AGENDA
City Council, Redevelopment Successor Agency, &
Public Finance Authority Joint Meeting
Council Chamber, Chowchilla City Hall
130 S. 2nd Street, Chowchilla, CA 93610
Tuesday, June 24, 2025
Closed Session: 3:00 p.m. | Open Session: 4:00 p.m.
Agendas for all City Council meetings are posted at least 72 hours prior to the meeting in the kiosk just outside of City Hall, 130 S. Second St., Chowchilla, CA 93610.
The City of Chowchilla complies with the Americans with Disabilities Act (ADA of 1990). The Council Chambers is accessible to the physically disabled. If you need special assistance, please call (559) 665- 8615, ext. 102, at least 4 days prior to a regular meeting 1 day for a special meeting.
California Levine Act Statement:
California Government Code Section 84308, commonly referred to as the "Levine Act," prohibits any Chowchilla City Council Member from participating in any action related to a license, permit, contract, or entitlement for use application if he or she receives any political contributions totaling more than $500 within the previous twelve months, and for twelve months following the date of a final decision, from the business/board or applicant.
The Levine Act also requires a member of the Chowchilla City Council who has received such a contribution to disclose the contribution on the record of the proceeding.
CALL TO ORDER/ROLL CALL
Mayor: Kelly Smith
Mayor Pro Tem: Jeff Troost
Council Members: Waseem Ahmed, Ray Barragan, John Chavez City staff and contract employees present will be recorded in the minutes.
CONSIDERATION OF APPROVAL OF AGENDA
Additions and/or Deletions:
PUBLIC ADDRESS – CLOSED SESSION
This time is reserved for members of the audience to address the City Council on items listed on the Closed Session agenda only. It is recommended that speakers limit their comments to no more than 3 minutes each.
CLOSED SESSION – 3:00 PM
1. CONFERENCE WITH LABOR NEGOTIATORS
Pursuant to Government Code Section 54957.6
Agency Designated Representatives: City Administrator Rod Pruett Employee Organizations: City Office Employees Association, City Employees Association, Mid Management/Confidential Association, and Unrepresented Employees
2. CONFERENCE WITH LEGAL COUNSEL – ANTICIPATED LITIGATION Significant Exposure to litigation pursuant to Government Code Section 54956.9 (d) (2) or (3) Number of Cases: One case.
City Council Meeting AGENDA June 24, 2025
OPEN SESSION – 4:00 PM
CLOSED SESSION REPORT:
PLEDGE OF ALLEGIANCE
INVOCATION:
PRESENTATIONS/WORKSHOP - Section 1
PUBLIC ADDRESS
This time is reserved for members of the audience to address the City Council on items of interest that are not on the agenda and that are within the subject matter jurisdiction of the Council.
It is recommended that speakers limit their comments to no more than 3 minutes each, and it is requested that no comments be made during this period on items on the Agenda. Speakers are not allowed to cede their public comment time.
Members of the public who are joining the meeting via Zoom and would like to address the Council on items on the agenda should follow the policy on page 5 of this agenda packet.
The Council is prohibited by law from taking any action on matters discussed that are not on the agenda.
No adverse conclusions should be drawn if the Council does not respond to public comment at this time.
COUNCIL AND STAFF VERBAL REPORTS – Section 2
2.1 COUNCIL VERBAL REPORTS
Legislative, Collaborative Agency, Ad Hoc
2.2 STAFF VERBAL REPORTS
CONSENT CALENDAR – Section 3
All items listed under Consent Calendar are considered to be routine and will be enacted by one motion.
For discussion of any Consent Item, it will be made a part of the Regular Agenda at the request of any member of the City Council or any person in the audience.
3.1 Approval of the June 10, 2025 Regular City Council Meeting Minutes (McClendon)
3.2 Consideration and Acceptance of the May 2025 Financials Report (Williams)
3.3 Second Reading and Adoption of an Ordinance Adding Section 9.29 – Abandoned Shopping Carts to the Chowchilla Municipal Code (Palmer)
3.4 Consideration and Approval of the Aerial Fireworks Display at the Chowchilla Fairgrounds on July 6, 2025 (Gaumnitz)
3.5 Consideration and Adoption of Memorandums of Understanding (MOU) of the Chowchilla City Office Employees Association; the City Employees Association, and the Mid-Management/Confidential Employees Association for the Period Covering July 1, 2025 Through June 30, 2028 (Pruett)
### The MOU’s will be available at the meeting ###
City Council Meeting AGENDA June 24, 2025
PUBLIC HEARINGS – Section 4
4.1 Consideration and Adoption of a City Council Resolution Amending the Master User Fee Schedule (Williams)
4.2 Consideration and Adoption of City Council Resolutions Related to Increases in Water, Sewer and Solid Waste as Follows:
a. Consideration and Adoption of a City Council Resolution Establishing Monthly Rates to be Charged for Water Furnished by the City and Repealing Resolution 47-20 and all Other Resolutions n Conflict Herewith; b. Consideration and Adoption of a City Council Resolution Establishing Monthly Rates to be Charged for Sewer Service Furnished by the City and Repealing Resolution 48-20 and all Other Resolutions in Conflict Herewith; c. Consideration and Adoption of a City Council Resolution Establishing Monthly Rates to be Charged for Solid Waste Service Furnished by the City and Repealing Resolution 49-20 and all Other Resolutions in Conflict Herewith. (Williams)
DEFERRED BUSINESS – Section 5
5.1 Consideration and Adoption of a City Council Resolution Designating Various Streets as Through Streets in Downtown Chowchilla (Rogers)
5.2 Second Reading and Adoption of Municipal Code Chapter 18 Zone Text Amendment Application No. 25-0094; and Approval of a City Council Resolution Approving General Plan Amendment Application No. 25-0094 to Implement 19 Programs Within the City’s Adopted Housing Element and the Accompanied Notice of Exemption (Quintana)
5.3 Request for Direction Regarding Continuation of Development Impact Fee Reductions or Amendment of Development Agreements with Current Fee Schedule (Quintana)
NEW BUSINESS – Section 6
6.1 Consideration and Adoption of a City Council Resolution Declaring its Intention to Establish Community Facilities District No. 2025-1 (Rancho Calera), to Authorize the Levy of Special Taxes Therein, and to Incur a Bonded Indebtedness to Pay for Certain Public Facilities (Pruett)
6.2 Consideration and Adoption of a City Council Resolution Approving Offers from the California Department of Transportation for Temporary Construction Easements Regarding City Property (Rogers)
6.3 Discussion and Direction Regarding Creating a New City Slogan (Pruett)
6.4 Consideration and Adoption of a City Council Resolution of Intention to Levy and Collect the Annual Assessment for Landscape Maintenance and Lighting District No. 90-1 of the City of Chowchilla (Rogers)
City Council Meeting AGENDA June 24, 2025
6.5 Consideration and Adoption of Resolutions Adopting the 2025/26 Fiscal Year Annual Budgets for:
a) City Operating and Capital Budget;
b) Redevelopment Successor Agency Budget;
c) Public Finance Authority Budget;
d) Gann Appropriation Limit; and
e) Amending the Salary Scale (Williams)
*The 2025/2026 Fiscal Year Budget document will be posted on the City’s website, and a hardcopy for public review is located at City Hall.
ANNOUNCEMENTS – Section 7
JUN 27 MUSIC IN THE PARK & VENDOR FAIR, VETERANS PARK, 5:30PM JUN 28 MOVIES IN THE PARK, SONIC 3, VETERANS PARK, 8PM
JUL 8 CITY COUNCIL MEETING, COUNCIL CHAMBERS, 4PM
BEGINNING JUNE 9 THROUGH JULY 25, SUMMER OPEN SWIM PROGRAM, CUHS SWIMMING POOL
ADJOURNMENT
I, Joann McClendon, CMC, City Clerk, do hereby declare under penalty of perjury that the foregoing agenda was posted at Chowchilla City Hall, 130 S 2nd Street, Chowchilla, CA, and made available for public review on this 20th day of June, 2025 at or before 4:00 pm.
Joann McClendon, CMC, City Clerk
June 24, 2025 City Council Meeting – 3pm Closed Session | 4pm Open Session
ZOOM LOGIN INSTRUCTIONS
Use the following URL to start Zoom:
https://us06web.zoom.us/j/81740766840?pwd=EYETIQEAFXT8YMrXtI1RopESAn2q6a. 1 Passcode: 362 413
To participate by phone:
Dial 1-669-444-9171
Webinar ID: 817 4076 6840
Passcode: 362 413
Staff highly recommends that participants log into Zoom 15 minutes before the meeting begins to perform an audio check and ensure they have an optimal internet connection.
Options to participate / view / listen to the meeting:
• If you wish to speak on an item using the Zoom platform on your computer/laptop or smartphone, please use the “raise hand” icon, and you will be unmuted when it is your turn to speak. Please provide your name when unmuted. You can address the Council for up to 3 minutes. • If you are calling into the meeting only (no camera/video) and wish to comment, press *9 to “raise your hand” and *6 to unmute yourself.
Item 3.1
CLICK HERE
TO RETURN TO
THE AGENDA
MINUTES
City Council Meeting Council Chamber, Chowchilla City Hall 130 S. 2nd Street, Chowchilla, CA 93610
Tuesday, June 10, 2025
Closed Session: 3:00 p.m. | Open Session: 4:00 p.m.
CALL TO ORDER/ROLL CALL
Mayor: Kelly Smith
Mayor Pro Tem: Jeff Troost
Council Members: Waseem Ahmed (absent), Ray Barragan (absent), John Chavez City staff and contract employees present: City Administrator Pruett, City Attorney Mary Lerner, Police Chief Jeff Palmer, Fire Chief Fred Gaumnitz, Public Works Director Jason Rogers, Finance Director Kerri Williams, Director of Recreation & Community Engagement Stacy Wisener, IT System Administrator Carlos Berrocal, City Clerk Joann McClendon
CONSIDERATION OF APPROVAL OF AGENDA
Additions and/or Deletions:
Motion by Chavez, Seconded by Troost to Table Item 3.3 and bring it back to council on June 24, 2025. Motion passed with Council Members Ahmed and Barragan absent.
PUBLIC ADDRESS – CLOSED SESSION
No one spoke.
CLOSED SESSION – 3:00 PM
1. CONFERENCE WITH LABOR NEGOTIATORS
Pursuant to Government Code Section 54957.6
Agency Designated Representatives: City Administrator Rod Pruett Employee Organizations: City Office Employees Association, City Employees Association, Mid Management/Confidential Association, and Unrepresented Employees OPEN SESSION – 4:00 PM
CLOSED SESSION REPORT: No reportable action.
PLEDGE OF ALLEGIANCE: Cooper Troost
INVOCATION: Cooper Troost
PRESENTATIONS/WORKSHOP - Section 1
PUBLIC ADDRESS
No reportable action.
COUNCIL AND STAFF VERBAL REPORTS – Section 2
City Council Meeting MINUTES June 10, 2025
2.1 COUNCIL VERBAL REPORTS
Legislative, Collaborative Agency, Ad Hoc
Council Member Chavez he thanked Director Wisener and the Fire Department for letting him ride on the truck with his grandkids at the parade; they really enjoyed it.
Mayor Pro Tem Troost, on June 3, attended the Citizens Advisory Committee meeting at the Valley Air District in Fresno.
Mayor Smith attended the Task Force Meeting, along with leaders from the county, Behavior Health workers and school superintendents, the Police Chief, Fire Chief, Director Wisener and the City Administrator. Full house meeting; a very productive meeting.
