.

Ccarlsbad
Municipal Water District
5950 El Camino Real I Carlsbad, CA 92008 I 442-339-2722 I 760-431-2658 fax I www.carlsbadca .gov April 22, 2025 Item #5 Page 268 of 518
Docusign Envelope ID: 2EE35CDA-4EA8-4802-8290-D02A8FACC334 Mr. Miller
April 15, 2025

Respectfully,
Shoshana
Shoshana Aguilar
Senior Management Analyst
Attachment 1
April 22, 2025 Item #5 Page 269 of 518
Docusign Envelope ID: 2EE35CDA-4EA8-4B02-8290-D02A8FACC334 City of Carlsbad
Office of the City Clerk
1200 Carlsbad Village Drive
Carlsbad, CA 92008
Dear City Clerk,

RECEIVED
AP 1 l 2 l
Cl QF (.p, SBAC
CITY CL A 'SO FJC~
11 April 2025
I am submitti111 this letter as a rat,e payer and Carlsbad homeowner for over 27 years as a PROTEST against the proposed water rate increases planned for July 1st 2025, January 1st 2026, and January 1st 2027.

I'm specifically protesting the increased rates for:

1. Delivery Charges

2. Usage Charges

3. Water Authority Pass Through

4. Recycled water delivery rates and wastewater rates
For the dates listed above.

I am concerned that the proposed rate increases are excessively high and unfairly burden our residents. According to the Notice Flyer, approximately 65% of the water rate hike stems from the Metropolitan Water and San Diego County Water Authorities, yet no clear explanation justifies the increased delivery charges. Why is the City of Carlsbad accepting these rate hikes without challenging the San Diego County Water Authority? As home to one of California's 12 desalination plants-and the only city in the county producing potable water-why are Carlsbad's water rates rising?
This letter/email is part of the process of the "opt-in "exhaustion of administrative remedies established by Assembly Bill 2257, codified in Government Code Section 53759.1.

I thereby submit my PROTEST to the proposed water rate increases specified in this letter. (:~~Z} \ -
Paul A. Mille~
5133 El Arbo! Drive
Carlsbad, CA 92008
April 22, 2025 Item #5 Page 270 of 518
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Docusign Envelope ID: 2EE35CDA-4EA8-4B02-8290 -D02A8FACC334 Shoshana Aguilar
she/her/hers
Senior Management Analyst, Utilities
City of Carlsbad/Carlsbad Municipal Water District
5950 El Camino Real
Carlsbad, CA 92008
760-814-0241
www.carlsbadca .gov
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From: Denise Baldwin <[email protected] >
Sent: Wednesday, April 9, 2025 8:43:06 AM
To: Water <[email protected] >
Subject: Proposed Rate Increases
To Whom this may concern,
Denise Baldwin
6226 Rancho Bravado
Carlsbad, CA 92009
760-845-9406
I am formally notifiying the Water Department that I am objectioning all options to the proposed increases in our water bill, the Water delivery fees, water use fees, recycled water delivery fees. I object them all.

Dense Baldwin
CAUTION: Do not open attachments or click on links unless you recognize the sender and know the content is safe.
!CAUTION:! Do not open attachments or click on links unless you recognize the sender and know the content is safe.I
April 22, 2025 Item #5 Page 294 of 518
Docusign Envelope ID: 2EE35CDA-4EA8-4B02-8290 -D02A8FACC334 February 26, 2025
City of Carlsbad
Office of the City Clerk
1200 Carlsbad Village Dr.

Carlsbad, CA 92008
Re: Carlsbad Rate Hikes
To the Powers that Be,
Raj and Michelle Altenhoff
7443 Capstan Dr.

Carlsbad, CA 92011

RECEIV D

CITY OF CARLSBAD

CITY CLERK'S OFFICE
As residents of Carlsbad for the past 25 years, a native San Dlegan and native Californians, we are appalled and dismayed at another rate hike! WE ARE BEING priced out of living in our State that we love. We have already moved most of our families out of our STATE due to the outrageous costs to live in Carlsbad, San Diego County, The State of California.

WW OPPOSE THE FOLLOWING FEE INCREASES:

1. Proposed Water Delivery Fees + Water Authority pass through- NO absolutely not! Do an audit and find the rubbish and give us tax payers a break!
2, Proposed Water Use Fees Carlsbad+ Water Authority pass through - NO absolutely not! Do an audit and find the rubbish and give us tax payers a break!

3. Proposed Recycled Water Delivery Fees- NO absolutely not! Do an audit and find the rubbish and give us tax payers a break!

4. Wastewater Rates- NO absolutely not! Do an audit and find the rubbish and give us tax payers a break!
We are on the bubble of leaving our home State because of the continued increases, costs, bloat, price hikes every bloody year and lower services and we are Forced use less.

