Chowchilla City Council
April 22, 2025

Client: CHOWCHILLA, CITY OF
Engagement: 6-30-24 AuditCurrent Period: 06/30/2024Workpaper: Attachment: Corrected Audit AdjustmentsAccount Description Workpaper Reference Debit Credit Net Income Effect
Workpaper ID
AJE01 L500To correct incorrectly posted journal entry to leave payable 702-0200-0431 Long Term Leave Payable 0.00 88,418.90 702-0200-0432 Accrued Leave Payable 0.00 3,727.84 702-1720-1096 Leave Accrual Adjustments 92,146.74 0.00 Total 92,146.74 92,146.74 (92,146.74)AJE02 L400To post initial recognition of leases under GASB87.100-1705-6400 Vehicles, Machinery & Equip 265,642.49 0.00 100-9999-9911
Other financing sources - proceeds from debt issuance
(PPC CREATED) 0.00 265,642.49
Total 265,642.49 265,642.49 0.00 GRAND TOTAL 357,789.23 357,789.23 (92,146.74) To the City Council and Management of the
City of Chowchilla, California
In planning and performing our audit of the financial statements of the governmental activities, business-type activities, each major fund, and the aggregate remaining fund information of the City of Chowchilla, California (the City) as of and for the year ended June 30, 2024, in accordance with auditing standards generally accepted in the United States of America, we considered the City’s system of internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, we do not express an opinion on the effectiveness of the City’s internal control.

However, during our audit we became aware of deficiencies in internal control other than significant deficiencies or material weaknesses and other matters that are opportunities for strengthening internal controls and operating efficiency. The following points summarize our comments and suggestions regarding those matters.

Bank Reconciliation
During our audit, we became aware that cash accounts were created outside of the client's pooled cash accounts that were not considered during the City’s overall reconciliation of cash balances to the bank (bank reconciliation). Our review of the cash receipts and related deposits confirmed that the amounts were properly included in cash; however, this practice circumvented the established pooled cash system and resulted in the omission of cash balances from the City’s bank reconciliations.

We recommend that the City eliminate the posting of cash balances outside of the pooled cash accounts for normal operating activity. In addition, we believe that strengthening controls over the recording and reconciliation of cash transactions to ensure all balances are properly included in the reconciliation process is needed to maintain the integrity of financial reporting.

Capital Asset Reconciliation
The City’s current process for capital asset financial reporting lacks a formal reconciliation between the fixed asset module within Tyler and the prior year’s audited financial statements. Additionally, there is no standardized process to ensure that all capital asset activity—such as additions, deletions, and transfers—is reconciled to supporting schedules or documentation that can be easily traced and reviewed by an independent party. The absence of these controls increases the risk of misstated financial information and can lead to inefficiencies in the year-end reporting process.

We recommend that the City implement a formal reconciliation process to strengthen internal controls over capital asset financial reporting. Specifically, the City should perform:
 Annual Reconciliation to Prior Year Audited Financial Statements:
o Implement a control to ensure that the data generated from the fixed asset module within Tyler is reconciled to the prior year’s audited financial statements before finalizing the current year’s reporting. o Establish a documented process outlining the steps for this reconciliation, including responsible personnel and deadlines.

 Reconciliation of Capital Asset Activity to Supporting Documentation:
o Require that all capital asset transactions (additions, deletions, transfers, and adjustments) are reconciled to supporting schedules and underlying documentation.
o Ensure that supporting schedules clearly identify sources, allowing an independent reviewer to trace information back to source documents without requiring significant explanation.  Independent Review Process:
o Implement a secondary review process where an independent reviewer with the appropriate skills, knowledge, and experience (SKE) verifies that reconciliations are complete, accurate, and properly supported.
o Maintain clear documentation of the reconciliation and review process for audit purposes.  Process Standardization & Documentation:
o Develop written procedures detailing how reconciliations should be performed and reviewed. o Train finance personnel on the updated reconciliation process to ensure consistency and compliance.

By implementing these recommendations, the City can improve the accuracy and reliability of its capital asset financial reporting, streamline year-end financial close processes, and enhance transparency for independent reviewers and auditors.

Compensated Absences
During our audit, we identified that compensated absence schedule did not reconcile to the amounts recorded on the City’s trial balance, which was the result of an improper journal entry posted to these accounts. This misposting highlights the need for a more thorough review process to ensure the accuracy of compensated absence calculations and financial statement reporting.

We recommend that management implement a formal review process for compensated absence entries before finalizing year-end balances. Specifically, the City should:
 Reconciliation of Compensated Absence Balances:
o Ensure that compensated absence balances are reconciled to the supporting schedules and calculations. o Implement a documented process that outlines reconciliation procedures, responsible personnel, and review timelines.
 Independent Review of Journal Entries:
o Require that all journal entries related be reviewed and approved by someone other than the preparer before posting to the general ledger.
o Ensure that the independent reviewer has the appropriate skills, knowledge, and experience (SKE) to effectively assess the accuracy of the entries and identify potential errors. o Maintain documentation of the review process to demonstrate compliance with internal controls.

By implementing these controls, the City can reduce the risk of misstatements, improve the accuracy of financial reporting, and strengthen overall internal controls over compensated absence accounting.

Retainage
During our audit, we noted that retainage payable amounts were recorded to “Manual Payables” accounts rather than to an account that accurately reflects the nature of the liability. Retainage payable represents amounts withheld under contract terms and should be distinguished from standard accounts payable to ensure accurate financial tracking and reporting.

We recommend that management establish separate accounts for retainage payable activity to ensure proper classification in the financial records. Specifically, the City should  Create a Dedicated Retainage Payable Account series:
o Establish a distinct general ledger account for retainage payable to separate it from manual and standard accounts payable.
o Ensure that all retainage-related transactions are recorded in this account to improve financial clarity.

 Enhance Financial Tracking and Reporting:
o Implement a process to regularly reconcile retainage payable balances to supporting documentation, ensuring that withheld amounts align with contract terms. o Require that financial reports properly reflect retainage as a separate liability category to improve transparency and compliance with financial reporting standards.

Donated Assets
During our audit, we identified that revenue and expenses related to donated capital assets were recorded in the governmental fund financial statements, which is not in accordance with generally accepted accounting principles. This resulted in an overstatement of both revenues and expenditures.

We recommend that management track donated capital assets within the capital asset module but refrain from posting this activity to the trial balance. If there is uncertainty regarding the proper accounting treatment for donated capital assets, we recommend that management either conduct the necessary research or consult with an individual knowledgeable in governmental accounting to ensure these transactions are recorded correctly. Implementing this approach will help maintain compliance with accounting standards and improve the accuracy of financial reporting.

We will review the status of this comment during our next audit engagement. We have already discussed the comment with City personnel, and we will be pleased to discuss it in further detail at your convenience, to perform any additional study of these matters, or to assist you in implementing the recommendations.

The communication is intended solely for the information and use of City management, City Council, and others within the City, and is not intended to be, and should not be used by anyone other than those specified parties.

Sincerely,
Clovis, California
March 25, 2025
City of Chowchilla | CA
Single Audit Report
For the Year Ended June 30, 2024
CITY OF CHOWCHILLA | FOR THE YEAR ENDED JUNE 30, 2024
Single Audit Report

TABLE OF CONTENTS
PAGE
Independent Auditor’s Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards ..................................................................................................................................... 1 Independent Auditor’s Report on Compliance for Each Major Program and on Internal Control Over Compliance; and Report on the Schedule of Expenditures of Federal Awards Required by the Uniform Guidance ...................................................................................................................................................... 3 Schedule of Expenditures of Federal Awards ....................................................................................................................... 6 Notes to the Schedule of Expenditures of Federal Awards .................................................................................................. 7 Schedule of Findings and Questioned Costs ........................................................................................................................ 8 Summary Schedule of Prior Audit Findings ........................................................................................................................ 10 1 INDEPENDENT AUDITOR’S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING

AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL

STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS To the Honorable Mayor and City Council
City of Chowchilla, California
We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Chowchilla, California (the City), as of and for the year ended June 30, 2024, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements and have issued our report thereon dated March 25, 2025.

Report on Internal Control over Financial Reporting
In planning and performing our audit of the financial statements, we considered the City’s internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, we do not express an opinion on the effectiveness of the City’s internal control.

A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements, on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected, on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.

Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies.

Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses or significant deficiencies may exist that were not identified.

Report on Compliance and Other Matters
As part of obtaining reasonable assurance about whether the City’s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the financial statements. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. 2 Purpose of This Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose.

Clovis, California
March 25, 2025
3 INDEPENDENT AUDITOR’S REPORT ON COMPLIANCE FOR EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE; AND REPORT ON THE SCHEDULE OF

EXPENDITURES OF FEDERAL AWARDS REQUIRED BY THE UNIFORM GUIDANCE To the Honorable Mayor and City Council
City of Chowchilla, California
Report on Compliance for Each Major Federal Program
Opinion on Each Major Federal Program
We have audited the City of Chowchilla, California’s (the City) compliance with the types of compliance requirements identified as subject to audit in the OMB Compliance Supplement that could have a direct and material effect on each of the City’s major federal programs for the year ended June 30, 2024. The City’s major federal programs are identified in the summary of auditor’s results section of the accompanying schedule of findings and questioned costs.

In our opinion, the City complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on each of its major federal programs for the year ended June 30, 2024.

Basis for Opinion on Each Major Federal Program
We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance).

Our responsibilities under those standards and the Uniform Guidance are further described in the Auditor’s Responsibilities for the Audit of Compliance section of our report.

We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion on compliance for each major federal program. Our audit does not provide a legal determination of the City’s compliance with the compliance requirements referred to above.

Responsibilities of Management for Compliance
Management is responsible for compliance with the requirements referred to above and for the design, implementation, and maintenance of effective internal control over compliance with the requirements of laws, statutes, regulations, rules, and provisions of contracts or grant agreements applicable to the City’s federal programs.

Auditor’s Responsibilities for the Audit of Compliance
Our objectives are to obtain reasonable assurance about whether material noncompliance with the compliance requirements referred to above occurred, whether due to fraud or error, and express an opinion on the City’s compliance based on our audit. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a 4 guarantee that an audit conducted in accordance with generally accepted auditing standards, Government Auditing Standards, and the Uniform Guidance will always detect material noncompliance when it exists. The risk of not detecting material noncompliance resulting from fraud is higher than for that resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Noncompliance with the compliance requirements referred to above is considered material if there is a substantial likelihood that, individually or in the aggregate, it would influence the judgment made by a reasonable user of the report on compliance about the City’s compliance with the requirements of each major federal program as a whole.

In performing an audit in accordance with generally accepted auditing standards, Government Auditing Standards, and the Uniform Guidance, we:
 Exercise professional judgment and maintain professional skepticism throughout the audit.  Identify and assess the risks of material noncompliance, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the City’s compliance with the compliance requirements referred to above and performing such other procedures as we considered necessary in the circumstances.  Obtain an understanding of the City’s internal control over compliance relevant to the audit in order to design audit procedures that are appropriate in the circumstances and to test and report on internal control over compliance in accordance with the Uniform Guidance, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control over compliance. Accordingly, no such opinion is expressed.

We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and any significant deficiencies and material weaknesses in internal control over compliance that we identified during the audit.

Report on Internal Control over Compliance
A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance.

Our consideration of internal control over compliance was for the limited purpose described in the Auditor’s Responsibilities for the Audit of Compliance section above and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies in internal control over compliance.

Given these limitations, during our audit we did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses, as defined above. However, material weaknesses or significant deficiencies in internal control over compliance may exist that were not identified.

Our audit was not designed for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, no such opinion is expressed.

The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of the Uniform Guidance. Accordingly, this report is not suitable for any other purpose.

Report on Schedule of Expenditures of Federal Awards Required by the Uniform Guidance We have audited the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City, as of and for the year ended June 30, 2024, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements. We issued our report thereon dated March 25, 2025, which contained unmodified opinions on those financial statements. Our audit was 5 performed for the purpose of forming opinions on the financial statements that collectively comprise the basic financial statements. The accompanying schedule of expenditures of federal awards is presented for purposes of additional analysis as required by the Uniform Guidance and is not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the schedule of expenditures of federal awards is fairly stated in all material respects in relation to the basic financial statements as a whole.

Clovis, California
March 25, 2025
CITY OF CHOWCHILLA | FOR THE YEAR ENDED JUNE 30, 2024
Schedule of Expenditures of Federal Awards
See the accompanying notes to the schedule of expenditures of federal awards and the independent auditor’s report on compliance for each major program and on internal control over compliance required by the Uniform Guidance. 6 Federal
Assistance Pass-Through
Listing Grantor's Federal
Number Number Expenditures
U.S. Department of Housing and Urban Development
Passed-through the California Department of Housing and Community Development:

Community Development Block Grant/State's Program and Non-Entitlement Grants in Hawaii 14.228 Program Income 17,375 $ Community Development Block Grant/State's Program and Non-Entitlement Grants in Hawaii 14.228 Grant #20-CDBG-00094 915 Community Development Block Grant/State's Program and Non-Entitlement Grants in Hawaii 14.228 Grant #20-CDBG-CV-2-3-00037 56,593 Community Development Block Grant/State's Program and Non-Entitlement Grants in Hawaii 14.228 Grant #20-CDBG12078 22,053 Community Development Block Grant/State's Program and Non-Entitlement Grants in Hawaii 14.228 Grant # 20-CDBG-ED-10010 176,787 Community Development Block Grant/State's Program and Non-Entitlement Grants in Hawaii 14.228 Grant #22-CDBG-PL-20036 105,398 Community Development Block Grant/State's Program and Non-Entitlement Grants in Hawaii 14.228 21-CDBG-PL-30008 97,943 HOME Investment Partnership Program 14.239 Program Income 3,125 Subtotal pass-through California Department of Housing and Community Development 480,189 Total U.S. Department of Housing and Urban Development 480,189 Passed-through the California Department of Transportation:

Highway Planning and Construction:

Berenda Slough Bridge Project 20.205 06-MAD-0-CHW Project #CML5258(038) 3,232 Riverside, 8th & Kings Pedestrian Improvement 20.205 06-MAD-0-CHW Project #CML-5258(042) 8,301 Alley Paving Project 20.205 06-MAD-0-CHW Project #CML-5258(041) 647,290 Bridge Preventive Maintenance 20.205 06-MAD-0-CHW Project #CML5258(039) 2,356 Subtotal Highway Planning and Construction 661,179
Formula Grants for Rural Areas - Section 5311 - Transit Operating Assistance 20.209 64BA22-02054 92,579 Total U.S. Department of Transportation 753,758
U.S. Department of Homeland Security
Direct Award:

FEMA Staffing for Adequate Fire and Emergency Response (SAFER) 97.083 N/A 3,045 Total U.S. Department of Homeland Security 3,045
Total Expenditures of Federal Awards $ 1,236,992
Federal Grantor/Pass-Through Grantor/Program Title
CITY OF CHOWCHILLA | FOR THE YEAR ENDED JUNE 30, 2024
Notes to the Schedule of Expenditures of Federal Awards 7 NOTE 1 – GENERAL
The accompanying Schedule of Expenditures of Federal Awards (SEFA) presents the activity of all federal award programs of the City of Chowchilla, California (the City). Federal awards received directly from federal agencies, as well as federal awards passed through other government agencies are included in the schedule. The information in this SEFA is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance).

NOTE 2 – BASIS OF ACCOUNTING
The accompanying SEFA is presented using the modified accrual basis of accounting except for programs recorded in the City’s enterprise funds, which are presented using the accrual basis of accounting, which is described in Note 1 of the City’s basic financial statements.

NOTE 3 – RELATIONSHIP TO BASIC FINANCIAL STATEMENTS
Federal award expenditures agree or can be reconciled with the amounts reported in the City’s basic financial statements.

NOTE 4 – INDIRECT COST RATE
The City has elected not to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance.

NOTE 5 – PASS THROUGH ENTITY IDENTIFYING NUMBERS
The City has included in the SEFA the identifying numbers for pass-through grants when such information has been provided by the pass-through entities. For grants that the City was not provided with such information by the passthrough entities, the City has indicated the pass-through identifying number “N/A” to disclose the information was not applicable or not available.

CITY OF CHOWCHILLA | FOR THE YEAR ENDED JUNE 30, 2024
Schedule of Findings and Questioned Costs
8 SECTION I – SUMMARY OF AUDITOR’S RESULTS

FINANCIAL STATEMENTS
Type of auditor's report issued: Unmodified
Internal control over financial reporting:

Material weaknesses identified? Yes X No
Significant deficiencies identified? Yes X None reported Noncompliance material to financial statements noted? Yes X No

FEDERAL AWARDS
Internal control over major programs:

Material weaknesses identified? Yes X No
Significant deficiencies identified? Yes X None reported Type of auditor's report issued on compliance for
major programs: Unmodified
Any audit findings disclosed that are required
to be reported in accordance with
2 CFR 200.516(a)? Yes X No
IDENTIFICATION OF MAJOR PROGRAMS:

Federal Assistance Listing Number

20.205
Dollar threshold used to distinguish
between Type A and Type B programs:

Auditee qualified as low-risk auditee? Yes X No
$750,000
Name of Federal Program or Cluster
Highway Planning and Construction
CITY OF CHOWCHILLA | FOR THE YEAR ENDED JUNE 30, 2024
Schedule of Findings and Questioned Costs
(Continued)
9 SECTION II – FINANCIAL STATEMENT FINDINGS
None Reported.

SECTION III – FEDERAL AWARD FINDINGS
None reported.

CITY OF CHOWCHILLA | FOR THE YEAR ENDED JUNE 30, 2024
Summary Schedule of Prior Audit Findings
10 FINANCIAL STATEMENT FINDINGS
Finding 2023-001 – Financial Close and Reporting (Material Weakness) Condition: The City’s financial balances and activity required various adjustments during the audit to reflect complete and accurate financial statements presented in accordance with generally accepted accounting standards in the United States of America (GAAP).

Criteria: As described in the California State Controller’s “2015 Internal Control Guidelines” an effective internal control system and timely financial reporting of all financial activity provides reasonable assurance for the safeguarding of assets, the reliability of financial information, and compliance with laws and regulations. This includes the design and implementation of control systems that ensure accurate financial reporting in accordance with applicable standards and regulations.

Cause: The City’s year-end closing process is incomplete, or otherwise improperly designed, which did not identify omissions and errors in the City’s financial data in accordance with GAAP.

Effect: Various adjustments were required to correct the City’s general ledger during our audit, including the following:
1) Fund balance – opening fund balance/net position did not reconcile to the prior year ending balance for five (5) City financial statement funds.
2) Cash balances – cash balances were initially misstated by accrual items that should not have affected cash at year-end (accrued payroll and customer deposits). 3) Prepaids and accounts payable – invoices received near year-end but not yet paid or incurred by the City were accrued as accounts payable (liability) and prepaid items (asset). Other balances reported in accounts payable were determined to no longer exist at year-end. 4) Unavailable revenues – recorded to the City’s enterprise funds which do not report under current financial resources model, and accordingly, unavailable revenues should not be noted in these funds.
5) Capital assets – incomplete construction-in-progress asset balances reported as governmental activities for disbursements related to the fire department expansion project - $986,446. In addition, the construction-in-progress schedule provided did not reconcile to the depreciation schedule and was incomplete.
6) Year-end adjustments after commencement of the audit – significant City-prepared adjustments were provided after the start of the audit, including approximately ten (10) “client-prepared” adjustments, resulting in changes to the financial statement balances and activity, with an approximate $176,000 increase to net income.

Recommendation: We recommend that the City reevaluate the current design of the City’s year-end close and incorporate a more rigorous review by those with appropriate skills, knowledge, and experience to identify errors and omissions of financial information in accordance with GAAP.

Status: Implemented.

FEDERAL AWARD FINDINGS
None reported

REPORT TO THE CITY COUNCIL
Item 6.2

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TO RETURN TO

THE AGENDA
Meeting of: April 22, 2025
AGENDA SECTION: New Business
SUBJECT: Consideration and Approval of a $5,000 Contribution to the Chowchilla-Madera County Fairgrounds through the Council Contingency Fund
PREPARED BY: Stacy Wisener, Deputy Director of Recreation & Community Engagement ATTACHMENTS: Resolution, Chowchilla Fair Contingency Fund Application

REVIEWED BY
ADMINISTRATOR ☒ REVIEWED BYATTORNEY ☒ REVIEWED BY FINANCE ☐ RECOMMENDATION:

Staff recommends that the City Council approve a $5,000 contribution to the Chowchilla-Madera County Fairgrounds in support of their annual fair event, subject to the required application being submitted and reviewed as outlined in the updated Council Contingency Fund policy.

BACKGROUND:

The City of Chowchilla has historically supported the Chowchilla-Madera County Fairgrounds with a financial contribution of $5,000 to assist with the annual county fair held in Chowchilla. This event is a longstanding tradition and serves as an important event to our community.

In line with the Council Contingency Fund policy, all requests for financial support must now be submitted through the formal application process and brought before the City Council for consideration. The Chowchilla-Madera County Fairgrounds has completed and submitted the required application for this contribution.

City staff has reviewed the application and confirms that it meets the eligibility criteria outlined in the updated policy. Approval of this request will continue the City’s tradition of supporting this important community event, while also adhering to the transparency and accountability measures now in place for the use of Council Contingency Funds.

FISCAL IMPACT:

The recommended contribution of $5,000 will be paid from the Council Contingency Fund.

ALTERNATIVES:

1. Approve a reduced contribution in an amount determined by the City Council.

2. Request additional information or clarification from staff or the applicant before deciding.

3. Deny the contribution request, which would eliminate financial support from the City for the 2025 fair event.

COUNCIL RESOLUTION # XX-25

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHOWCHILLA, CALIFORNIA, APPROVING A $5,000 CONTRIBUTION FROM THE COUNCIL CONTINGENCY FUND TO SUPPORT

THE CHOWCHILLA-MADERA COUNTY FAIRGROUNDS ANNUAL FAIR EVENT AND AUTHORIZING

THE CITY ADMINISTRATOR OR DESIGNEE TO EXECUTE RELATED DOCUMENTS THERETO WHEREAS, the Chowchilla-Madera County Fairgrounds hosts an annual fair that provides cultural, recreational, and economic benefits to the residents of Chowchilla and surrounding communities; and
WHEREAS, the City of Chowchilla has a long-standing history of supporting this event with a $5,000 contribution; and
WHEREAS, the event attracts thousands of visitors to Chowchilla each year, generating increased visibility for the city, boosting local business activity, and strengthening community pride and engagement; and
WHEREAS, the Council Contingency Fund policy now requires submission of an application and formal approval by the City Council for any expenditure; and WHEREAS, the fairgrounds has submitted the required application, and staff has reviewed and confirmed its eligibility;
NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Chowchilla hereby approves a $5,000 contribution to the Chowchilla-Madera County Fairgrounds for the 2025 annual fair event to be paid from the Council Contingency Fund.

PASSED AND ADOPTED by the City Council of the City of Chowchilla this 22nd day of April, 2025 by the following vote to wit:

AYES:

NOES:

ABSENT:

ABSTAIN:

APPROVED:

Mayor Kelly Smith
ATTEST:

Joann McClendon, CMC
City Clerk
i
CCF FUND APPLICATION FORM m
SECTION ONE: GENERAL INFORMATION
Organization:

Name of
Project
:

Contact
Person:

Address:
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.

Title:
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: ........ 44. ............. -..... Zip
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E-mail: ,--���'i-._'1'
Federal Employer Identification Number: N/A D
Is your organization required to file a Federal 990 Form? Yes D No □ Total cost of project/event:

Cost of city services requested in this application (if applicable):

Cost of capital funding requested in this application (if applicable):

Total funding requested in this application:

Percent of project /event cost being requested:

Anticipated attendance/volunteers: Four days = approx. 20,000 people What is the number of years the project/event has been in existence? since 1946 How many years has your project/event previously been supported by the CCF? How many years does the organization anticipate requesting CCF funding? $
$
$
$
%
I
If this is for an event, does it serve to benefit the community? Is there a conflict of interest as defined in the Chowchilla Municipal Code? 3 If Yes - please identify:

Each applicant must disclose whether any Director, Board Member, or employee of the organization receiving funds has a family interest, employment interest, or ownership interest in the organization's use of the CCF funds being requested.
5,000
Yes
Yes D No D
Always
Always
The City of Chowchilla has always been a great support to the Chowchilla Fair and we truly appreciate it

REPORT TO THE CITY COUNCIL
Item 6.3

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TO RETURN TO

THE AGENDA
Meeting of: April 22, 2025
AGENDA SECTION: New Business
SUBJECT: Confirmation of Direction on Proposed Solid Waste, Water and Sewer Utility Fee Rate Increases and Consideration of a Resolution Approving a Date for a Prop 218 Public Hearing for Proposed Solid Waste, Water and Sewer Utility Fee Rate Increases
PREPARED BY: Kerri Williams, Director of Finance
ATTACHMENTS: Resolution, Draft Utilities Rate Studies

REVIEWED BY
ADMINISTRATOR ☒ REVIEWED BYATTORNEY ☒ REVIEWED BY FINANCE ☐ RECOMMENDATION:

That the Council provide direction to staff to incorporate specific rates into formal notices of proposed new solid waste, sewer and water utility rate schedules. Staff also recommends that the Council set a date of June 24, 2025 for a public hearing on the rates.

REASON FOR RECOMMENDATION:

The water and sewer rates were last adjusted, with annual rate increases, in July of 2020. Under Proposition 218, utility rates with annual adjustment factors may be set for a maximum of five years at a time. As such, a new rate schedule should be adopted for the next five fiscal years. On April 8th, the Council at a workshop reviewed the data and issues associated with setting the rates and provided direction to staff on various issues so rates could be drafted for the Council’s consideration. As previously reported, staff has worked with Lechowicz & Tseng Municipal Consultants since August 2024 to complete a comprehensive utilities rate study for their water, sewer, solid waste, and storm water enterprises. The primary objective of the study is to recommend utility rates which ensure the continued financial health and stability of the City’s enterprise funds, while minimizing the impact of any proposed rates changes on customers. The study period covers the five-year period beginning in FY2026 through FY2030. The consultants previously provided several rate options within the Draft Utilities Rate Study, to Council at the April 8th Council Meeting and have prepared a rate study which identifies the rates that would be applied to various user groups over the next five years based upon Council’s selection of the following financial planning scenarios:

UTILITY RATE
OPTION

PROPOSED INCREASES
FY2026 FY 2027 FY 2028 FY 2029 FY 2030
Solid Waste 1 4% 4% 4% 4% 4%
Water 2 18% 18% 18% 18% 18%
Sewer 2 3% 3% 3% 3% 3%
The attached draft study and proposed rates result in a rate increase for an average residential customer of $7.94 per month for Solid Waste, Water and Sewer beginning July 1, 2025.