2.2 STAFF VERBAL REPORTS
Police Chief Palmer reported that Chowchilla Police Department responded to 1229 calls for service, conducted 583 proactive stops resulting in 39 misdemeanor arrests 9 felony arrests; 38 citations were issued; Code Enforcement responded to 37 calls and took 11 different actions.
He noted there is always comments made via social media in regards to animal control issues.
He added that it’s important for the community and Council to know how amazing of a job our Animal Control Officer’s doing. The Animal Control stats from this year alone (since January) are as follows: 789 calls conducted, 383 self-initiate calls which resulted in 61 dogs being taken since January. Of those 61 dogs that we’ve had to take in, only six owners came to reclaim; that means we use Animal Control to deal with the remaining dogs and try to find adoptions, rescues, different types of things to ultimately or eventually have to put them down. This is the last thing we want to do. Animal Control has also taken in 40 different cats and issued 19 different citations for various violations in just a five-month period. We’re just asking pet owners to please be responsible. Again, he just wanted to highlight that the Animal Control officer is doing an amazing job and the community definitely looks better because of it.
Fire Chief Gaumnitz and the Fire Department attended both graduations at Wilson Middle School and Chowchilla Union High School. His staff was there for medical standby, so a thank you to them for doing that. This last month his department had 91 total calls with an individual response rate of 489. Additionally, the Madera County Grand Jury looked into several fire departments within the county. The Chowchilla Fire Department was one of them. The City’s Volunteer Fire Department and that Grand Jury report is made public today and available for public viewing. The Department’s response to that report will be included, if there’s anything we need to fact check or change, at a future date. And finally, Weed Abatement is near completion.
You’ll see several properties that look much better.
Public Works Director Rogers met with Caltrans and Madera County Transportation Commission (MCTC) recently regarding the roundabouts project. Caltrans is currently working on the right way acquisition and earing 60% design, unfortunately we also receive news that our application for local partnership program funding was not selected for award by the MCTC. This means we have a funding short fall on the project. Staff will continue to work with MCTC and Caltrans to complete the design work and identify next steps related to either other funding sources or potentially phasing in the project. We’ve also been made aware that there’s been some comments on social media regarding watering of the Little League fields; there is an issue with one of the irrigation’s mains and have been in contact with Little League. However, in order to repair it, now it’s a major repair, would negatively impact the Little League season. As a result of discussion in partnership with Little League, we are employing alternative watering measures and will fully fix the issue once they are off-season. They’re aware of that, they requested that as well so that the season doesn’t get truncated. They’ve stated that field conditions have improved since that time and that they’re happy with the field conditions.
City Council Meeting MINUTES June 10, 2025
Finance Director Williams has been continuing to work on the 2025/26 fiscal year budget and attending negotiations with the City Administrator.
Director of Recreation & Community Engagement Wisener reported that since the last council meeting, staff continues coordination of the summer programming including Music in the Park, Movies in the Park and the Community Block Party that’s coming up August 22. Open Swim officially opened yesterday with 74 swimmers; huge number for our first day. In the past there were no swimmers on the first day so staff was pretty shocked. The new sports concession stand is emptied and cleaned out ready to be prepped for painting. Staff have ordered the rollup doors and the windows, so progress is being made. Little League will be hosting All-Star games and Adult Recreation Softball League will begin June 18. Youth Softball travel team is also active. At the Senior Center, Rose Furniture is scheduled to do flooring repairs June 20 through the 22, and staff has identified tripping hazards that need to be fixed so they’ll be working on that, too. The Law Enforcement Torch Run for Special Olympics will be June 18 and they’ll come to Chowchilla at 9:30 a.m. and end at Veterans Park. We maintain regular community outreach with weekly social media post in our news bulletin.
IT System Administrator Berrocal has been slowly rolling out Windows 11 upgrades to all the machines in the City and last week IT began to ramp that up since we’re seeing minimal issues to non-issues.
City Administrator Pruett attended the Community Task Force meeting; noted f he presented a situation to the Task Force of the City being contacted by social worker for family that had a child in the hospital for quite some time and need to have 24-hour home care but were having some issues with cost of PG&E bills. The mom cannot work due to the 24-hour care, so he had asked if there were any programs that could help them. HE received a response back from somebody from the County that there is a program and we passed the information along to the family’s social worker. That is one of the benefits of having that meeting. Labor negotiations, and working with the Finance Director as well on the budget; he completed a couple of mandatory continuing professional education courses. He was contacted by Rancho Calera regarding the billboards on the berms. They are going to be replacing them after notifying them of their condition. Rancho Calera asked if the City had a slogan to place on one of the billboards and decided to address that with the council at their next meeting He continues to work with Community Facilities District (CFD) development; met with Orchard View as well in regards to Development Impact Fee Program that was brought at the last council meeting. Attended a meeting with Director Rogers, MCTC regarding Measure T, other issues we’re talking about that meeting that might be put on the back burner now, in terms of allocation of regional funds for Measure T for the roundabout project. It might be Phase one and Phase two, it is not known what’s going to happen yet, however staff will keep the council updated.
CONSENT CALENDAR – Section 3
3.1 Approval of the May 27, 2025 Regular City Council Meeting Minutes (McClendon)
3.2 Consideration and Acceptance of the May 2025 Check Register Report (Williams)
3.3 Second Reading and Adoption of Municipal Code Chapter 18 Zone Text Amendment Application No. 25-0094; and Approval of a City Council Resolution Approving General Plan Amendment Application No. 25-0094 to Implement 19 Programs Within the City’s Adopted Housing Element and the Accompanied Notice of Exemption (Quintana)
City Council Meeting MINUTES June 10, 2025
3.4 Consideration and Acceptance of the Quarterly Financial Investment Report (Williams)
3.5 Consideration and Adoption of a City Council Resolution Designating Eligible Projects for Fiscal Year 2025-26 Funded by SB1: The Road Maintenance and Accountability Act of 2017 (Rogers)
Motion by Mayor Pro Tem Troost, Seconded by Council Member Chavez to Approve the Consent Calendar as Amended). Motion passed by roll call vote with Council Members Ahmed and Barragan absent.
PUBLIC HEARINGS – Section 4
4.1 Introduction and First Reading of an Ordinance Adding Section 9.29 – Abandoned Shopping Carts to the Chowchilla Municipal Code (Palmer) Mayor Smith opened the public hearing at 4:18 p.m. No one came forward for or against the item.
Mayor Smith closed the public hearing a 4:18 p.m.
Motion by Mayor Pro Tem Troost, Seconded by Council Member Chavez to Accept the Introduction and Waive the First Reading of an Ordinance Adding Section 9.29 – Abandoned Shopping Carts to the Chowchilla Municipal Code. Motion passed with Council Members Ahmed and Barragan absent.
4.2 Consideration of a Public Hearing on Employment Vacancies and Recruitment Efforts (AB 2561) (McClendon)
Mayor Smith opened the public hearing at 4:22 p.m. No one came forward for or against the item.
Mayor Smith closed the public hearing at 4:22 p.m.
DEFERRED BUSINESS – Section 5
5.1 Second Reading and Adoption of a City Council Ordinance to Repeal Ordinance #417- 01 (Heritage Preservation Commission) (Wisener)
Motion by Council Member Chavez, Seconded by Mayor Pro Tem Troost to Adopt City Council Ordinance # 529-25, Repealing Ordinance 417-01 (Heritage Preservation Commission). Motion passed with Council Members Ahmed and Barragan absent.
NEW BUSINESS – Section 6
6.1 Consideration and Adoption of a City Council Resolution Approving an Offer from the California Department of Transportation for a Temporary Construction Easement Regarding City Property Located at 145 Robertson Boulevard (Rogers) Motion by Mayor Pro Tem Troost, Seconded by Council Member Chavez to Approve City Council Resolution # 40-25, Approving an Offer from the California Department of Transportation for a Temporary Construction Easement Regarding City Property Located at 145 Robertson Boulevard. Motion passed with Council Members Ahmed and Barragan absent.
6.2 City of Chowchilla 2025/26 Fiscal Year Budget Workshop (Williams) ANNOUNCEMENTS – Section 7
JUN 13 MUSIC IN THE PARK & VENDOR FAIR, VETERANS PARK, 5:30PM JUN 14 MOVIES IN THE PARK, VETERANS PARK, 8PM
City Council Meeting MINUTES June 10, 2025
JUN 18 PLANNING COMMISSION MEETING, COUNCIL CHAMBERS, 5PM JUN 20 MUSIC IN THE PARK & VENDOR FAIR, VETERANS PARK, 5:30PM JUN 21 MOVIES IN THE PARK, VETERANS PARK, 8PM
JUN 24 CITY COUNCIL MEETING, COUNCIL CHAMBERS, 4PM
BEGINNING JUNE 9 THROUGH JULY 25, SUMMER OPEN SWIM PROGRAM, CUHS SWIMMING POOL
ADJOURNMENT
Mayor Smith Adjourned the June 10, 2025 City Council Meeting at 5:26 p.m. in honor of Lloyd “Tuffy” Smith.
ATTEST: APPROVED:
Joann McClendon, CMC, City Clerk Mayor Kelly Smith
REPORT TO THE CITY COUNCIL
Item 3.2
CLICK HERE
TO RETURN TO
THE AGENDA
Meeting of: June 24, 2025
AGENDA SECTION: Consent
SUBJECT: Consideration of Monthly Financial Statements
PREPARED BY: Kerri Williams, Finance Director
ATTACHMENTS: May 2025 Budget vs Actual and Balance Sheet
REVIEWED BY
ADMINISTRATOR ☒ REVIEWED BYATTORNEY ☒ REVIEWED BY FINANCE ☒ RECOMMENDATION:
Approve the May 2025 Financial Statements shown in the attachment.
BACKGROUND:
Staff provides Council with monthly financial information as an ongoing financial status update.
REASON FOR RECOMMENDATION:
The monthly financial statements consist of a Budget vs Actual and a Balance Sheet for the General Fund. The Budget vs Actual shows the current Month (Period Activity) and current Year (Fiscal Activity) Revenues and Expenses by Department in summary form compared to the current year Original and Current budgets. The Balance Sheet shows the Assets, Liabilities and Fund Balance at the time the report is generated. This provides an overview of cash, amounts owed to the City, amounts the City owes and the fund balance at a specific point in time.
The financial statements are being presented as an overview of the City’s finances and are not meant to be a comprehensive in-depth review. As a reference to compare to the percent remaining column in the report, the percentage of the year remaining 8.33%.
If the percent remaining column for Revenues is higher than the above-mentioned percentage, that is an unfavorable variance and should be explained if significant. If the percent remaining column for Expenses is lower than the above-mentioned percentage, that is an unfavorable variance and should be explained if significant.
If there are questions regarding the actual amounts or budget vs actual variances, please forward your questions to me in enough time before the meeting for staff to research them.
FISCAL IMPACT:
Revenues
General Administration- Property tax and VLF, which are 2 of our biggest revenues, are only received 2 times a year in February and May, we have received both distributions. It came in higher than what we originally budgeted, and was adjusted at Mid-year. We are teetered which means we do not have to worry about delinquencies, because the County pays us and goes after the delinquencies themselves. Sales tax payments run a couple months behind and we have yet to receive April’s payment. Sales tax is our 2nd largest revenue. We still have Transient Occupancy tax, Franchise Fees, and Overhead Allocations that will be posted in June.