Pay Federal Tax
Pay State Tax
Pay City Tax
Pay Gas Tax
Pay for clothing Tax
Pay for death tax- I guess that's where it ends.
~. ~
Michelle Altenhoff Raj Alte11hoff
April 22, 2025 Item #5 Page 295 of 518
Docusign Envelope ID: 2EE35CDA-4EA8-4B02-8290 -D02A8FACC334 City of Carlsbad
Office of the City Clerk
1200 Carlsbad Village Drive
Carlsbad, CA 92008
Subject: Proposed Water Rate Increase
Attent ion City Clerk
REC
CIT llr L,, t{L.";;>2., ,D
ClTY CLERK'S OFFICE
My wife and I are writing to protest the intended Rate increase for Water and Wastewater Removal for Single Family Residents.

Thank you
James E Dorsey
2838 Hillsboro Ct, Carlsbad CA 9201 0
April 22, 2025 Item #5 Page 296 of 518
Docusign Envelope ID: 2EE35CDA-4EA8-4B02 -8290-D02A8FACC334 From: Yvonne and Andrew Lynch
2658 Garden House Rd
Carlsbad, CA 92009
2/24/ 2025
To: City of Carlsbad
Office of the City Clerk
1200 Carlsbad Village Drive3
Carlsbad, CA 92008
Dear Carlsbad Municipal Water District & City Council,
RECEIV
202

ITY OF CARLSBAD
CITY CLERK'S Of-FICE
We are writing to express strong opposition to protest the proposed water delivery and wastewater rate increases for the period of July 2025 through January 2027. As resident ratepayers, we find these planned increases to be unreasonable and burdensome, especially in the current economic climate where many households are already facing financial challenges.

Water is an essential service, and as such, the cost of this service should remain affordable and fair to all residents, particularly during times of inflation and rising llving expenses. We understand that there may be necessary infrastructure improvements or operational costs driving the need for rate adjustments, and urge the city to explore more sustainable and equitable ways to manage these needs without placing an undue financial burden on residents, especially those who are already struggling with cost-of­ living increases.

Furthermore, the average total increase (in our case 50%) of these rate hikes is very significant and based on the arguments presented, unjustifiable. The community deserves a full explanation of how the proposed rate hikes will benefit us, and whether all possible cost-saving measures have been considered.

We encourage the city to consider alternative approaches, such as cost savings, grants, state funding, or private partnerships, to help fund any necessary improvements to the water system .

For these reasons, we vote against these proposed rate Increases.

Thank you for your attention to t his matter. We look forward to a balanced, community -centered response, and approach to water pricing from the Carlsbad City Councfl and Municipal Water District.

Sincerely,
Andrew Lynch
April 22, 2025
Yvonne Lynch
Item #5 Page 297 of 518
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Docusign Envelope ID: 2EE35CDA-4EA8-4B02-8290 -D02A8FACC334 25 Feb2025
City of Carlsbad
Office of City Clerk
1200 Carlsbad Village Drive
Car;sbadd Ca 92008
Formal Protest/ Vote Against Proposed Water Rate Increase.

Reevaluate the tier and fee structure
REC
FE 2
Cl OF CA L~ AD
CITY CLERK' 0 ·FICE
The highest rate tier should be retained in order to incentlvise water use reduction and waste.

For lasting community rate support, the whole structure should be reevaluated. Look at water like air, as essential to all parties equally.

All parties could be charged the same rate for potable water within the various tiers in order to eliminate waste and the flows through the treatment system. Currently the homeowner carries an excess burden.

Placing an additional or different charge based on the number of structures on a given connection seems poorly thought out. In other words, charge for the water and waste and do not include a political agenda. A single property with 6 people or multiple properties with a total of 6 people on the same meter may have the same usage. Ttie effect seems to be to discourage additional housing on residential properiy as permitted by law in the state.

I am not against higher rates. They need to be more equitable for homeowners and business.

Recycled water shoL1ld be more costly in order to discourage its waste. An idea may be for recycle·d water income be used to create emergency fire fighting, surge storage in locations about the city.

April 22, 2025 Item #5 Page 299 of 518
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Item #5 Page 311 of 518
Docusign Envelope ID: 2EE35CDA-4EA8-4B02-8290 -D02A8FACC334 City of Carlsbad
Office of the City Clerk
1200 Carlsbad Village Drive
Carlsbad j CA 92008
RE: Protest Proposed Rate Increases
February 23, 2025

RECEIVED
F i ' li 102
Cl Y OF CA LSBAD
Cl Y CLERK'S OFFIC
As 25-year Carlsbad residents, we are vehemently opposed to the astronomical rate increases proposed:
2-year increase(%)
Water Delivery (5/8") 40
Water Use (SFR-Tier 1) 56
Wastewater (SFR) 50
It Is disturbing that the City would even consider publishing such a preposterous plan. What is the long­ term strategy regarding Carlsbad's reliance on the SDCWA? What measures have been enacted to reduce the 35% attributed to Carlsbad's operating costs? Is there a moratorium for future Increases or can residents expect the City to be crying again for more In 2028? Lastly, what Is the average annua l growth in Carlsbad household Income? I sincerely doubt It is anywhere near 20%.