Utility Existing Rate Proposed
Rate
Est. Avg.
$ Change
% Change
Solid Waste $34.63 $36.02 $1.39 4%
Water* $48.34 $54.00 $5.66 12%
Sewer $31.94 $32.83 $0.89 3%
Cumulative Total $114.91 $122.85 $7.94
*Average residential customer that uses 16 hcf/month
The provisions of Proposition 218 for the approval of rates for solid waste, water and sewer services are different than for other public fees such as lighting and landscaping districts. This process does not require that the City receive a majority vote in support of the rates; it merely prohibits the City Council from adopting the new rates if the City receives protest ballots from more than fifty percent of the rate payers. Barring receipt of such majority protest, the Council is able to set the rates, as long as the required study verifies that the rates are reasonably proximate to the costs of service. In other words, the rates cannot be in excess of what it costs to provide the service. The rates will be reviewed in detail as part of the Consultants second presentation, and if the Council agrees with the proposed rates, it may direct staff to cause the required publishing of the proposed rates for a Public Hearing to be set for June 24, 2025. The Proposed rates will be mailed to all utility customers and property owners prior to the 45-day public notice period based on the following schedule.

Date Action
April 8, 2025. Present initial findings to City Council; Receive input from Council and public
April 22, 2025 Present final recommendations to City Council; Council selects rate option and votes to proceed with Prop 218 process
May 8, 2025 Last day to mail out Prop 218 mailers (48 days prior to hearing) June 24, 2025 Prop 218 Hearing for Water, Sewer, and Solid Waste July 1, 2025 New rates go into effect for Water, Sewer, and Solid Waste FISCAL IMPACT:

Costs associated with the mailing of the Proposition 218 notices will be covered equally by the Water, Sewer and Solid Waste Enterprise Funds.

ALTERNATIVES:

Not to approve the Prop 218 process.

ACTIONS FOLLOWING APPROVAL:

1. Mail out Prop 218 Notices

2. Hold Prop 218 Public Hearing on June 24, 2025
COUNCIL RESOLUTION # XX-25

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHOWCHILLA, CALIFORNIA APPROVING A DATE FOR A PROP 218 PUBLIC HEARING FOR PROPOSED SOLID WASTE,

WATER AND SEWER RATE INCREASES
WHEREAS, the City Council previously approved that city staff move forward in preparation of a Prop 218 hearing; and
WHEREAS, Staff has prepared a Prop 218 notice for distribution to all property owners and Utility customers within the City of Chowchilla; and
WHEREAS, Staff now recommends the date of June 24, 2025 to be set for a Prop 218 public hearing on solid waste, water and sewer rates in conjunction with the regular city council meeting to be held in the Chowchilla Council Chambers at 130 S. Second St., Chowchilla, CA at 4:00 p.m.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Chowchilla hereby finds, determines and declares the following:

1. The above recitals are true and correct.

2. The date of June 24, 2025 is set for a Prop 218 public hearing on proposed water and sewer rate increase to be held in the Chowchilla Council Chambers at 130 S. Second St., Chowchilla, CA at 4:00 p.m.

3. A signed copy of this resolution shall be placed on display at the Utility Billing office within City Hall and on the City website.

4. This resolution is effective immediately.

PASSED AND ADOPTED by the City Council of the City of Chowchilla this 22nd day of April, 2025 by the following vote to wit:

AYES:

NOES:

ABSENT:

ABSTAIN:

APPROVED:

Mayor Kelly Smith
ATTEST:

Joann McClendon, CMC
City Clerk
1 City of Chowchilla
2025 Water Rate Study
Draft Tables V3 – April 15, 2025
UPDATES FROM V2
- Increase annual cost escalator for Energy escalator to 20.0% - Both scenarios include a total of $500,000 for Groundwater Sustainability Plan (GSP) costs over the next five years
WATER RATE SCENARIOS:
- Scenario 1: Includes New Staff Member
- Scenario 2: Does Not Include New Staff Member
Here is a comparison of the proposed water rate increases:

Here is a comparison of the proposed monthly bill for an average residential customer that uses 16 hcf/month:
2025/26 2026/27 2027/28 2028/29 2029/30
Scenario 1: Includes New Staff Member 19.0% 19.0% 19.0% 19.0% 19.0% - Includes New Staff Member in 2025/26
- Annual Cost Escalator for Energy is 20.0%
Scenario 2: Does Not Include New Staff Member 18.0% 18.0% 18.0% 18.0% 18.0% - Does not include New Staff Member in 2025/26
- Annual Cost Escalator for Energy is 20.0%
Proposed Annual Water Rate Increases
Current 2025/26 2026/27 2027/28 2028/29 2029/30
Scenario 1: Includes New Staff Member $48.34 $54.57 $65.25 $77.95 $93.19 $111.37 Scenario 2: Does Not Include New Staff Member $48.34 $54.00 $64.03 $75.95 $90.11 $106.86 Monthly Water Residential Bill Comparison (16 hcf)
2 PROPOSED RATES FOR SCENARIO 1: INCLUDES NEW STAFF MEMBER PROPOSED RATES FOR SCENARIO 2: DOES NOT INCLUDE NEW STAFF MEMBER 2025/26 2026/27 2027/28 2028/29 2029/30
Meter Size
1" $26.74 $29.29 $34.85 $41.47 $49.35 $58.73
1 1/2" $42.55 $45.57 $54.22 $64.52 $76.78 $91.37
2" $61.51 $65.11 $77.46 $92.18 $109.70 $130.54
3" $112.07 $117.20 $139.45 $165.94 $197.47 $234.99
4" $168.96 $175.81 $209.18 $248.92 $296.22 $352.49
6" $326.97 $338.61 $402.88 $479.42 $570.52 $678.89
Proposed New Tiers
Single Family Residential
Tier 1: 0 - 16 hcf $1.35 $1.58 $1.90 $2.28 $2.74 $3.29
Tier 2: Over 16 hcf $1.74 $2.29 $2.75 $3.30 $3.97 $4.77 Non-Single Family Commodity Rate $1.46 $1.85 $2.23 $2.68 $3.22 $3.86 1 - one hundred cubic feet (hcf) = 748 gallons
SCENARIO 1: PROPOSED MONTHLY WATER RATES
Current
Projected

METER CHARGES
COMMODITY RATE ($/hcf)
2025/26 2026/27 2027/28 2028/29 2029/30
Meter Size
1" $26.74 $29.04 $34.27 $40.43 $47.71 $56.30
1 1/2" $42.55 $45.18 $53.32 $62.90 $74.23 $87.59
2" $61.51 $64.55 $76.18 $89.86 $106.05 $125.14
3" $112.07 $116.20 $137.14 $161.77 $190.92 $225.27
4" $168.96 $174.30 $205.72 $242.66 $286.39 $337.91
6" $326.97 $335.70 $396.22 $467.36 $551.59 $650.81
Proposed New Tiers
Single Family Residential
Tier 1: 0 - 16 hcf $1.35 $1.56 $1.86 $2.22 $2.65 $3.16
Tier 2: Over 16 hcf $1.74 $2.27 $2.70 $3.22 $3.84 $4.57 Non-Single Family Commodity Rate $1.46 $1.84 $2.19 $2.61 $3.11 $3.70 1 - one hundred cubic feet (hcf) = 748 gallons
SCENARIO 2: PROPOSED MONTHLY WATER RATES
Current
Projected

METER CHARGES
COMMODITY RATE ($/hcf)
3 The 2025 Water Rate Study is based on the 2024/25 budget and recommends rate adjustments for the five-year period beginning in 2025/26 through 2029/30. The rate increases and projections are draft and will be updated with City input. The tables are based on the following assumptions:

WATER RATE STUDY
 The first rate increase will go into effect on July 1, 2025. Subsequent rate increases will be effective July 1 of each year through July 1, 2029.
 The City’s current water rate structure includes three components:
1) Fixed Meter Charges
2) Commodity Rates, and
3) City Wide System Upgrade (Meter Install and Retrofit) Charges.  Fixed Meter Charges: All customers, residential and non-residential, are charged the same fixed charges based on their meter size.
 Commodity Rates: Residential customers are billed according to a two-tiered inclining rate structure in which the cost per unit of water increases as customers use more water. A hundred cubic feet (hcf) unit of water is equal to 748 gallons of water. Non-residential customers are charged a uniform rate for all water use.
 City Wide System Upgrade (Meter Install and Retrofit) Charges: The total cost for metering the entire City was approximately $4.5 million. To pay for the meter installations, the City adopted separate monthly Meter Install and Retrofit Charges. For customers whose meters were installed in 2013, the monthly charge is $6.51. For customers whose meters were retrofitted in 2014 and 2015, the monthly charge is $2.44. The City Wide System Upgrade Charges generate approximately $200,000 each year. The charges are supposed to be levied for a 12-year period and will begin to be phased out starting in 2025/26 with all charges phased out by 2027/28.  Total number of customers = 4,069 customers, majority are single family residential (SFR) customers
 Average water use = 16 hcf per month
 Average SFR monthly bill = $48.34 (not including System Upgrade Charges)  Growth is estimated at 1.0% each year. No major changes in the customer base are expected through 2029/30.

CASH RESERVES
 As of July 1, 2024, the beginning fund balance for the Water Fund is $2,626,197.  The proposed operating reserve fund target is 25% of Annual O&M Expenses + $500,000 (Equivalent to One Year’s Annual Debt Service Payment or a reserve for the Groundwater Management Plan)
4 WATER REVENUES
 Total budgeted Water Fund Revenues for 2024/25 are $6.7M.  Water Rates for 2024/25 are estimated at $2,835,040 in the cash flow based on 2023/24 actuals, representing a 4.0% increase from the 2023/25 actual Water Rates revenues. o The 2023/24 budget projected $2,960,225 for Water Rates revenues. However, actual revenues were 8.0% lower than budgeted because total consumption decreased 7.0% from 2022/23.
o The 2024/25 budget includes $3,147,859 for Water Rates revenues.  Water-Bond System Upgrade Charges are estimated at $205,000 for 2024/25. The charges anticipated to begin phasing out in 2025/26 through 2027/28.  Water Disconnect/Reconnect revenues are projected at $34,750 for 2024/25 and are not expected to increase over the next 5 years.
 Water Connection Fees are budgeted at $25,000 for 2024/25 and are not projected to increase.  Other Charges for Service are estimated at $25,100 for 2024/25 and are not projected to increase. Other Charges for Service includes Standby Fees, Application Fee, Hydrant Meter Rent, Repairs Charged to Customer, Water Sales - LLMD, Bulk Water Sales, Water Turn Offs/Repairs & Water Systems Upgrade.
 Investment Earnings are projected at 1.0% of the cash fund balance each year.  CREB Subsidy is budgeted at $68,511 for 2024/25 and is not anticipated to change over the next five years.
 Other Revenues are projected to total $38,134 for 2024/25 and is not anticipated to change over the next five years. Other Revenues include Unrealized Gain/Loss, Collection Proceeds, Payroll Reimbursements, Miscellaneous Revenues, and Amortization of Premium.  Fines and Penalties are estimated at $50,000 each year and are not projected to increase.  Transfers In for 2024/25 are budgeted at $3.2M and include $2.9M in ARPA funds. This is a onetime revenue source. For future years, Transfers In are projected at $305,000 annually beginning in 2025/26.

WATER OPERATING EXPENSES
 Total budgeted operating expenses for 2024/25 is $2.831,937 (does not include capital, debt service, or depreciation).
 Salaries & Benefits are increased by 10.0% beginning in 2025/26 each year to account for the need to increase overall salaries.
 Projections include a new water employee in 2025/25 at an estimated cost of $100,000/year  Energy is increased by 20.0% each year beginning in 2025/26.  All other expenses are increased by 3.0% each year.
 Groundwater Management Plan expenses are budgeted at $7,500 for 2024/25. Beginning in 2025/26, expenses include $100,000 per year as a placeholder for future GSP expenses. The goal is to build a $500,000 reserve for Groundwater Sustainability Plan projects by 2029/30.  Contract Services increased from $58,600 to $120,000 in the 2024/25 budget.  Liability Insurance increased from $53,297 to $74,475 in the 2024/25 budget. 5 NET REVENUES
 Based on historical budget figures, the Water Fund did not fully cover expenses in 2022/23. The 2024/25 budget also projects an operating deficit of approximately $656,150 which will be drawn down from cash reserves.

CAPITAL PROJECTS
 The Five-Year (2024/25 through 2028/29) CIP includes a total of $6.8M in projects.  In 2024/25, $2.9M in projects (Water Tanks Backup Generators, Well No. 16 Development, and Berenda Slough Water Extension) will be paid for with ARPA funds.  The remaining $3.9M in projects include Well No. 17 Development, Water Main Replacements, Well No. 15 Development, and Water Storage Tank No. 3. These projects will all be cash-funded.

OUTSTANDING DEBT
 Water Fund currently has 2 outstanding debt obligation:
o 2016 Safe Drinking Water Revolving Fund loan for $3,205,991  Annual debt service = $160,300
 Last payment is due in July 2038
o 2017 Water Revenue Bonds for $8,160,000
 Annual debt service ranges from $329,000 to $418,000
 Last payment is due in June 2047
 Based on historical budget figures, the Water Fund has been meeting its debt service coverage covenant
 A debt service coverage ratio is a financial measure of an agency’s ability to repay outstanding debt. The ratio requires that annual water net revenues (gross revenues less operating and maintenance expenses) must be at least 1.25 times the combined annual debt service payments on all parity obligations. Failure to meet the debt service coverage ratio on an annual basis is considered to be technical default. Moreover, failing to meet coverage could make it difficult for the City to obtain additional debt funding. Therefore, rates and fees must be set to meet this legal requirement.

WATER RATE STRUCTURE
 Because the City had just completed metering all customers, the 2019 study recommended waiting until the City had a few years’ worth of actual consumption data before making any rate structure changes.
 Per Proposition 218 and legal rulings, each water rate tier breakpoint (i.e. the consumption used in each tier) and the price of each tier must be individually cost-justified. Higher use must be directly tied to specific costs such as imported water, higher electricity costs associated with peak pumping, increased maintenance, and/or conservation programs. Tiers can no longer be assigned to customers solely based on conservation objectives. Because the City relies solely on groundwater for its supply, it can be difficult to assign additional costs to the higher tiers. 6  Commodity Rate:
o Proposed SFR Tiers: Change tier breakpoint to reflect average SFR monthly use  Tier 1: 0 – 16 hcf
 Tier 2: Over 16 hcf
$27.09
$28.70 $32.25
$45.74
$50.11
$50.78
$54.00
$54.57
$58.51
$69.21
$69.69
$73.27
$80.31
$82.80
$102.94
$119.00
$0
$20
$40
$60
$80
$100
$120
$140
Monthly Water Bill Survey - March 2025
Single Family Residential (1" meter, 16 hcf monthly use) *Includes $2.44 meter replacement fee
7 Table 1: Current Monthly Water Rates DRAFT 4/15/25
City of Chowchilla
2025 Water Rate Study
2019 2020/21 2021/22 2022/23 2023/24 2024/25

METER CHARGES
Meter Size
1" $20.59 $22.00 $23.10 $24.26 $25.47 $26.74
1 1/2" $30.03 $35.00 $36.75 $38.59 $40.52 $42.55
2" $41.36 $50.60 $53.13 $55.79 $58.58 $61.51
3" $77.23 $92.20 $96.81 $101.65 $106.73 $112.07
4" $130.10 $139.00 $145.95 $153.25 $160.91 $168.96
6" $275.48 $269.00 $282.45 $296.57 $311.40 $326.97
COMMODITY RATE ($/hcf)
Single Family Residential
Tier 1: 0 - 18 hcf $0.97 $1.11 $1.17 $1.23 $1.29 $1.35
Tier 2: Over 18 hcf $1.25 $1.43 $1.50 $1.58 $1.66 $1.74 Non-Single Family Commodity Rate $1.04 $1.20 $1.26 $1.32 $1.39 $1.46

METER INSTALL & RETROFIT CHARGES
2013 Metered Customers $6.51 $6.51 $6.51 $6.51 $6.51 $6.51 2014 Retrofitted Customers $2.44 $2.44 $2.44 $2.44 $2.44 $2.44 2015 Retrofitted Customers $2.44 $2.44 $2.44 $2.44 $2.44 $2.44 1 - one hundred cubic feet (hcf) = 748 gallons

MONTHLY WATER RATES
8 Table 2: Historical Water Sales Revenues for 2022/23 and 2023/24 DRAFT 4/15/25 City of Chowchilla
2025 Water Rate Study
Meter Size No. of Meters
2022/23
Monthly Rate
Total
Revenues % of Total Meter Size No. of Meters
2023/24
Monthly Rate
Total
Revenues % of Total
1" 3,765 $24.26 $1,096,067 87.9% 1" 3,891 $25.47 $1,189,245 87.8% 1 1/2" 29 $38.59 $13,429 1.1% 1 1/2" 28 $40.52 $13,615 1.0% 2" 104 $55.79 $69,626 5.6% 2" 108 $58.58 $75,920 5.6%
3" 17 $101.65 $20,737 1.7% 3" 20 $106.73 $25,615 1.9%
4" 18 $153.25 $33,102 2.7% 4" 18 $160.91 $34,757 2.6%
6" 4 $296.57 $14,235 1.1% 6" 4 $311.40 $14,947 1.1%
Total Fixed Revenues 3,937 $1,247,196 100.0% Total Fixed Revenues 4,069 $1,354,099 100.0% Annual
Consumption (hcf)
2022/23
Rates
Total
Revenues % of Total
Annual
Consumption
(hcf) 2023/24 Rates
Total
Revenues % of Total
Single Family Residential Single Family Residential
Tier 1: 0 - 18 hcf 491,503 $1.23 $604,549 42.5% Tier 1: 0 - 18 hcf 478,614 $1.29 $617,412 45.5% Tier 2: Over 18 hcf 225,138 $1.58 $355,718 25.0% Tier 2: Over 18 hcf 187,001 $1.66 $310,422 22.9% Subtotal 716,641 $960,267 67.5% Subtotal 665,615 $927,834 68.3% All Other Customers 349,808 $1.32 $461,747 32.5% All Other Customers 309,441 $1.39 $430,123 31.7% Total Commodity Rate 1,066,449 $1,422,013 100.0% Total Commodity Rate 975,056 $1,357,957 100.0% Total
Revenues % of Total
Total
Revenues % of Total
Fixed Charges $1,247,196 47% Fixed Charges $1,354,099 50% Commodity Rates $1,422,013 53% Commodity Rates $1,357,957 50% Total Water Sales Revenues $2,669,209 100% Total Water Sales Revenues $2,712,055 100%

TOTAL WATER SALES REVENUES TOTAL WATER SALES REVENUES
FY2022/23 FY2023/24

METER CHARGES METER CHARGES

COMMODITY RATES COMMODITY RATES
9 Table 3: Water System Upgrade Fees (Meter Install and Retrofit Charges) DRAFT 4/15/25 City of Chowchilla
2025 Water Rate Study
Charge
No. of
Customers Monthly Fee
Total Annual
Revenue
Total Revenue
for 12-Years
Year Fee
Expires
2013 System Upgrade Meter Fee (Rate Code 5004) 1,819 $6.51 $142,100 $1,705,203 2025 2014 & 2015 System Upgrade Retrofit (Rate Code 5003) 1,979 $2.44 $57,945 $695,341 2026 & 2027 Total 3,798 $200,045 $2,400,545
10 Table 4: Water Net Revenues DRAFT 4/15/25
City of Chowchilla
2025 Water Rate Study
Budget
2021/22 2022/23 2023/24 2024/25
Operating Revenues
Water Sales $2,471,837 $2,677,901 $2,725,197 $3,147,859 Water Bond-Systems Upgrade [1] $193,431 $205,942 $200,000 $205,000 Water Connection Fees $55,992 $29,252 $3,096 $10,000
Other Charges for Services $19,150 $50,893 $44,212 $61,100 Fines and Penalties $11,606 $86,137 $68,643 $88,042
Other Revenues $125,788 $155,814 $200,970 $181,563
Total Operating Revenues $2,877,804 $3,205,939 $3,242,118 $3,693,564 Operating Expenditures [2]
Salaries and Benefits ($145,154) $1,221,072 $619,871 $755,992 Operations and Maintenance $1,109,544 $1,139,459 $1,048,101 $1,406,859 Debt Service $441,360 $368,061 $553,571 $553,621
Overhead Allocations $584,485 $677,212 $701,190 $723,306 Transfers Out $284,831 $327,354 $398,733 $311,613
Total Operating Expenditures $2,275,066 $3,733,158 $3,321,466 $3,751,391 Net Operating Revenues $602,738 ($527,219) ($79,348) ($57,827) Capital Revenues
Transfers In $291,291 $376,824 $2,032,075 $3,641,440
Total Capital Revenues $291,291 $376,824 $2,032,075 $3,641,440 Capital Expenses
Vehicles, Machinery & Equip $0 $0 $21,000 $20,000
Fleet Program $0 $0 $6,052 $18,252
Infrastructure $0 $0 $20,000 $75,000
Construction in Progress/Capital Outlay [3] $0 $0 $1,980,082 $4,263,420 Total Capital Expenses $0 $0 $2,027,134 $4,376,672
Net Capital Revenues $291,291 $376,824 $4,941 ($735,232) Source: Fiscal Year 2024-2025 Budget
1 - How much was received in Bond System Upgrade charges in 2023/24? Not included in Trial Balance Account Summary 2 - Does not include Depreciation
3 - 2023/24 Capital Outlay information provided by staff (email 3/13/2025) Actual

CAPITAL

OPERATING
11 Table 5: Water Operating Expenses DRAFT 4/15/25
City of Chowchilla
2025 Water Rate Study
Actual Budget Escalation
2023/24 2024/25 Factor 2025/26 2026/27 2027/28 2028/29 2029/30 Operating Expenses
Salaries & Benefits [1] $619,871 $755,992 10.0% $942,000 $1,036,000 $1,140,000 $1,254,000 $1,379,000 Operations & Maintenance
Energy 692,155 809,879 20.0% 972,000 1,166,000 1,399,000 1,679,000 2,015,000 System Repairs 131,375 161,710 3.0% 167,000 172,000 177,000 182,000 187,000 Contracted Services 9,512 126,960 3.0% 131,000 135,000 139,000 143,000 147,000 Groundwater Management Plan 0 7,500 0.0% 100,000 100,000 100,000 100,000 100,000 Liability Insurance 53,446 74,457 3.0% 77,000 79,000 81,000 83,000 85,000 Other Operations 161,613 226,353 3.0% 253,000 261,000 269,000 277,000 285,000 Subtotal O&M 1,048,101 1,406,859 1,700,000 1,913,000 2,165,000 2,464,000 2,819,000 Overhead Allocation 701,190 732,186 3.0% 754,000 777,000 800,000 824,000 849,000 Total Operating Expenses 2,369,162 2,895,037 3,396,000 3,726,000 4,105,000 4,542,000 5,047,000 % Change 22.2% 17.3% 9.7% 10.2% 10.6% 11.1%
1 - Includes one new Water System employee in 2025/26. Total salary & benefits for new worker is estimated at $100,000/year.