Police Department- Budgeted revenue is from school reimbursements for SRO service. Also, it has $1.3M Transfer-in from Measure N for the RIMS Software, recruitment and retention of employees, communications upgrade, recording system, and fleet/upfitting costs that will be posted in June.
Fire Department- This revenue is for fines/penalties and fire inspection fees which is completed throughout the year.
Community & Economic Development- This amount will fluctuate as building permits continue to be pulled, however as of now, we have already received over three-quarters of our projected total for 24-25.
To date, Self-Help has pulled permits for all of their lots in the Montgomery Farms development. Maple Meadows has pulled permits for nine residential multifamily buildings and one commercial community building. Additionally, Century Communities has pulled approximately 35 permits for the Orchard View development. We also budgeted for the following projects like Rancho Calera, Solar Permits, 2 commercial facilities and various other projects within the City. We still have other miscellaneous permits for other items that are happening as well. This also includes $23k of REAP 1.0 Funding.
Parks and Facilities- $31k of this is from a grant that we have requested reimbursements for, the project is now finished. There is a transfer in of $88k from DIF Fees to cover the Pickleball court. The rest is overhead allocations from the LLMD that happen at the end of the year.
Community Relations- Revenues are from sports program reimbursements, park pavilion rentals and donations.
Expenses
All departments expenses are within the normal range or better right now ALTERNATIVES:
Pull the item for further discussion.
ACTIONS FOLLOWING APPROVAL:
None
6/10/2025 10:22:18 AM Page 1 of 3
Budget Report
Chowchilla, CA Group Summary
For Fiscal: 2024-2025 Period Ending: 05/31/2025
Fiscal
Activity
Variance
Favorable
(Unfavorable)
Period
Activity Account Typ…
Current
Total Budget
Original
Total Budget
Percent
Remaining
Dept: 1600 - General Administration
Revenue 10,268,367.00 10,369,317.00 2,318,834.50 7,557,914.07 -2,811,402.93 27.11% Expense 292,415.00 292,415.00 1,199.51 142,768.43 149,646.57 51.18% Dept: 1600 - General Administration Surplus (Deficit): 9,975,952.00 10,076,902.00 2,317,634.99 7,415,145.64 -2,661,756.36 26.41% Dept: 1605 - City Council
Revenue 1,775.00 3,271.00 0.00 2,986.20 -284.80 8.71%
Expense 104,452.00 110,468.00 4,084.56 70,275.59 40,192.41 36.38% Dept: 1605 - City Council Surplus (Deficit): -102,677.00 -107,197.00 -4,084.56 -67,289.39 39,907.61 37.23% Dept: 1610 - City Clerk
Revenue 0.00 83.00 0.00 81.78 -1.22 1.47%
Expense 347,984.00 318,469.00 19,652.51 280,206.82 38,262.18 12.01% Dept: 1610 - City Clerk Surplus (Deficit): -347,984.00 -318,386.00 -19,652.51 -280,125.04 38,260.96 12.02% Dept: 1615 - City Attorney
Expense 300,000.00 336,000.00 15,848.19 304,160.81 31,839.19 9.48% Dept: 1615 - City Attorney Total: 300,000.00 336,000.00 15,848.19 304,160.81 31,839.19 9.48% Dept: 1705 - General Services
Revenue 0.00 6,865.00 49,710.46 56,947.46 50,082.46 729.53% Expense 2,068,037.00 2,164,122.00 134,587.16 1,542,493.30 621,628.70 28.72% Dept: 1705 - General Services Surplus (Deficit): -2,068,037.00 -2,157,257.00 -84,876.70 -1,485,545.84 671,711.16 31.14% Dept: 1710 - City Administration
Revenue 0.00 83.00 0.00 81.78 -1.22 1.47%
Expense 456,792.00 448,289.00 22,792.38 277,320.37 170,968.63 38.14% Dept: 1710 - City Administration Surplus (Deficit): -456,792.00 -448,206.00 -22,792.38 -277,238.59 170,967.41 38.14% Dept: 1712 - City Property - Rents
Revenue 165,262.00 167,107.00 24,021.45 146,728.69 -20,378.31 12.19% Expense 53,395.00 53,395.00 15,869.53 42,208.16 11,186.84 20.95% Dept: 1712 - City Property - Rents Surplus (Deficit): 111,867.00 113,712.00 8,151.92 104,520.53 -9,191.47 8.08% Dept: 1720 - Finance Department
Revenue 19,348.00 8,861.00 366.00 6,487.15 -2,373.85 26.79% Expense 918,252.00 887,510.00 39,793.44 670,553.93 216,956.07 24.45% Dept: 1720 - Finance Department Surplus (Deficit): -898,904.00 -878,649.00 -39,427.44 -664,066.78 214,582.22 24.42% Dept: 2610 - Police Department
Revenue 1,691,430.00 2,056,981.00 25,569.56 557,504.02 -1,499,476.98 72.90% Expense 6,063,553.00 5,833,129.00 276,554.24 4,643,728.47 1,189,400.53 20.39% Dept: 2610 - Police Department Surplus (Deficit): -4,372,123.00 -3,776,148.00 -250,984.68 -4,086,224.45 -310,076.45 -8.21% Dept: 2705 - Fire Department
Revenue 5,500.00 9,104.00 0.00 7,894.41 -1,209.59 13.29% Expense 393,380.00 462,693.00 31,488.87 342,101.22 120,591.78 26.06% Dept: 2705 - Fire Department Surplus (Deficit): -387,880.00 -453,589.00 -31,488.87 -334,206.81 119,382.19 26.32% Dept: 4705 - Community & Economic Development
Revenue 590,804.00 917,619.00 78,085.77 852,638.85 -64,980.15 7.08% Expense 1,173,295.00 1,107,652.00 38,705.43 723,984.50 383,667.50 34.64% Dept: 4705 - Community & Economic Development Surplus (Deficit): -582,491.00 -190,033.00 39,380.34 128,654.35 318,687.35 167.70% Dept: 6610 - Community Pool (OLD)
Revenue 1,500.00 2,219.00 3,000.00 4,610.98 2,391.98 107.80% Expense 25,504.00 25,015.00 248.00 13,029.09 11,985.91 47.91% Dept: 6610 - Community Pool (OLD) Surplus (Deficit): -24,004.00 -22,796.00 2,752.00 -8,418.11 14,377.89 63.07% Budget Report For Fiscal: 2024-2025 Period Ending: 05/31/2025 6/10/2025 10:22:18 AM Page 2 of 3
Fiscal
Activity
Variance
Favorable
(Unfavorable)
Period
Activity Account Typ…
Current
Total Budget
Original
Total Budget
Percent
Remaining
Dept: 6615 - Senior Services
Revenue 0.00 1,252.00 0.00 1,251.74 -0.26 0.02%
Expense 43,560.00 67,437.00 610.25 38,752.02 28,684.98 42.54% Dept: 6615 - Senior Services Surplus (Deficit): -43,560.00 -66,185.00 -610.25 -37,500.28 28,684.72 43.34% Dept: 6620 - Parks & Facilities
Revenue 198,847.00 225,472.00 0.00 32,977.59 -192,494.41 85.37% Expense 885,598.00 823,845.00 60,176.47 499,529.70 324,315.30 39.37% Dept: 6620 - Parks & Facilities Surplus (Deficit): -686,751.00 -598,373.00 -60,176.47 -466,552.11 131,820.89 22.03% Dept: 6625 - Community Relations
Revenue 22,500.00 32,667.00 7,020.00 31,248.15 -1,418.85 4.34% Expense 238,224.00 281,153.00 12,398.97 218,251.93 62,901.07 22.37% Dept: 6625 - Community Relations Surplus (Deficit): -215,724.00 -248,486.00 -5,378.97 -187,003.78 61,482.22 24.74% Report Surplus (Deficit): -399,108.00 589,309.00 1,832,598.23 -550,011.47 -1,139,320.47 193.33% Budget Report For Fiscal: 2024-2025 Period Ending: 05/31/2025 6/10/2025 10:22:18 AM Page 3 of 3
Fund Summary
Fiscal
Activity
Variance
Favorable
Fund (Unfavorable)
Period
Activity
Current
Total Budget
Original
Total Budget
100 - General Fund -399,108.00 589,309.00 1,832,598.23 -550,011.47 -1,139,320.47 Report Surplus (Deficit): -399,108.00 589,309.00 1,832,598.23 -550,011.47 -1,139,320.47 6/10/2025 10:24:03 AM Page 1 of 1
Balance Sheet
Chowchilla, CA Account Summary
As Of 05/31/2025
Account Name Balance
Fund: 100 - General Fund
Assets
100-0100-0201 Petty Cash 500.00
100-0100-0202 Pre-Paid Postage Account 890.05
100-0100-0206 Cash Drawer 1,700.00
100-0100-0219 Lease Receivable 93,823.58
100-0100-0221 A/R - Non Governmental 2,590.08
100-0100-0222 A/R - Intergovernmental -2,590.09
100-0100-0224 A/R MODULE ONLY RECEIVALBLES 159,597.88
100-0100-0226 Advance to Other Funds 389,382.82
100-0100-0227 Liens Receivables General Fund 178,525.36 100-0100-0230 Accounts Receivable-Utilities 152.77
100-0100-0244 Deposit for Sec. 125 1,278.90
100-0100-0291 Prepaid Expenses 52,977.39
100-0100-1900 Claim On Cash 10,385,009.66
Total Assets: 11,263,838.40 11,263,838.40
Liability
100-0200-0422 Bonds for Work-Refundable 2,500.00
100-0200-0480 Deferred Revenue 151,425.73
100-0200-0482 Unavailable Lease Revenue 50,823.48
100-0200-2901 Accounts Payable Pending 55,583.35
Total Liability: 260,332.56
Equity
100-0300-0601 Fund Balance 10,246,696.80
100-0300-0604 Reserve for Contingencies 910,223.00
100-0300-0605 Designated for Prepaid Items 239.50
100-0300-0611 Reserve for L/T A/R 389,382.82
100-0300-0615 SB1186 6,975.19
Total Beginning Equity: 11,553,517.31
Total Revenue 9,259,352.87
Total Expense 9,809,364.34
Revenues Over/Under Expenses -550,011.47
Total Liabilities, Equity and Current Surplus (Deficit): 11,263,838.40 Total Equity and Current Surplus (Deficit): 11,003,505.84
REPORT TO THE CITY COUNCIL
Item 3.3
CLICK HERE
TO RETURN TO
THE AGENDA
Meeting of: June 24, 2025
AGENDA SECTION: Consent
SUBJECT: Second Reading and Adoption of an Ordinance Adding Section 9.29 – Abandoned Shopping Carts to the Chowchilla Municipal Code PREPARED BY: Stacy Burns, Police Lieutenant
ATTACHMENTS: Proposed Ordinance
REVIEWED BY
ADMINISTRATOR ☒ REVIEWED BYATTORNEY ☒ REVIEWED BY FINANCE ☒ RECOMMENDATION:
That Council waive the second reading and adopt an ordinance adding Section 9.29 – Abandoned Shopping Carts to the Chowchilla Municipal Code.
BACKGROUND:
Allowing abandoned shopping carts to collect around the City creates a potential hazard to the health and safety of the public, and interfere with pedestrian and vehicular traffic and create a public nuisance. The accumulation of abandoned carts, sometimes wrecked and/or dismantled on public and private property tends to create conditions that reduce property values, and promote blight and deterioration and result in a public nuisance. This ordinance was introduced to the City Council at their June 10, 2025 meeting.