Robert Schultz
Schultz-Grospe Trust
570 Dew Point Ave
Carlsbad, CA 92011-4668
April 22, 2025 Item #5 Page 312 of 518
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Docusign Envelope ID: 2EE35CDA-4EA8-4B02-8290 -D02A8FACC334 D vld M
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em 11 : men, gma I.com
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Ubj _ ct: Form_ I Prote:et o Propoa d Water Rats lncru11 D r City Cl _ rk,
I , rn writi g to ormally protest the propo d r te nor
J nu ry 1, 202B, nd J nuary 1. 202 . ror my property locat Carlsb d, CA 92011.

I oppose all proposed rat- n ubrnll ttil lottor v
ur • th City of C rlsba chan • a nd lf'I
lmpos dditton-1 mniel nm,
Please aGknowl
Slnoo -1y,
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- th y
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Carl bad, CA 92008 ;IAf? I
March 1 , 2025
o Whom It May C nc m:

My name is riff Lewis. I would lik • to submit a p otest to he proposed water te increases th twill take effe to 7/1/25, 1/1:/26 and 1/1/27.

I liv t 168 Av e, - rlsbad, CA. My home Is equipped w·
in th rnu ti-t r ntial custom r class. rhe ve .ag w te u months w s urn s per month. •
1" meLr -nd i
ov r th 1_ st 24
Using thi info11matio11, th curr n ota of th two tin it.ems of my umlty bill (water d liv ry f and wat r us s) is $86.30 p ·r month. On 7/1/25 the total n -· e se to $102.32 per month. On 1/1/2 - it incr as to $115.77. On 1/1/27 it inc a es to $122.96. Th tis whopping 42% incr s · ov • r 1 months 1s I uncon cionable.

The averag h meowne nn t afford n Iner se of th I. s'ze ..

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W t r Authori . del , and Wate Authority wate
use fee . lndlv1dua1ly th - , I m t, tiv y, th Iner ase Is huge.

This I why I am submitting prot t to th propos d wat r r -t know if you would lik any furth r explanation.

April 22, 2025 Item #5 Page 319 of 518
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April 22, 2025 Item #5 Page 322 of 518
Docusign Envelope ID: 2EE35CDA-4EA8-4B02-8290 -D02A8FACC334 City of Carlsbad
Office of th e City Clerk
1200 Carlsbad Village Drive
Carlsbad, CA 92008
March 21, 2025

PROTEST TO PROPOSED WATER RATE INCREASES

RECEIVED
MAR 2 G L025
CITY O~ CA LSBAD

CITY CLER 'S OFFICE
As a Carlsbad homeowner and resident, rate payer, and a Carlsbad business owner, I protest your propo sed water rate increases. You are proposing increases for water deliver, water use, recycled water delivery, and wastewater rates. This seems excessive and harsh to me. You are claiming that 2/3 of the proposed water rate increase Is driven by th e rising cost of purchasing water from the San Diego County Water Authority . Why are we purchasing from the County Water Aut hority when we have a desalination plant in our backyard. What was the purpose for building the desalination plant if Carlsbad residents receive no benefits ? Any board members who vote for the rate increases will not get my vote at the next election! S!9-7;rel¥f 17 ~
/qi1fa-J'<,t1v l1.,.~UiJ
Mark Rostratter
6577 Bluebonn et Dr
Carlsbad, CA 92011-2503
April 22, 2025 Item #5 Page 323 of 518
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Docusign Envelope ID: 2EE35CDA-4EA8-4B02-8290-D02A8FACC334 Kelly Le Berthon
3993 Alder A venue
Carlsbad. CA 92008
April 7, 2025
City of Carlsbad
Office of the City Clerk
1200 Carlsbad Village Drive
Carlsbad, CA 92008
Dear City Clerk and Members of the Carlsbad City Council;

AEC IVEO
APR
Cl y or CA ~L SBAo
CITY CLERK 'S 0 ,... rFCE
I am writing to formally protest all proposed water rate increoses scheduled to take effect on July 1, 2025. January 1, 2026, and January 1, 2027, as outlined in the Proposition 218 notice for the upcoming public hearing on April 22, 2025. As a concerned ratepayer and resident of Carlsbad, I urge the City Counci l to reject these increases and explore alternative solutions to address the Carlsbad Municipal Water District's financia l needs without plac ing an undue burden on our community.