Projected
12 Table 6: Water Capital Improvement Projects DRAFT 4/15/25 City of Chowchilla
2025 Water Rate Study
Project # Project 2024/25 2025/26 2026/27 2027/28 2028/29 Total W-10 Well No. 17 Development [1] - - - $110,000 $1,550,000 $1,660,000 W-3 Water Main Replacement, Various Locations $250,000 $50,000 $50,000 $50,000 $50,000 $450,000 W-4 Well No. 15 Development $380,105 - - - - $380,105
W-6 Water Tanks Backup Generators $533,000 - - - - $533,000 W-7 Well No. 16 Development $1,460,000 - - - - $1,460,000 W-9 Berenda Slough Water Extension $944,230 - - - - $944,230 Meter Replacements - - - $200,000 $200,000 $400,000
Total Water Capital Projects $3,567,335 $50,000 $50,000 $360,000 $1,800,000 $5,827,335 Cost Escalation (5% annually) 100.0% 105.0% 110.3% 115.8% 121.6% Total Water Capital Projects - Escalated Costs $3,567,335 $52,500 $55,125 $416,745 $2,187,911 $6,279,616 Source: City of Chowchilla Capital Improvement Plan '24/'25 thru '28/'29 Projects funded with ARPA Funds $2,937,230
Remaining Projects to be Funded $3,342,386
Total CIP $6,279,616

ESCALATED PROJECT COSTS
13 Table 7: Water Cost Allocation DRAFT 4/15/25
City of Chowchilla
2025 Water Rate Study
Expenses
Budget
2024/25 Base Extra Meters Cust. Service Total
Operating Expenses
Salaries & Benefits $755,992 25.0% 25.0% 25.0% 25.0% 100% Operations & Maintenance
Energy $809,879 51.9% 48.1% 0.0% 0.0% 100%
System Repairs $161,710 51.9% 13.1% 25.0% 10.0% 100%
Contracted Services $126,960 51.9% 13.1% 25.0% 10.0% 100% Groundwater Management Plan $7,500 51.9% 23.1% 25.0% 0.0% 100% Liability Insurance $74,457 25.0% 25.0% 25.0% 25.0% 100% Other Operations $226,353 51.9% 13.1% 25.0% 10.0% 100%
Subtotal O&M $2,162,851 $899,622 $665,871 $338,243 $259,115 $2,162,851 Overhead Allocation
Overhead Allocation GF $389,188 0.0% 0.0% 50.0% 50.0% 100% Overhead Allocation Streets $151,782 0.0% 0.0% 100.0% 0.0% 100% Overhead Allocation Fleet $37,722 0.0% 0.0% 100.0% 0.0% 100% Overhead Allocation IT $153,494 0.0% 0.0% 50.0% 50.0% 100% Subtotal Overhead Allocation $732,186 $0 $0 $460,845 $271,341 $732,186 Debt Service $534,895 25.0% 25.0% 25.0% 25.0% 100%
(5-year Avg) $133,724 $133,724 $133,724 $133,724 $534,895 Capital Projects $675,456 30.0% 30.0% 25.0% 15.0% 100%
(5-year Avg) $202,637 $202,637 $168,864 $101,318 $675,456 Total Water Expenses $4,105,388 $1,235,983 $1,002,232 $1,101,676 $765,498 $4,105,388 Total Cost Allocation 30.1% 24.4% 26.8% 18.6% 100.0%
14 Table 8: Water Utility Cash Flow - No Rate Increases DRAFT 4/15/25 City of Chowchilla
2025 Water Rate Study
Budget
2024/25 2025/26 2026/27 2027/28 2028/29 2029/30
1 Rate Increase Effective July 1, 2025 July 1, 2026 July 1, 2027 July 1, 2028 July 1, 2029 2 Annual Rate Increase 0.0% 0.0% 0.0% 0.0% 0.0%
3 Growth Rate 1.0% 1.0% 1.0% 1.0% 1.0%
4 5 Beginning Operating Fund Balance [1] $2,626,197 $1,809,385 $1,012,083 ($161,322) ($2,107,129) ($6,282,074) 6 7 REVENUES
8 Charges for Service
9 Water Rates [2] 2,835,040 2,863,000 2,892,000 2,921,000 2,950,000 2,980,000 10 Water-Bond System Upgrades [3] 205,000 100,023 57,945 28,973 0 0 11 Water Disconnect/Reconnect 35,000 35,000 35,000 35,000 35,000 35,000 12 Water Connection Fees 10,000 10,000 10,000 10,000 10,000 10,000 13 Other Charges for Service [4] 26,100 26,100 26,100 26,100 26,100 26,100 14 Total Charges for Service 3,111,140 3,034,123 3,021,045 3,021,073 3,021,100 3,051,100 15 Other Revenues
16 Investment Earnings 73,829 18,100 10,100 0 0 0
17 CREB Subsidy 68,511 68,500 68,500 68,500 68,500 68,500 18 Other Revenues 39,223 40,000 41,000 42,000 43,000 44,000 19 Total Other Revenues 181,563 126,600 119,600 110,500 111,500 112,500 20 Fines & Penalties 88,000 88,000 88,000 88,000 88,000 88,000 21 Transfers In 3,241,440 305,000 305,000 305,000 305,000 305,000 22 TOTAL REVENUES 6,622,143 3,553,723 3,533,645 3,524,573 3,525,600 3,556,600 23 24 EXPENSES
25 Operating Expenses
26 Salaries & Benefits 755,992 942,000 1,036,000 1,140,000 1,254,000 1,379,000 27 Operations & Maintenance 1,399,359 1,600,000 1,813,000 2,065,000 2,364,000 2,719,000 28 Groundwater Management Plan 7,500 100,000 100,000 100,000 100,000 100,000 29 Overhead Allocation 732,186 754,000 777,000 800,000 824,000 849,000 30 Total Operating Expenses 2,895,037 3,396,000 3,726,000 4,105,000 4,542,000 5,047,000 31 32 Net Operating Revenue 3,727,106 157,723 (192,355) (580,427) (1,016,400) (1,490,400) 33 34 Debt Service
35 2016 SWRCB 160,300 160,300 160,300 160,300 160,300 160,300 36 2017 Bonds 393,321 329,226 352,626 375,335 397,334 418,458 37 Total Debt Service 553,621 489,525 512,925 535,634 557,633 578,757 38 39 Capital Outlay
40 Water CIP [5] 3,567,335 52,500 55,125 416,745 2,187,911 100,000 41 Vehicles, Machinery & Equip 20,000 20,000 20,000 20,000 20,000 20,000 42 Fleet Program 18,252 18,000 18,000 18,000 18,000 18,000 43 Infrastructure 75,000 75,000 75,000 75,000 75,000 75,000 44 Total Capital Expenses 3,680,587 165,500 168,125 529,745 2,300,911 213,000 45 46 Transfers Out 309,710 300,000 300,000 300,000 300,000 300,000 47 48 TOTAL EXPENSES 7,438,955 4,351,025 4,707,050 5,470,379 7,700,545 6,138,757 49 50 Coverage Ratio (1.25x) 6.73 0.32 (0.38) (1.08) (1.82) (2.58) 51 52 Net Total Revenues (816,812) (797,302) (1,173,405) (1,945,807) (4,174,945) (2,582,157) 53 54 Ending Fund Balance 1,809,385 1,012,083 (161,322) (2,107,129) (6,282,074) (8,864,231) 55 56 Target (25% of O&M + $500,000) [6] 1,223,800 1,349,000 1,431,500 1,526,300 1,635,500 1,761,800 57 Target Met? YES NO NO NO NO NO
58 1 - Trial Balance Account Summary Date Range: 07/01/2023 - 06/30/2024 2 - Based on 2023/24 actuals
3 - Assumes that the System Upgrade Meter Fees will be phased out by 2028 4 - Includes Standby Fees, Application Fee, Hydrant Meter Rent, Repairs Charged to Customer, Water Sales - LLMD, Bulk Water Sales, Water Turn Offs/Repairs & Water System 5 - Capital projects for 2029/30 estimated
6 - Recommended target is 25% of O&M per City Administrative Policy and Procedure Manual + $500,000 for Groundwater Management Plan or Annual Debt Service Projected
15 Table 9: Scenario 1: Includes New Staff Member - Water Utility Cash Flow DRAFT 4/15/25 City of Chowchilla
2025 Water Rate Study
Budget
2024/25 2025/26 2026/27 2027/28 2028/29 2029/30
1 Rate Increase Effective July 1, 2025 July 1, 2026 July 1, 2027 July 1, 2028 July 1, 2029 2 Annual Rate Increase 19.0% 19.0% 19.0% 19.0% 19.0%
3 Growth Rate 1.0% 1.0% 1.0% 1.0% 1.0%
4 5 Beginning Operating Fund Balance [1] $2,626,197 $1,809,385 $1,556,083 $1,591,178 $1,662,271 $469,926 6 7 REVENUES
8 Charges for Service
9 Water Rates [2] 2,835,040 3,407,000 4,095,000 4,922,000 5,916,000 7,110,000 10 Water-Bond System Upgrades [3] 205,000 100,023 57,945 28,973 0 0 11 Water Disconnect/Reconnect 35,000 35,000 35,000 35,000 35,000 35,000 12 Water Connection Fees 10,000 10,000 10,000 10,000 10,000 10,000 13 Other Charges for Service [4] 26,100 26,100 26,100 26,100 26,100 26,100 14 Total Charges for Service 3,111,140 3,578,123 4,224,045 5,022,073 5,987,100 7,181,100 15 Other Revenues
16 Investment Earnings 73,829 18,100 15,600 15,900 16,600 4,700 17 CREB Subsidy 68,511 68,500 68,500 68,500 68,500 68,500 18 Other Revenues 39,223 40,000 41,000 42,000 43,000 44,000 19 Total Other Revenues 181,563 126,600 125,100 126,400 128,100 117,200 20 Fines & Penalties 88,000 88,000 88,000 88,000 88,000 88,000 21 Transfers In 3,241,440 305,000 305,000 305,000 305,000 305,000 22 TOTAL REVENUES 6,622,143 4,097,723 4,742,145 5,541,473 6,508,200 7,691,300 23 24 EXPENSES
25 Operating Expenses
26 Salaries & Benefits 755,992 942,000 1,036,000 1,140,000 1,254,000 1,379,000 27 Operations & Maintenance 1,399,359 1,600,000 1,813,000 2,065,000 2,364,000 2,719,000 28 Groundwater Management Plan 7,500 100,000 100,000 100,000 100,000 100,000 29 Overhead Allocation 732,186 754,000 777,000 800,000 824,000 849,000 30 Total Operating Expenses 2,895,037 3,396,000 3,726,000 4,105,000 4,542,000 5,047,000 31 32 Net Operating Revenue 3,727,106 701,723 1,016,145 1,436,473 1,966,200 2,644,300 33 34 Debt Service
35 2016 SWRCB 160,300 160,300 160,300 160,300 160,300 160,300 36 2017 Bonds 393,321 329,226 352,626 375,335 397,334 418,458 37 Total Debt Service 553,621 489,525 512,925 535,634 557,633 578,757 38 39 Capital Outlay
40 Water CIP [5] 3,567,335 52,500 55,125 416,745 2,187,911 100,000 41 Vehicles, Machinery & Equip 20,000 20,000 20,000 20,000 20,000 20,000 42 Fleet Program 18,252 18,000 18,000 18,000 18,000 18,000 43 Infrastructure 75,000 75,000 75,000 75,000 75,000 75,000 44 Total Capital Expenses 3,680,587 165,500 168,125 529,745 2,300,911 213,000 45 46 Transfers Out 309,710 300,000 300,000 300,000 300,000 300,000 47 48 TOTAL EXPENSES 7,438,955 4,351,025 4,707,050 5,470,379 7,700,545 6,138,757 49 50 Coverage Ratio (1.25x) 6.73 1.43 1.98 2.68 3.53 4.57 51 52 Net Total Revenues (816,812) (253,302) 35,095 71,093 (1,192,345) 1,552,543 53 54 Ending Fund Balance 1,809,385 1,556,083 1,591,178 1,662,271 469,926 2,022,469 55 56 Target (25% of O&M + $500,000) [6] 1,223,800 1,349,000 1,431,500 1,526,300 1,635,500 1,761,800 57 Target Met? YES YES YES YES NO YES
58 1 - Trial Balance Account Summary Date Range: 07/01/2023 - 06/30/2024 2 - Based on 2023/24 actuals
3 - Assumes that the System Upgrade Meter Fees will be phased out by 2028 4 - Includes Standby Fees, Application Fee, Hydrant Meter Rent, Repairs Charged to Customer, Water Sales - LLMD, Bulk Water Sales, Water Turn Offs/Repairs & Water System 5 - Capital projects for 2029/30 estimated
6 - Recommended target is 25% of O&M per City Administrative Policy and Procedure Manual + $500,000 for Groundwater Management Plan or Annual Debt Service Projected
16 Table 10: Scenario 1: Includes New Staff Member - Annual Revenue Requirement Allocation City of Chowchilla
2025 Water Rate Study
2025/26 2026/27 2027/28 2028/29 2029/30
Total Revenue Requirement [1] $3,407,000 $4,095,000 $4,922,000 $5,916,000 $7,110,000

FIXED CHARGES
Meters & Services 26.8% $914,264 $1,098,888 $1,320,813 $1,587,551 $1,907,960 Customer Service Charge 18.6% $635,275 $763,561 $917,765 $1,103,108 $1,325,743 Total Fixed Charges 45.5% $1,549,539 $1,862,449 $2,238,577 $2,690,659 $3,233,702 CONSUMPTION CHARGES 2835040
Base 30.1% $1,025,724 $1,232,855 $1,481,835 $1,781,092 $2,140,562 Extra 24.4% $831,737 $999,696 $1,201,588 $1,444,249 $1,735,736 Total Consumption Charges 54.5% $1,857,461 $2,232,551 $2,683,423 $3,225,341 $3,876,298 TOTAL 100.0% $3,407,000 $4,095,000 $4,922,000 $5,916,000 $7,110,000 1 - From Cash Flow (Table 8, line 9)
Cost
Allocation %
Projected
17 Table 11: Scenario 1: Includes New Staff Member - Water Fixed Charge Derivation City of Chowchilla
2025 Water Rate Study
2025/26 2026/27 2027/28 2028/29 2029/30

REVENUE REQUIREMENT
Meters & Services $914,264 $1,098,888 $1,320,813 $1,587,551 $1,907,960 Customer Service Charge $635,275 $763,561 $917,765 $1,103,108 $1,325,743 Total Fixed Charge Revenue Requirement $1,549,539 $1,862,449 $2,238,577 $2,690,659 $3,233,702 Total Meters & Service Revenue Requirement 7.8% $914,264 $1,098,888 $1,320,813 $1,587,551 $1,907,960 Total Number of Meter Equivalents 4,681 4,728 4,775 4,823 4,871 Total Meter Equivalent Charge $16.28 $19.37 $23.05 $27.43 $32.64 Meter Size Meter Ratio
1" 1.0 $16.28 $19.37 $23.05 $27.43 $32.64
1-1/2" 2.0 $32.56 $38.74 $46.10 $54.86 $65.28
2" 3.2 $52.10 $61.98 $73.76 $87.78 $104.45
3" 6.4 $104.19 $123.97 $147.52 $175.55 $208.90
4" 10.0 $162.80 $193.70 $230.50 $274.30 $326.40
6" 20.0 $325.60 $387.40 $461.00 $548.60 $652.80
Total Customer Service Charge Rev Requiremen 7.8% $635,275 $763,561 $917,765 $1,103,108 $1,325,743 Total Number of Customers 4,069 4,110 4,151 4,193 4,235 Total Customer Service Charge per Account $13.01 $15.48 $18.42 $21.92 $26.09 Current
Meter Size Rates
1" $26.74 $29.29 $34.85 $41.47 $49.35 $58.73
1-1/2" $42.55 $45.57 $54.22 $64.52 $76.78 $91.37
2" $61.51 $65.11 $77.46 $92.18 $109.70 $130.54
3" $112.07 $117.20 $139.45 $165.94 $197.47 $234.99
4" $168.96 $175.81 $209.18 $248.92 $296.22 $352.49
6" $326.97 $338.61 $402.88 $479.42 $570.52 $678.89
1 - Total Monthly Fixed Charge is the sum of the "Meter Equivalent Charge" by meter size plus the "Total Customer Service Charge per Account" C. TOTAL MONTHLY FIXED CHARGE [1]
Projected
A. METER EQUIVALENT CHARGE
Meter Equivalent Charge by Meter Size
B. CUSTOMER SERVICE CHARGE
18 Table 12: Scenario 1: Includes New Staff Member - Commodity Rate Derivation City of Chowchilla
2025 Water Rate Study
2025/26 2026/27 2027/28 2028/29 2029/30

REVENUE REQUIREMENT
Base Revenue Requirement $1,025,724 $1,232,855 $1,481,835 $1,781,092 $2,140,562 Extra Revenue Requirement $831,737 $999,696 $1,201,588 $1,444,249 $1,735,736 Total Consumption Charges $1,857,461 $2,232,551 $2,683,423 $3,225,341 $3,876,298

COMMODITY CHARGE DERIVATION
Single Family Residential Customers
Tier 1 Revenue Requirement $741,188 $890,862 $1,070,775 $1,287,018 $1,546,771 Tier 1: 0-16 hcf Consumption 469,905 469,905 469,905 469,905 469,905 Tier 1 Rate per hcf $1.58 $1.90 $2.28 $2.74 $3.29
Tier 2 Revenue Requirement $505,866 $608,019 $730,810 $878,398 $1,055,681 Tier 2: Above 16 hcf Consumption 221,223 221,223 221,223 221,223 221,223 Tier 2 Rate per hcf $2.29 $2.75 $3.30 $3.97 $4.77
All Other Customers
Base Revenue Requirement $284,535 $341,993 $411,060 $494,074 $593,791 Extra Revenue Requirement $325,871 $391,677 $470,778 $565,851 $680,055 Total Commodity Rev Requirement $610,407 $733,670 $881,838 $1,059,925 $1,273,845 Projected Consumption (ccf) [1] 329,625 329,625 329,625 329,625 329,625 Commodity Charge per ccf $1.85 $2.23 $2.68 $3.22 $3.86
1 - Based on 2023/24 total consumption
Projected
19 Table 13: Scenario 1: Includes New Staff Member - Proposed Monthly Water Rates DRAFT 4/15/25 City of Chowchilla
2025 Water Rate Study
2025/26 2026/27 2027/28 2028/29 2029/30
Meter Size
1" $26.74 $29.29 $34.85 $41.47 $49.35 $58.73
1 1/2" $42.55 $45.57 $54.22 $64.52 $76.78 $91.37
2" $61.51 $65.11 $77.46 $92.18 $109.70 $130.54
3" $112.07 $117.20 $139.45 $165.94 $197.47 $234.99
4" $168.96 $175.81 $209.18 $248.92 $296.22 $352.49
6" $326.97 $338.61 $402.88 $479.42 $570.52 $678.89
Proposed New Tiers
Single Family Residential
Tier 1: 0 - 16 hcf $1.35 $1.58 $1.90 $2.28 $2.74 $3.29
Tier 2: Over 16 hcf $1.74 $2.29 $2.75 $3.30 $3.97 $4.77 Non-Single Family Commodity Rate $1.46 $1.85 $2.23 $2.68 $3.22 $3.86 1 - one hundred cubic feet (hcf) = 748 gallons
SCENARIO 1: PROPOSED MONTHLY WATER RATES
Current
Projected

METER CHARGES
COMMODITY RATE ($/hcf)
20 Table 13: Scenario 1: Includes New Staff Member - Single Family Residential Bill Impacts DRAFT 4/15/25 City of Chowchilla
2025 Water Rate Study
Monthly Use Current Monthly Use
(hcf) Bill (hcf) 2025/26 2026/27 2027/28 2028/29 2029/30 LOW WATER USE: 9 HCF
Meter Charge - 1" $26.74 Meter Charge - 1" $29.29 $34.85 $41.47 $49.35 $58.73 Commodity Rate Commodity Rate
Tier 1: 0 - 18 hcf 9 $12.15 Tier 1: 0 - 16 hcf 9 $14.22 $17.10 $20.52 $24.66 $29.61 Tier 2: Over 18 hcf 0 $0.00 Tier 2: Over 16 hcf 0 $0.00 $0.00 $0.00 $0.00 $0.00 Subtotal Commodity Rate 9 $12.15 Subtotal Commodity Rate 9 $14.22 $17.10 $20.52 $24.66 $29.61 Total Monthly Water Bill $38.89 Total Monthly Water Bill $43.51 $51.95 $61.99 $74.01 $88.34 $ Change $ Change $4.62 $8.44 $10.04 $12.02 $14.33
% Change % Change 11.9% 19.4% 19.3% 19.4% 19.4%
AVERAGE USE: 16 HCF
Meter Charge - 1" $26.74 Meter Charge - 1" $29.29 $34.85 $41.47 $49.35 $58.73 Commodity Rate Commodity Rate
Tier 1: 0 - 18 hcf 16 $21.60 Tier 1: 0 - 16 hcf 16 $25.28 $30.40 $36.48 $43.84 $52.64 Tier 2: Over 18 hcf 0 $0.00 Tier 2: Over 16 hcf 0 $0.00 $0.00 $0.00 $0.00 $0.00 Subtotal Commodity Rate 16 $21.60 Subtotal Commodity Rate 16 $25.28 $30.40 $36.48 $43.84 $52.64 Total Monthly Water Bill $48.34 Total Monthly Water Bill $54.57 $65.25 $77.95 $93.19 $111.37 $ Change $ Change $6.23 $10.68 $12.70 $15.24 $18.18
% Change % Change 12.9% 19.6% 19.5% 19.6% 19.5%
PREVIOUS TIER BREAKPOINT: 18 HCF
Meter Charge - 1" $26.74 Meter Charge - 1" $29.29 $34.85 $41.47 $49.35 $58.73 Commodity Rate Commodity Rate
Tier 1: 0 - 18 hcf 18 $24.30 Tier 1: 0 - 16 hcf 16 $25.28 $30.40 $36.48 $43.84 $52.64 Tier 2: Over 18 hcf 0 $0.00 Tier 2: Over 16 hcf 2 $4.58 $5.50 $6.60 $7.94 $9.54 Subtotal Commodity Rate 18 $24.30 Subtotal Commodity Rate 18 $29.86 $35.90 $43.08 $51.78 $62.18 Total Monthly Water Bill $51.04 Total Monthly Water Bill $59.15 $70.75 $84.55 $101.13 $120.91 $ Change $ Change $8.11 $11.60 $13.80 $16.58 $19.78
% Change % Change 15.9% 19.6% 19.5% 19.6% 19.6%
HIGH WATER USE: 34 HCF
Meter Charge - 1" $26.74 Meter Charge - 1" $29.29 $34.85 $41.47 $49.35 $58.73 Commodity Rate Commodity Rate
Tier 1: 0 - 18 hcf 18 $24.30 Tier 1: 0 - 16 hcf 16 $25.28 $30.40 $36.48 $43.84 $52.64 Tier 2: Over 18 hcf 16 $27.84 Tier 2: Over 16 hcf 18 $41.22 $49.50 $59.40 $71.46 $85.86 Subtotal Commodity Rate 34 $52.14 Subtotal Commodity Rate 34 $66.50 $79.90 $95.88 $115.30 $138.50 Total Monthly Water Bill $78.88 Total Monthly Water Bill $95.79 $114.75 $137.35 $164.65 $197.23 $ Change $ Change $16.91 $18.96 $22.60 $27.30 $32.58
% Change % Change 21.4% 19.8% 19.7% 19.9% 19.8%
SINGLE FAMILY RESIDENTIAL BILL IMPACTS - 1" METER
Proposed
21 Table 15: Scenario 2: Does Not Include New Staff Member - Water Utility Cash Flow DRAFT 4/15/25 City of Chowchilla
2025 Water Rate Study
Budget
2024/25 2025/26 2026/27 2027/28 2028/29 2029/30
1 Rate Increase Effective July 1, 2025 July 1, 2026 July 1, 2027 July 1, 2028 July 1, 2029 2 Annual Rate Increase 18.0% 18.0% 18.0% 18.0% 18.0%
3 Growth Rate 1.0% 1.0% 1.0% 1.0% 1.0%
4 5 Beginning Operating Fund Balance [1] $2,626,197 $1,809,385 $1,638,083 $1,605,978 $1,554,271 $413,826 6 7 REVENUES
8 Charges for Service
9 Water Rates [2] 2,835,040 3,379,000 4,027,000 4,799,000 5,719,000 6,816,000 10 Water-Bond System Upgrades [3] 205,000 100,023 57,945 28,973 0 0 11 Water Disconnect/Reconnect 35,000 35,000 35,000 35,000 35,000 35,000 12 Water Connection Fees 10,000 10,000 10,000 10,000 10,000 10,000 13 Other Charges for Service [4] 26,100 26,100 26,100 26,100 26,100 26,100 14 Total Charges for Service 3,111,140 3,550,123 4,156,045 4,899,073 5,790,100 6,887,100 15 Other Revenues
16 Investment Earnings 73,829 18,100 16,400 16,100 15,500 4,100 17 CREB Subsidy 68,511 68,500 68,500 68,500 68,500 68,500 18 Other Revenues 39,223 40,000 41,000 42,000 43,000 44,000 19 Total Other Revenues 181,563 126,600 125,900 126,600 127,000 116,600 20 Fines & Penalties 88,000 88,000 88,000 88,000 88,000 88,000 21 Transfers In 3,241,440 305,000 305,000 305,000 305,000 305,000 22 TOTAL REVENUES 6,622,143 4,069,723 4,674,945 5,418,673 6,310,100 7,396,700 23 24 EXPENSES
25 Operating Expenses
26 Salaries & Benefits 755,992 832,000 1,036,000 1,140,000 1,254,000 1,379,000 27 Operations & Maintenance 1,399,359 1,600,000 1,813,000 2,065,000 2,364,000 2,719,000 28 Groundwater Management Plan 7,500 100,000 100,000 100,000 100,000 100,000 29 Overhead Allocation 732,186 754,000 777,000 800,000 824,000 849,000 30 Total Operating Expenses 2,895,037 3,286,000 3,726,000 4,105,000 4,542,000 5,047,000 31 32 Net Operating Revenue 3,727,106 783,723 948,945 1,313,673 1,768,100 2,349,700 33 34 Debt Service
35 2016 SWRCB 160,300 160,300 160,300 160,300 160,300 160,300 36 2017 Bonds 393,321 329,226 352,626 375,335 397,334 418,458 37 Total Debt Service 553,621 489,525 512,925 535,634 557,633 578,757 38 39 Capital Outlay
40 Water CIP [5] 3,567,335 52,500 55,125 416,745 2,187,911 100,000 41 Vehicles, Machinery & Equip 20,000 20,000 20,000 20,000 20,000 20,000 42 Fleet Program 18,252 18,000 18,000 18,000 18,000 18,000 43 Infrastructure 75,000 75,000 75,000 75,000 75,000 75,000 44 Total Capital Expenses 3,680,587 165,500 168,125 529,745 2,300,911 213,000 45 18
46 Transfers Out 309,710 300,000 300,000 300,000 300,000 300,000 47 48 TOTAL EXPENSES 7,438,955 4,241,025 4,707,050 5,470,379 7,700,545 6,138,757 49 50 Coverage Ratio (1.25x) 6.73 1.60 1.85 2.45 3.17 4.06 51 52 Net Total Revenues (816,812) (171,302) (32,105) (51,707) (1,390,445) 1,257,943 53 54 Ending Fund Balance 1,809,385 1,638,083 1,605,978 1,554,271 413,826 1,871,769 55 56 Target (25% of O&M + $500,000) [6] 723,800 1,321,500 1,431,500 1,526,300 1,635,500 1,761,800 57 Target Met? YES YES YES YES NO YES
58 1 - Trial Balance Account Summary Date Range: 07/01/2023 - 06/30/2024 2 - Based on 2023/24 actuals
3 - Assumes that the System Upgrade Meter Fees will be phased out by 2028 4 - Includes Standby Fees, Application Fee, Hydrant Meter Rent, Repairs Charged to Customer, Water Sales - LLMD, Bulk Water Sales, Water Turn Offs/Repairs & Water System 5 - Capital projects for 2029/30 estimated
6 - Recommended target is 25% of O&M per City Administrative Policy and Procedure Manual + $500,000 for Groundwater Management Plan or Annual Debt Service Projected
22 Table 15: Scenario 2: Does Not Include New Staff Member - Annual Revenue Requirement Allocation City of Chowchilla
2025 Water Rate Study
2025/26 2026/27 2027/28 2028/29 2029/30
Total Revenue Requirement [1] $3,379,000 $4,027,000 $4,799,000 $5,719,000 $6,816,000