REASON FOR RECOMMENDATION:
This Municipal Order is intended to ensure that measures are taken by the owners of the shopping carts to prevent the removal of the shopping carts from the cart owner’s business premises, to make removal of the cart a violation of Code, and to facilitate the retrieval of abandoned shopping carts in a manner consistent with State law and to use an administrative citation program to establish appropriate fined intended to act a reasonable deterrent in preventing violations.
FISCAL IMPACT:
If approved the Municipal Order will help to reimburse the City of Chowchilla for any cost incurred for removal of shopping carts in the City.
ALTERNATIVES:
Do not approve and the City will incur the cost of removal of the abandoned carts.
ACTIONS FOLLOWING APPROVAL:
Send ordinance to Civic Plus for codification. Ordinance will take effect after 30 days.
CHOWCHILLA ORDINANCE # XXX-25
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF CHOWCHILLA, CALIFORNIA ADDING SECTION 9.29 – ABANDONED SHOPPING CARTS, TO THE CHOWCHILLA
MUNICIPAL CODE
THE CITY COUNCIL OF THE CITY OF CHOWCHILLA DOES ORDAIN THE FOLLOWING:
SECTION 1. Chapter 9.29 has been added to Title 9 of the Municipal Code of the City of Chowchilla as follows:
Chapter 9.29 ABANONED SHOPPING CARTS
9.29.10 Findings and purpose.
Abandoned shopping carts on public and private property create conditions that reduce property values, promote blight and deterioration, and result in a public nuisance. This chapter is intended to ensure that measures are taken by the owners of shopping carts to prevent the removal of the shopping carts from the owner’s premises and to facilitate the retrieval of abandoned shopping carts in a manner consistent with State law.
9.29.20 Definitions.
The following definitions apply for the purposes of this chapter:
(a) “Abandoned cart” shall mean any cart that has been removed, without the written consent of the owner, from the owner’s business premises or parking area of the retail establishment on which the cart owner’s business premises are located and is located on either public or private property.
(b) “Business premises” means the interior of a cart owner’s commercial establishment, adjacent walkways, any loading area, and the parking area, as defined herein. The owner’s business premises may include a multi-store shopping center with shared areas of parking and public access.
(c) “Cart identification sign” means a sign or engraved surface which is permanently affixed to a shopping cart containing all of the information specified in the ordinance. (d) “Cart owner” means the owner or operator of a commercial establishment which provides carts for use by its customers for the purpose of transporting goods of any kind. (e) “Cart removal warning” means a placard, sign or painted text which meets the requirements. (f) “Enforcement Officer” means any officer or employee of the city designated with the authority to enforce the applicable provisions of the City of Chowchilla Municipal Code. (g) “Individual cart identification number” means a number unique to each cart owned or provided by a cart owner.
(h) “On-site cart containment program” means one or more of the following measures:
1. Disabling devices on all shopping carts which prevent them from being removed from the business premises by locking the wheels or otherwise preventing the movement of the carts.
2. An on-site security guard to deter customers who attempt to remove carts from the business premises.
3. Bollards and chains around the business premises to prevent cart removal, if permitted by the applicable zoning and the site plan, and if approved by the fire marshal.
4. Obtaining a security deposit from customers for the on-site use of shopping carts.
5. The rental or sale of carts that can be temporarily or permanently used for the transport of goods.
6. Any other measure approved by the Director of Planning and Development Services as a means to contain carts on the premises.
(i) “Parking area” means a parking lot or other property provided by a commercial establishment for use by a customer for parking an automobile or other vehicle. In a multi-store complex or shopping center, “parking area” includes the entire parking area used by or controlled by the complex or center.
(j) “Physical containment system” means one of the following, as approved by the Director of Planning and Development Services:
1. Disabling devices on all shopping carts which prevent them from being removed from the business premises by locking the wheels or otherwise preventing the movement of the carts.
2. Any other system of equipment approved by the Director of Planning and Development Services which physically contains shopping carts on the premises. (k) “Qualified cart retrieval service” means a third party commercial service in the business of retrieving and returning shopping carts and meeting minimum service standards established by the Director of Planning and Development Services. The Director shall develop the minimum service standards and maintain a list of companies that have agreed to meet those standards. (l) “Shopping cart” or “cart” means a basket which is mounted on wheels or a similar device provided by the operator of a commercial establishment for the use of customers for the purpose of transporting goods of any kind. A cart sold by a commercial establishment to a retail customer for that customer’s personal use is not a shopping cart for the purposes of this chapter.
9.29.30 Cart containment system required: Exception.
Every cart owner shall operate and maintain an on-site cart containment program. A cart owner may be exempted from this requirement if he or she provides proof of contracting with a qualified cart retrieval service and submits an operations plan to the Director of Planning and Development Services which demonstrates to the satisfaction of the Director that the qualified cart retrieval service will: (i) actively locate shopping carts within a one-mile radius of the cart owner’s business premises; and (ii) respond to complaints from the public in a manner which results in the retrieval of shopping carts within twenty-four (24) hours after receiving complaint(s).
9.29.40 Store removal warnings.
Every cart owner shall prominently post and maintain in the interior of the building and within two (2) feet of all customer entrances and exits cart removal warnings which meet all of the following minimum specifications:
(a) Meet or exceed eighteen (18) inches in width and twenty-four (24) inches in height. (b) Use block lettering not less than one-half (1/2) inch in width and two (2) inches in height, contain a statement to the effect that unauthorized removal of a shopping cart from the business premises, or possession of a shopping cart in a location other than on the business premises, is a violation of State law and City ordinance.
(c) The statement required by subsection (b) of this section shall be in English, Spanish, and any other language spoken as the primary language for a significant customer base of the cart owner.
(d) List a local or toll-free telephone number for cart retrieval.
9.29.50 Cart identification signs.
(a) Each shopping cart owned or used within the City shall have permanently affixed to it and easily visible a cart identification sign or engraved surface which includes all of the following information: The name of the cart owner; the telephone number of the cart owner and/or commercial establishment to which the cart belongs; the individual cart identification number; a valid toll-free phone number for cart retrieval; the procedure (if any) to be followed to obtain permission to remove the cart from the business premises; and a notice to the public that unauthorized removal of the cart from the business premises is a violation of State law and City ordinance.
(b) It shall be the responsibility of each cart owner to comply with subsection (a) of this section, and to continuously maintain, or cause to be maintained, the cart identification sign so that all of the required information is accurate and clearly legible.
9.29.60 Permission for cart removal from business premises.
No person shall be deemed to be authorized to remove a cart unless he or she possesses written authorization from the cart owner. This section shall not apply to the possession of a shopping cart removed from the business premises at the direction of the cart owner for the purposes of repair or maintenance.
9.29.70 New construction.
A cart owner shall be required to install a physical containment system when the cart owner establishes a new facility consisting of, or expands an existing facility by, more than five thousand (5,000) square feet.
9.29.80 Enforcement and remedies.
A violation of this chapter is a misdemeanor subject to the penalty provisions. In addition, the City may exercise the following remedies:
(a) If an abandoned cart remains for more than twenty-four (24) hours after notice to the owner from the City or citizen observer, the Enforcement Officer may issue an administrative citation to the owner in accordance with the provisions of the City of Chowchilla Ordinance. Notwithstanding the fine schedule set forth in City of Chowchilla Ordinance, the amount of the fine shall be one hundred and no/100ths dollars ($100.00) for each cart and for every twenty-four (24) hour period the cart remains abandoned.
(b) The City may remove the cart. The owner will be responsible for the costs of removal and storage. Prior to release of the cart, the owner must pay for those costs plus any outstanding administrative citation fines. If a cart is not retrieved by its owner within thirty (30) days after the owner has received notice of the cart being impounded, including a failure to pay costs and fines, or if the cart’s owner cannot be determined, the cart will be sold, destroyed or otherwise disposed of as the City sees fit.
(c) Following the City having retrieved more than ten (10) carts in any thirty (30) day period or the issuance of more than ten (10) administrative citations in any twelve (12) month period, the Director of Planning and Development Services may require the owner to install a physical containment system.
SECTION 2. SEVERABILITY. If any part of this Ordinance is held invalid for any reason by a court of competent jurisdiction, such decision shall not affect the validity of the remaining portion of this Ordinance, and the City Council hereby declares that it would have passed the remainder of the Ordinance if such invalid portion thereof had been deleted.
SECTION 3. EFFECTIVE DATE. This Ordinance shall take effect and be in force thirty (30) days from and after its final passage.
SECTION 4. PUBLICATION. The City Clerk is hereby directed to post a summary and certified copy of this Ordinance in the City Clerk’s office at least five (5) days prior to adoption and to publish a summary of the Ordinance in the Madera Tribune, a newspaper of general circulation, within fifteen (15) days after its adoption.
INTRODUCED at a regular City Council meeting on the 10th day of June 2025.
PASSED AND ADOPTED by the City Council of the City of Chowchilla this 24th day of June, 2025 by the following vote to wit:
AYES:
NOES:
ABSENT:
ABSTAIN:
APPROVED:
Mayor Kelly Smith
ATTEST:
Joann McClendon, CMC
City Clerk
REPORT TO THE CITY COUNCIL
Item 3.4
CLICK HERE
TO RETURN TO
THE AGENDA
Meeting of: June 24, 2025
AGENDA SECTION: Consent
SUBJECT: Aerial Fireworks Display at Chowchilla Fairgrounds PREPARED BY: Fred Gaumnitz, Fire Chief
ATTACHMENTS: Application, Certificate of Insurance, Map
REVIEWED BY
ADMINISTRATOR ☒ REVIEWED BYATTORNEY ☒ REVIEWED BY FINANCE ☒ RECOMMENDATION:
That the City Council approve an aerial fireworks display for July 6, 2025 at the Chowchilla Fairgrounds and authorize the Fire Chief to approve necessary documents thereto (State and Local Permits).
BACKGROUND:
Historically the Chowchilla Lions Club has provided an annual aerial firework display for the community.
Originally this event was held at the fairgrounds and later at Berenda Reservoir for Independence Day.
Due to dry conditions and lack of water in the reservoir this event was moved back to the fairgrounds and has now been held there for the past several years.
REASON FOR RECOMMENDATION:
The Chowchilla Lions Club representatives have met with City Staff and staff from Chowchilla Fair and desire to again conduct this event at the fairgrounds as has been done for the last several years. This event is open to the public at no charge as a community celebration event.
With the Fairgrounds, Lions Club, and City working together, the Lions club has been able to bring the annual fireworks display back to the fairgrounds.
Additional items that were discussed in the above-mentioned meeting were A- The need for the City Public Works Department to post a NOTAM with FAA advising of the aerial fireworks display and its proximity to the airport.
B- Lions representatives to check and remove any larger debris from the airport that would hinder the normal operation of the airport and/or planes using the airport C- Lions Club to arrange for City application for aerial fireworks display.
D- Lions Club contractor (pyrotechnician) to obtain permit from State Fire Marshal’s Office for aerial fireworks display.
E- Pyrotechnician to provide insurance at required amounts and name City, Chowchilla Fairgrounds, and Chowchilla Fire Department as additional insured’s.
F- Fire department representative to inspect and approve mortars for safety and compliance prior to discharge.
G- Fire department to provide stand-by service aerial fireworks event.
FISCAL IMPACT:
Staff and equipment costs to provide fire inspections and stand-by for event.