My opposition to these rate hikes stems from several key concerns. First, the cost of living in Carlsbad is already high, and add itional water rate increases will further strain household budgets, particularly for families and fixed-income residents, like myself, who rely on affordable utilities. The proposed schedule-spanning multiple years- feels like a relentless escalation rather than a thoughtful. sustaindble approoch.

Second, I question the necessity of these increases given Carlsbad's leadership in water conservation and infrastructure investments, such as desalination ahd recyc led water programs. While I understand the rising costs of imported water and aging infrastructure, the city should prioritize efficiency and seek state or federal funding to offset these expenses rather than passing them direct ly onto ratepayers. Proposition 218 requires rates to reflect the actua l cost of service, yet the justification for these specific increases remains unclear to many of us in the community.

Finally, the cumulatlve impact of these hikes- effective July 1, 2025, January 1, 2026, and January 1, 2027- threatens to disproportionately affect small businesses dnd low-income households, potentially driving economic hardship in an already challenging climate. I dm concerned that such increases could discourage water conservat ion efforts if residents feel penalized despite their diligence.

Under Proposition 218. I exercise my right as a property owner to submit this written protest against all proposed wate r rote increases. I respectfu lly request that the City Council consider the community's voice and reject these plans at the April 22, 2025, hearing. Let's work together toward a fairer, more equitable approach to managing our water resources.

Sincerely,
Kelly Le Berthon
3993 Alder A venue
Carlsbad, CA 92008
April 22, 2025 Item #5 Page 328 of 518
Docusign Envelope ID: 2EE35CDA-4EA8-4B02-8290-D02A8FACC334 Carole McKee
3993 Alder A venue
Carlsbad. CA 92008
April 7, 2025
City of Carlsbad
Office of the City Clerk
1200 Carlsbad Village Drive
Carlsbad, CA 92008
Dear City Clerk and Members of the Carlsbad City Council, EC- \V
Af ~ 207.

OF GAHL BAO
Cl1Y K'S OFFICE crrv CLE
I am writing to formally protest dll proposed water rate increases scheduled to take effect on July l , 2025, January 1, 2026, and January l , 2027, as outlined in the Proposition 218 notice for the upcoming public hearing on April 22, 2025. As a concerned ratepayer and resident of Carlsbad , I urge the City Council to reject these increases and explore alternative solutions to address the Carlsbad Municipal Water District's financial needs without placing an undue burden on our community.

My opposition to these rate hikes stems from several key concerns. First, the cost of living in Carlsbad is already high, and additional water rate increases will further strain household budgets, particularly for families and fixed-income residents, like myself, who rely on affordable utilities. The proposed schedule- spanning multiple years-feels llke a relentless escalation rather than a thoughtful, sustainable approach .

Second, I question the necessity of these increases given Carlsbdd 1s leadership in water conservation and infrastructure inve~tments, such as desalination and recycl ed water programs. While I understand the rising costs of imported water and aging infrastructure, the city should prioritize efficiency and seek state or federal funding to offset these expenses rather than passing them directly onto ratepayers. Proposition 218 requires rates to reflect the actual cost of service, yet the justification for these specific increases remains unclear to many of us in the community.

Finally, the cumulative impact of these hikes-effective July 1, 2025, January 1, 2026, and January l, 2027-threatens to disproportionately affect small businesses and low-income households. potentially driving econom ic hardship in an already challe nging climate . I am concerned that such increases could discourage water conservation efforts if residents feel penalized despite their diligence.

Under Proposition 218, I exercise my right as a property owner to submit this written protest against all proposed water rate increases. I respectfully request that the Ci"ty Council consider the community's voice and reject these plans at the April 22, 2025, hearing. Let's work together toward a fairer, more equitable approach to managing our water resources.

Sincerely, (; ~t /j!(t,{a,J
Carole McKee
3993 Alder Avenue
Carlsbad, CA 92008
April 22, 2025 Item #5 Page 329 of 518
Docusign Envelope ID: 2EE35CDA-4EA8-4B02-8290-D02A8FACC334 2184 Dic:kinson Drive
Carlsbad, CA 92008
AECEI !:

AP 8 2025
April 3, 2025
City of Carlsbad
CITY OF CAr Ir:;, •
CITY CLERK • .J' I .,.

Office of the City Clerk
1200 Carlsbad Village Drive
Carlsbad, CA 92008
I protest the proposed water delivery/water use fees and the recycled water rates that the City of Carlsbad is looking to raise. I am aware that inflation has caused some prices to go up, but your proposed rates at the lowest level (with a 5/8" meter) are going up 11.64%-39.91% in 2 ½ years. You are placing a financial burden on the Carlsbad homeowners and businesses that is unnecessary and unneeded. A small total increase of 6% over 3 years would be understandable, but your outrageously high proposed rates are not.