FIXED CHARGES
Meters & Services 26.8% $906,750 $1,080,640 $1,287,806 $1,534,687 $1,829,065 Customer Service Charge 18.6% $630,054 $750,881 $894,830 $1,066,375 $1,270,923 Total Fixed Charges 45.5% $1,536,805 $1,831,522 $2,182,635 $2,601,061 $3,099,988

CONSUMPTION CHARGES
Base 30.1% $1,017,294 $1,212,383 $1,444,804 $1,721,782 $2,052,049 Extra 24.4% $824,902 $983,095 $1,171,561 $1,396,156 $1,663,963 Total Consumption Charges 54.5% $1,842,195 $2,195,478 $2,616,365 $3,117,939 $3,716,012 TOTAL 100.0% $3,379,000 $4,027,000 $4,799,000 $5,719,000 $6,816,000 1 - From Cash Flow (Table 14, line 9)
Cost
Allocation %
Projected
23 Table 16: Scenario 2: Does Not Include New Staff Member - Water Fixed Charge Derivation City of Chowchilla
2025 Water Rate Study
2025/26 2026/27 2027/28 2028/29 2029/30

REVENUE REQUIREMENT
Meters & Services $906,750 $1,080,640 $1,287,806 $1,534,687 $1,829,065 Customer Service Charge $630,054 $750,881 $894,830 $1,066,375 $1,270,923 Total Fixed Charge Revenue Requirement $1,536,805 $1,831,522 $2,182,635 $2,601,061 $3,099,988 Total Meters & Service Revenue Requirement 7.8% $906,750 $1,080,640 $1,287,806 $1,534,687 $1,829,065 Total Number of Meter Equivalents 4,681 4,728 4,775 4,823 4,871 Total Meter Equivalent Charge $16.14 $19.05 $22.47 $26.52 $31.29 Meter Size Meter Ratio
1" 1.0 $16.14 $19.05 $22.47 $26.52 $31.29
1-1/2" 2.0 $32.28 $38.10 $44.94 $53.04 $62.58
2" 3.2 $51.65 $60.96 $71.90 $84.86 $100.13
3" 6.4 $103.30 $121.92 $143.81 $169.73 $200.26
4" 10.0 $161.40 $190.50 $224.70 $265.20 $312.90
6" 20.0 $322.80 $381.00 $449.40 $530.40 $625.80
Total Customer Service Charge Rev Requiremen 7.8% $630,054 $750,881 $894,830 $1,066,375 $1,270,923 Total Number of Customers 4,069 4,110 4,151 4,193 4,235 Total Customer Service Charge per Account $12.90 $15.22 $17.96 $21.19 $25.01 Current
Meter Size Rates
1" $26.74 $29.04 $34.27 $40.43 $47.71 $56.30
1-1/2" $42.55 $45.18 $53.32 $62.90 $74.23 $87.59
2" $61.51 $64.55 $76.18 $89.86 $106.05 $125.14
3" $112.07 $116.20 $137.14 $161.77 $190.92 $225.27
4" $168.96 $174.30 $205.72 $242.66 $286.39 $337.91
6" $326.97 $335.70 $396.22 $467.36 $551.59 $650.81
1 - Total Monthly Fixed Charge is the sum of the "Meter Equivalent Charge" by meter size plus the "Total Customer Service Charge per Account" C. TOTAL MONTHLY FIXED CHARGE [1]
Projected
A. METER EQUIVALENT CHARGE
Meter Equivalent Charge by Meter Size
B. CUSTOMER SERVICE CHARGE
24 Table 17: Scenario 2: Does Not Include New Staff Member - Commodity Rate Derivation City of Chowchilla
2025 Water Rate Study
2025/26 2026/27 2027/28 2028/29 2029/30

REVENUE REQUIREMENT
Base Revenue Requirement $1,017,294 $1,212,383 $1,444,804 $1,721,782 $2,052,049 Extra Revenue Requirement $824,902 $983,095 $1,171,561 $1,396,156 $1,663,963 Total Consumption Charges $1,842,195 $2,195,478 $2,616,365 $3,117,939 $3,716,012

COMMODITY CHARGE DERIVATION
Single Family Residential Customers
Tier 1 Revenue Requirement $735,097 $876,069 $1,044,016 $1,244,161 $1,482,812 Tier 1: 0-16 hcf Consumption 469,905 469,905 469,905 469,905 469,905 Tier 1 Rate per hcf $1.56 $1.86 $2.22 $2.65 $3.16
Tier 2 Revenue Requirement $501,708 $597,922 $712,548 $849,148 $1,012,028 Tier 2: Above 16 hcf Consumption 221,223 221,223 221,223 221,223 221,223 Tier 2 Rate per hcf $2.27 $2.70 $3.22 $3.84 $4.57
All Other Customers
Base Revenue Requirement $282,197 $336,314 $400,788 $477,621 $569,237 Extra Revenue Requirement $323,193 $385,173 $459,013 $547,009 $651,934 Total Commodity Rev Requirement $605,390 $721,487 $859,801 $1,024,630 $1,221,172 Projected Consumption (ccf) [1] 329,625 329,625 329,625 329,625 329,625 Commodity Charge per ccf $1.84 $2.19 $2.61 $3.11 $3.70
1 - Based on 2023/24 total consumption
Projected
25 Table 18: Scenario 2: Does Not Include New Staff Member - Proposed Monthly Water Rates DRAFT 4/15/25 City of Chowchilla
2025 Water Rate Study
2025/26 2026/27 2027/28 2028/29 2029/30
Meter Size
1" $26.74 $29.04 $34.27 $40.43 $47.71 $56.30
1 1/2" $42.55 $45.18 $53.32 $62.90 $74.23 $87.59
2" $61.51 $64.55 $76.18 $89.86 $106.05 $125.14
3" $112.07 $116.20 $137.14 $161.77 $190.92 $225.27
4" $168.96 $174.30 $205.72 $242.66 $286.39 $337.91
6" $326.97 $335.70 $396.22 $467.36 $551.59 $650.81
Proposed New Tiers
Single Family Residential
Tier 1: 0 - 16 hcf $1.35 $1.56 $1.86 $2.22 $2.65 $3.16
Tier 2: Over 16 hcf $1.74 $2.27 $2.70 $3.22 $3.84 $4.57 Non-Single Family Commodity Rate $1.46 $1.84 $2.19 $2.61 $3.11 $3.70 1 - one hundred cubic feet (hcf) = 748 gallons
SCENARIO 2: PROPOSED MONTHLY WATER RATES
Current
Projected

METER CHARGES
COMMODITY RATE ($/hcf)
26 Table 19: Scenario 2: Does Not Include New Staff Member - Single Family Residential Bill Impacts DRAFT 4/15/25 City of Chowchilla
2025 Water Rate Study
Monthly Use Current Monthly Use
(hcf) Bill (hcf) 2025/26 2026/27 2027/28 2028/29 2029/30 LOW WATER USE: 9 HCF
Meter Charge - 1" $26.74 Meter Charge - 1" $29.04 $34.27 $40.43 $47.71 $56.30 Commodity Rate Commodity Rate
Tier 1: 0 - 18 hcf 9 $12.15 Tier 1: 0 - 16 hcf 9 $14.04 $16.74 $19.98 $23.85 $28.44 Tier 2: Over 18 hcf 0 $0.00 Tier 2: Over 16 hcf 0 $0.00 $0.00 $0.00 $0.00 $0.00 Subtotal Commodity Rate 9 $12.15 Subtotal Commodity Rate 9 $14.04 $16.74 $19.98 $23.85 $28.44 Total Monthly Water Bill $38.89 Total Monthly Water Bill $43.08 $51.01 $60.41 $71.56 $84.74 $ Change $ Change $4.19 $7.93 $9.40 $11.15 $13.18
% Change % Change 10.8% 18.4% 18.4% 18.5% 18.4%
AVERAGE USE: 16 HCF
Meter Charge - 1" $26.74 Meter Charge - 1" $29.04 $34.27 $40.43 $47.71 $56.30 Commodity Rate Commodity Rate
Tier 1: 0 - 18 hcf 16 $21.60 Tier 1: 0 - 16 hcf 16 $24.96 $29.76 $35.52 $42.40 $50.56 Tier 2: Over 18 hcf 0 $0.00 Tier 2: Over 16 hcf 0 $0.00 $0.00 $0.00 $0.00 $0.00 Subtotal Commodity Rate 16 $21.60 Subtotal Commodity Rate 16 $24.96 $29.76 $35.52 $42.40 $50.56 Total Monthly Water Bill $48.34 Total Monthly Water Bill $54.00 $64.03 $75.95 $90.11 $106.86 $ Change $ Change $5.66 $10.03 $11.92 $14.16 $16.75
% Change % Change 11.7% 18.6% 18.6% 18.6% 18.6%
PREVIOUS TIER BREAKPOINT: 18 HCF
Meter Charge - 1" $26.74 Meter Charge - 1" $29.04 $34.27 $40.43 $47.71 $56.30 Commodity Rate Commodity Rate
Tier 1: 0 - 18 hcf 18 $24.30 Tier 1: 0 - 16 hcf 16 $24.96 $29.76 $35.52 $42.40 $50.56 Tier 2: Over 18 hcf 0 $0.00 Tier 2: Over 16 hcf 2 $4.54 $5.40 $6.44 $7.68 $9.14 Subtotal Commodity Rate 18 $24.30 Subtotal Commodity Rate 18 $29.50 $35.16 $41.96 $50.08 $59.70 Total Monthly Water Bill $51.04 Total Monthly Water Bill $58.54 $69.43 $82.39 $97.79 $116.00 $ Change $ Change $7.50 $10.89 $12.96 $15.40 $18.21
% Change % Change 14.7% 18.6% 18.7% 18.7% 18.6%
HIGH WATER USE: 34 HCF
Meter Charge - 1" $26.74 Meter Charge - 1" $29.04 $34.27 $40.43 $47.71 $56.30 Commodity Rate Commodity Rate
Tier 1: 0 - 18 hcf 18 $24.30 Tier 1: 0 - 16 hcf 16 $24.96 $29.76 $35.52 $42.40 $50.56 Tier 2: Over 18 hcf 16 $27.84 Tier 2: Over 16 hcf 18 $40.86 $48.60 $57.96 $69.12 $82.26 Subtotal Commodity Rate 34 $52.14 Subtotal Commodity Rate 34 $65.82 $78.36 $93.48 $111.52 $132.82 Total Monthly Water Bill $78.88 Total Monthly Water Bill $94.86 $112.63 $133.91 $159.23 $189.12 $ Change $ Change $15.98 $17.77 $21.28 $25.32 $29.89
% Change % Change 20.3% 18.7% 18.9% 18.9% 18.8%
SINGLE FAMILY RESIDENTIAL BILL IMPACTS - 1" METER
Proposed
27 $48.34
$54.57
$65.25
$77.95
$93.19
$111.37
$48.34
$54.00
$64.03
$75.95
$90.11
$106.86
$0
$20
$40
$60
$80
$100
$120
2024/25 2025/26 2026/27 2027/28 2028/29 2029/30
Scenario Comparison - Monthly Water Bill for
Average Single Family Residential Customer (16 hcf)
Scenario 1: Includes New Staff Member
Scenario 2: Does Not Include New Staff Member
Proposed
28 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30
$0
$1,000,000
$2,000,000
$3,000,000
$4,000,000
$5,000,000
$6,000,000
$7,000,000
$8,000,000
Projected Water Revenues & Expenses
Salaries & Benefits Operations
Groundwater Management Plan Overhead & Transfers Out
Debt Service Capital Projects
Current Water Revenues Scenario 1: Includes New Staff Member Scenario 2: Does Not Include New Staff Member
Current Water Rate Revenues = $2.9M
Current Projected
29 Average Use - 16 hcf
$0
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
2024/25 2025/26 2026/27 2027/28 2028/29 2029/30
Water Utility
Ending Reserve Fund Balance
No Rate Increases
Scenario 1: Includes New Employee
Scenario 2: Does Not Include New Employee
Reserve Fund Target
30 1
City of Chowchilla
2025 Storm Drain Rate Study
Draft Tables V3 – April 15, 2025
UPDATES FROM V2
- There are no changes to the tables or rate scenarios. However, at this time, the Storm Drain Fund is in good shape and does not need a rate increase at this time - The City is planning to apply for CDBG grant funding for the Kings Avenue project when the application period opens in Fall 2025
- The City has been successful with grant applications in the past for similar projects. - If the City does not receive grant funding, the City can re-evaluate the need to increase storm drain rates at a later date
STORM DRAIN SCENARIOS:
- Scenario 1: Include $2.3 million grant for the Kings Avenue Project - Scenario 2: Does not include any grant funding
Here is a comparison of the proposed storm drain rate increases:

Here is a comparison of the proposed monthly bill for a residential customer with a 7,800 sq.ft. lot:
2025/26 2026/27 2027/28 2028/29 2029/30
Scenario 1: Includes $2.3M Grant 3.0% 3.0% 3.0% 3.0% 3.0% - Kings Ave Project is Grant-Funded
Scenario 2: No Grant 28.0% 4.0% 4.0% 4.0% 4.0%
- Kings Ave Project is cash-funded
Proposed Annual Storm Drain Rate Increases
Current 2025/26 2026/27 2027/28 2028/29 2029/30
Scenario 1: Includes $2.3M Grant $4.04 $4.45 $4.58 $4.71 $4.86 $5.00 Scenario 2: No Grant $4.04 $5.56 $5.77 $6.01 $6.25 $6.51 Monthly Storm Drain Residential Bill Comparison (7,800 SF Lot) 2 PROPOSED RATES FOR SCENARIO 1: INCLUDES $2.3M GRANT
PROPOSED RATE FOR SCENARIO 2: NO GRANT
Fee Current 2025/26 2026/27 2027/28 2028/29 2029/30
CAPITAL CHARGE (per account)
Storm Drain Capital [1] $2.61 $2.87 $2.95 $3.03 $3.12 $3.22 OPERATIONS & MAINTENANCE CHARGE (per square foot)
Residential Low $0.0001750 $0.0001627 $0.0001676 $0.0001726 $0.0001778 $0.0001832 Residential Medium $0.0001833 $0.0002034 $0.0002095 $0.0002158 $0.0002223 $0.0002290 Multi-Family $0.0002167 $0.0002645 $0.0002724 $0.0002806 $0.0002890 $0.0002976 Commercial $0.0002500 $0.0003255 $0.0003352 $0.0003453 $0.0003557 $0.0003663 Industrial $0.0002750 $0.0002848 $0.0002933 $0.0003021 $0.0003112 $0.0003205 Vacant Lots/Land $0.0000917 $0.0001424 $0.0001467 $0.0001511 $0.0001556 $0.0001603 Schools/Hospitals $0.0001583 $0.0001221 $0.0001257 $0.0001295 $0.0001334 $0.0001374 Storm Drain II (Greenhills) [1] $2.2000000 $0.0001831 $0.0001886 $0.0001942 $0.0002001 $0.0002061 1 - Current charge for Greenhills is per account. Proposed charge is based on square footage.

PROPOSED STORM DRAIN RATES - SCENARIO 1: $2.3M GRANT
Proposed
Fee Current 2025/26 2026/27 2027/28 2028/29 2029/30
CAPITAL CHARGE (per account)
Storm Drain Capital [1] $2.61 $3.57 $3.71 $3.86 $4.02 $4.19 OPERATIONS & MAINTENANCE CHARGE (per square foot)
Residential Low $0.0001750 $0.0002038 $0.0002120 $0.0002205 $0.0002293 $0.0002385 Residential Medium $0.0001833 $0.0002548 $0.0002650 $0.0002756 $0.0002866 $0.0002981 Multi-Family $0.0002167 $0.0003312 $0.0003445 $0.0003583 $0.0003726 $0.0003875 Commercial $0.0002500 $0.0004077 $0.0004240 $0.0004409 $0.0004586 $0.0004769 Industrial $0.0002750 $0.0003567 $0.0003710 $0.0003858 $0.0004013 $0.0004173 Vacant Lots/Land $0.0000917 $0.0001784 $0.0001855 $0.0001929 $0.0002006 $0.0002087 Schools/Hospitals $0.0001583 $0.0001529 $0.0001590 $0.0001654 $0.0001720 $0.0001788 Storm Drain II (Greenhills) [1] $2.2000000 $0.0002293 $0.0002385 $0.0002480 $0.0002579 $0.0002683 1 - Current charge for Greenhills is per account. Proposed charge is based on square footage.

PROPOSED STORM DRAIN RATES - SCENARIO 2: NO GRANT
Proposed
3 STORM DRAIN RATE STUDY
The 2025 Storm Drain Rate Study is based on the 2024/25 budget and recommends rate adjustments for the five-year period beginning in 2025/26 through 2029/30. The rate increases and projections are draft and will be updated with City input. The tables are based on the following assumptions:
 The first rate increase will go into effect on July 1, 2025. Subsequent rate increases will be effective July 1 of each year through July 1, 2029.
 The current Storm Drain rates include two components:
o Capital Charges
 All customers are charged the same flat charge of $2.61 per account  Currently generates around $120,000 each year.
o Operation & Maintenance Charges
 Customers are charged a separate fee to fund operating costs based on customer type and property square footage.
 Residents of Greenhills Estates are charged a monthly flat fee of $2.20 per property.
 Currently generates approximately $96,000 per year
 Growth is estimated at 1.0% each year. No major changes in the customer base are expected through 2029/30.

CASH RESERVES
 As of July 1, 2024, the beginning fund balance for the Storm Drain Fund is $2,068,593.  The proposed operating reserve fund target is 25% of Annual O&M Expenses

STORM DRAIN REVENUES
 Total budgeted Storm Drain Fund Revenues for 2024/25 are $3.4M including $3M in grant funding
 Storm Drain O&M revenues for 2024/25 are estimated at $96,000  Storm Drain Capital Replacement revenues for 2024/25 are estimated at $126,000  Fines and Penalties are estimated at $5,000 for 2024/25 and are not projected to increase.  Investment Earnings are projected at 1.0% of the cash fund balance each year.  Transfer In are budgeted at $131,900 for 2024/25.

STORM DRAIN OPERATING EXPENSES
 Total budgeted operating expenses for 2024/25 is $130,051 (does not include capital, debt service, or depreciation).
 Salaries & Benefits are increased by 10.0% beginning in 2025/26 each year to account for the need to increase overall Storm Drain salaries.
 Projections include a new Storm Drain employee in 2025/25 at an estimated cost of $30,000/year
 All other expenses are increased by 3.0% each year.
4  Includes $20,000 per year beginning in 2025/26 for Groundwater Management Plan

NET REVENUES
Based on historical budget figures, the Storm Drain Fund has been doing well and covering annual expenses.

STORM DRAIN CAPITAL PROJECTS
 The Five-Year (2024/25 through 2028/29) CIP includes a total of $5.7M in projects.  The Sonoma Ave Storm Drain Improvement project will be funded with a Prop 1 grant.  The City plans to fund the Kings Ave Storm Drain Improvement project with a CDBG planning grant.
 The Truman Pond Refiguration project will be cash funded with Storm Drain rates.

PROPOSITION 218 FOR STORM DRAIN RATES
 Proposition 218 requires two primary steps for municipalities to adopt property-related fees. First, agencies must hold a public hearing at which property owners may lodge a protest. If the agency does not receive a majority protest at the public hearing, then the agency can proceed with the second step of mailing a ballot vote to all property owners, in which a simple majority is needed to adopt the rates. Alternatively, the ballot vote can be mailed to all registered voters but would need a two-thirds majority for approval.  Proposition 218 established that that a “property-related fee” is a charge imposed upon a parcel “as an incident of property ownership.” Water, sewer, and refuse charges are all considered property-related fees, and therefore exempt from the additional voting requirement. However, storm drain charges were not explicitly exempted which meant that storm drain rate increases needed to comply with the supplementary ballot.
 In 2017, the State passed Senate Bill (SB) 231 clarifying the definition of “sewer” in Proposition 218 to include both sanitary and storm sewer, and thereby exempting storm drain rates from the additional ballot requirement. Yet, proponents of Proposition 218 have threatened litigation any agencies that move forward without a ballot vote.
$1.46
$1.63
$1.73
$2.00
$2.35
$2.91
$3.09
$4.40
$4.45
$5.56
$8.75
$0
$1
$2
$3
$4
$5
$6
$7
$8
$9
$10
Monthly Stormwater Bill
Monthly Storm Drain Rate Survey - March 2025
Single Family Residential (7,800 SF Lot Size)
5 Table 1: Current Monthly Storm Drain Rates DRAFT 4/14/25 City of Chowchilla
2025 Storm Drain Rate Study
Fee Amount Type

CAPITAL
Storm Drain Capital $2.61 per Account

OPERATIONS & MAINTENANCE
Vacant Lots/Land $0.00009167 per Square Foot
Schools/Hospitals $0.00015833 per Square Foot
Residential Low $0.00017500 per Square Foot
Residential Medium $0.00018333 per Square Foot
Multi-Family $0.00021666 per Square Foot
Commercial $0.00025000 per Square Foot
Industrial $0.00027500 per Square Foot
Storm Drain II [1] $2.20000000 per home
1 - Greenhills only
6 Table 2: Current Number of Storm Drain Accounts & Current Revenues DRAFT 4/14/25 City of Chowchilla
2025 Storm Drain Rate Study
Fee
Number of
Accounts
Total Square
Footage (sq. ft.)
Total Annual
Revenue

CAPITAL
Storm Drain Capital 3,807 - $119,235

OPERATIONS & MAINTENANCE
Vacant Lots/Land 40 952,432 $1,048
Schools/Hospitals 8 1,864,370 $3,542
Residential Low 6 724,737 $1,522
Residential Medium 2,683 20,991,196 $46,180
Multi-Family 137 2,427,710 $6,312
Commercial 154 5,665,072 $16,995
Industrial 1 566,280 $1,869
Storm Drain II [2] 778 4,651,641 $20,539
Total 3,807 37,843,438 $98,007
TOTAL STORM DRAIN RATE REVENUES $217,242
7 Table 3: Storm Drain Net Revenues DRAFT 4/14/25
City of Chowchilla
2025 Storm Drain Rate Study
Budget
2021/22 2022/23 2023/24 2024/25
Revenues
Storm Drain O&M $93,109 $96,610 $97,422 $96,000
Storm Drain Capital Replacement $117,335 $126,473 $125,826 $126,000 Intergovernmental (Grants) $0 $254,000 $1,515,816 $3,036,562 Fines and Penalties $1,042 $5,112 $4,444 $5,000
Investment Earnings $5,200 $4,737 $68,483 $34,551
Other Revenues $116 $141 $13,910 $0
Transfers In $40,297 $3,420,332 $105,398 $131,900
Total Revenues $257,099 $3,907,405 $1,931,300 $3,430,013 Expenditures
Salaries and Benefits ($12,535) $76,969 $39,639 $41,402 Operations and Maintenance $3,610 $13,641 $25,292 $47,661 Capital Outlay $0 $0 $1,674,242 $3,222,673
Overhead Allocations $38,158 $46,808 $91,796 $40,988
Transfers Out $0 $2,213,109 $0 $5,500
Total Expenditures $29,233 $2,350,527 $1,830,969 $3,358,224 Total Net Revenues $227,866 $1,556,878 $100,331 $71,789 Source: Fiscal Year 2024-2025 Budget
Actual
8 Table 4: Storm Drain Operating Expenses DRAFT 4/14/25 City of Chowchilla
2025 Storm Drain Rate Study
Budget Escalation
2024/25 Factor 2025/26 2026/27 2027/28 2028/29 2029/30
Operating Expenses
Salaries & Benefits 41,402 10% 74,400 81,800 90,000 99,000 108,900 Operations & Maintenance
Contract Services 32,000 3% 33,000 34,000 35,000 36,100 37,200 Other Operations 15,661 3% 16,100 16,600 17,100 17,600 18,100 Groundwater Management Plan 0 3% 20,000 20,600 21,200 21,800 22,500 Subtotal O&M 47,661 69,100 71,200 73,300 75,500 77,800
Overhead Allocation 40,988 3% 42,200 43,500 45,000 46,000 47,000 Total Operating Expenses 130,051 185,700 196,500 208,300 220,500 233,700 % Change 42.8% 5.8% 6.0% 5.9% 6.0%
1 - Includes one new Storm Drain employee in 2025/26. Total salary & benefits for new employee is estimated at $30,000/year.