ALTERNATIVES:
Deny the permit and do not have aerial fireworks.
ACTIONS FOLLOWING APPROVAL:
Verify receipt of City application, State application, and insurance certificates.
Public Works (as airport manager) to post NOTAM for airport, notifying of aerial fireworks.
REPORT TO THE CITY COUNCIL
Item 4.1
CLICK HERE
TO RETURN TO
THE AGENDA
Meeting of: June 24, 2025
AGENDA SECTION: Public Hearing
SUBJECT: 2025-2026 Master Fee Schedule Annual Update
PREPARED BY: Abigail Zurita, Fiscal Manager
ATTACHMENTS: Resolution, Master Fee Schedule
REVIEWED BY
ADMINISTRATOR ☒ REVIEWED BYATTORNEY ☒ REVIEWED BY FINANCE ☒ RECOMMENDATION:
That Council holds the public hearing, accept testimony regarding the Master User Fee Schedule and adopt, by motion, a Resolution establishing the 2025-2026 Master User Fee Schedule.
BACKGROUND:
The California Government Code Sections 66012 – 66018.5 grants cities the authority to establish and charge user fees in connection with certain public services that are provided to businesses and individuals.
Historically Chowchilla has set these fees by departments at different times of the year, not in a consolidated fashion. In 2012, Council consolidated the fees into one document with the adoption of Resolution 84-12, ensuring ease of use by the City’s customers.
REASON FOR RECOMMENDATION:
There is no CPI increase, as this is done every other year or so. The changes in this schedule come directly from the departments, and their explanations are attached.
FISCAL IMPACT:
The projected revenue is included in the 2025-2026 City of Chowchilla budget.
ALTERNATIVES:
Do not approve; remain status quo and adjust the 2025-2026 City budget.
COUNCIL RESOLUTION # XX-25
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHOWCHILLA, CALIFORNIA
AMENDING THE MASTER USER FEE SCHEDULE
WHEREAS Government Code Sections 66012 – 66018.5 grants to the City Council of the City of Chowchilla the authority to establish and charge user fees in connection with certain public services that are provided to businesses and individuals; and
WHEREAS the City Council has the authority to increase certain fees annually, based on the nationally published Employee Cost Index for State and Local Governments, by the California Construction Cost Index, or by reevaluation and assignment of actual municipal costs to cover the estimated cost of providing the services for which such fees are levied; and WHEREAS the City of Chowchilla has met the requirements pursuant to Government Code Section 66016 by holding a public hearing concerning the adoption of said fees and has made available to the public, at least 10 days before the hearing, data on the amount of costs or estimated costs required to provide the services for which the fees are levied and the revenue sources anticipated to provide the services.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Chowchilla hereby finds, determines and declares the following:
1. The Council finds that the specific amount of the updated user fees, the description of the benefit and impact area on which the user fee is imposed, the description of the reasonable relationship between the fees and the various types of services, and the time for payment set forth below in this resolution are proper and necessary and the information and data upon which the fees are based is correct and accurate; and,
2. Council hereby adopts and approves the Master User Fee Schedule updated for 2025/2026, following a public hearing on the matter and the same is incorporated herein; and,
3. Pursuant to California Government Code Section 66017, the fees adopted by this resolution shall be in full force and effect and shall be collected beginning July 1, 2025; and, once adopted, Council acknowledges that any user fees previously determined by Resolution or other fashion will be replaced by the user fees outlined in the Fee Schedule contained herein.
4. Any judicial action or proceeding to attack, review, set aside or annul this resolution shall be brought within 120 days of its adoption; and,
5. The specific amount of User Fees, as Amended, are set forth in the table below:
6. The provisions of this resolution are severable, and the validity of any part thereof including any fee shall not affect the validity or effectiveness of the remainder of the resolution.
PASSED AND ADOPTED by the City Council of the City of Chowchilla this 24th day of June, 2025 by the following vote to wit:
AYES:
NOES:
ABSENT:
ABSTAIN:
APPROVED:
Mayor Kelly Smith
ATTEST:
Joann McClendon, CMC
City Clerk
CHANGES TO THE MASTER FEE SCHEDULE
FOR 2025-2026
The changes made to the master fee schedule are as follows:
ADMINISTRATION
1. Changed the fee amount for 1st page from $1.40 to $3.00 to be in line with surrounding cities.
2. Changed the fee amount for additional page from $0.30 to $1.00 to be in line with surrounding cities.
3. Notary Fees: updated fee for copy of Journal Entry from $0.30 to $3.00.
AIRPORT - No additions or deletions were made.
COMMUNITY DEVELOPMENT - No additions or deletions were made.
FINANCE DEPARTMENT - No additions or deletions were made FIRE DEPARTMENT – No additions or deletions were made.
PARKS & RECREATION
1. Changed the fee amount for Event Fees for County Heath Permits from $135.00 to 140.00 to reflect current county fee.
2. Remove old City Community Event Vendor Fee from 2022.
POLICE DEPARTMENT
1. Removed Civil Document Service fee since the police department does not serve civil documents. Anyone needing theses services are directed to Madera County Civil Division.
2. Updated fee amount for First Offender Registration from $26.00 to No fee per CA Penal Code § 290.012 since the City is not allowed to charge for this item per CA Penal Code § 290.012.
PUBLIC WORKS – No additions or deletions were made.
TRANSIT – CATX - No additions or deletions were made.
UTILITIES
1. Updated rates based on the proposed Utilities Rate Study dated June 10, 2025.
ADMINISTRATION
Fee Type Description Costs
City Council
Note: All Council/City Board
meetings have a public
packet for review at City
Hall.
Note: Agenda’s and
Minutes are also available
on the City of Chowchilla’s
website
• Certification of Minutes (One-page
w/City seal, stamped and signed
by City Clerk)
1st Page
Each Additional Page
• Single Council/City Board full
meeting packet
1st Page
Each Additional Page
Deposit (Pre-Paid)
• Audio Recording from Council/City
Board meeting (Each)
Recording & one of the
following
CD, Flash Drive, or Thumb
Drive
• Council/City Board agenda
subscription – 1-year renewable
each January
Email
Annually (Not Prorated)
• Council/City Board full meeting
packet to be picked up at City Hall
(Must be prepaid) if mailed in the
$3.00
$1.00
$3.00
$1.00
$50.00
$2.25
$15.00
No Charge
$31.70
customer is responsible for
postage costs.
6-month Subscription
1-year Subscription
$273.00
$513.00
Fee Type Description Costs
Copy Charges • Copy of Charges for FPPC
1st Page
Each Additional Page
• Copy Charges for documents
(Except FPPC)
1st Page
Each Additional Page
Documents on a Thumb drive
$3.00
$1.00
$3.00
$1.00
$15.00
Notary Fees (Notary Fees
are set by the State of
California and therefore are
subject to changes per
State Law, if changed the
new amounts will be
charged)
Costs are per signature
• Ballots or Ballot Identification
• Military Veterans claim for
pension, allotment, allowance,
compensation, insurance or
veteran's benefit
• To Administer Oaths Only
• Acknowledgement
• Jurat & Oath
• Proof of Subscribing Witness
• Power of Attorney
• Copy of a Journal Entry
• Immigration Paperwork per set
No Costs
No Costs
$15.00
$15.00
$15.00
$15.00
$15.00
$3.00 per copy
$15.00
•
PARKS & RECREATION
Alcohol, Smoking & related products are prohibited
Fee Type Description Costs
Community Pool • Daily Admission Recreations Swim
Youth 18 years old or younger
Adult 18 years or older
• Admission Season Pass
Youth 18 years old or younger
Adult 18 years or older
$1.00
2.00 $30.00
$60.00
Event Fees
County and State Fees are
Subject to change without
notice.
PlusPlus, any outside costs
• Event Fees for County Heath
Permits
• Certified Farmers Market
California Dept of Food &
Agriculture (CDFA) State Fee
• City Community Event Vendor Fee
effective 1/1/2023
Registered Non-Profit vendors at
community events will not be charged
City fees.
$14035.00
$2.00
$40.00
Memorial Program
Purchase and placement of
memorial items in parks and
public areas in the City of
Chowchilla in accordance
with the Memorial Program
Policy #24-20; Includes asset
purchase, materials, staff
cost and maintenance cost,
but not replacement cost.
• Memorial Bench
• Memorial Tree
$2,000.00
$350.00
POLICE
Fee Type Description Costs
Alarm Fees- Alarm fees are
assessed per fiscal year
• False Alarm Fees (Each)
1st through 3rd
4th Alarm Fee
5th Alarm Fee
6th Alarm Fee and subsequent
$0.00
$75.00
$100.00
$200.00
Animal Fees
All Prices for Each incident,
license, trap, day etc.
*Senior is defined as 60
years or older.
• Animal Disposal Small 1-10 lbs.
• Animal Disposal Medium 10-25
lbs.
• Animal Disposal Large 25-50 lbs.
• Animal Disposal Large Over 50 lbs.
• Animal Home Quarantine Fee –
Vaccinated
• Animal Impoundment Fee
• Animal Impoundment Fee - 2nd
Offense
• Animal Impoundment Fee - 3rd
Offense
• Animal License – 1 Year (altered –
senior rate*)
• Animal License – 1 Year (altered)
• Animal License – 1 Year (unaltered
– senior rate*)
• Animal License – 1 Year
(unaltered)
$45.00
$50.00
$60.00
$75.00
$32.00
$40.00
$75.00
$100.00
$5.00
$10.00
$12.50
$25.00
$75.00
• Cat Trap Deposit
• Cat Trap Rental Per Day
$2.00
Fee Type Description Costs
Animal Fees (Continued)
All Prices for Each incident,
license, trap, day etc.
*Senior is defined as 60
years or older.
• Civil Penalty for Unaltered Dogs &
Cats
• Civil Penalty Fee Unaltered 2nd
Offense
• Civil Penalty Fee Unaltered 3rd
Offense
• Dangerous Animal Permit Fee
Initial Permit, plus
Office Inspection Fee
Annual Permit, plus
Office Inspection Fee
• Delinquent Animal License
• Dog Tags - Replacement Fee
• Kennel Permit (1-10 Animal)
• Kennel Permit (1-20 Animal)
• Kennel Permit (21+ Animal)
• Large Animal Board - Per Day
• Non-Vaccinated Bite Penalty Fee
• Owner Release of Animal
• Owner Release to Shelter –
County
• Quarantined Animal Board Per
Day - Small Animal
$35.00
$50.00
$100.00
$300.00
$100.00
$200.00
$100.00
$20.00
$5.31
$80.00
$100.00
$132.00
$15.00
$159.00
$65.00
$70.00
$12.00
• Quarantined Animal Board Per
Day - Large Animal
• Regular Small Animal Trap Rental
Deposit
• Regular Small Animal Trap Rental
Fee
• Small Animal Board - Per day
$15.00
$75.00
$2.00
$12.00
Fee Type Description Costs
Animal Fees (Continued)
All Prices for Each incident,
license, trap, day etc.
*Senior is defined as 60
years or older.
• Spay & Neuter Administrative Fee
• Vicious Animal Permit Fee
Initial Permit, plus
Office Inspection Fee
Annual Permit, plus
Office Inspection Fee
• Tranquilizing Owned Animal &
Actual Vet bill
• Trap Delinquent Fee Per Day
• Wild Animal Permit
$16.00
$400.00
$100.00
$200.00
$100.00
$50.00 &
Actual Costs
$2.00
$100.00
Booking Fees – Set by State
Law
• Current Booking Fee &
• Mileage for Booking (State Rate)
$78.87
State Rate
Citation Sign-off • Citation Sign-off (Non C.P.D.) $10.00 Civil Services Fees • Civil Document Service
• Civil Subpoenas Police Employee
$38.00
$275.00
Concealed Carry Weapon
(CCW) Permit
• Initial Fee - Paid on submission of
the application.