How did you arrive at the proposed rate structure? Are the rates shown In your "Notice - Proposed Rate lncreases'1 set in stone? What could cause the rates to change in the interim that could have a positive or negative change on the current proposed rates?
Using your chart, the current lowest 2024 water delivery rate is $28.94.

The proposed July 1, 2025 rate is $33.68, which is a 4.74% rate increase over current The proposed Jan 1, 2026 rate is $37.89, which is an 8.95% rate increase over current The proposed Jan 11 2027 rate is $40.58, which is an 11.64% rate increase over current Using your chart, the current lowest 2024 Tier 1 water use rate is $4.00.

The proposed July 1, 2025 rate is $5.19, which is a 1.19% rate increase The proposed Jan 1, 2026 rate is $5.92, which is a 1.92% rate increase The proposed Jan 1, 2027 rate is $6.24, which is a 2.24% rate increase Using your chart, the current lowest 2024 wastewater rate is $51.74.

The proposed July 1, 2025 rate is $59 .85, which is an 8.11% increase over current rate The proposed Jan 1, 2026 rate is $68.22, which is a 16.48% increase over current rate The proposed Jan 2, 2027 rate is $77.771 which is a 26.03% increase over current rate Using your chart, and computing with the lowest 2024 ratet you are charging an overall monthly rate increase of :

July 2025 total bill increase of 14.04% over 2024 current lowest charge January 2026 total bill increase of 27.36% over 2024 current lowest charge January 2027 total bill increase of 39.91% over 2024 current lowest charge Sincerely,
~~&~
Property Owner
April 22, 2025 Item #5 Page 330 of 518
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Item #5 Page 331 of 518
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April 22, 2025 Item #5 Page 332 of 518
Docusign Envelope ID: 2EE35CDA-4EA8-4B02-8290-D02A8FACC334 Name:

Address:

Carlsbad, CA (ZIP)
Date:

City of Carlsbad
Office of the City Clerk
1200 Carlsbad Village Drive
Carlsbad, CA 92008
Dear City Clerk and Members of the Carlsbad City Council,

RECEIVED
APR O 20 j

CITY OF CARLSBAD

CITY CLERK'S OFFICE
I am writing to formally protest all proposed water rate increases scheduled to take effect on July 1, 2025, January 1, 2026, and January 1, 2027, as outlined in the Proposition 218 notice for the upcoming public hearing an April 22, 2025. As a concerned ratepayer and resident of Carlsbad, I urge the City Council to reject these increases and explore alternative solutions to address the Carlsbad Municipal Water District's financial needs without placing an undue burden on our community.

My opposition to these rate hikes stems from several key concerns. First, the cost of living in Carlsbad is already high, and additional water rate increases will further strain household budgets, particularly for families and fixed-income residents who rely on affordable utilities. In prior discussions, I've highlighted how these increases compound over time, making it harder for ratepayers to plan financially. The proposed schedule-­ spanning multiple years~fee ls like a relentless escalation rather than a thoughtful, sustainable approach.

Second, I question the necessity of these increases given Carlsbad's leadership in water conservation and infrastructure investments, such as desalination and recycled water programs. While I understand the rising costs of imported water and aging infrastructure, the city should prioritize efficiency and seek state or federal funding to offset these expenses rather than passing them directly onto ratepayers. Previous conversations have underscored that Proposition 218 requires rates to reflect the actual cost of service-, yet the justification for these specific increases remains unclear to many of us in the community.

Finally, the cumulative impact of these hikes-effective July 1, 2025, January 1, 2026, and January 1, 2027- threatens to disproportionately affect small businesses and low-income households, potentially driving economic hardship in an already challenging climate. I've previously expressed concern that such increases could discourage water conservation efforts if residents feel penalized despite their diligence. Instead of rate hikes, I encourage the city to incentivize conservation and invest in long-term, cost-saving solutions.

Under Proposition 218, I exercise my right as a property owner to submit this written protest against all proposed water rate increases. I respectfully request that the City Council consider the community's voice and reject these plans at the April 22, 2025, hearing. Let's work together tow~rd a fairer, more equitable approach to managing our water resources.

Sincerely,
Your Parcel Number or Property Address:
2/ (.p • 3? 0 0 2, i '7
April 22, 2025 Item #5 Page 333 of 518
Docusign Envelope ID: 2EE35CDA-4EA8-4B02-8290 -D02A8FACC334 Name:

Address:

Carlsbad, CA (ZIP)
Date:

City of Carlsbad
Office of the City Clerk
1200 Carlsbad Village Drive
Carlsbad, CA 92008
92011
Dear City Clerk and Members of the Carlsbad City Council, c)

RECEIVED
APR 1 0 2025
Cl rv OF CARLSBAD

CITY CLERK'S OF ICE
I am writing to formally protest all proposed water rate increases scheduled to take effect on July 1, 2025, January 11 2026, and January 1, 2027, as outlined in the Proposition 218 notice for the upcoming public hearing on April 22, 2025. As a concerned ratepayer and resident of Carlsbad, I urge the City Council to reject these increases and explore alternative solutions to address the Carlsbad Municipal Water Dis1rict's financial needs without placing an undue burden on our community.