Projected
9 Table 5: Storm Drain Capital Improvement Projects DRAFT 4/14/25 City of Chowchilla
2025 Storm Drain Rate Study
Project # Project 2024/25 2025/26 2026/27 2027/28 2028/29 Total Funding Source SD-2 Kings Ave Storm Drain Improvement $131,900 $2,330,000 - - - $2,461,900 CDBG Planning Grant SD-3 Sonoma Ave Storm Drain Improvement $3,036,562 - - - - $3,036,562 Prop 1 Grant SD-5 Truman Pond Refiguration $41,211 $200,000 - - - $241,211 Storm Drainage Fund Total Storm Drain Capital Projects $3,209,673 $2,530,000 $0 $0 $0 $5,739,673 Cost Escalation (5% annually) 100.0% 105.0% 110.3% 115.8% 121.6% Total Solid Waste Capital Projects - Escalated Costs $3,209,673 $2,656,500 $0 $0 $0 $5,866,173 Source: City of Chowchilla Capital Improvement Plan '24/'25 thru '28/'29

ESCALATED PROJECT COSTS
10 Table 6: Estimate of Impervious Area DRAFT 4/14/25
City of Chowchilla
2025 Storm Drain Rate Study
Service Type
Estimated
Square Feet
Runoff
Coefficient [1]
Total Impervious
Area
% of Total
Impervious Area
Residential Low 724,737 0.40 289,895 1.4%
Residential Medium 20,991,196 0.50 10,495,598 51.8%
Multi-Family 2,427,710 0.65 1,578,012 7.8%
Commercial 5,665,072 0.80 4,532,058 22.3%
Industrial 566,280 0.70 396,396 2.0%
Vacant 952,432 0.35 333,351 1.6%
Schools/Hospitals 1,864,370 0.30 559,311 2.8%
Storm Drain II 4,651,641 0.45 2,093,238 10.3%
Total 37,118,701 20,277,859 100.0%
1 - Estimate based on a survey of California storm drain agencies 11 Vacant Lots/Land

0.5%
Residential Low

1.3%
Industrial

2.8%
Multi-Family

3.0% Schools/Hospital

3.9%
Storm Drain II

20.6%
Residential
Medium

21.3% Commercial

46.5%

CURRENT STORM DRAIN RATE REVENUE RECOVERY

BY CUSTOMER CLASS
Residential Low

1.4%
Vacant Lots/Land

1.6%
Industrial

2.0%
Schools/Hospital

2.8% Multi-Family

7.8%
Storm Drain II

10.3%
Commercial

22.3%
Residential
Medium

51.8%

PROPOSED STORM DRAIN RATE REVENUE RECOVERY

BY CUSTOMER CLASS
12 Table 7: Storm Drain Utility Cash Flow - No Rate Increases DRAFT 4/14/25 City of Chowchilla
2025 Storm Drain Rate Study
Budget
2024/25 2025/26 2026/27 2027/28 2028/29 2029/30
1 Rate Increase Effective Sept 1, 2025 July 1, 2026 July 1, 2027 July 1, 2028 July 1, 2029 2 Annual Rate Increase 0.0% 0.0% 0.0% 0.0% 0.0%
3 Growth Rate 1.0% 1.0% 1.0% 1.0% 1.0%
4 5 Beginning Operating Fund Balance [1] $2,068,593 $2,153,382 $1,886,182 $1,935,582 $1,975,682 $2,006,082 6 7 REVENUES
8 Operating Expenses
9 Charges for Service
10 Storm Drain O&M 96,000 97,000 98,000 99,000 100,000 101,000 11 Storm Drain Capital Replacement 126,000 127,000 128,000 129,000 130,000 131,000 12 Subtotal Charges for Service 222,000 224,000 226,000 228,000 230,000 232,000 13 Fines and Penalties 5,000 5,000 5,000 5,000 5,000 5,000 14 Investment Earnings 34,551 21,500 18,900 19,400 19,800 20,100 15 Total Operating Revenues 261,551 250,500 249,900 252,400 254,800 257,100 16 17 Non-Operating Revenues
18 Intergovernmental (Grants) [2] 3,036,562 2,330,000 0 0 0 0 19 Transfers In 131,900 0 0 0 0 0
20 Total Non-Operating Revenues 3,168,462 2,330,000 0 0 0 0 21 22 TOTAL REVENUES 3,430,013 2,580,500 249,900 252,400 254,800 257,100 23 `
24 EXPENSES
25 Operating Expenses
26 Salaries & Benefits 41,402 74,400 81,800 90,000 99,000 108,900 27 Operations 47,661 49,100 49,100 50,600 52,100 53,700 28 Groundwater Management Plan 0 20,000 20,600 21,200 21,800 22,500 29 Overhead Allocation 40,988 42,200 43,500 45,000 46,000 47,000 30 Total Operations 130,051 185,700 195,000 206,800 218,900 232,100 31 32 Net Operating Revenue 131,500 64,800 54,900 45,600 35,900 25,000 33 34 Capital Outlay
35 Storm Drain CIP 3,209,673 2,656,500 0 0 0 50,000
36 Total Capital Expenses 3,209,673 2,656,500 0 0 0 50,000 37 38 Transfers Out 5,500 5,500 5,500 5,500 5,500 5,500 39 40 TOTAL EXPENSES 3,345,224 2,847,700 200,500 212,300 224,400 287,600 41 42 Net Total Revenues 84,789 (267,200) 49,400 40,100 30,400 (30,500) 43 44 Ending Operating Fund Balance 2,153,382 1,886,182 1,935,582 1,975,682 2,006,082 1,975,582 45 46 Target (25% of O&M) 32,500 46,400 48,800 51,700 54,700 58,000 47 Target Met? YES YES YES YES YES YES
48 1 - Trial Balance Account Summary Date Range: 07/01/2023 - 06/30/2024 2 - Assumes Kings Ave Storm Drain Improvement will be entirely grant funded with a CDBG grant Projected
13 Table 8: Scenario 1: Includes $2.3M Grant - Storm Drain Utility DRAFT 4/14/25 Cash Flow City of Chowchilla
2025 Storm Drain Rate Study
Budget
2024/25 2025/26 2026/27 2027/28 2028/29 2029/30
1 Rate Increase Effective Sept 1, 2025 July 1, 2026 July 1, 2027 July 1, 2028 July 1, 2029 2 Annual Rate Increase 3.0% 3.0% 3.0% 3.0% 3.0%
3 Growth Rate 1.0% 1.0% 1.0% 1.0% 1.0%
4 5 Beginning Operating Fund Balance [1] $2,068,593 $2,153,382 $1,891,182 $1,952,582 $2,011,782 $2,069,482 6 7 REVENUES
8 Operating Expenses
9 Charges for Service 7,000 9,000 9,000 10,000 10,000
10 Storm Drain O&M 96,000 99,000 103,000 107,000 111,000 115,000 11 Storm Drain Capital Replacement 126,000 130,000 135,000 140,000 146,000 152,000 12 Subtotal Charges for Service 222,000 229,000 238,000 247,000 257,000 267,000 13 Fines and Penalties 5,000 5,000 5,000 5,000 5,000 5,000 14 Investment Earnings 34,551 21,500 18,900 19,500 20,100 20,700 15 Total Operating Revenues 261,551 255,500 261,900 271,500 282,100 292,700 16 17 Non-Operating Revenues
18 Intergovernmental (Grants) [2] 3,036,562 2,330,000 0 0 0 0 19 Transfers In 131,900 0 0 0 0 0
20 Total Non-Operating Revenues 3,168,462 2,330,000 0 0 0 0 21 22 TOTAL REVENUES 3,430,013 2,585,500 261,900 271,500 282,100 292,700 23 `
24 EXPENSES
25 Operating Expenses
26 Salaries & Benefits 41,402 74,400 81,800 90,000 99,000 108,900 27 Operations 47,661 49,100 49,100 50,600 52,100 53,700 28 Groundwater Management Plan 0 20,000 20,600 21,200 21,800 22,500 29 Overhead Allocation 40,988 42,200 43,500 45,000 46,000 47,000 30 Total Operations 130,051 185,700 195,000 206,800 218,900 232,100 31 32 Net Operating Revenue 131,500 69,800 66,900 64,700 63,200 60,600 33 34 Capital Outlay
35 Storm Drain CIP 3,209,673 2,656,500 0 0 0 50,000
36 Total Capital Expenses 3,209,673 2,656,500 0 0 0 50,000 37 38 Transfers Out 5,500 5,500 5,500 5,500 5,500 5,500 39 40 TOTAL EXPENSES 3,345,224 2,847,700 200,500 212,300 224,400 287,600 41 42 Net Total Revenues 84,789 (262,200) 61,400 59,200 57,700 5,100 43 44 Ending Operating Fund Balance 2,153,382 1,891,182 1,952,582 2,011,782 2,069,482 2,074,582 45 46 Target (25% of O&M) 32,500 46,400 48,800 51,700 54,700 58,000 47 Target Met? YES YES YES YES YES YES
48 1 - Trial Balance Account Summary Date Range: 07/01/2023 - 06/30/2024 2 - Assumes Kings Ave Storm Drain Improvement will be entirely grant funded with a CDBG grant Projected
14 Table 9: Scenario 1: Includes $2.3M Grant - Storm Drain O&M Rate Calculation City of Chowchilla
2025 Storm Drain Rate Study
FY2025/26
Total Storm Drain Operating & Maintenance Revenue Requirement [1] $100,000 Customer Class Allocation % of Total Impervious Area
Residential Low 1.4% $1,430
Residential Medium 51.8% $51,759
Multi-Family 7.8% $7,782
Commercial 22.3% $22,350
Industrial 2.0% $1,955
Vacant 1.6% $1,644
Schools/Hospitals 2.8% $2,758
Storm Drain II 10.3% $10,323
Total 100.0% $100,000
Rate Calculation for Residential Low
Total Revenue Requirement $1,430
Total Square Feet Residential Low 724,737
Monthly Single Family Residential Rate (per square foot) $0.0001644 Rate Calculation for Residential Medium
Total Revenue Requirement $51,759
Total Square Feet Residential Medium 20,991,196
Monthly Single Family Residential Rate (per square foot) $0.0002055 Rate Calculation for Multi-Family
Total Revenue Requirement $7,782
Total Square Feet Multi-Family 2,427,710
Monthly Multi-Family Residential Rate (per square foot) $0.0002671 Rate Calculation for Commercial
Total Revenue Requirement $22,350
Total Square Feet Commercial 5,665,072
Monthly Commercial Rate (per square foot) $0.0003288
Rate Calculation for Industrial
Total Revenue Requirement $1,955
Total Square Feet Industrial 566,280
Monthly Industrial Rate (per square foot) $0.0002877
15 Rate Calculation for Vacant
Total Revenue Requirement $1,644
Total Square Feet Vacant 952,432
Monthly Vacant Rate (per square foot) $0.0001438
Rate Calculation for Schools/Hospitals
Total Revenue Requirement $2,758
Total Square Feet Schools/Hospitals 1,864,370
Monthly Schools/Hospitals (per square foot) $0.0001233
Rate Calculation for Storm Drain II
Total Revenue Requirement $10,323
Total Square Feet Storm Drain II 4,651,641
Monthly Storm Drain II (per square foot) $0.0001849
[1] Table 7 (Cash Flow), Line 8
16 Table 10: Scenario 1: Includes $2.3M Grant - Capital Charge Rate DRAFT 4/14/25 Calculation City of Chowchilla
2025 Storm Drain Rate Study
Current 2025/26 2026/27 2027/28 2028/29 2029/30

CAPITAL CHARGE
Annual Revenue Requirement [1] $131,000 $136,000 $141,000 $147,000 $153,000 Total No. of Accounts 3,807 3,845 3,884 3,922 3,962
Annual Charge $34.41 $35.37 $36.31 $37.48 $38.62
Monthly Storm Drain Capital Charge $2.61 $2.87 $2.95 $3.03 $3.12 $3.22 Annual Change 9.9% 2.8% 2.6% 3.2% 3.1%
[1] Table 7 (Cash Flow), Line 9
Proposed
17 Table 11: Scenario 1: Includes $2.3M Grant - Proposed Monthly Storm Drain Rates DRAFT 4/14/25 City of Chowchilla
2025 Storm Drain Rate Study
Fee Current 2025/26 2026/27 2027/28 2028/29 2029/30
CAPITAL CHARGE (per account)
Storm Drain Capital [1] $2.61 $2.87 $2.95 $3.03 $3.12 $3.22 OPERATIONS & MAINTENANCE CHARGE (per square foot)
Residential Low $0.0001750 $0.0001627 $0.0001676 $0.0001726 $0.0001778 $0.0001832 Residential Medium $0.0001833 $0.0002034 $0.0002095 $0.0002158 $0.0002223 $0.0002290 Multi-Family $0.0002167 $0.0002645 $0.0002724 $0.0002806 $0.0002890 $0.0002976 Commercial $0.0002500 $0.0003255 $0.0003352 $0.0003453 $0.0003557 $0.0003663 Industrial $0.0002750 $0.0002848 $0.0002933 $0.0003021 $0.0003112 $0.0003205 Vacant Lots/Land $0.0000917 $0.0001424 $0.0001467 $0.0001511 $0.0001556 $0.0001603 Schools/Hospitals $0.0001583 $0.0001221 $0.0001257 $0.0001295 $0.0001334 $0.0001374 Storm Drain II (Greenhills) [1] $2.2000000 $0.0001831 $0.0001886 $0.0001942 $0.0002001 $0.0002061 1 - Current charge for Greenhills is per account. Proposed charge is based on square footage.

PROPOSED STORM DRAIN RATES - SCENARIO 1: $2.3M GRANT
Proposed
18 Table 12: Scenario 1: Includes $2.3M Grant - Monthly Bill Impacts DRAFT 4/14/25 City of Chowchilla
2025 Storm Drain Rate Study
Current 2025/26 2026/27 2027/28 2028/29 2029/30
RESIDENTIAL MEDIUM - 7,800 SF (AVERAGE LOT SIZE)
Operations & Maintenance Charge $1.43 $1.59 $1.63 $1.68 $1.73 $1.79 Capital Charge $2.61 $2.87 $2.95 $3.03 $3.12 $3.22
Total Monthly Storm Drain Bill $4.04 $4.45 $4.58 $4.71 $4.86 $5.00 $ Change $0.41 $0.13 $0.13 $0.15 $0.15
% Change 10.3% 2.9% 2.8% 3.1% 3.0%
COMMERCIAL - 10,000 SF
Operations & Maintenance Charge $2.50 $3.25 $3.35 $3.45 $3.56 $3.66 Capital Charge $2.61 $2.87 $2.95 $3.03 $3.12 $3.22
Total Monthly Storm Drain Bill $5.11 $6.12 $6.30 $6.48 $6.68 $6.88 $ Change $1.01 $0.18 $0.18 $0.20 $0.20
% Change 19.8% 2.9% 2.8% 3.1% 3.0%
Proposed
19 Table 13: Scenario 2: No Grant - Storm Drain Utility DRAFT 4/14/25 Cash Flow City of Chowchilla
2025 Storm Drain Rate Study
Budget
2024/25 2025/26 2026/27 2027/28 2028/29 2029/30
1 Rate Increase Effective Sept 1, 2025 July 1, 2026 July 1, 2027 July 1, 2028 July 1, 2029 2 Annual Rate Increase 28.0% 4.0% 4.0% 4.0% 4.0%
3 Growth Rate 1.0% 1.0% 1.0% 1.0% 1.0%
4 5 Beginning Operating Fund Balance [1] $2,068,593 $2,153,382 $108,182 $203,782 $302,482 $406,082 6 7 REVENUES
8 Operating Expenses
9 Charges for Service
10 Storm Drain O&M 96,000 119,000 125,000 131,000 138,000 145,000 11 Storm Drain Capital Replacement 126,000 157,000 165,000 173,000 182,000 191,000 12 Subtotal Charges for Service 222,000 276,000 290,000 304,000 320,000 336,000 13 Fines and Penalties 5,000 5,000 5,000 5,000 5,000 5,000 14 Investment Earnings 34,551 21,500 1,100 2,000 3,000 4,100 15 Total Operating Revenues 261,551 302,500 296,100 311,000 328,000 345,100 16 17 Non-Operating Revenues
18 Intergovernmental (Grants) [2] 3,036,562 0 0 0 0 0
19 Transfers In 131,900 500,000 0 0 0 0
20 Total Non-Operating Revenues 3,168,462 500,000 0 0 0 0 21 22 TOTAL REVENUES 3,430,013 802,500 296,100 311,000 328,000 345,100 23 `
24 EXPENSES
25 Operating Expenses
26 Salaries & Benefits 41,402 74,400 81,800 90,000 99,000 108,900 27 Operations 47,661 49,100 49,100 50,600 52,100 53,700 28 Groundwater Management Plan 0 20,000 20,600 21,200 21,800 22,500 29 Overhead Allocation 40,988 42,200 43,500 45,000 46,000 47,000 30 Total Operations 130,051 185,700 195,000 206,800 218,900 232,100 31 32 Net Operating Revenue 131,500 116,800 101,100 104,200 109,100 113,000 33 34 Capital Outlay
35 Storm Drain CIP 3,209,673 2,656,500 0 0 0 50,000
36 Total Capital Expenses 3,209,673 2,656,500 0 0 0 50,000 37 38 Transfers Out 5,500 5,500 5,500 5,500 5,500 5,500 39 40 TOTAL EXPENSES 3,345,224 2,847,700 200,500 212,300 224,400 287,600 41 42 Net Total Revenues 84,789 (2,045,200) 95,600 98,700 103,600 57,500 43 44 Ending Operating Fund Balance 2,153,382 108,182 203,782 302,482 406,082 463,582 45 46 Target (25% of O&M) 32,500 46,400 48,800 51,700 54,700 58,000 47 Target Met? YES YES YES YES YES YES
48 1 - Trial Balance Account Summary Date Range: 07/01/2023 - 06/30/2024 2 - Assumes Kings Ave Storm Drain Improvement will not be grant funded Projected
20 Table 14: Scenario 2: No Grant - Storm Drain O&M Rate Calculation City of Chowchilla
2025 Storm Drain Rate Study
FY2025/26
Total Storm Drain Operating & Maintenance Revenue Requirement [1] $124,000 Customer Class Allocation % of Total Impervious Area
Residential Low 1.4% $1,773
Residential Medium 51.8% $64,181
Multi-Family 7.8% $9,650
Commercial 22.3% $27,714
Industrial 2.0% $2,424
Vacant 1.6% $2,038
Schools/Hospitals 2.8% $3,420
Storm Drain II 10.3% $12,800
Total 100.0% $124,000
Rate Calculation for Residential Low
Total Revenue Requirement $1,773
Total Square Feet Residential Low 724,737
Monthly Single Family Residential Rate (per square foot) $0.0002038 Rate Calculation for Residential Medium
Total Revenue Requirement $64,181
Total Square Feet Residential Medium 20,991,196
Monthly Single Family Residential Rate (per square foot) $0.0002548 Rate Calculation for Multi-Family
Total Revenue Requirement $9,650
Total Square Feet Multi-Family 2,427,710
Monthly Multi-Family Residential Rate (per square foot) $0.0003312 Rate Calculation for Commercial
Total Revenue Requirement $27,714
Total Square Feet Commercial 5,665,072
Monthly Commercial Rate (per square foot) $0.0004077
Rate Calculation for Industrial
Total Revenue Requirement $2,424
Total Square Feet Industrial 566,280
Monthly Industrial Rate (per square foot) $0.0003567
21 Rate Calculation for Vacant
Total Revenue Requirement $2,038
Total Square Feet Vacant 952,432
Monthly Vacant Rate (per square foot) $0.0001784
Rate Calculation for Schools/Hospitals
Total Revenue Requirement $3,420
Total Square Feet Schools/Hospitals 1,864,370
Monthly Schools/Hospitals (per square foot) $0.0001529
Rate Calculation for Storm Drain II
Total Revenue Requirement $12,800
Total Square Feet Storm Drain II 4,651,641
Monthly Storm Drain II (per square foot) $0.0002293
[1] Table 7 (Cash Flow), Line 8
22 Table 15: Scenario 2: No Grant - Capital Charge Rate Calculation DRAFT 4/14/25 City of Chowchilla
2025 Storm Drain Rate Study
Current 2025/26 2026/27 2027/28 2028/29 2029/30

CAPITAL CHARGE
Annual Revenue Requirement [1] $163,000 $171,000 $180,000 $189,000 $199,000 Total No. of Accounts 3,807 3,845 3,884 3,922 3,962
Annual Charge $42.82 $44.47 $46.35 $48.19 $50.23
Monthly Storm Drain Capital Charge $2.61 $3.57 $3.71 $3.86 $4.02 $4.19 Annual Change 36.7% 3.9% 4.2% 4.0% 4.2%
[1] Table 7 (Cash Flow), Line 9
Proposed
23 Table 16: Scenario 2: No Grant - Proposed Monthly Storm Drain Rates DRAFT 4/14/25 City of Chowchilla
2025 Storm Drain Rate Study
Fee Current 2025/26 2026/27 2027/28 2028/29 2029/30
CAPITAL CHARGE (per account)
Storm Drain Capital [1] $2.61 $3.57 $3.71 $3.86 $4.02 $4.19 OPERATIONS & MAINTENANCE CHARGE (per square foot)
Residential Low $0.0001750 $0.0002038 $0.0002120 $0.0002205 $0.0002293 $0.0002385 Residential Medium $0.0001833 $0.0002548 $0.0002650 $0.0002756 $0.0002866 $0.0002981 Multi-Family $0.0002167 $0.0003312 $0.0003445 $0.0003583 $0.0003726 $0.0003875 Commercial $0.0002500 $0.0004077 $0.0004240 $0.0004409 $0.0004586 $0.0004769 Industrial $0.0002750 $0.0003567 $0.0003710 $0.0003858 $0.0004013 $0.0004173 Vacant Lots/Land $0.0000917 $0.0001784 $0.0001855 $0.0001929 $0.0002006 $0.0002087 Schools/Hospitals $0.0001583 $0.0001529 $0.0001590 $0.0001654 $0.0001720 $0.0001788 Storm Drain II (Greenhills) [1] $2.2000000 $0.0002293 $0.0002385 $0.0002480 $0.0002579 $0.0002683 1 - Current charge for Greenhills is per account. Proposed charge is based on square footage.

PROPOSED STORM DRAIN RATES - SCENARIO 2: NO GRANT
Proposed
24 Table 17: Scenario 2: No Grant - Proposed Monthly Storm Drain Rates DRAFT 4/14/25 City of Chowchilla
2025 Storm Drain Rate Study
Current 2025/26 2026/27 2027/28 2028/29 2029/30
RESIDENTIAL MEDIUM - 7,800 SF (AVERAGE LOT SIZE)
Operations & Maintenance Charge $1.43 $1.99 $2.07 $2.15 $2.24 $2.32 Capital Charge $2.61 $3.57 $3.71 $3.86 $4.02 $4.19
Total Monthly Storm Drain Bill $4.04 $5.56 $5.77 $6.01 $6.25 $6.51 $ Change $1.52 $0.22 $0.24 $0.24 $0.26
% Change 37.5% 3.9% 4.1% 4.0% 4.2%
COMMERCIAL - 10,000 SF
Operations & Maintenance Charge $2.50 $4.08 $4.24 $4.41 $4.59 $4.77 Capital Charge $2.61 $3.57 $3.71 $3.86 $4.02 $4.19
Total Monthly Storm Drain Bill $5.11 $7.64 $7.95 $8.27 $8.60 $8.96 $ Change $2.53 $0.30 $0.33 $0.33 $0.35
% Change 49.6% 3.9% 4.1% 4.0% 4.1%
Proposed
25 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30
$0
$100,000
$200,000
$300,000
$400,000
$500,000
$600,000
$700,000
$800,000
$900,000
$1,000,000
Projected Storm Drain Revenues & Expenses
Capital Projects
Overhead Allocation
Groundwater Management Plan
Operations
Salaries & Benefits
Current Storm Drain Revenues
Scenario 1: $2.3M Grant Projected Revenues
Scenario 2: No Grant Projected Revenues
Current Storm Drain Rate Revenues = $261,000
Current Projected
26 $4.04
$4.45
$4.58
$4.71
$4.86
$5.00
$4.04
$5.56
$5.77
$6.01
$6.25
$6.51
$0
$1
$2
$3
$4
$5
$6
$7
2024/25 2025/26 2026/27 2027/28 2028/29 2029/30
Scenario Comparison - Monthly Storm Drain Bill for
Single Family Residential Customer (7,800 sf)
Scenario 1: Includes $2.3M Grant Scenario 2: No Grant
Proposed
27 Average Use - 16 hcf
$0
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
$3,500,000
$4,000,000
2024/25 2025/26 2026/27 2027/28 2028/29 2029/30
Storm Drain Scenario Comparison
Ending Reserve Fund Balance
No Rate Increases
Scenario 1: Includes $2.3M Grant
Scenario 2: No Grant
Reserve Fund Target
28 1
City of Chowchilla
2025 Solid Waste Rate Study
Draft Tables V3 – April 15, 2025
UPDATES FROM V2
- Add second rate scenario with 5.0% annual rate increases SOLID WASTE RATE SCENARIOS:
- Scenario 1: 4.0% Annual Rate Increases
- Scenario 2: 5.0% Annual Rate Increases
Here is a comparison of the proposed solid waste rate increases:

Here is a comparison of the proposed monthly bill for an average single family residential customer:

The 2025 Solid Waste Rate Study is based on the 2024/25 budget and recommends rate adjustments for the five-year period beginning in 2025/26 through 2029/30. The rate increases and projections are draft and will be updated with City input. The tables are based on the following assumptions:

SOLID WASTE RATE STUDY
 The first rate increase will go into effect on July 1, 2025. Subsequent rate increases will be effective July 1 of each year through July 1, 2029.
 The City contracts with Mid Valley Disposal to provide weekly solid waste collection to approximately 3,400 residential customers and 250 commercial customers.  Solid waste rates are set by Mid Valley Disposal, and a percentage is added on by the City for associated overhead costs.
2025/26 2026/27 2027/28 2028/29 2029/30
Scenario 1: 4.0% Annual Rate Increases 4.0% 4.0% 4.0% 4.0% 4.0% Scenario 2: 5.0% Annual Rate Increases 5.0% 5.0% 5.0% 5.0% 5.0% Proposed Annual Solid Waste Rate Increases
Current 2025/26 2026/27 2027/28 2028/29 2029/30
Scenario 1: 4.0% Annual Rate Increases $34.63 $36.02 $37.46 $38.96 $40.52 $42.14 Scenario 2: 5.0% Annual Rate Increases $34.63 $36.36 $38.18 $40.09 $42.09 $44.19 Monthly Solid Waste Residential Bill Comparison
2  The last contract amendment with Mid Valley Disposal was in 2021 which extended the terms of agreement through July 1, 2031. Per the contract, solid waste rates will be increased by the annual change in the Consumer Price Index (CPI) and is capped at 5.0% each year.  The rate structure is set by Mid Valley Disposal. Each residential property is billed a flat rate through their monthly utility bill for standard services which includes three 96-gallon totters (Refuse, Recycles, and Green Waste). Commercial accounts are billed based on the size of the bin and the number of times picked up each week.
 Growth is estimated at 1.0% each year. No major changes in the customer base are expected through 2029/30.

CASH RESERVES
 As of July 1, 2024, the beginning fund balance for the Solid Waste Fund is $759,540.  The operating reserve fund target is 25% of Annual O&M Expenses.

SOLID WASTE REVENUES
 Total budgeted Solid Waste Revenues for 2024/25 are $2.5M.  Refuse Collection Charges for 2024/25 are budgeted at $$2,450,377, representing a 3.0% increase from 2023/24.
 Locking Lid Revenues are estimated at $22,000 per year and are not anticipated to change over the next five years
 State Recycling Grant Revenue are estimated at $5,000 each year and are not projected to increase.
 Penalties are budgeted at $50,000 for 2024/25 and are not projected to increase.  Investment Earnings are projected at 1.0% of the cash fund balance each year.  Other Revenues are is budgeted at $3,000 for 2024/25 and are not projected to increase over the next five years. Other Revenues include Unrealized Gain/Loss and Collection Proceeds.