• Issuance Fee - Paid upon the
approval of the application.
$118.00
$30.00
Commented [CD1]: We do not serve civil documents, we
direct everyone to Madera SO Civil Division.
• Renewal Fee - Paid upon the
submission of the renewal
application.
$72.00
Copies & Images • Misc. Copies (Citations/Civil) Per
Page
• Photographic Image Fee-Per
Picture (Each)
$0.10
$1.00
Curfew Violations • Curfew Violation 1st Offense
• Subsequent Violations
$63.00
$63.00
Fingerprinting &
Background Checks
• Fingerprints & Dept. of Justice
• Local Criminal Background Check
$25.00 Plus DOJ Fees
$35.00
Fee Type Description Costs
Licenses • Bicycle License
• Quadricycle Annual Operator
License Fee
• Quadricycle Registration & License
Fee
• Quadricycle Registration Permit (3
Yr)
$1.00
$10.00
$16.00
$20.00
Offender Registration • First Offender Registration $26.00 Permits • Alcohol Beverage Permit
• Alcohol Beverage Permit for
Registered Non-Profit
$25.00
$12.00
Reports • Archived Police Report
• Copy of CAD Call
• Police Report
• Traffic Collision Report Fee
$15.00
$0.10
$10.00
$25.00
Commented [CD2]: We cannot charge for this per Penal
Code “CA Penal Code § 290.012
(d) No entity shall require a person to pay a fee to
register or update his or her registration pursuant to
this section. The registering agency shall submit
registrations, including annual updates or changes of
address, directly into the Department of Justice
California Sex and Arson Registry (CSAR).”
Vehicle Fees • Repossessed Vehicle Fee
• Rotation Tow Service Fee (Annual)
• Vehicle Release (All)
$15.00
$50.00
$100.00
ALL FEES ARE NON-REFUNDABLE UNLESS SPECIFICALLY STATED
REPORT TO THE CITY COUNCIL
Item 4.2
CLICK HERE
TO RETURN TO
THE AGENDA
Meeting of: June 24, 2025
AGENDA SECTION: Public Hearing
SUBJECT: Public Hearing and Consideration by the City Council of Resolutions Relating to Increases in Water, Sewer and Solid Waste Rates as Follows:
Consideration of a Resolution of the City Council of the City of Chowchilla, California, Establishing Monthly Rates to Be Charged For Water Furnished By the City and Repealing Resolution 47-20 and All Other Resolutions in Conflict Herewith
Consideration of a Resolution of the City Council of the City of Chowchilla, California, Establishing Monthly Rates to Be Charged For Sewer Service Furnished By the City and Repealing Resolution 48-20 and All Other Resolutions in Conflict Herewith
Consideration of a Resolution of the City Council of the City of Chowchilla, California, Establishing Monthly Rates to Be Charged For Solid Waste Service Furnished By the City and Repealing Resolution 49-20 and All Other Resolutions in Conflict Herewith.
PREPARED BY: Jason Rogers, Director of Public Works
Kerri Williams, Director of Finance
ATTACHMENTS: Utilities Rate Study, Water, Sewer and Solid Waste Resolutions
REVIEWED BY
ADMINISTRATOR ☒ REVIEWED BYATTORNEY ☒ REVIEWED BY FINANCE ☒ RECOMMENDATION:
Staff recommends that the City Council take the following actions relating to proposed increases in water, sewer and solid waste rates:
1. Conduct a public hearing to accept public testimony regarding proposed water, sewer and solid waste rate adjustments.
2. Direct staff to tally all valid written protests and report as to whether a majority protest of proposed water, sewer and solid waste rates exists.
3. If a majority protest does not exist relative to water rates, adopt the resolution establishing monthly rates to be charged for water furnished by the City and repealing Resolution 47-20 and all other resolutions in conflict herewith
4. If a majority protest does not exist relative to sewer rates, adopt the resolution establishing monthly rates to be charged for sewer service furnished by the City and repealing Resolution 48-20 and all other resolutions in conflict herewith.
5. If a majority protest does not exist relative to sewer rates, adopt the resolution establishing monthly rates to be charged for solid waste service furnished by the City and repealing Resolution 49-20 and all other resolutions in conflict herewith.
REASON FOR RECOMMENDATION:
The water, sewer and solid waste rates were last adjusted, with annual rate increases, in June of 2020. As such, a new rate schedule should be adopted for fiscal year 2025/2026. On April 8th, after reviewing alternate financial scenarios and after a complete cost of service study was presented on April 22nd, Council initiated the process to update solid waste, sewer and water rates as specified under Proposition 218. A public notice was distributed to all owners and utility customers describing the proposed rate adjustment.
If a majority protest is not made, the Council may proceed with adopting and implementing the new sewer water, and solid waste rates.
Under Proposition 218, utility rates with annual adjustment factors can only be set for a maximum of five years at a time. As the City’s last rate schedule adjustment for rates was in fiscal year 2020/21, Council engaged Lechowicz & Tseng Municipal Consultants in August 2024 to prepare a cost of service study for the City’s solid waste, sewer and water utilities. Based on information provided by the consultant, the Council evaluated utility service costs on two occasions prior to initiating the formal process to adjust the rates.
• On April 8, 2025, the Council conducted a workshop to review financial plans associated with the solid waste, sewer and water utilities. The workshop focused on the cost factors for each type of utility and summarized the potential approaches to covering those costs. For example, the requirement to meet debt coverage ratios was identified, along with the need to fund certain capital improvements. Alternative approaches were presented that differed with regard to when and how these revenue requirements are met.
• On April 22, 2025, the complete cost of service study for solid waste, sewer and water services was presented to the Council. The study incorporated the preferred scenarios selected by the Council at the previous workshop, and presented a draft schedule of solid waste, sewer and water rates that would be applied over a five-year period beginning on July 1, 2025.
After reviewing and discussing the information presented at the April 22nd meeting, Council directed staff to proceed with the public noticing process required under Proposition 218. A 45-day public notice was subsequently distributed to all owners and utility customers in Chowchilla, and a public hearing was set for the June 24th regular City Council Meeting.
Under Proposition 218, customers subject to the proposed rates may choose to file a written protest objecting to the proposed changes in advance of the City Council’s adoption. If a majority protest is made, the proposed rate adjustments must be set aside. If no majority protest exists, Council may adopt the new rates. All protests must be made in writing and include the following:
• Statement that the identified property owner is in opposition to the proposed rate increases. • The location of identified parcel by assessor’s parcel number, street address, or account number. • The name and signature of the property owner submitting the protest. • If the person protesting is not shown on Chowchilla County’s last equalized assessment roll as the property owner of record, provide written evidence that the person is the property owner, such as a current copy of city services bill.
A total of 4,956 customer accounts are of record and subject to the protest hearing. In order to constitute a majority protest, 2,749 customers (50% +1) would need to provide written protests. At the time this report was written, approximately one (1) letter had been received.
Description of Proposed Rates
The new rates cover the period from fiscal year 2025-26 through fiscal year 2029-30. The primary objective of the recommend utility rates is to ensure the continued financial health and stability of the City’s enterprise funds, while minimizing the impact of any proposed rate changes on customers. The initial rate increases for an average residential customer are shown below:
UTILITY PROPOSED PERCENTAGE INCREASES
FY 2026 FY2027 FY2028 FY2029 FY2030
Sewer 4% 4% 4% 4% 4%
Water* 19% 19% 19% 19% 19%
Solid Waste 4% 4% 4% 4% 4%
Utility Existing Rate Proposed
Rate
Est. Avg. $ Change % Change
Solid Waste $34.63 $36.02 $1.39 4%
Water* $48.34 $54.57 $6.23 13%
Sewer $31.94 $32.83 $0.89 3%
Cumulative Total $114.91 $123.42 $8.51 7.4%
* Based on typical summer usage of 16 hcf
The proposed rates will result in an overall approximate rate increase for an average residential customer of $8.51 per month for Solid Waste, Water and Sewer beginning July 1, 2025.
However, it is important to note that the impact to each customer will vary based on the type of property (customer class) and the amount of water that is used. Customers that use higher amounts of water will pay higher rates while lower usage will result in a lower bill. The proposed tiered rate structure for the water rate identifies the cost components within each tier and the corresponding unit costs. Additional details regarding the rates and how they were calculated is available in the attached Cost of Service Report.
FISCAL IMPACT:
The proposed rate increases are necessary to keep pace with increasing operational costs, make essential repairs and improvements to infrastructure, debt coverage ratios and to comply with State mandated programs and requirements.
ALTERNATIVES:
Not to approve the utility rates as presented. This would likely result in the City not meeting debt coverage ratios, as required by current bond covenants, or having funding available for increased operational and system improvement costs.
ACTIONS FOLLOWING APPROVAL:
1. City’s Master Fee Schedule will be updated with the new rates.
2. The new rates will be effective starting July 1, 2025.
COUNCIL RESOLUTION # XX-25
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHOWCHILLA, CALIFORNIA
ESTABLISHING MONTHLY RATES TO BE CHARGED FOR WATER FURNISHED BY THE CITY AND REPEALING RESOLUTION 47-20 AND ALL OTHER RESOLUTIONS IN CONFLICT HEREWITH WHEREAS, the City of Chowchilla previously adopted Resolution 47-20 establishing rates for water furnished by the City for the period between July 1, 2020 and June 30, 2025; and WHEREAS, the City of Chowchilla desires to establish water rates which were based on the actual and projected costs of providing services between July of 2025 and June of 2030; and WHEREAS, the City Council considered a Cost of Service analysis prepared by Lechowicz & Tseng Municipal Consultants, a firm with expertise in the analysis of municipal water utility costs; and WHEREAS, the Council has caused notices to be sent to all affected customers and property owners regarding the proposal to amend the rates for water use at least 45 days in advance of a noticed public hearing held on June 24, 2025; and
WHEREAS, the Council finds that no majority protest was presented against the proposed rates for water service before or during the public hearing and finds that the proposed rates shall be made effective July 1, 2025.
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. No majority protest was presented against the proposed rates for water service.
3. The monthly rates to be charged for the use of water furnished by the City, enumerated in Attachment A to this Resolution, are hereby adopted.