My opposition to these rate hikes stems from several key concerns. First, the cost of living in Carlsbad is already high, and additional water rate increases will further strain household budgets, particularly for families and fixed-income residents who rely on affordable utilities. In prior discussions, I've highlighted how these increases compound over time, making it harder for ratepayers to plan financially. The proposed schedule­ spanning multiple years-feels like a relentless escalation rather than a thoughtful, sustainable approach.

Second, I question the necessity of these increases given Carlsbad's leadership in water conservation and infrastructure investments, such as desalination and recycled water programs. While I understand the rising costs of imported water and aging infrastructure, the city should prioritize efficiency and seek state or federal funding to offset these expenses rather than passing them directly onto ratepayers. Previous conversations have underscored that Proposition 218 requires rates to reflect the actual cost of service, yet the Justification for these specific increases remains unclear to many of us in the community.

Finally, the cumulative impact of these hikes- effective July 1, 2025, January 1, 2026, and January 1, 2027- threatens to disproportionately affect small businesses and low-income households, potentially driving economic hardship in an already challenging climate. I've previously expressed concern that such increases could discourage water conservation efforts if residents feel penalized despite their diligence. Instead of rate hikes, I encourage the city to incentivize conservation and invest in long-term, cost-saving solutions.

Under Proposition 218, I exercise my right as a property owner to submit this written protest against all proposed water rate increases. I respectfully request that the City Council consider the community's voice and reject these plans at the April 22, 2025, hearing. Let's work together toward a fairer, more equitable approach to managing our water resources.

Sincerely,
Jc{/u =;~c~~
Your Parcel Number or Property Address:
zrai ~/1(1}1u Sf, C3H-<~b~~: l; 920/ I
April 22, 2025 Item #5 Page 334 of 518
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April 22, 2025 Item #5 Page 336 of 518
Docusign Envelope ID: 2EE35CDA-4EA8-4B02-8290-D02A8FACC334 The proposed July 1, 2025 rate is $5.19, which is a 1.19% rate increase The proposed Jan 1, 2026 rate is $5.92, which is a 1.92% rate increase The proposed Jan 1, 2027 rate is $6.24, which is a 2.24% rate increase Using your chart, the current lowest 2024 wastewater rate is $51.74.

The proposed July 1, 2025 rate is $59.85, which is an 8.11% increase over current rate The proposed Jan 1, 2026 rate is $68.22, which is a 16.48% increase over current rate The proposed Jan 2, 2027 rate is $77.77, which is a 26.03% increase over current rate Using your chart, and computing with the lowest 2024 rate, you are charging an overall monthly rate increase of :

July 2025 total bill increase of 14.04% over 2024 current lowest chargg_ January 2026 total bill increase of 27.36% over 2024 current lowest chargg_ January 2027 total bill increase of 39.91% over 2024 current lowest chargg_ Sincerely,
Dirk Ammon
Property Owner
CAUTION: Do not open attachments or click on links unless you recognize the sender and know the content is safe.

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Docusign Envelope ID: 2EE35CDA-4EA8-4B02-8290-D02A8FACC334 From:

To:

Subject:

Date:
llVfile[
Shoshana Aquilar
Fw: Rate increase Objection
Sunday, April 6, 2025 8:57:05 PM
Get Outlook for iOS
From: Beni Di Monaco <[email protected]>
Sent: Sunday, April 6, 2025 1:25:30 PM
To: Water <[email protected]>
Subject: Rate increase Objection
As Carlsbad property owner/residents, we OBJECT to the proposed water rate increase.

Beni and Diane Monaco
6610 Fiona Pl
Carlsbad CA 92011
Sent from my iPad
CAUTION: Do not open attachments or click on links unless you recognize the sender and know the content is safe.

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Docusign Envelope ID: 2EE35CDA-4EA8-4B02-8290-D02A8FACC334 From:

To:

Subject:

Date:

Shoshana Aguilar
bunkobabe9@aol,com
RE: Water Rate Raise
Friday, April 11, 2025 9:03:00 AM
Good morning. Thank you for your email received April 6, 2025. Your email was referred to me for response. The City of Carlsbad and the Carlsbad Municipal Water District, or CMWD, received your (1) protest and (2) comments to the proposed rate increases for water. Your protest has been provided to the City Clerk's office in advance of the public hearing. While we understand your frustration with the proposed rates, your comments do not indicate a basis for illegality . As such, while your email will be included in the count of unvalidated protests against the proposed rates, your letter will not count as a "legal objection" for purposes of administrative exhaustion. Per State law, you may submit a written, signed letter with your address for it to be considered a fully valid rate protest. This may be submitted to the Office of the City Clerk by the close of the public hearing on April 22, 2025. The address is 1200 Carlsbad Village Drive, Carlsbad, CA 92008.