SOLID WASTE OPERATING EXPENSES
 Total budgeted operating expenses for 2024/25 is $2,506,415 (does not include capital, debt service, or depreciation).
 The Solid Waste Fund does not have any debt obligations or capital projects.  Disposal Service is increased by 5.0% each year beginning in 2025/26.  Contract Services & Locking Lid Fees are escalated by 6.0% each year beginning in 2025/26.  All other expenses are escalated by 3.0% each year.

NET REVENUES
 Based on historical budget figures, the Solid Waste Fund has been doing well and covering annual expenses. Based on the 2024/25 budget, the Solid Waste Fund will have positive net revenues of approximately $35,739.
$24.34
$28.60
$30.87
$34.63
$35.25
$36.02
$36.36
$41.35
$45.77
$46.59
$51.52
$0
$10
$20
$30
$40
$50
$60
Monthly Solid Waste Bill Survey - March 2025
Single Family Residential
3 Table 1: Current Monthly Solid Waste Rat DRAFT 4/15/25 City of Chowchilla
2025 Solid Waste Rate Study

RESIDENTIAL
Residential (per set) (1) $34.63
Residential Extra Toter (each) $19.28
Locking Lid for Bin (each) $24.91
1 - Set includes three 96-gallon totters for Refuse, Recycles, and Green Waste

COMMERCIAL TRASH
1 yard bin
1x per week $67.63
2x per week $135.19
3x per week $206.95
4x per week $269.06
5x per week $334.86
6x per week $397.63
2 yard bin
1x per week $109.21
2x per week $210.31
3x per week $308.86
4x per week $415.45
5x per week $523.29
6x per week $625.80
3 yard bin
1x per week $139.81
2x per week $275.57
3x per week $393.19
4x per week $529.87
5x per week $666.41
6x per week $797.54
4 yard bin
1x per week $170.41
2x per week $336.84
3x per week $480.66
4x per week $648.34
5x per week $813.50
6x per week $978.60

RESIDENTIAL SOLID WASTE RATES

COMMERCIAL SOLID WASTE RATES
4 5 yard bin
1x per week $201.09
2x per week $381.47
3x per week $539.23
4x per week $720.96
5x per week $900.03
6x per week $1,079.10
FY2025
6 yard bin
1x per week $225.99
2x per week $424.46
3x per week $603.65
4x per week $806.85
5x per week $1,007.55
6x per week $1,208.13

COMMERCIAL RECYCLE
96 Gallon
1x per week $12.73
2x per week $22.92
3x per week $33.11
2 yard bin
1x per week $39.47
2x per week $71.05
3x per week $102.64
3 yard bin
1x per week $50.29
2x per week $90.54
3x per week $130.78
COMMERCIAL SOLID WASTE RATES continued
Proposed
5 4 yard bin
1x per week $62.39
2x per week $112.30
3x per week $162.21
6 yard bin
1x per week $85.95
2x per week $154.71
3x per week $223.48

COMMERCIAL ORGANIC
96 Gallon
1x per week $19.10
2x per week $28.02
3x per week $36.92
2 yard bin
1x per week $67.10
2x per week $120.80
3x per week $174.47
3 yard bin
1x per week $85.51
2x per week $153.91
3x per week $222.32
FY2025

ROLL OFF (DROP BOX) SERVICE
20 Yard Container
Delivery $30.79
Service Charge Per Load $193.69
Rent (per day) $12.32
30 Yard Container
Delivery $43.10
Service Charge Per Load $225.97
Rent (per day) $12.32
40 Yard Container
Delivery $55.41
Service Charge Per Load $271.16
Rent (per day) $12.32
Additional Per Ton Disposal
Municipal Solid Waste $55.41
Recyclables $67.73
Organics $43.10
3-Yard Rent-A-Bin Service
Delivery and Removal $153.91
Additional Service $61.56
Bulky Item Pick-Up $43.11

MISCELLANEOUS FEES
Enclosure Access $13.23
Push/Pull Charge $27.71
Extra Pick-up per Cubic Yard
Municipal Solid Waste $28.14
Recyclables $15.70
Organics $22.65
COMMERCIAL SOLID WASTE RATES continued
Proposed
6 Table 2: Solid Waste Net Revenues DRAFT 4/15/25
City of Chowchilla
2025 Solid Waste Rate Study
Budget
2021/22 2022/23 2023/24 2024/25

REVENUES
Refuse Collection Charges $2,069,396 $2,308,210 $2,380,849 $2,450,377 Locking Lid Revenues $12,579 $0 $22,128 $22,002
Intergovernmental (State Grant) $25,453 $5,047 $5,075 $5,000 Fines and Penalties $8,371 $51,006 $44,865 $50,000
Other Revenues $838 $13,216 $30,550 $14,775
Total Revenues $2,116,637 $2,377,479 $2,483,467 $2,542,154

EXPENSES
Disposal Services $1,294,380 $1,555,949 $1,733,030 $1,898,511 Operations and Maintenance $36,188 $82,568 $64,101 $107,650 Overhead Allocations $461,700 $457,946 $460,420 $500,254 Transfers Out $0 $5,278 $0 $0
Total Expenditures $1,792,268 $2,101,741 $2,257,551 $2,506,415 TOTAL NET REVENUES $324,369 $275,738 $225,916 $35,739
Source: Fiscal Year 2024-2025 Budget
Actual
7 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 FY2024 FY2025 Disposal Service Costs $683,835 $659,368 $904,505 $1,086,801 $1,191,580 $1,258,107 $1,294,380 $1,555,949 $1,603,811 $1,733,030 % Change -3.6% 37.2% 20.2% 9.6% 5.6% 2.9% 20.2% 3.1% 8.1% The last contract amendment with Mid Valley Disposal was in 2021 which extended the terms of agreement through July 1, 2031. Per the contract, the charge of disposal will be increased each year by the annual change in the Consumer Price Index (CPI). $0
$200,000
$400,000
$600,000
$800,000
$1,000,000
$1,200,000
$1,400,000
$1,600,000
$1,800,000
$2,000,000
FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 FY2024 FY2025 Annual Disposal Service Expense
The costs for Disposal Service are set by Mid Valley Disposal and have increased 153% since 2015/16. The City has no control over these costs. 8 Table 3: Solid Waste Operating Expenses DRAFT 4/15/25 City of Chowchilla
2025 Solid Waste Rate Study
Budget Escalation
2024/25 Factor 2025/26 2026/27 2027/28 2028/29 2029/30
Operating Expenses
Operations & Maintenance
Disposal Service 1,898,511 5.0% 1,993,400 2,093,100 2,197,800 2,307,700 2,423,100 Contract Services 62,000 5.0% 65,100 68,400 71,800 75,400 79,200 Locking Lid Fee 22,000 5.0% 23,100 24,300 25,500 26,800 28,100 Other Operations 23,650 5.0% 24,800 26,000 27,300 28,700 30,100 Subtotal O&M 2,006,161 2,106,400 2,211,800 2,322,400 2,438,600 2,560,500 Overhead Allocation 500,254 3.0% 515,300 530,800 547,000 563,000 580,000 Total Operating Expenses 2,506,415 2,621,700 2,742,600 2,869,400 3,001,600 3,140,500 % Change 4.6% 4.6% 4.6% 4.6% 4.6%
Source: Trial Balance Account Summary Date Range: 07/01/2023 - 06/30/2024 Projected
9 Table 4: Solid Waste Utility Cash Flow - No Rate Increase DRAFT 4/15/25 City of Chowchilla
2025 Solid Waste Rate Study
Budget
2024/25 2025/26 2026/27 2027/28 2028/29 2029/30
1 Rate Increase Effective July 1, 2025 July 1, 2026 July 1, 2027 July 1, 2028 July 1, 2029 2 Annual Rate Increase 0.0% 0.0% 0.0% 0.0% 0.0%
3 Growth Rate 1.0% 1.0% 1.0% 1.0% 1.0%
4 5 Beginning Fund Balance [1] $759,540 $795,700 $737,000 $581,800 $323,200 ($45,200) 6 7
8 REVENUES
9 Refuse Collection Charges 2,450,377 2,475,000 2,500,000 2,525,000 2,550,000 2,576,000 10 Locking Lid Revenues 22,002 22,000 22,000 22,000 22,000 22,000 11 Investment Earnings 12,187 8,000 7,400 5,800 3,200 0 12 State Recycling Grant Revenue 5,000 5,000 5,000 5,000 5,000 5,000 13 Penalties 50,000 50,000 50,000 50,000 50,000 50,000
14 Other Revenues 3,000 3,000 3,000 3,000 3,000 3,000
15 TOTAL REVENUES 2,542,566 2,563,000 2,587,400 2,610,800 2,633,200 2,656,000 16 17
18 EXPENSES
19 Disposal Service 1,898,511 1,993,400 2,093,100 2,197,800 2,307,700 2,423,100 20 Contract Services 62,000 65,100 68,400 71,800 75,400 79,200 21 Locking Lid Fee 22,000 23,100 24,300 25,500 26,800 28,100 22 Other Operations 23,650 24,800 26,000 27,300 28,700 30,100 23 Overhead Allocation 500,254 515,300 530,800 547,000 563,000 580,000 24 TOTAL EXPENSES 2,506,415 2,621,700 2,742,600 2,869,400 3,001,600 3,140,500 25 26
27 NET REVENUES 36,151 (58,700) (155,200) (258,600) (368,400) (484,500) 28 29 Ending Fund Balance 795,691 737,000 581,800 323,200 (45,200) (529,700) 30 31 Target (25% of O&M) 626,600 655,400 685,700 717,400 750,400 785,100 32 Target Met? YES YES NO NO NO NO
33 1 - Trial Balance Account Summary Date Range: 07/01/2023 - 06/30/2024 Projected
10 Table 5: Scenario 1: 4.0% Annual Rate Increases - Solid Waste Utility Cash Flow DRAFT 4/15/25 City of Chowchilla
2025 Solid Waste Rate Study
Budget
2024/25 2025/26 2026/27 2027/28 2028/29 2029/30
1 Rate Increase Effective July 1, 2025 July 1, 2026 July 1, 2027 July 1, 2028 July 1, 2029 2 Annual Rate Increase 4.0% 4.0% 4.0% 4.0% 4.0%
3 Growth Rate 1.0% 1.0% 1.0% 1.0% 1.0%
4 5 Beginning Fund Balance [1] $759,540 $795,700 $837,000 $888,800 $951,300 $1,026,200 6 7
8 REVENUES
9 Refuse Collection Charges 2,450,377 2,574,000 2,704,000 2,840,000 2,983,000 3,133,000 10 Locking Lid Revenues 22,002 23,000 24,000 25,000 26,000 27,000 11 Investment Earnings 12,187 8,000 8,400 8,900 9,500 10,300 12 State Recycling Grant Revenue 5,000 5,000 5,000 5,000 5,000 5,000 13 Penalties 50,000 50,000 50,000 50,000 50,000 50,000
14 Other Revenues 3,000 3,000 3,000 3,000 3,000 3,000
15 TOTAL REVENUES 2,542,566 2,663,000 2,794,400 2,931,900 3,076,500 3,228,300 16 17
18 EXPENSES
19 Disposal Service 1,898,511 1,993,400 2,093,100 2,197,800 2,307,700 2,423,100 20 Contract Services 62,000 65,100 68,400 71,800 75,400 79,200 21 Locking Lid Fee 22,000 23,100 24,300 25,500 26,800 28,100 22 Other Operations 23,650 24,800 26,000 27,300 28,700 30,100 23 Overhead Allocation 500,254 515,300 530,800 547,000 563,000 580,000 24 TOTAL EXPENSES 2,506,415 2,621,700 2,742,600 2,869,400 3,001,600 3,140,500 25 26
27 NET REVENUES 36,151 41,300 51,800 62,500 74,900 87,800 28 29 Ending Fund Balance 795,691 837,000 888,800 951,300 1,026,200 1,114,000 30 31 Target (25% of O&M) 626,600 655,400 685,700 717,400 750,400 785,100 32 Target Met? YES YES YES YES YES YES
33 1 - Trial Balance Account Summary Date Range: 07/01/2023 - 06/30/2024 Projected
11 Table 6: Scenario 1: 4% - Proposed Monthly Solid Waste Rates DRAFT 4/15/25 City of Chowchilla
2025 Solid Waste Rate Study
Proposed Rate Increase % 4.0% 4.0% 4.0% 4.0% 4.0%
Current 2025/26 2026/27 2027/28 2028/29 2029/30

RESIDENTIAL
Residential (per set) (1) $34.63 $36.02 $37.46 $38.96 $40.52 $42.14 Residential Extra Toter (each) $19.28 $20.05 $20.85 $21.68 $22.55 $23.45 Locking Lid for Bin (each) $24.91 $25.91 $26.95 $28.03 $29.15 $30.32 1 - Set includes three 96-gallon totters for Refuse, Recycles, and Green Waste Current 2025/26 2026/27 2027/28 2028/29 2029/30

COMMERCIAL TRASH
1 yard bin
1x per week $67.63 $70.34 $73.15 $76.08 $79.12 $82.28
2x per week $135.19 $140.60 $146.22 $152.07 $158.15 $164.48 3x per week $206.95 $215.23 $223.84 $232.79 $242.10 $251.78 4x per week $269.06 $279.82 $291.01 $302.65 $314.76 $327.35 5x per week $334.86 $348.25 $362.18 $376.67 $391.74 $407.41 6x per week $397.63 $413.54 $430.08 $447.28 $465.17 $483.78 2 yard bin
1x per week $109.21 $113.58 $118.12 $122.84 $127.75 $132.86 2x per week $210.31 $218.72 $227.47 $236.57 $246.03 $255.87 3x per week $308.86 $321.21 $334.06 $347.42 $361.32 $375.77 4x per week $415.45 $432.07 $449.35 $467.32 $486.01 $505.45 5x per week $523.29 $544.22 $565.99 $588.63 $612.18 $636.67 6x per week $625.80 $650.83 $676.86 $703.93 $732.09 $761.37 3 yard bin
1x per week $139.81 $145.40 $151.22 $157.27 $163.56 $170.10 2x per week $275.57 $286.59 $298.05 $309.97 $322.37 $335.26 3x per week $393.19 $408.92 $425.28 $442.29 $459.98 $478.38 4x per week $529.87 $551.06 $573.10 $596.02 $619.86 $644.65 5x per week $666.41 $693.07 $720.79 $749.62 $779.60 $810.78 6x per week $797.54 $829.44 $862.62 $897.12 $933.00 $970.32 4 yard bin
1x per week $170.41 $177.23 $184.32 $191.69 $199.36 $207.33 2x per week $336.84 $350.31 $364.32 $378.89 $394.05 $409.81 3x per week $480.66 $499.89 $519.89 $540.69 $562.32 $584.81 4x per week $648.34 $674.27 $701.24 $729.29 $758.46 $788.80 5x per week $813.50 $846.04 $879.88 $915.08 $951.68 $989.75 6x per week $978.60 $1,017.74 $1,058.45 $1,100.79 $1,144.82 $1,190.61 5 yard bin
1x per week $201.09 $209.13 $217.50 $226.20 $235.25 $244.66 2x per week $381.47 $396.73 $412.60 $429.10 $446.26 $464.11 3x per week $539.23 $560.80 $583.23 $606.56 $630.82 $656.05 4x per week $720.96 $749.80 $779.79 $810.98 $843.42 $877.16 5x per week $900.03 $936.03 $973.47 $1,012.41 $1,052.91 $1,095.03 6x per week $1,079.10 $1,122.26 $1,167.15 $1,213.84 $1,262.39 $1,312.89

RESIDENTIAL SOLID WASTE RATES
Proposed

COMMERCIAL SOLID WASTE RATES
Proposed
12 Current 2025/26 2026/27 2027/28 2028/29 2029/30
6 yard bin
1x per week $225.99 $235.03 $244.43 $254.21 $264.38 $274.96 2x per week $424.46 $441.44 $459.10 $477.46 $496.56 $516.42 3x per week $603.65 $627.80 $652.91 $679.03 $706.19 $734.44 4x per week $806.85 $839.12 $872.68 $907.59 $943.89 $981.65 5x per week $1,007.55 $1,047.85 $1,089.76 $1,133.35 $1,178.68 $1,225.83 6x per week $1,208.13 $1,256.46 $1,306.72 $1,358.99 $1,413.35 $1,469.88

COMMERCIAL RECYCLE
96 Gallon
1x per week $12.73 $13.24 $13.77 $14.32 $14.89 $15.49
2x per week $22.92 $23.84 $24.79 $25.78 $26.81 $27.88
3x per week $33.11 $34.43 $35.81 $37.24 $38.73 $40.28
2 yard bin
1x per week $39.47 $41.05 $42.69 $44.40 $46.18 $48.03
2x per week $71.05 $73.89 $76.85 $79.92 $83.12 $86.44
3x per week $102.64 $106.75 $111.02 $115.46 $120.08 $124.88 3 yard bin
1x per week $50.29 $52.30 $54.39 $56.57 $58.83 $61.18
2x per week $90.54 $94.16 $97.93 $101.85 $105.92 $110.16 3x per week $130.78 $136.01 $141.45 $147.11 $152.99 $159.11 4 yard bin
1x per week $62.39 $64.89 $67.49 $70.19 $73.00 $75.92
2x per week $112.30 $116.79 $121.46 $126.32 $131.37 $136.62 3x per week $162.21 $168.70 $175.45 $182.47 $189.77 $197.36 6 yard bin
1x per week $85.95 $89.39 $92.97 $96.69 $100.56 $104.58 2x per week $154.71 $160.90 $167.34 $174.03 $180.99 $188.23 3x per week $223.48 $232.42 $241.72 $251.39 $261.45 $271.91

COMMERCIAL ORGANIC
96 Gallon
1x per week $19.10 $19.86 $20.65 $21.48 $22.34 $23.23
2x per week $28.02 $29.14 $30.31 $31.52 $32.78 $34.09
3x per week $36.92 $38.40 $39.94 $41.54 $43.20 $44.93
2 yard bin
1x per week $67.10 $69.78 $72.57 $75.47 $78.49 $81.63
2x per week $120.80 $125.63 $130.66 $135.89 $141.33 $146.98 3x per week $174.47 $181.45 $188.71 $196.26 $204.11 $212.27 3 yard bin
1x per week $85.51 $88.93 $92.49 $96.19 $100.04 $104.04 2x per week $153.91 $160.07 $166.47 $173.13 $180.06 $187.26 3x per week $222.32 $231.21 $240.46 $250.08 $260.08 $270.48 COMMERCIAL SOLID WASTE RATES continued
Proposed
13 Current 2025/26 2026/27 2027/28 2028/29 2029/30

ROLL OFF (DROP BOX) SERVICE
20 Yard Container
Delivery $30.79 $32.02 $33.30 $34.63 $36.02 $37.46
Service Charge Per Load $193.69 $201.44 $209.50 $217.88 $226.60 $235.66 Rent (per day) $12.32 $12.81 $13.32 $13.85 $14.40 $14.98 30 Yard Container
Delivery $43.10 $44.82 $46.61 $48.47 $50.41 $52.43
Service Charge Per Load $225.97 $235.01 $244.41 $254.19 $264.36 $274.93 Rent (per day) $12.32 $12.81 $13.32 $13.85 $14.40 $14.98 40 Yard Container
Delivery $55.41 $57.63 $59.94 $62.34 $64.83 $67.42
Service Charge Per Load $271.16 $282.01 $293.29 $305.02 $317.22 $329.91 Rent (per day) $12.32 $12.81 $13.32 $13.85 $14.40 $14.98 Additional Per Ton Disposal
Municipal Solid Waste $55.41 $57.63 $59.94 $62.34 $64.83 $67.42 Recyclables $67.73 $70.44 $73.26 $76.19 $79.24 $82.41
Organics $43.10 $44.82 $46.61 $48.47 $50.41 $52.43
3-Yard Rent-A-Bin Service
Delivery and Removal $153.91 $160.07 $166.47 $173.13 $180.06 $187.26 Additional Service $61.56 $64.02 $66.58 $69.24 $72.01 $74.89 Bulky Item Pick-Up $43.11 $44.83 $46.62 $48.48 $50.42 $52.44

MISCELLANEOUS FEES
Enclosure Access $13.23 $13.76 $14.31 $14.88 $15.48 $16.10 Push/Pull Charge $27.71 $28.82 $29.97 $31.17 $32.42 $33.72 Extra Pick-up per Cubic Yard
Municipal Solid Waste $28.14 $29.27 $30.44 $31.66 $32.93 $34.25 Recyclables $15.70 $16.33 $16.98 $17.66 $18.37 $19.10
Organics $22.65 $23.56 $24.50 $25.48 $26.50 $27.56
COMMERCIAL SOLID WASTE RATES continued
Proposed
14 Table 7: Scenario 2: 5% Annual Increases - Solid Waste Utility Cash Flow DRAFT 4/15/25 City of Chowchilla
2025 Solid Waste Rate Study
Budget
2024/25 2025/26 2026/27 2027/28 2028/29 2029/30
1 Rate Increase Effective July 1, 2025 July 1, 2026 July 1, 2027 July 1, 2028 July 1, 2029 2 Annual Rate Increase 5.0% 5.0% 5.0% 5.0% 5.0%
3 Growth Rate 1.0% 1.0% 1.0% 1.0% 5.0%
4 5 Beginning Fund Balance [1] $759,540 $795,700 $862,000 $966,000 $1,112,300 $1,306,800 6 7
8 REVENUES
9 Refuse Collection Charges 2,450,377 2,599,000 2,756,000 2,923,000 3,100,000 3,418,000 10 Locking Lid Revenues 22,002 23,000 24,000 25,000 27,000 30,000 11 Investment Earnings 12,187 8,000 8,600 9,700 11,100 13,100 12 State Recycling Grant Revenue 5,000 5,000 5,000 5,000 5,000 5,000 13 Penalties 50,000 50,000 50,000 50,000 50,000 50,000
14 Other Revenues 3,000 3,000 3,000 3,000 3,000 3,000
15 TOTAL REVENUES 2,542,566 2,688,000 2,846,600 3,015,700 3,196,100 3,519,100 16 17
18 EXPENSES
19 Disposal Service 1,898,511 1,993,400 2,093,100 2,197,800 2,307,700 2,423,100 20 Contract Services 62,000 65,100 68,400 71,800 75,400 79,200 21 Locking Lid Fee 22,000 23,100 24,300 25,500 26,800 28,100 22 Other Operations 23,650 24,800 26,000 27,300 28,700 30,100 23 Overhead Allocation 500,254 515,300 530,800 547,000 563,000 580,000 24 TOTAL EXPENSES 2,506,415 2,621,700 2,742,600 2,869,400 3,001,600 3,140,500 25 26
27 NET REVENUES 36,151 66,300 104,000 146,300 194,500 378,600 28 29 Ending Fund Balance 795,691 862,000 966,000 1,112,300 1,306,800 1,685,400 30 31 Target (25% of O&M) 626,600 655,400 685,700 717,400 750,400 785,100 32 Target Met? YES YES YES YES YES YES
33 1 - Trial Balance Account Summary Date Range: 07/01/2023 - 06/30/2024 Projected
15 Table 8: Scenario 2: 5% - Proposed Monthly Solid Waste Rates DRAFT 4/15/25 City of Chowchilla
2025 Solid Waste Rate Study
Proposed Rate Increase % 5.0% 5.0% 5.0% 5.0% 5.0%
Current 2025/26 2026/27 2027/28 2028/29 2029/30

RESIDENTIAL
Residential (per set) (1) $34.63 $36.36 $38.18 $40.09 $42.09 $44.19 Residential Extra Toter (each) $19.28 $20.24 $21.25 $22.31 $23.43 $24.60 Locking Lid for Bin (each) $24.91 $26.16 $27.47 $28.84 $30.28 $31.79 1 - Set includes three 96-gallon totters for Refuse, Recycles, and Green Waste Current 2025/26 2026/27 2027/28 2028/29 2029/30

COMMERCIAL TRASH
1 yard bin
1x per week $67.63 $71.01 $74.56 $78.29 $82.20 $86.31
2x per week $135.19 $141.95 $149.05 $156.50 $164.33 $172.55 3x per week $206.95 $217.30 $228.17 $239.58 $251.56 $264.14 4x per week $269.06 $282.51 $296.64 $311.47 $327.04 $343.39 5x per week $334.86 $351.60 $369.18 $387.64 $407.02 $427.37 6x per week $397.63 $417.51 $438.39 $460.31 $483.33 $507.50 2 yard bin
1x per week $109.21 $114.67 $120.40 $126.42 $132.74 $139.38 2x per week $210.31 $220.83 $231.87 $243.46 $255.63 $268.41 3x per week $308.86 $324.30 $340.52 $357.55 $375.43 $394.20 4x per week $415.45 $436.22 $458.03 $480.93 $504.98 $530.23 5x per week $523.29 $549.45 $576.92 $605.77 $636.06 $667.86 6x per week $625.80 $657.09 $689.94 $724.44 $760.66 $798.69 3 yard bin
1x per week $139.81 $146.80 $154.14 $161.85 $169.94 $178.44 2x per week $275.57 $289.35 $303.82 $319.01 $334.96 $351.71 3x per week $393.19 $412.85 $433.49 $455.16 $477.92 $501.82 4x per week $529.87 $556.36 $584.18 $613.39 $644.06 $676.26 5x per week $666.41 $699.73 $734.72 $771.46 $810.03 $850.53 6x per week $797.54 $837.42 $879.29 $923.25 $969.41 $1,017.88 4 yard bin
1x per week $170.41 $178.93 $187.88 $197.27 $207.13 $217.49 2x per week $336.84 $353.68 $371.36 $389.93 $409.43 $429.90 3x per week $480.66 $504.69 $529.92 $556.42 $584.24 $613.45 4x per week $648.34 $680.76 $714.80 $750.54 $788.07 $827.47 5x per week $813.50 $854.18 $896.89 $941.73 $988.82 $1,038.26 6x per week $978.60 $1,027.53 $1,078.91 $1,132.86 $1,189.50 $1,248.98 5 yard bin
1x per week $201.09 $211.14 $221.70 $232.79 $244.43 $256.65 2x per week $381.47 $400.54 $420.57 $441.60 $463.68 $486.86 3x per week $539.23 $566.19 $594.50 $624.23 $655.44 $688.21 4x per week $720.96 $757.01 $794.86 $834.60 $876.33 $920.15 5x per week $900.03 $945.03 $992.28 $1,041.89 $1,093.98 $1,148.68 6x per week $1,079.10 $1,133.06 $1,189.71 $1,249.20 $1,311.66 $1,377.24