4. Resolution 47-20, and all other resolutions in conflict herewith, are hereby repealed.
5. This resolution is effective immediately upon adoption.
PASSED AND ADOPTED by the City Council of the City of Chowchilla this 24th day of June, 2025 by the following vote to wit:
AYES:
NOES:
ABSENT:
ABSTAIN:
APPROVED:
Mayor Kelly Smith
ATTEST:
Joann McClendon, CMC
City Clerk
Resolution Attachment A
City of Chowchilla Water Rates: Fiscal Year 2026-2030
2025/26 2026/27 2027/28 2028/29 2029/30
Meter Size Meter Size
1" $26.74 1" $29.29 $34.85 $41.47 $49.35 $58.73
1 1/2" $42.55 1 1/2" $45.57 $54.22 $64.52 $76.78 $91.37 2" $61.51 2" $65.11 $77.46 $92.18 $109.70 $130.54
3" $112.07 3" $117.20 $139.45 $165.94 $197.47 $234.99
4" $168.96 4" $175.81 $209.18 $248.92 $296.22 $352.49
6" $326.97 6" $338.61 $402.88 $479.42 $570.52 $678.89
Single Family Residential Single Family Residential
Tier 1: 0 - 18 hcf $1.35 Tier 1: 0 - 16 hcf $1.58 $1.90 $2.28 $2.74 $3.29 Tier 2: Over 18 hcf $1.74 Tier 2: Over 16 hcf $2.29 $2.75 $3.30 $3.97 $4.77 All Other Customers [2] $1.46 All Other Customers [2] $1.85 $2.23 $2.68 $3.22 $3.86 2013 Metered Customers $6.51 2013 Metered Customers $6.51 - - - - 2014 Retrofitted Customers $2.44 2014 Retrofitted Customers $2.44 $2.44 - - - 2015 Retrofitted Customers $2.44 2015 Retrofitted Customers $2.44 $2.44 $2.44 - - [1] one hundred cubic feet (hcf) = 748 gallons
[2] Includes commercial, multi-family, and irrigation customers
PROPOSED MONTHLY WATER RATES
Current
METER CHARGES
COMMODITY RATE ($/hcf) [1]
METER INSTALL & RETROFIT CHARGES
Proposed
COUNCIL RESOLUTION # XX-25
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHOWCHILLA, CALIFORNIA
ESTABLISHING MONTHLY RATES TO BE CHARGED FOR SEWER SERVICES FURNISHED BY THE CITY AND REPEALING RESOLUTION 48-20 AND ALL OTHER RESOLUTIONS IN CONFLICT
HEREWITH
WHEREAS, the City of Chowchilla previously adopted Resolution 48-20 establishing rates for sewer services furnished by the City for the period between July 1, 2020 and June 30, 2025; and WHEREAS, the City of Chowchilla desires to establish sewer service rates which were based on the actual and projected costs of providing services between July 1, 2025 and June 30, 2030; and WHEREAS, the City Council considered a Cost of Service analysis prepared by Lechowicz & Tseng Municipal Consultants, a firm with expertise in the analysis of municipal sewer utility costs; and WHEREAS, the Council has caused notices to be sent to all affected customers and property owners regarding the proposal to amend the rates for sewer use at least 45 days in advance of a noticed public hearing held on June 24, 2025; and
WHEREAS, the Council finds that no majority protest was presented against the proposed rates for sewer service before or during the public hearing and finds that the proposed rates shall be made effective July 1, 2025.
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. No majority protest was presented against the proposed rates for sewer service.
3. The monthly rates to be charged for the use of sewer furnished by the City, enumerated in Attachment A to this Resolution, are hereby adopted.
4. Resolution 48-20, and all other resolutions in conflict herewith, are hereby repealed.
5. This resolution is effective immediately upon adoption.
PASSED AND ADOPTED by the City Council of the City of Chowchilla this 24th day of June, 2025 by the following vote to wit:
AYES:
NOES:
ABSENT:
ABSTAIN:
APPROVED:
Mayor Kelly Smith
ATTEST:
Joann McClendon, CMC
City Clerk
Resolution Attachment A
City of Chowchilla Sewer Rates: Fiscal Year 2026-2030
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 $32.83 $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 COUNCIL RESOLUTION # XX-25
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHOWCHILLA, CALIFORNIA
ESTABLISHING MONTHLY RATES TO BE CHARGED FOR SOLID WASTE SERVICES FURNISHED
BY THE CITY
WHEREAS, the City of Chowchilla previously adopted Resolution 49-20 establishing rates for solid waste services furnished by the City for the period between July 1, 2020 and June 30, 2025; and WHEREAS, the City of Chowchilla desires to establish solid waste service rates which are based on the actual and projected costs of providing services between July 1, 2025 and June 30, 2025; and WHEREAS, the City Council considered a Cost of Service analysis prepared by Lechowicz & Tseng Municipal Consultants, a firm with expertise in the analysis of municipal solid waste utility costs; and
WHEREAS, the Council has caused notices to be sent to all affected customers and property owners regarding the proposal to amend the rates for solid waste service use at least 45 days in advance of a noticed public hearing held on June 24, 2025; and WHEREAS, the Council finds that no majority protest was presented against the proposed rates for solid waste service before or during the public hearing and finds that the proposed rates shall be made effective July 1, 2025.
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. No majority protest was presented against the proposed rates for solid waste service.
3. The monthly rates to be charged for the use of solid waste services furnished by the City, enumerated in Attachment A to this Resolution, are hereby adopted.
4. This resolution is effective immediately upon adoption.
PASSED AND ADOPTED by the City Council of the City of Chowchilla this 24th day of June, 2025 by the following vote to wit:
AYES:
NOES:
ABSENT:
ABSTAIN:
APPROVED:
Mayor Kelly Smith
ATTEST:
Joann McClendon, CMC
City Clerk
Resolution Attachment A
City of Chowchilla Solid Waste Rates: Fiscal Year 2026 - 2030 Current 2025/26 2026/27 2027/28 2028/29 2029/30
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
PROPOSED MONTHLY RESIDENTIAL SOLID WASTE RATES
Proposed
RESIDENTIAL
Current 2025/26 2026/27 2027/28 2028/29 2029/30
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 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 TRASH
PROPOSED MONTHLY COMMERCIAL SOLID WASTE RATES
Proposed
Current 2025/26 2026/27 2027/28 2028/29 2029/30
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 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 Proposed
COMMERCIAL RECYCLE
PROPOSED MONTHLY COMMERCIAL SOLID WASTE RATES
COMMERCIAL ORGANIC
Current 2025/26 2026/27 2027/28 2028/29 2029/30
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 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
ROLL OFF (DROP BOX) SERVICE
MISCELLANEOUS FEES
PROPOSED MONTHLY COMMERCIAL SOLID WASTE RATES
Proposed
CITY OF CHOWCHILLA
Utilities Rate Study
Draft Report
June 10, 2025
909 Marina Village Parkway #135
Alameda, CA 94501
(510) 545-3182
www.LTmuniconsultants.com
TABLE OF CONTENTS
SECTION 1: EXECUTIVE SUMMARY .......................................................................................................... 1
1.1 Background ................................................................................................................................... 1
1.2 Requirements of Proposition 218................................................................................................. 1
1.3 Rate Study Process........................................................................................................................ 3
1.4 Proposed Utility Rates................................................................................................................... 4
1.5 Utility Bill Survey ........................................................................................................................... 9 SECTION 2: WATER RATE STUDY............................................................................................................10
2.1 Current Water Rates...................................................................................................................10
2.2 Water System Overview .............................................................................................................12
2.2.1 Water System..........................................................................................................................12
2.2.2 Water Customers....................................................................................................................12
2.2.3 Water Consumption................................................................................................................12
2.3 Water Financial Plan ...................................................................................................................13
2.3.1 Water Revenues......................................................................................................................13
2.3.2 Water Expenses.......................................................................................................................14
2.3.3 Net Revenues..........................................................................................................................14
2.3.4 Projected Expenses.................................................................................................................16
2.3.4.1 Operating Expenses ............................................................................................................16
2.3.4.2 Debt Service ........................................................................................................................17
2.3.4.3 Water Capital Improvement Plan .......................................................................................17
2.3.5 Water Reserves.......................................................................................................................18
2.3.6 Cash Flow Projection with No Rate Increases.........................................................................18
2.3.7 Water Rate Options ................................................................................................................20
2.3.8 Water Scenario 1 - Cash Flow Projection................................................................................20
2.4 Water Cost Allocation .................................................................................................................24
2.4.1 Overview of Water Cost Allocation Methodology..................................................................24
2.4.2 Cost Allocation Results............................................................................................................25
2.5 Water Rate Design Considerations.............................................................................................27
2.5.1 Billing Units .............................................................................................................................27
2.5.2 Single Family Residential Commodity Rate Tiers....................................................................27
2.5.3 Non-Single Family Residential Uniform Tier...........................................................................28
2.6 Water Rate Design ......................................................................................................................28
2.6.1 Annual Revenue Requirement Allocation...............................................................................28
2.6.2 Fixed Meter Charge Calculation..............................................................................................29
2.6.3 Commodity Rate Calculation ..................................................................................................31
2.6.4 City Wide System Upgrade (Meter Installation & Retrofit Charges) ......................................32
2.7 Proposed 5-Year Schedule of Water Rates.................................................................................32
2.8 Water Bill Impacts.......................................................................................................................33
2.9 Water Rate Survey ......................................................................................................................35 SECTION 3: SEWER RATE STUDY ............................................................................................................36
3.1 Current Sewer Rates...................................................................................................................36
3.2 Sewer System Overview..............................................................................................................37
3.2.1 Sewer System..........................................................................................................................37
3.2.2 Sewer Customers....................................................................................................................37
3.2.3 Fairmead Consolidation ..........................................................................................................38
3.3 Sewer Financial Plan ...................................................................................................................39
3.3.1 Sewer Revenues......................................................................................................................39
3.3.2 Sewer Expenses.......................................................................................................................39
3.3.3 Net Revenues..........................................................................................................................39
3.3.4 Projected Expenses.................................................................................................................41
3.3.4.1 Operating Expenses ............................................................................................................41
3.3.5 Sewer Debt Service .................................................................................................................43
3.3.6 Sewer Capital Improvement Plan ...........................................................................................43
3.3.7 Sewer Reserves.......................................................................................................................44
3.3.8 Sewer Cash Flow Projection – No Rate Increase.....................................................................44
3.3.9 Sewer Rate Options.................................................................................................................46
3.3.10 Sewer Option #1 – Cash Flow Projection................................................................................46
3.4 Sewer Cost Allocation .................................................................................................................49
3.4.1 Overview of Methodology ......................................................................................................49
3.4.2 Sewer Cost Allocation Results................................................................................................. 49
3.5 Sewer Rate Design ......................................................................................................................50
3.5.1 Flow Analysis...........................................................................................................................51
3.5.2 Sewer Loading Estimates........................................................................................................52
3.5.3 Unit Cost Allocation ................................................................................................................53
3.5.4 Debt Service Charges ..............................................................................................................55
3.6 Proposed 5-Year Schedule of Sewer Rates.................................................................................55
3.7 Sewer Rate Survey ......................................................................................................................56 SECTION 4: SOLID WASTE RATE STUDY..................................................................................................57
4.1 Current Solid Waste Rates..........................................................................................................57
4.2 Solid Waste Financial Plan ..........................................................................................................61
4.2.1 Solid Waste Revenues.............................................................................................................61
4.2.2 Solid Waste Expenses..............................................................................................................61
4.2.3 Net Revenues..........................................................................................................................61
4.2.4 Projected Expenses.................................................................................................................62
4.2.4.1 Operating Expenses ............................................................................................................62
4.2.5 Solid Waste Debt Service ........................................................................................................64
4.2.6 Solid Waste Capital Improvement Plan ..................................................................................64
4.2.7 Solid Waste Reserves..............................................................................................................64
4.2.8 Solid Waste Cash Flow Projection with No Rate Increase ......................................................64
4.2.9 Solid Waste Rate Options .......................................................................................................65
4.2.10 Solid Waste Scenario 1 – Cash Flow Projection ......................................................................66
4.3 Solid Waste Rate Design .............................................................................................................67
4.4 Proposed 5-Year Schedule of Solid Waste Rates........................................................................68
4.5 Solid Waste Survey......................................................................................................................72 SECTION 5: STORM DRAIN STUDY..........................................................................................................73
5.1 Proposition 218 for Storm Drain Rates.......................................................................................73
5.2 Current Storm Drain Rates..........................................................................................................74
5.3 Storm Drain System Overview ....................................................................................................75
5.3.1 Storm Drain System ................................................................................................................75
5.3.2 Storm Drain Customers...........................................................................................................75
5.4 Storm Drain Financial Plan..........................................................................................................76
5.4.1 Historical Storm Drain Revenues and Expenses......................................................................76
5.4.2 Storm Drain Revenues ............................................................................................................77
5.4.3 Storm Drain Operating & Maintenance Expenses..................................................................77
5.4.4 Storm Drain Debt Service........................................................................................................77
5.4.5 Storm Drain Capital Improvement Plan..................................................................................78
5.4.6 Storm Drain Reserves..............................................................................................................78
5.4.7 Storm Drain Cash Flow Projection with No Rate Increase......................................................78
5.4.8 Storm Drain Rate Options.......................................................................................................80
5.4.9 Storm Drain Scenario 1 – Cash Flow Projection......................................................................81
5.4.10 Storm Drain Scenario 2 – Cash Flow Projection......................................................................83
5.5 Storm Drain Cost of Service Analysis..........................................................................................85
5.5.1 Storm Drain Rate Structures...................................................................................................85
5.6 Storm Drain Rate Design.............................................................................................................89
5.6.1 Storm Drain Rate Derivation – Scenario 1 ..............................................................................89
5.6.2 Storm Drain Rate Derivation – Scenario 2 ..............................................................................91
5.7 Proposed 5-Year Schedule of Storm Drain Rates........................................................................93
5.8 Storm Drain Bill Impacts .............................................................................................................94
5.9 Storm Drain Rate Issues..............................................................................................................96 City of Chowchilla Page 1
Utilities Rate Study 2025
SECTION 1: EXECUTIVE SUMMARY
1.1 Background
The City of Chowchilla (City) is located in Madera County approximately 15 miles south of the City of Merced and has a population of about 19,000. The City provides a variety of services to its residents including water, wastewater (sewer), solid waste (refuse), and storm drain service. The majority of the City’s utility service customers are single family residential homes, but the City also provides service to the commercial downtown area, other retail properties, industrial developments, multi-family housing units, the fairgrounds, and the local school districts.