Neither the City, nor CMWD profit from providing water service. Rates are established based exclusively on the costs of the services provided, and those costs are allocated proportionately so that each parcel only pays their share of the total cost of service.

The City of Carlsbad/CMWD has published information to assist customers with finding help paying water bills, which can be found here:
https://www.car!sbadca.goy/home/showpubiisheddocument/3860/637435529906530000.

Best regards,
Shoshana
Shoshana Aguilar
she/her/hers
Senior Management Analyst, Utilities
City of Carlsbad/Carlsbad Municipal Water District
5950 El Camino Real
Carlsbad, CA 92008
760-814-0241
www.carlsbadca.gov
City of
Carlsbad
From: Sue Bosio <[email protected]>
April 22, 2025 Item #5 Page 350 of 518
Docusign Envelope ID: 2EE35CDA-4EA8-4B02-8290 -D02A8FACC334 Sent: Sunday, April 6, 2025 1:58:53 PM
To: Water <[email protected] >
Subject: Water Rate Raise
Dear Sirs:

This letter is to formally protest against the water rate raise proposed by the City of Carlsbad. We are retired seniors, nearly 80 years old, and any raise in water rates would be injurious to us. The proposed percentage jump seems excessive in the first place, a big jump. We've been in our house for 50 years and have, of course, seen raises in everything over this time. This proposed hike is going to impact homeowners firstly, and then commercial housing and commercial landscaping businesses negatively. At this point in the political climate today, it seems foolish and greedy to raise the rates at all for people ;trying to survive the next four years.

We are John and Sue Bosio
3242 McKinley Street
Carlsbad, CA 92008-1922
CAUTION. Do not o en attachments or click on links unless know the content is safe.

April 22, 2025 Item #5 Page 351 of 518
Docusign Envelope ID: 2EE35CDA-4EA8-4B02-8290-D02A8FACC334 From:

To:

Subject:

Date:

Shoshana Aguilar
Josh
RE: Objection
Wednesday, April 9, 2025 4:10:00 PM
Hi, Mr. Fernandes .

Sorry for the misinterpretation of the protest request. For the reason for the rate increases, please view the recording of the presentation to City Council from Feb. 11, 2025. Here is a link . Just click on Item 8.
httgs ://ca rlsba d ca. new. swa git. com/videos/334642 In addition to the presentation, please see our cost of services studies which go into further detail for the cost of services for these items. They can be found here:
www.carlsbadca.gov/rates
If you have further questions, please feel free to reach out.

Best regards,
Shoshana
From: Josh <[email protected]>
Sent: Wednesday, April 9, 2025 11:04 AM
To: Shoshana Aguilar <[email protected]>
Subject: Re: Objection
My comment never mentioned "illegality" anywhere in the email. Please refrain from copy and paste responses when people voice their concerns over rate increases .

Instead, try explaining the reason for the rate increase .

Sent from my iPhone
On Apr 9, 2025, at 9:42 AM, Shoshana Aguilar
<Shoshana ,Agu ilar@ca rlsbadca ,gov> wrote :

Good morning . Thank you for your email received April 5, 2025 . Your email was referred to me for response . The City of Carlsbad and the Carlsbad Municipal Water District, or CMWD, received your (1) protest and (2) comments to the proposed rate increases for water. Your protest has been provided to the City April 22, 2025 Item #5 Page 352 of 518
Docusign Envelope ID: 2EE35CDA-4EA8-4B02-8290-D02A8FACC334 Clerk's office in advance of the public hearing. While we understand your frustration with the proposed rates, your comments do not indicate a basis for illegality. As such, while your email will be included in the count of unvalidated protests against the proposed rates, your letter will not count as a "legal objection" for purposes of administrative exhaustion. Per State law, you may submit a written, signed letter with your address for it to be considered a fully valid rate protest . This may be submitted to the Office of the City Clerk by the close of the public hearing on April 22, 2025. The address is 1200 Carlsbad Village Drive, Carlsbad, CA 92008 .

Shoshana
Shoshana Aguilar
she/her/hers
Senior Management Analyst, Utilities
City of Carlsbad/Carlsbad Municipal Water District
5950 El Camino Real
Carlsbad, CA 92008
760-814-0241
www.carlsbadca.gov
<image001.gif>
From: Josh <[email protected] >
Sent: Saturday, April 5, 2025 7:38:40 PM
To: Water <water@carlsbadca .gov>
Subject: Objection
We object the water hike and will protest . We are at 4065 sunnyhill Dr. Thanks.