RESIDENTIAL SOLID WASTE RATES
Proposed

COMMERCIAL SOLID WASTE RATES
Proposed
16 Current 2025/26 2026/27 2027/28 2028/29 2029/30
6 yard bin
1x per week $225.99 $237.29 $249.15 $261.61 $274.69 $288.42 2x per week $424.46 $445.68 $467.96 $491.36 $515.93 $541.73 3x per week $603.65 $633.83 $665.52 $698.80 $733.74 $770.43 4x per week $806.85 $847.19 $889.55 $934.03 $980.73 $1,029.77 5x per week $1,007.55 $1,057.93 $1,110.83 $1,166.37 $1,224.69 $1,285.92 6x per week $1,208.13 $1,268.54 $1,331.97 $1,398.57 $1,468.50 $1,541.93

COMMERCIAL RECYCLE
96 Gallon
1x per week $12.73 $13.37 $14.04 $14.74 $15.48 $16.25
2x per week $22.92 $24.07 $25.27 $26.53 $27.86 $29.25
3x per week $33.11 $34.77 $36.51 $38.34 $40.26 $42.27
2 yard bin
1x per week $39.47 $41.44 $43.51 $45.69 $47.97 $50.37
2x per week $71.05 $74.60 $78.33 $82.25 $86.36 $90.68
3x per week $102.64 $107.77 $113.16 $118.82 $124.76 $131.00 3 yard bin
1x per week $50.29 $52.80 $55.44 $58.21 $61.12 $64.18
2x per week $90.54 $95.07 $99.82 $104.81 $110.05 $115.55 3x per week $130.78 $137.32 $144.19 $151.40 $158.97 $166.92 4 yard bin
1x per week $62.39 $65.51 $68.79 $72.23 $75.84 $79.63
2x per week $112.30 $117.92 $123.82 $130.01 $136.51 $143.34 3x per week $162.21 $170.32 $178.84 $187.78 $197.17 $207.03 6 yard bin
1x per week $85.95 $90.25 $94.76 $99.50 $104.48 $109.70 2x per week $154.71 $162.45 $170.57 $179.10 $188.06 $197.46 3x per week $223.48 $234.65 $246.38 $258.70 $271.64 $285.22

COMMERCIAL ORGANIC
96 Gallon
1x per week $19.10 $20.06 $21.06 $22.11 $23.22 $24.38
2x per week $28.02 $29.42 $30.89 $32.43 $34.05 $35.75
3x per week $36.92 $38.77 $40.71 $42.75 $44.89 $47.13
2 yard bin
1x per week $67.10 $70.46 $73.98 $77.68 $81.56 $85.64
2x per week $120.80 $126.84 $133.18 $139.84 $146.83 $154.17 3x per week $174.47 $183.19 $192.35 $201.97 $212.07 $222.67 3 yard bin
1x per week $85.51 $89.79 $94.28 $98.99 $103.94 $109.14 2x per week $153.91 $161.61 $169.69 $178.17 $187.08 $196.43 3x per week $222.32 $233.44 $245.11 $257.37 $270.24 $283.75 COMMERCIAL SOLID WASTE RATES continued
Proposed
17 Current 2025/26 2026/27 2027/28 2028/29 2029/30

ROLL OFF (DROP BOX) SERVICE
20 Yard Container
Delivery $30.79 $32.33 $33.95 $35.65 $37.43 $39.30
Service Charge Per Load $193.69 $203.37 $213.54 $224.22 $235.43 $247.20 Rent (per day) $12.32 $12.94 $13.59 $14.27 $14.98 $15.73 30 Yard Container
Delivery $43.10 $45.26 $47.52 $49.90 $52.40 $55.02
Service Charge Per Load $225.97 $237.27 $249.13 $261.59 $274.67 $288.40 Rent (per day) $12.32 $12.94 $13.59 $14.27 $14.98 $15.73 40 Yard Container
Delivery $55.41 $58.18 $61.09 $64.14 $67.35 $70.72
Service Charge Per Load $271.16 $284.72 $298.96 $313.91 $329.61 $346.09 Rent (per day) $12.32 $12.94 $13.59 $14.27 $14.98 $15.73 Additional Per Ton Disposal
Municipal Solid Waste $55.41 $58.18 $61.09 $64.14 $67.35 $70.72 Recyclables $67.73 $71.12 $74.68 $78.41 $82.33 $86.45
Organics $43.10 $45.26 $47.52 $49.90 $52.40 $55.02
3-Yard Rent-A-Bin Service
Delivery and Removal $153.91 $161.61 $169.69 $178.17 $187.08 $196.43 Additional Service $61.56 $64.64 $67.87 $71.26 $74.82 $78.56 Bulky Item Pick-Up $43.11 $45.27 $47.53 $49.91 $52.41 $55.03

MISCELLANEOUS FEES
Enclosure Access $13.23 $13.89 $14.58 $15.31 $16.08 $16.88 Push/Pull Charge $27.71 $29.10 $30.56 $32.09 $33.69 $35.37 Extra Pick-up per Cubic Yard
Municipal Solid Waste $28.14 $29.55 $31.03 $32.58 $34.21 $35.92 Recyclables $15.70 $16.49 $17.31 $18.18 $19.09 $20.04
Organics $22.65 $23.78 $24.97 $26.22 $27.53 $28.91
COMMERCIAL SOLID WASTE RATES continued
Proposed
18 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30
$0
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
$3,500,000
$4,000,000
Projected Solid Waste Revenues & Expenses
Disposal Services Other Expenses
Overhead Allocation Current Solid Waste Revenues
Projected Solid Waste Rate Revenues
Current Solid Waste Rate Revenues = $2.5M
Current Projected
19 Average Use - 16 hcf
$0
$500,000
$1,000,000
$1,500,000
$2,000,000
2024/25 2025/26 2026/27 2027/28 2028/29 2029/30
Solid Waste
Ending Reserve Fund Balance Comparison
No Rate Increases
Scenario 1: 4.0% Annual Rate Increases
Scenario 2: 5.0% Annual Rate Increases
Reserve Fund Target
20 $34.63
$36.02
$37.46
$38.96
$40.52
$42.14
$34.63
$36.36
$38.18
$40.09
$42.09
$44.19
$0
$5
$10
$15
$20
$25
$30
$35
$40
$45
$50
2024/25 2025/26 2026/27 2027/28 2028/29 2029/30
Proposed Monthly Solid Waste Bill for
Single Family Residential Customers
Proposed
21 1
City of Chowchilla
2025 Sewer Rate Study
Draft Tables V3 – April 15, 2025
UPDATES FROM V2
- For Salaries & Benefits, cost escalator is 15.0% for year 1 and 10.0% for years 2 through 5 - Increase annual cost escalator for Energy escalator to 20.0% SEWER RATE SCENARIOS:
- Scenario 1: Includes New Staff Member
- Scenario 2: Does Not Include New Staff Member
Here is a comparison of the proposed sewer rate increases:

Here is a comparison of the proposed monthly bill for an average single family residential customer:
2025/26 2026/27 2027/28 2028/29 2029/30
Scenario 1: Includes New Staff Member 4.0% 4.0% 4.0% 4.0% 4.0% - Includes New Staff Member in 2025/26
- Salary Cost Escalator 15% in Year 1, 10% for Years 2-5 Scenario 2: Does Not Include New Staff Member 3.0% 3.0% 3.0% 3.0% 3.0% - Does not include New Staff Member in 2025/26
- Salary Cost Escalator 15% in Year 1, 10% for Years 2-5 Proposed Annual Sewer Rate Increases
Current 2025/26 2026/27 2027/28 2028/29 2029/30
Scenario 1: Includes New Employee $31.94 $32.83 $34.14 $35.51 $36.93 $38.41 Scenario 2: Does Not Include New Employee $31.94 $32.65 $33.63 $34.64 $35.68 $36.75 Monthly Sewer Residential Bill Comparison
2 PROPOSED RATES FOR SCENARIO 1: INCLUDES NEW STAFF MEMBER PROPOSED RATES FOR SCENARIO 2: DOES NOT INCLUDE NEW STAFF MEMBER Current 2025/26 2026/27 2027/28 2028/29 2029/30

SEWER RATES
Residential (Per Dwelling Unit)
Single Family $31.94 $32.83 $34.14 $35.51 $36.93 $38.41 Multi-Family/Mobile Homes $23.57 $24.99 $25.99 $27.03 $28.11 $29.23 Commercial Metered (Per hcf)
Group 1: Extra-low Strength $2.98 $3.04 $3.16 $3.29 $3.42 $3.56 Group 2: Low Strength $3.34 $3.45 $3.59 $3.73 $3.88 $4.04 Group 3: Medium Strength $3.59 $3.73 $3.88 $4.04 $4.20 $4.37 Group 4: High Strength $6.80 $7.37 $7.66 $7.97 $8.29 $8.62

DEBT SERVICE CHARGES
Residential (Per Dwelling Unit)
Single Family $1.41 $1.41 $1.41 $1.41 $1.41 $1.41
Multi-Family/Mobile Homes $1.05 $1.05 $1.05 $1.05 $1.05 $1.05 Commercial (Per hcf)
Group 1: Extra-low Strength $0.09 $0.09 $0.09 $0.09 $0.09 $0.09 Group 2: Low Strength $0.11 $0.11 $0.11 $0.11 $0.11 $0.11 Group 3: Medium Strength $0.11 $0.11 $0.11 $0.11 $0.11 $0.11 Group 4: High Strength $0.31 $0.31 $0.31 $0.31 $0.31 $0.31 Proposed
SCENARIO 1: PROPOSED MONTHLY SEWER RATES
Current 2025/26 2026/27 2027/28 2028/29 2029/30

SEWER RATES
Residential (Per Dwelling Unit)
Single Family $31.94 $32.65 $33.63 $34.64 $35.68 $36.75 Multi-Family/Mobile Homes $23.57 $24.86 $25.61 $26.38 $27.17 $27.99 Commercial Metered (Per hcf)
Group 1: Extra-low Strength $2.98 $3.02 $3.11 $3.20 $3.30 $3.40 Group 2: Low Strength $3.34 $3.43 $3.53 $3.64 $3.75 $3.86 Group 3: Medium Strength $3.59 $3.71 $3.82 $3.93 $4.05 $4.17 Group 4: High Strength $6.80 $7.35 $7.57 $7.80 $8.03 $8.27

DEBT SERVICE CHARGES
Residential (Per Dwelling Unit)
Single Family $1.41 $1.41 $1.41 $1.41 $1.41 $1.41
Multi-Family/Mobile Homes $1.05 $1.05 $1.05 $1.05 $1.05 $1.05 Commercial (Per hcf)
Group 1: Extra-low Strength $0.09 $0.09 $0.09 $0.09 $0.09 $0.09 Group 2: Low Strength $0.11 $0.11 $0.11 $0.11 $0.11 $0.11 Group 3: Medium Strength $0.11 $0.11 $0.11 $0.11 $0.11 $0.11 Group 4: High Strength $0.31 $0.31 $0.31 $0.31 $0.31 $0.31 SCENARIO 2: PROPOSED MONTHLY SEWER RATES
Proposed
3 The 2025 Sewer Rate Study is based on the 2024/25 budget and recommends rate adjustments for the five-year period beginning in 2025/26 through 2029/30. The rate increases and projections are draft and will be updated with City input. The tables are based on the following assumptions:

SEWER RATE STUDY
 The first rate increase will go into effect on July 1, 2025. Subsequent rate increases will be effective July 1 of each year through July 1, 2029.
 The City would like to maintain the current sewer rate structure. Residential customers, including single family, multi-family, and mobile home customers, are billed a fixed monthly fee charged on a per dwelling unit basis. Commercial customers are charged a volume rate per hcf based on 80 percent of metered water consumption.
 The City levies a separate Debt Service Charge to pay for debt service on existing obligations. For residential customers, the charge is a fixed monthly fee charged. For commercial customers, the charge is a volume rate based on actual use.
 Growth is estimated at 1.0% each year. No major changes in the customer base are expected through 2029/30.

CASH RESERVES
 As of July 1, 2024, the beginning fund balance for the Sewer Fund is $4,173,000.  2019 Study recommended establishing a separate Sewer Capital Reserve Fund.  The proposed operating reserve fund target is 25% of Annual O&M Expenses + One Year’s Annual Debt Service Payment.

SEWER REVENUES
 Total budgeted Sewer Fund Revenues for 2024/25 are $4.8M.  Sewer Service Charges for 2024/25 are estimated at $1,991,571.  Fairmead Sewer Service Charges are projected at $67,000 annually beginning in 2027/28. The rates are based on the MD-33 Fairmead Proposition 218 Rate Study, July 2020.  Sewer Debt Service Charges are estimated at $88,000 for 2024/25 and are not anticipated to change over the next five years
 Fines and Penalties are estimated at $50,000 for 2024/25 and are not projected to increase.  Sewer Connection Fees are budgeted at $5,000 for 2024/25 and are not projected to increase.  Investment Earnings are projected at 1.0% of the cash fund balance each year.  Misc. Reimbursement is budgeted at $2,070,700 for 2024/25. For future years, Misc.

Reimbursements are estimated at $5,000 each year.
 CREB Subsidy is budgeted at $81,927 for 2024/25 and is not anticipated to change over the next five years.
 Other Revenues are estimated at $12,000 for 2024/25 and are not anticipated to change over the next five years.

4 SEWER OPERATING EXPENSES
 Total budgeted operating expenses for 2024/25 is $1,321,766 (does not include capital, debt service, or depreciation).
 Salaries & Benefits are increased by 10.0% beginning in 2025/26 each year to account for the need to increase overall sewer salaries.
 Projections include a new sewer employee in 2025/25 at an estimated cost of $100,000/year  Energy is increased by 17.0% each year beginning in 2025/26.  All other expenses are increased by 3.0% each year.
 Total Fairmead O&M costs are $164,000 based on the MD-33 Fairmead Proposition 218 Rate Study, July 2020 beginning in 2027/28.

NET REVENUES
 Based on historical budget figures, the Sewer Fund has been doing well and covering annual expenses. However, based on the 2024/25 budget, the Sewer Fund will have an operating deficit of approximately $287,500 which will be drawn down from reserves.

SEWER CAPITAL PROJECTS
 Capital project costs have been escalated by 5.0% each year beginning in 2025/26.  The Five-Year (2024/25 through 2028/29) CIP includes a total of $27.2M in projects.  The Fairmead Consolidation project totals $23M and comprises 84.6% of the total CIP. The entire project will be grant funded.
 Sewer Main Replacements are estimated at $50,000 annually.  The remaining $4.2M in projects includes include Sewer Main Replacements, Digester Rehabilitation, Other Aeration System Upgrades, and installing a Screw Press. These projects will be cash-funded.

OUTSTANDING DEBT
 Sewer Fund currently has 1 outstanding debt obligation:
o 2017 Wastewater Revenue Bonds for $3,310,000
 Total annual debt service is approximately $180,000
 Last payment is due in December 2034
 The 2001 USDA Bonds for $268,325 were paid off in October 2020  Annual revenues from the Sewer Debt Service Charges totals $88,000.  Based on historical budget figures, the Wastewater Fund has been meeting its debt service coverage covenant
 A debt service coverage ratio is a financial measure of an agency’s ability to repay outstanding debt. The ratio requires that annual water net revenues (gross revenues less operating and maintenance expenses) must be at least 1.25 times the combined annual debt service payments on all parity obligations. Failure to meet the debt service coverage ratio on an annual basis is considered to be technical default. Moreover, failing to meet coverage could make it difficult for the City to obtain additional debt funding. Therefore, rates and fees must be set to meet this legal requirement.
5 FAIRMEAD CONSOLIDATION PROJECT
 Total capital costs are estimated at $23M with completion planned in 2026. The entire project will be paid for with grant funding from the SWRCB.
 Total operating costs for the new Fairmead sewer system are estimated at $164,388 based on the MD-33 Fairmead Proposition 218 Rate Study, July 2020. Fairmead’s share of operating costs is $52,916, representing 32.2% of O&M costs. The City will be responsible for $111,571 or 67.8% of O&M costs.
 The proposed monthly sewer rate for 2020 through 2024 is detailed on Table 4-1 in the MD-33 Fairmead Proposition 218 Rate Study, July 2020. The study states that the annual increases to the rate after 2024 will be based on the change in the Engineer’s New Record (ENR) 20-City National Average Construction Cost Index (CCI).
 Total annual revenues are projected at $67,000 ($31.81 x 175 customers x 12 months)  The High Speed Rail project will pay the utility bills for Fairmead customers for 10 years beginning in 2027 through 2037.
$22.49
$25.75
$31.42
$31.47
$33.35
$34.06
$34.24
$39.42
$39.43
$40.29
$46.96
$47.37
$50.00
$57.51
$58.60
$0
$10
$20
$30
$40
$50
$60
$70
Monthly Sewer Bill Survey - March 2025
Single Family Residential
*Includes $1.41 debt service charge
Table 1: Current Monthly Sewer Rates DRAFT 4/15/25
City of Chowchilla
2025 Sewer Rate Study
Current FY2021 FY2022 FY2023 FY2024 FY2025

SEWER RATES
Residential (Per Dwelling Unit)
Single Family $25.58 $26.28 $27.59 $28.97 $30.42 $31.94 Multi-Family/Mobile Homes $19.18 $19.39 $20.36 $21.38 $22.45 $23.57 Commercial Metered (Per hcf) [1]
Group 1: Extra-low Strength $1.78 $2.45 $2.57 $2.70 $2.84 $2.98 Group 2: Low Strength $1.94 $2.75 $2.89 $3.03 $3.18 $3.34 Group 3: Medium Strength $2.03 $2.95 $3.10 $3.26 $3.42 $3.59 Group 4: High Strength $4.89 $5.60 $5.88 $6.17 $6.48 $6.80

DEBT SERVICE CHARGES
Residential (Per Dwelling Unit)
Single Family $1.41 $1.41 $1.41 $1.41 $1.41 $1.41
Multi-Family/Mobile Homes $1.05 $1.05 $1.05 $1.05 $1.05 $1.05 Commercial (Per hcf) (1)
Group 1: Extra-low Strength $0.09 $0.09 $0.09 $0.09 $0.09 $0.09 Group 2: Low Strength $0.11 $0.11 $0.11 $0.11 $0.11 $0.11 Group 3: Medium Strength $0.11 $0.11 $0.11 $0.11 $0.11 $0.11 Group 4: High Strength $0.31 $0.31 $0.31 $0.31 $0.31 $0.31 1 - Based on 80% of consumption. 1 hundred cubic feet (hcf) = 748 gallons Group 1 includes schools. Group 2 includes general commercial and churches. Group 3 includes hospitals. Group 4 includes restaurants.

MONTHLY SEWER RATES
Proposed
Table 2: Estimated Sewer Service Revenues DRAFT 4/15/25 City of Chowchilla
2025 Sewer Rate Study

FIXED CHARGES (RESIDENTIAL CUSTOMERS) FIXED CHARGES (RESIDENTIAL CUSTOMERS) Residential Customers No. of Units
FY 2022/23 Monthly
Rate
Estimated Annual
Revenue % of Total Residential Customers No. of Units
FY 2023/24 Monthly
Rate
Estimated Annual
Revenue % of Total
Single Family 3,564 $28.97 $1,238,989 85% Single Family 3,600 $30.42 $1,314,144 85% Multi-Family/Mobile Homes 865 $21.38 $221,924 15% Multi-Family/Mobile Homes 871 $22.45 $234,647 15% Subtotal Residential 4,429 $1,460,913 100% Subtotal Residential 4,471 $1,548,791 100%

COMMODITY RATES (COMMERCIAL CUSTOMERS) COMMODITY RATES (COMMERCIAL CUSTOMERS) Commercial Metered Customers
Annual Consumption
(hcf) FY 2022/23 Rates
Estimated Annual
Revenue % of Total Commercial Metered Customers
Annual Consumption
(hcf) FY 2023/24 Rates
Estimated Annual
Revenue % of Total
Group 1: Extra-low Strength 22,550 $2.70 $60,884 16% Group 1: Extra-low Strength 21,674 $2.84 $61,555 16% Group 2: Low Strength 74,048 $3.03 $224,364 60% Group 2: Low Strength 71,556 $3.18 $227,549 60% Group 3: Medium Strength 15,213 $3.26 $49,593 13% Group 3: Medium Strength 13,580 $3.42 $46,445 12% Group 4: High Strength 6,528 $6.17 $40,276 11% Group 4: High Strength 6,291 $6.48 $40,768 11% Subtotal Commercial 118,338 $375,117 100% Subtotal Commercial 113,102 $376,316 100%

TOTAL SEWER SERVICE REVENUES TOTAL SEWER SERVICE REVENUES All Customers
Estimated Annual
Revenue % of Total All Customers
Estimated Annual
Revenue % of Total
Residential $1,460,913 80% Residential $1,548,791 80%
Commercial $375,117 20% Commercial $376,316 20%
Total Sewer Service Revenues $1,836,031 100% Total Sewer Service Revenues $1,925,108 100% Table 3: Sewer Net Revenues DRAFT 4/15/25
City of Chowchilla
2025 Sewer Rate Study
Budget
2021/22 2022/23 2023/24 2024/25
Revenues
Sewer Service Charges $1,669,045 $1,866,698 $1,951,237 $1,991,571 Sewer Debt Service Charges $81,843 $87,500 $86,789 $88,000 Fines and Penalties $7,029 $46,725 $38,382 $50,000
Sewer Connection Fees $33,434 $17,522 $1,445 $5,000
Investment Earnings $6,946 $62,707 $128,921 $66,702
Misc Reimbursement $4,297 $279 $8,677 $2,070,700
CREB Subsidy Revenue $82,982 $41,491 $81,927 $81,927
Other Revenues $5,471 $13,333 $20,876 $12,433
Transfers In [1] $69,021 $139,329 $153,675 $450,458
Total Revenues $1,960,068 $2,275,584 $2,471,930 $4,816,791 Expenditures [2]
Salaries and Benefits $4,082 $804,273 $353,369 $435,155 Operations and Maintenance $288,360 $428,207 $661,792 $640,560 Debt Service [3] $201,290 $166,804 $188,605 $188,605
Capital Outlay [4] $0 $0 $191,000 $3,315,933
Overhead Allocations $342,707 $375,484 $416,189 $418,051 Transfers Out $66,628 $144,607 $67,566 $105,958
Total Expenditures $903,067 $1,919,375 $1,878,521 $5,104,262 Total Net Revenues $1,057,001 $356,209 $593,409 ($287,471) Source: Fiscal Year 2024-2025 Budget
Actual
Table 4: Projected Sewer Operating Expenses DRAFT 4/15/25 City of Chowchilla
2025 Sewer Rate Study
Budget
2024/25
Annual Escalation Annual Escalation Annual Escalation Annual Escalation Annual Escalation Annual Cost Factor Cost Factor Cost Factor Cost Factor Cost Factor Cost Operating Expenses
Salaries & Benefits [1] $435,155 15.0% $615,000 10.0% $676,500 10.0% $744,200 10.0% $818,600 10.0% $900,500 Operations & Maintenance
Energy 140,000 20.0% 168,000 20.0% 201,600 20.0% 241,900 20.0% 290,300 20.0% 348,400 System Repairs 100,000 3.0% 103,000 3.0% 106,100 3.0% 109,300 3.0% 112,600 3.0% 116,000 Liability Insurance 48,210 3.0% 49,700 3.0% 51,200 3.0% 52,700 3.0% 54,300 3.0% 55,900 Mandated Costs/Fees 66,000 3.0% 68,000 3.0% 70,000 3.0% 72,100 3.0% 74,300 3.0% 76,500 Other Operations 286,350 3.0% 294,900 3.0% 303,700 3.0% 312,800 3.0% 322,200 3.0% 331,900 Subtotal O&M 640,560 683,600 732,600 788,800 853,700 928,700 Overhead Allocation 418,051 3.0% 431,000 3.0% 443,900 3.0% 457,200 3.0% 470,900 3.0% 485,000 Fairmead O&M [2] 0 3.0% 0 3.0% 0 3.0% 164,000 3.0% 168,900 3.0% 174,000 Total Operating Expenses 1,493,766 1,729,600 1,853,000 2,154,200 2,312,100 2,488,200 % Change 15.6% 15.8% 7.1% 16.3% 7.3% 7.6%
1 - Includes one new Sewer System employee in 2025/26. Total salary & benefits for new worker is estimated at $100,000/year. 2 - Includes total operating costs based on the MD-33 Fairmead Proposition 218 Rate Study, July 2020 Projected
2025/26 2026/27 2027/28 2028/29 2029/30
Table 5: Sewer Capital Improvement Projects DRAFT 4/15/25 City of Chowchilla
2025 Sewer Rate Study
Project # Project 2024/25 2025/26 2026/27 2027/28 2028/29 Total Funding Source S-10 Fairmead Sewer Consolidation [1] $2,066,300 $19,933,700 - - - $22,000,000 SWRCB Grant &
High Speed Rail
S-11 Digester Rehabilitation - - - $127,000 - $127,000 Sewer Fund S-12 Upsize Main at Circle & Ventura $0 - - - $540,000 $540,000 Sewer Fund S-3 Sewer Main Replacement, Various Locations $250,000 $50,000 $50,000 $50,000 $50,000 $450,000 Sewer Fund S-4 WWTP Aeration System Upgrade $650,000 - - - - $650,000 Sewer DIF &
Sewer Fund
S-6 Replace Chain Scrapers $30,000 $820,000 - - - $850,000 Sewer Fund S-8 Install Screw Press $110,000 $1,190,000 - - - $1,300,000 Sewer Fund Total Sewer Capital Projects $3,106,300 $21,993,700 $50,000 $177,000 $590,000 $25,917,000 Cost Escalation (5% annually) 100.0% 105.0% 110.3% 115.8% 121.6% Total Sewer Capital Projects - Escalated Costs $3,106,300 $23,093,385 $55,125 $204,900 $717,149 $27,176,858 Source: City of Chowchilla Capital Improvement Plan '24/'25 thru '28/'29 1 - High Speed Rail will fund $7M. Remaining $15M will be paid with SWRCB grant.

Fairmead Project $22,996,685 84.6%
All Other Projects $4,180,173 15.4%
Total CIP $27,176,858 100.0%

ESCALATED PROJECT COSTS
Table 6: Fairmead - Annual O&M Costs DRAFT 4/15/25
City of Chowchilla
2025 Sewer Rate Study
Fairmead Chowchilla Total Fairmead Chowchilla Total
Electrical for Lift Stations $7,817 $0 $7,817 100.0% 0.0% 100.0% Chemicals for Treatment $3,810 $9,425 $13,235 28.8% 71.2% 100.0% Electricity for Treatment $55,631 $137,625 $193,257 28.8% 71.2% 100.0% Reduction in Existing Treatment Costs ($14,342) ($35,479) ($49,821) 28.8% 71.2% 100.0% Net Annual O&M Costs $52,916 $111,571 $164,488 32.2% 67.8% 100.0% Source: MD-33 Fairmead Proposition 218 Rate Study, July 2020 Costs have not been escalated
Cost ($) Percentage (%)
Table 7: Estimated Total Sewer Flow DRAFT 4/15/25
City of Chowchilla
2025 Sewer Rate Study
Residential # of Dwellings
Monthly
Flow [1]
Total Annual
Flow (hcf) % of Total
Single Family 3,600 X 8.8 X 12 380,160 67.5%
Multi-Family 871 X 6.7 X 12 70,028 12.4%
Total Residential 4,471 450,188 79.9%
Commercial # of Accounts
Total Annual
Flow (hcf) % of Total
Group 1: Extra-low Strength 62 21,674 3.8%
Group 2: Low Strength 85 71,556 12.7%
Group 3: Medium Strength 10 13,580 2.4%
Group 4: High Strength 13 6,291 1.1%
Total Commercial 170 113,101 20.1%
Total 4,641 563,289 100.0%
1 - Average winter water consumption estimated from FY2023 and FY2024 consumption data Table 8: Estimated Pollutant Loading DRAFT 4/15/25
City of Chowchilla
2025 Sewer Rate Study
Flow
Customer Class (hcf) BOD TSS BOD TSS
Single Family 380,160 250 200 592,890 474,312
Multi Family 70,028 250 200 109,215 87,372
Group 1: Extra-low Strength 21,674 130 100 17,577 13,521 Group 2: Low Strength 71,556 200 160 89,278 71,422
Group 3: Medium Strength 13,580 250 200 21,179 16,943
Group 4: High Strength 6,291 800 800 31,396 31,396
Total 563,289 861,535 694,967
Wastewater Strength (mg/l) Wastewater Loadings (lbs)
Table 9: Sewer Cost Allocation DRAFT 4/15/25
City of Chowchilla
2025 Sewer Rate Study
Expenses
Budget
2024/25 Flow BOD TSS
Operating Expenses
Salaries & Benefits $435,155 60.0% 20.0% 20.0%
Operations & Maintenance
Energy $140,000 80.0% 10.0% 10.0%
System Repairs $100,000 100.0% 0.0% 0.0%
Liability Insurance $48,210 80.0% 10.0% 10.0%
Mandated Costs/Fees $66,000 60.0% 20.0% 20.0%
Other Operations $286,350 60.0% 20.0% 20.0%
Subtotal O&M $1,075,715 $723,071 $176,322 $176,322
Overhead Allocation
Overhead Allocation GF $290,809 80.0% 10.0% 10.0%
Overhead Allocation Streets $91,069 100.0% 0.0% 0.0%
Overhead Allocation Fleet $10,534 100.0% 0.0% 0.0%
Overhead Allocation IT $25,639 80.0% 10.0% 10.0%
Subtotal Overhead Allocation $418,051 $354,761 $31,645 $31,645 Debt Service $181,851 60.0% 20.0% 20.0%
(5-year Avg) $109,111 $36,370 $36,370
Capital Projects $4,984,112 60.0% 20.0% 20.0%
(5-year Avg) $2,990,467 $996,822 $996,822
Total Sewer Expenses $6,659,729 $4,177,410 $1,241,159 $1,241,159 Total Cost Allocation 62.7% 18.6% 18.6%
Table 10: Sewer Utility Cash Flow - No Rate Increase DRAFT 4/15/25 City of Chowchilla
2025 Sewer Rate Study
Budget
2024/25 2025/26 2026/27 2027/28 2028/29 2029/30
1 Rate Increase Effective July 1, 2025 July 1, 2026 July 1, 2027 July 1, 2028 July 1, 2029 2 Annual Rate Increase 0.0% 0.0% 0.0% 0.0% 0.0%
3 Growth Rate 1.0% 1.0% 1.0% 1.0% 1.0%
4 5 Beginning Operating Fund Balance [1] $4,173,013 $3,895,616 $2,046,285 $2,189,929 $1,967,704 $1,086,075 6 7 REVENUES
8 Operating Revenues
9 Sewer Service Charges 1,991,571 2,011,000 2,031,000 2,051,000 2,072,000 2,093,000 10 Sewer Debt Service Charges 88,000 88,000 88,000 88,000 88,000 88,000 11 Fairmead Sewer Service Charges [2] 67,000 67,000 67,000 12 Fines and Penalties 50,000 50,000 50,000 50,000 50,000 50,000 13 Sewer Connection Fees 5,000 5,000 5,000 5,000 5,000 5,000 14 Investment Earnings 66,702 39,000 20,500 21,900 19,700 10,900 15 Other Revenues 12,433 12,000 12,000 12,000 12,000 12,000 16 Total Operating Revenues 2,213,706 2,205,000 2,206,500 2,294,900 2,313,700 2,325,900 17 18 Non-Operating Revenues
19 Misc Reimbursement 2,070,700 5,000 5,000 5,000 5,000 5,000 20 CREB Subsidy Revenue 81,927 80,000 80,000 80,000 80,000 80,000 21 Transfers In 450,458 150,000 150,000 150,000 150,000 150,000 22 Grant for Fairmead Consolidation [3] 0 20,930,385 0 0 0 0 23 Total Non-Operating Revenues 2,603,085 21,165,385 235,000 235,000 235,000 235,000 24 25 TOTAL REVENUES 4,816,791 23,370,385 2,441,500 2,529,900 2,548,700 2,560,900 26 27 EXPENSES
28 Operating Expenses
29 Salaries & Benefits 435,155 615,000 676,500 744,200 818,600 900,500 30 Operations 640,560 683,600 732,600 788,800 853,700 928,700 31 Overhead Allocation 418,051 431,000 443,900 457,200 470,900 485,000 32 Fairmead O&M [4] 0 0 0 164,000 168,900 174,000
33 Total Operations 1,493,766 1,729,600 1,853,000 2,154,200 2,312,100 2,488,200 34 35 Net Operating Revenue 719,940 475,400 353,500 140,700 1,600 (162,300) 36 37 Debt Service
38 2017 Bonds 178,531 181,731 174,731 178,026 186,081 188,687 39 Total Debt Service 178,531 181,731 174,731 178,026 186,081 188,687 40 41 Capital Outlay
42 Sewer CIP [5] 0 2,163,000 55,125 204,900 717,149 300,000 43 Fairmead Sewer Consolidation 2,066,300 20,930,385 0 0 0 0 44 Vehicles, Machinery & Equip 160,000 50,000 50,000 50,000 50,000 50,000 45 Fleet Program 9,633 10,000 10,000 10,000 10,000 10,000 46 Infrastructure 720,000 50,000 50,000 50,000 50,000 50,000 47 Construction in Progress 360,000 0 0 0 0 0
48 Total Capital Expenses 3,315,933 23,203,385 165,125 314,900 827,149 410,000 49 50 Transfers Out 105,958 105,000 105,000 105,000 105,000 105,000 51 52 TOTAL EXPENSES 5,094,188 25,219,716 2,297,856 2,752,125 3,430,329 3,191,887 53 54 Coverage Ratio (1.25) [6] 4.03 2.62 2.02 0.79 0.01 (0.86) 55 56 Net Total Revenues (277,397) (1,849,331) 143,644 (222,225) (881,629) (630,987) 57 58 Ending Operating Fund Balance 3,895,616 2,046,285 2,189,929 1,967,704 1,086,075 455,088 59 60 Target (25% of O&M + Debt Service) [7] 552,000 614,100 638,000 716,600 764,100 810,700 61 Target Met? YES YES YES YES YES NO
62 1 - Trial Balance Account Summary Date Range: 07/01/2023 - 06/30/2024 2 - Assumes Fairmead will begin paying their separate rate in 2027/28 3 - Assumes Fairmead Consolidation will be fully funded with grants 4 - Source: MD-33 Fairmead Proposition 218 Rate Study, July 2020 5 - Capital projects for 2029/30 estimated
6 - Net Operating Revenues / 2017 Bonds Debt Service
7 - Target is 25% of O&M per City Administrative Policy and Procedure Manual + Annual debt service (recommended) Projected
Table 11: Scenario 1: Includes New Staff Member - Sewer Utility Cash Flow DRAFT 4/15/25 City of Chowchilla
2025 Sewer Rate Study
Budget
2024/25 2025/26 2026/27 2027/28 2028/29 2029/30
1 Rate Increase Effective July 1, 2025 July 1, 2026 July 1, 2027 July 1, 2028 July 1, 2029 2 Annual Rate Increase 4.0% 4.0% 4.0% 4.0% 4.0%
3 Growth Rate 1.0% 1.0% 1.0% 1.0% 1.0%
4 5 Beginning Operating Fund Balance [1] $4,173,013 $3,895,616 $2,127,285 $2,437,729 $2,475,004 $1,953,475 6 7 REVENUES
8 Operating Revenues
9 Sewer Service Charges 1,991,571 2,092,000 2,197,000 2,308,000 2,424,000 2,546,000 10 Sewer Debt Service Charges 88,000 88,000 88,000 88,000 88,000 88,000 11 Fairmead Sewer Service Charges [2] 67,000 70,000 73,000 12 Fines and Penalties 50,000 50,000 50,000 50,000 50,000 50,000 13 Sewer Connection Fees 5,000 5,000 5,000 5,000 5,000 5,000 14 Investment Earnings 66,702 39,000 21,300 24,400 24,800 19,500 15 Other Revenues 12,433 12,000 12,000 12,000 12,000 12,000 16 Total Operating Revenues 2,213,706 2,286,000 2,373,300 2,554,400 2,673,800 2,793,500 17 18 Non-Operating Revenues
19 Misc Reimbursement 2,070,700 5,000 5,000 5,000 5,000 5,000 20 CREB Subsidy Revenue 81,927 80,000 80,000 80,000 80,000 80,000 21 Transfers In 450,458 150,000 150,000 150,000 150,000 150,000 22 Grant for Fairmead Consolidation [3] 0 20,930,385 0 0 0 0 23 Total Non-Operating Revenues 2,603,085 21,165,385 235,000 235,000 235,000 235,000 24 25 TOTAL REVENUES 4,816,791 23,451,385 2,608,300 2,789,400 2,908,800 3,028,500 26 27 EXPENSES
28 Operating Expenses
29 Salaries & Benefits 435,155 615,000 676,500 744,200 818,600 900,500 30 Operations 640,560 683,600 732,600 788,800 853,700 928,700 31 Overhead Allocation 418,051 431,000 443,900 457,200 470,900 485,000 32 Fairmead O&M [4] 0 0 0 164,000 168,900 174,000
33 Total Operations 1,493,766 1,729,600 1,853,000 2,154,200 2,312,100 2,488,200 34 35 Net Operating Revenue 719,940 556,400 520,300 400,200 361,700 305,300 36 37 Debt Service
38 2017 Bonds 178,531 181,731 174,731 178,026 186,081 188,687 39 Total Debt Service 178,531 181,731 174,731 178,026 186,081 188,687 40 41 Capital Outlay
42 Sewer CIP [5] 0 2,163,000 55,125 204,900 717,149 300,000 43 Fairmead Sewer Consolidation 2,066,300 20,930,385 0 0 0 0 44 Vehicles, Machinery & Equip 160,000 50,000 50,000 50,000 50,000 50,000 45 Fleet Program 9,633 10,000 10,000 10,000 10,000 10,000 46 Infrastructure 720,000 50,000 50,000 50,000 50,000 50,000 47 Construction in Progress 360,000 0 0 0 0 0
48 Total Capital Expenses 3,315,933 23,203,385 165,125 314,900 827,149 410,000 49 50 Transfers Out 105,958 105,000 105,000 105,000 105,000 105,000 51 52 TOTAL EXPENSES 5,094,188 25,219,716 2,297,856 2,752,125 3,430,329 3,191,887 53 54 Coverage Ratio (1.25) [6] 4.03 3.06 2.98 2.25 1.94 1.62 55 56 Net Total Revenues (277,397) (1,768,331) 310,444 37,275 (521,529) (163,387) 57 58 Ending Operating Fund Balance 3,895,616 2,127,285 2,437,729 2,475,004 1,953,475 1,790,088 59 60 Target (25% of O&M + Debt Service) [7] 552,000 614,100 638,000 716,600 764,100 810,700 61 Target Met? YES YES YES YES YES YES
62 1 - Trial Balance Account Summary Date Range: 07/01/2023 - 06/30/2024 2 - Assumes Fairmead will begin paying their separate rate in 2027/28 3 - Assumes Fairmead Consolidation will be fully funded with grants 4 - Source: MD-33 Fairmead Proposition 218 Rate Study, July 2020 5 - Capital projects for 2029/30 estimated
6 - Net Operating Revenues / 2017 Bonds Debt Service
7 - Target is 25% of O&M per City Administrative Policy and Procedure Manual + Annual debt service (recommended) Projected
Table 12: Scenario 1: Includes New Staff Member - Sewer Rate Calculation DRAFT 4/15/25 City of Chowchilla
2025 Sewer Rate Study
Flow BOD TSS Total
Cost Allocation % 62.7% 18.6% 18.6% 100.0%
2025/26 Total Rev. Requirement $1,312,237 $389,882 $389,882 $2,092,000 Billing Units 563,289 861,535 694,967
hcf lbs lbs
Unit Cost $2.33 $0.45 $0.56
$/hcf $/lb $/lb
Flow (hcf) BOD (lbs) TSS (lbs) Total
Unit Cost $2.33 $0.45 $0.56
RESIDENTIAL (Per dwelling unit)
Single Family
Billing Units 8.8 250 200
Sewer Rate $20.50 $6.18 $6.15 $32.83
Multi-Family/Mobile Home
Billing Units 6.7 250 200
Sewer Rate $15.61 $4.70 $4.68 $24.99
COMMERCIAL (Rate per hcf)
Group 1: Extra-low Strength
Billing Units - 130 100
Sewer Rate $2.33 $0.36 $0.35 $3.04
Group 2: Low Strength
Billing Units - 200 160
Sewer Rate $2.33 $0.56 $0.56 $3.45
Group 3: Medium Strength
Billing Units - 250 200
Sewer Rate $2.33 $0.70 $0.70 $3.73
Group 4: High Strength
Billing Units - 800 800
Sewer Rate $2.33 $2.25 $2.79 $7.37
Table 13: Scenario 1: Includes New Staff Member - Proposed Sewer Rates DRAFT 4/15/25 City of Chowchilla
2025 Sewer Rate Study
4% 4% 4% 4% 4%
Current 2025/26 2026/27 2027/28 2028/29 2029/30

SEWER RATES
Residential (Per Dwelling Unit)
Single Family $31.94 $32.83 $34.14 $35.51 $36.93 $38.41 Multi-Family/Mobile Homes $23.57 $24.99 $25.99 $27.03 $28.11 $29.23 Commercial Metered (Per hcf)
Group 1: Extra-low Strength $2.98 $3.04 $3.16 $3.29 $3.42 $3.56 Group 2: Low Strength $3.34 $3.45 $3.59 $3.73 $3.88 $4.04 Group 3: Medium Strength $3.59 $3.73 $3.88 $4.04 $4.20 $4.37 Group 4: High Strength $6.80 $7.37 $7.66 $7.97 $8.29 $8.62

DEBT SERVICE CHARGES
Residential (Per Dwelling Unit)
Single Family $1.41 $1.41 $1.41 $1.41 $1.41 $1.41
Multi-Family/Mobile Homes $1.05 $1.05 $1.05 $1.05 $1.05 $1.05 Commercial (Per hcf)
Group 1: Extra-low Strength $0.09 $0.09 $0.09 $0.09 $0.09 $0.09 Group 2: Low Strength $0.11 $0.11 $0.11 $0.11 $0.11 $0.11 Group 3: Medium Strength $0.11 $0.11 $0.11 $0.11 $0.11 $0.11 Group 4: High Strength $0.31 $0.31 $0.31 $0.31 $0.31 $0.31 Proposed
SCENARIO 1: PROPOSED MONTHLY SEWER RATES
Table 14: Scenario 2: Does Not Include New Staff Member - Sewer Utility Cash Flow DRAFT 4/15/25 City of Chowchilla
2025 Sewer Rate Study
Budget
2024/25 2025/26 2026/27 2027/28 2028/29 2029/30
1 Rate Increase Effective July 1, 2025 July 1, 2026 July 1, 2027 July 1, 2028 July 1, 2029 2 Annual Rate Increase 3.0% 3.0% 3.0% 3.0% 3.0%
3 Growth Rate 1.0% 1.0% 1.0% 1.0% 1.0%
4 5 Beginning Operating Fund Balance [1] $4,173,013 $3,895,616 $2,222,285 $2,492,629 $2,465,404 $1,851,775 6 7 REVENUES
8 Operating Revenues
9 Sewer Service Charges 1,991,571 2,072,000 2,156,000 2,243,000 2,333,000 2,427,000 10 Sewer Debt Service Charges 88,000 88,000 88,000 88,000 88,000 88,000 11 Fairmead Sewer Service Charges [2] 0 0 0 67,000 69,000 71,000 12 Fines and Penalties 50,000 50,000 50,000 50,000 50,000 50,000 13 Sewer Connection Fees 5,000 5,000 5,000 5,000 5,000 5,000 14 Investment Earnings 66,702 39,000 22,200 24,900 24,700 18,500 15 Other Revenues 12,433 12,000 12,000 12,000 12,000 12,000 16 Total Operating Revenues 2,213,706 2,266,000 2,333,200 2,489,900 2,581,700 2,671,500 17 18 Non-Operating Revenues
19 Misc Reimbursement 2,070,700 5,000 5,000 5,000 5,000 5,000 20 CREB Subsidy Revenue 81,927 80,000 80,000 80,000 80,000 80,000 21 Transfers In 450,458 150,000 150,000 150,000 150,000 150,000 22 Grant for Fairmead Consolidation [3] 0 20,930,385 0 0 0 0 23 Total Non-Operating Revenues 2,603,085 21,165,385 235,000 235,000 235,000 235,000 24 25 TOTAL REVENUES 4,816,791 23,431,385 2,568,200 2,724,900 2,816,700 2,906,500 26 27 EXPENSES
28 Operating Expenses
29 Salaries & Benefits 435,155 500,000 676,500 744,200 818,600 900,500 30 Operations 640,560 683,600 732,600 788,800 853,700 928,700 31 Overhead Allocation 418,051 431,000 443,900 457,200 470,900 485,000 32 Fairmead O&M [4] 0 0 0 164,000 168,900 174,000
33 Total Operations 1,493,766 1,614,600 1,853,000 2,154,200 2,312,100 2,488,200 34 35 Net Operating Revenue 719,940 651,400 480,200 335,700 269,600 183,300 36 37 Debt Service
38 2017 Bonds 178,531 181,731 174,731 178,026 186,081 188,687 39 Total Debt Service 178,531 181,731 174,731 178,026 186,081 188,687 40 41 Capital Outlay
42 Sewer CIP [5] 0 2,163,000 55,125 204,900 717,149 300,000 43 Fairmead Sewer Consolidation 2,066,300 20,930,385 0 0 0 0 44 Vehicles, Machinery & Equip 160,000 50,000 50,000 50,000 50,000 50,000 45 Fleet Program 9,633 10,000 10,000 10,000 10,000 10,000 46 Infrastructure 720,000 50,000 50,000 50,000 50,000 50,000 47 Construction in Progress 360,000 0 0 0 0 0
48 Total Capital Expenses 3,315,933 23,203,385 165,125 314,900 827,149 410,000 49 50 Transfers Out 105,958 105,000 105,000 105,000 105,000 105,000 51 52 TOTAL EXPENSES 5,094,188 25,104,716 2,297,856 2,752,125 3,430,329 3,191,887 53 54 Coverage Ratio (1.25) [6] 4.03 3.58 2.75 1.89 1.45 0.97 55 56 Net Total Revenues (277,397) (1,673,331) 270,344 (27,225) (613,629) (285,387) 57 58 Ending Operating Fund Balance 3,895,616 2,222,285 2,492,629 2,465,404 1,851,775 1,566,388 59 60 Target (25% of O&M + Debt Service) [7] 552,000 585,400 638,000 716,600 764,100 810,700 61 Target Met? YES YES YES YES YES YES
62 1 - Trial Balance Account Summary Date Range: 07/01/2023 - 06/30/2024 2 - Assumes Fairmead will begin paying their separate rate in 2027/28 3 - Assumes Fairmead Consolidation will be fully funded with grants 4 - Source: MD-33 Fairmead Proposition 218 Rate Study, July 2020 5 - Capital projects for 2029/30 estimated
6 - Net Operating Revenues / 2017 Bonds Debt Service
7 - Target is 25% of O&M per City Administrative Policy and Procedure Manual + Annual debt service (recommended) Projected
Table 15: Scenario 2: Does Not Include New Staff Member - Sewer Rate Calculation DRAFT 4/15/25 City of Chowchilla
2025 Sewer Rate Study
Flow BOD TSS Total
Cost Allocation % 62.7% 18.6% 18.6% 100.0%
2025/26 Total Rev. Requirement $1,299,692 $386,154 $386,154 $2,072,000 Billing Units 563,289 861,535 694,967
hcf lbs lbs
Unit Cost $2.31 $0.45 $0.56
$/hcf $/lb $/lb
Flow (hcf) BOD (lbs) TSS (lbs) Total
Unit Cost $2.31 $0.45 $0.56
RESIDENTIAL (Per dwelling unit)
Single Family
Billing Units 8.8 250 200
Sewer Rate $20.33 $6.18 $6.15 $32.65
Multi-Family/Mobile Home
Billing Units 6.7 250 200
Sewer Rate $15.48 $4.70 $4.68 $24.86
COMMERCIAL (Rate per hcf)
Group 1: Extra-low Strength
Billing Units - 130 100
Sewer Rate $2.31 $0.36 $0.35 $3.02
Group 2: Low Strength
Billing Units - 200 160
Sewer Rate $2.31 $0.56 $0.56 $3.43
Group 3: Medium Strength
Billing Units - 250 200
Sewer Rate $2.31 $0.70 $0.70 $3.71
Group 4: High Strength
Billing Units - 800 800
Sewer Rate $2.31 $2.25 $2.79 $7.35
Table 16: Scenario 2: Does Not Include New Staff Member - Proposed Sewer Rates DRAFT 4/15/25 City of Chowchilla
2025 Sewer Rate Study
3% 3% 3% 3% 3%
Current 2025/26 2026/27 2027/28 2028/29 2029/30

SEWER RATES
Residential (Per Dwelling Unit)
Single Family $31.94 $32.65 $33.63 $34.64 $35.68 $36.75 Multi-Family/Mobile Homes $23.57 $24.86 $25.61 $26.38 $27.17 $27.99 Commercial Metered (Per hcf)
Group 1: Extra-low Strength $2.98 $3.02 $3.11 $3.20 $3.30 $3.40 Group 2: Low Strength $3.34 $3.43 $3.53 $3.64 $3.75 $3.86 Group 3: Medium Strength $3.59 $3.71 $3.82 $3.93 $4.05 $4.17 Group 4: High Strength $6.80 $7.35 $7.57 $7.80 $8.03 $8.27

DEBT SERVICE CHARGES
Residential (Per Dwelling Unit)
Single Family $1.41 $1.41 $1.41 $1.41 $1.41 $1.41
Multi-Family/Mobile Homes $1.05 $1.05 $1.05 $1.05 $1.05 $1.05 Commercial (Per hcf)
Group 1: Extra-low Strength $0.09 $0.09 $0.09 $0.09 $0.09 $0.09 Group 2: Low Strength $0.11 $0.11 $0.11 $0.11 $0.11 $0.11 Group 3: Medium Strength $0.11 $0.11 $0.11 $0.11 $0.11 $0.11 Group 4: High Strength $0.31 $0.31 $0.31 $0.31 $0.31 $0.31 SCENARIO 2: PROPOSED MONTHLY SEWER RATES
Proposed
2024/25 2025/26 2026/27 2027/28 2028/29 2029/30
$0
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
$3,500,000
$4,000,000
$4,500,000
Projected Sewer Revenues & Expenses
Salaries & Benefits Operations
Overhead Debt Service
Capital Projects 3rd Aeration Bay Project
Current Sewer Revenues Scenario 1: No 3rd Aeration Bay Project Scenario 2: Includes 3rd Aeration Bay Project
Current Sewer Rate Revenues = $2.1M
Current Projected
$31.94
$32.83
$34.14
$35.51
$36.93
$38.41
$31.94
$32.65
$33.63
$34.64
$35.68
$36.75
$0
$5
$10
$15
$20
$25
$30
$35
$40
$45
2024/25 2025/26 2026/27 2027/28 2028/29 2029/30
Scenario Comparison - Monthly Sewer Bill for
Single Family Residential Customers
Scenario 1: Includes New Employee Scenario 2: Does Not Include New Employee Proposed
Average Use - 16 hcf
$0
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
$3,500,000
$4,000,000
$4,500,000
$5,000,000
2024/25 2025/26 2026/27 2027/28 2028/29 2029/30
Sewer Utility
Ending Reserve Fund Balance
No Rate Increases
Scenario 1: Includes New Employee
Scenario 2: Does Not Include New Employee
Reserve Fund Target