Josh Fernandes.

Sent from my iPhone
CAUTION: Do not open attachments or click on links unless you recognize the sender and know the content is safe.

CAUTION. Do not o en attachments or click on links unless know the content is safe.

April 22, 2025 Item #5 Page 353 of 518
Docusign Envelope ID: 2EE35CDA-4EA8-4B02-8290-D02A8FACC334 From:

To:

Subject:

Date:

Shoshana Aguilar
[email protected]
RE: Proposed water rate increase.

Wednesday, April 9, 2025 8:03:00 AM
Good morning. Thank you for your email received April 6, 2025. Your email was referred to me for response. The City of Carlsbad and the Carlsbad Municipal Water District, or CMWD, received your (1) protest and (2) comments to the proposed rate increases for water. Your protest has been provided to the City Clerk's office in advance of the public hearing. While we understand your frustration with the proposed rates, your comments do not indicate a basis for illegality. As such, while your email will be included in the count of unvalidated protests against the proposed rates, your letter will not count as a "legal objection" for purposes of administrative exhaustion. Per State law, you may submit a written, signed letter with your address for it to be considered a fully valid rate protest. This may be submitted to the Office of the City Clerk by the close of the public hearing on April 22, 2025. The address is 1200 Carlsbad Village Drive, Carlsbad, CA 92008.

Shoshana
Shoshana Aguilar
she/her/hers
Senior Management Analyst, Utilities
City of Carlsbad/Carlsbad Municipal Water District
5950 El Camino Real
Carlsbad, CA 92008
760-814-0241
www.carlsbadca.gov
City of
Carlsbad
From: Kari Gilbert <[email protected] >
Sent: Sunday, April 6, 2025 4:29:19 AM
To: Water <water@carlsbadca .gov>
Subject: Proposed water rate increase.

I would like to protest and oppose the proposed water rate increase. Please let me know what the formal procedure is to do this .

April 22, 2025 Item #5 Page 354 of 518
Docusign Envelope ID: 2EE35CDA-4EA8-4B02-8290 -D02A8FACC334 Bob and Kari Gilbert
6352 Huntington Dr
Carlsbad , CA 92009
Thank you.

Kari Gilbert
760-533-4126
CAUTION. Do not o en attachments or click on links unless know the content is safe.

April 22, 2025 Item #5 Page 355 of 518
Docusign Envelope ID: 2EE35CDA-4EA8-4B02-8290-D02A8FACC334 From:

To:
dayjd lane
Shoshana Aqui!ar
Subject: Re: WATER RAISE PROTEST
Wednesday, April 9, 2025 12:00:08 PM Date:

Shoshana,
As you were writing this, I am sure you felt the embarrassment. I have formally objected to the rate increase and have stated why I believe the rate hike is illegitimate - not based on need, but poor management verging on theft. It is sad the excuse used to not count an obvious ( and legal) objection. If this decision was not yours, but you were directed to answer in this manner - understand it is not directed at you but the authority you represent.

DavidL Lane
On Apr 9, 2025, at 11: 17, Shoshana Aguilar
<[email protected]> wrote:

Good morning . Thank you for your email received April 6, 2025. Your email was referred to me for response. The City of Carlsbad and the Carlsbad Municipal Water District, or CMWD, received your (1) protest and (2) comments to the proposed rate increases for utilities. Your protest has been provided to the City Clerk's office in advance of the public hearing. While we understand your frustration with the proposed rates, your comments do not indicate a basis for illegality. As such, while your email will be included in the count of unvalidated protests against the proposed rates, your letter will not count as a "legal objection" for purposes of administrative exhaustion. Per State law, you may submit a written, signed letter with your address for it to be considered a fully valid rate protest . This may be submitted to the Office of the City Clerk by the close of the public hearing on April 22, 2025. The address is 1200 Carlsbad Village Drive, Carlsbad, CA 92008.

Shoshana
Shoshana Aguilar
she/her/hers
Senior Management Analyst, Utilities
City of Carlsbad/Carlsbad Municipal Water District
5950 El Camino Real
Carlsbad, CA 92008
760-814-0241
www .carlsbadca.gov
April 22, 2025 Item #5 Page 356 of 518
Docusign Envelope ID: 2EE35CDA-4EA8-4B02-8290 -D02A8FACC334 <image00 1.gif>
From: david lane <[email protected]>
Sent: Sunday, April 6, 2025 8:03:37 AM
To: Water <[email protected]>
Subject: WATER RAISE PROTEST
What you are doing is criminal and is a band aid to poor management of existing revenue. It is embarrassing as a city but typical of the tax and spend philosophy of this state. Be better, zero budget annually - earn our trust.

David L Lane
2379 Merwin Drive
Carlsbad CA 92008
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