The City of Chowchilla (City) engaged Lechowicz & Tseng Municipal Consultants to complete a comprehensive utilities rate study for their water, sewer, solid waste, and storm water enterprises. The last utility rate study was conducted in 2020 in which water, sewer, and solid waste rate increases were adopted in 2020 and covered rates for fiscal year (FY) 2020/21 through 2024/25. This 2025 study covers the five-year period beginning in FY 2025/26 through 2029/30. The primary objective of this 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 City’s goal is to set rates that keep pace with increasing operating and maintenance costs as well as fund the capital needs of each enterprise.
All of the utility rates are billed monthly on the same municipal services bill. The water, sewer, and solid waste rates are increased annually. However, the storm drain rates have not been increased in over 10 years.
1.2 Requirements of Proposition 218
The implementation of public agency utility rates in California is governed by the substantive and procedural requirements of Proposition 218 the “Right to Vote on Taxes Act” which is codified as Articles XIIIC and XIIID of the California Constitution. The City must follow the procedural requirements of Proposition 218 for all utility rate increases. These requirements include:
1. Noticing Requirement – The City must mail a notice of the proposed rate increases to all affected property owners or ratepayers. The notice must specify the amount of the fees, the basis upon which they were calculated, the reason for the fees, and the date/time/location of a public rate hearing at which the proposed rates will be considered/adopted.
2. Public Hearing – The City must hold a public hearing prior to adopting the proposed rate increases. The public hearing must be held not less than 45 days after the required notices are mailed.
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Utilities Rate Study 2025
3. Rate Increases Subject to Majority Protest – At the public hearing, the proposed rate increases are subject to majority protest. If more than 50% of affected property owners or ratepayers submit written protests against the proposed rate increases, the increases cannot be adopted.
Proposition 218 also established substantive requirements that apply to water, sewer, solid waste, and storm drain rates and charges, including:
1. Cost of Service – Revenues derived from the fee or charge cannot exceed the funds required to provide the service. In essence, fees cannot exceed the “cost of service”.
2. Intended Purpose – Revenues derived from the fee or charge can only be used for the purpose for which the fee was imposed.
3. Proportional Cost Recovery – The amount of the fee or charge imposed upon any parcel or person as an incident of property ownership shall not exceed the proportional cost of service attributable to that parcel.
4. Availability of Service – No fee or charge may be imposed for a service unless that service is used by, or immediately available to, the owner of the property.
5. General Government Services – No fee or charge may be imposed for general governmental services where the service is available to the public at large.
The next step for adopting property-related charges is a mailed ballot proceeding requiring 50% of property owners’ approval. Proposition 218 exempted water, sewer, and refuse service from this additional voting requirement, provided the charges do not exceed the cost of providing service and are adopted pursuant to the procedural requirements of Proposition 218. However, storm drain charges were not explicitly exempted.
In 2017, the State passed Senate Bill (SB) 231 which seemingly clarified the definition of “sewer” in Proposition 218 to include both sanitary and storm sewer, which would thereby exempt storm drain rates from the additional ballot requirement. However, subsequent legal cases and tradition suggest that storm drain fees still require balloting. In the years since SB 231 was enacted, proponents of Proposition 218 have threatened legal action against any agencies which adopt storm drain fees by holding a simple protest hearing without a subsequent election. To avoid litigation, it is therefore advisable that the City seek voter approval through both the protest vote procedure used for adopting water, sewer, and refuse fees and a subsequent ballot measure for any storm drain fee increases.
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Utilities Rate Study 2025
1.3 Rate Study Process
A summary of the development of the City’s utility rates via the Proposition 218 process is shown in the following figure.
Figure 1: Comprehensive Cost of Service Study Process
The following is a brief description of the rate study process:
Revenue Requirement - Revenue requirements are analyzed via financial plans developed from each utility fund’s budget. Based on the best information currently available, the financial plans incorporate projected operation and maintenance costs, capital expenditures, debt service, and growth to estimate annual revenue requirements. The plans serve as a roadmap for funding the City’s future operating and capital programs while maintaining long-term fiscal stability. Cost of Service Allocation - The cost of service process builds on the financial plan analysis and assigns water and sewer system costs to functional cost components: customer service, meters and services, base, and extra for water, and base, flow, and strength for sewer.
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Utilities Rate Study 2025
Rate Design - Rate design involves developing a rate structure that fairly recovers costs from customers but does not exceed the proportional cost of the service attributable to each parcel.
Final rate recommendations are designed to (a) fund the City’s short- and long-term costs of providing service; (b) proportionately allocate costs to all customers and customer classes; and (c) comply with the substantive requirements of Proposition 218.
The rates developed in this report are based on the best information currently available gathered from the 2024/25 budgets, capital improvement plans, audited financial statements, and billing data provided by City staff. The cost allocations proposed herein are based on American Water Works Association methodologies and industry standard practice. The proposed rates are based on the reasonable cost of providing service and do not exceed the proportional cost of the service attributable to each parcel.
1.4 Proposed Utility Rates
L&T developed two rate options each for the water, sewer, solid waste, and storm drain utilities that were presented at the April 8, 2025 City Council Meeting. The scenarios were modified based on direction from the City Council, and the revised scenarios were presented at the April 22, 2025 City Council Meeting where the City Council elected to move forward with the Proposition 218 process to implement rate increases for the water, sewer, and solid waste utilities. The tables below summarize the current and proposed five-year rate schedules for the water, sewer, and solid waste utilities. If approved, the first rate increase will go into effect on July 1, 2025 with subsequent rate increases going into effect on July 1 of each year through July 1, 2029.
This study does not recommend any increases to the storm drain rates at this time. The Storm Drain Utility has healthy reserves and has historically fully covered its operating expenses each year. The City is planning to apply for a Community Development Block Grant (CDBG) for the Kings Avenue project ($2.3 million) when the application period opens in Fall 2025. If the City does not receive grant funding, the City can re-evaluate the need to increase storm drain rates at a later date.
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Utilities Rate Study 2025
Rates per hcf are based on 80% of monthly consumption. One 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. 2025/26 2026/27 2027/28 2028/29 2029/30
Meter Size Meter Size
1" $26.74 1" $29.29 $34.85 $41.47 $49.35 $58.73
1 1/2" $42.55 1 1/2" $45.57 $54.22 $64.52 $76.78 $91.37 2" $61.51 2" $65.11 $77.46 $92.18 $109.70 $130.54
3" $112.07 3" $117.20 $139.45 $165.94 $197.47 $234.99
4" $168.96 4" $175.81 $209.18 $248.92 $296.22 $352.49
6" $326.97 6" $338.61 $402.88 $479.42 $570.52 $678.89
Single Family Residential Single Family Residential
Tier 1: 0 - 18 hcf $1.35 Tier 1: 0 - 16 hcf $1.58 $1.90 $2.28 $2.74 $3.29 Tier 2: Over 18 hcf $1.74 Tier 2: Over 16 hcf $2.29 $2.75 $3.30 $3.97 $4.77 All Other Customers [2] $1.46 All Other Customers [2] $1.85 $2.23 $2.68 $3.22 $3.86 2013 Metered Customers $6.51 2013 Metered Customers $6.51 - - - - 2014 Retrofitted Customers $2.44 2014 Retrofitted Customers $2.44 $2.44 - - - 2015 Retrofitted Customers $2.44 2015 Retrofitted Customers $2.44 $2.44 $2.44 - - [1] one hundred cubic feet (hcf) = 748 gallons
[2] Includes commercial, multi-family, and irrigation customers
PROPOSED MONTHLY WATER RATES
Current
METER CHARGES
COMMODITY RATE ($/hcf) [1]
METER INSTALL & RETROFIT CHARGES
Proposed
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
PROPOSED MONTHLY SEWER RATES
City of Chowchilla Page 6
Utilities Rate Study 2025
Current 2025/26 2026/27 2027/28 2028/29 2029/30
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 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 TRASH
PROPOSED MONTHLY COMMERCIAL SOLID WASTE RATES
Proposed
Current 2025/26 2026/27 2027/28 2028/29 2029/30
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
PROPOSED MONTHLY RESIDENTIAL SOLID WASTE RATES
Proposed
RESIDENTIAL
City of Chowchilla Page 7
Utilities Rate Study 2025
Current 2025/26 2026/27 2027/28 2028/29 2029/30
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 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 Proposed
COMMERCIAL RECYCLE
PROPOSED MONTHLY COMMERCIAL SOLID WASTE RATES
COMMERCIAL ORGANIC
City of Chowchilla Page 8
Utilities Rate Study 2025
Current 2025/26 2026/27 2027/28 2028/29 2029/30
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 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
ROLL OFF (DROP BOX) SERVICE
MISCELLANEOUS FEES
PROPOSED MONTHLY COMMERCIAL SOLID WASTE RATES
Proposed
City of Chowchilla Page 9
Utilities Rate Study 2025
1.5 Utility Bill Survey
The chart below compares the current and proposed 2025/26 water, sewer, solid waste, and storm bill for a single family residential customer to those of other regional agencies. The City’s typical single family residential customer has a 1” meter and uses an average of 16 hcf of water per month. The chart assumes the storm drain rates will remain the same as current.
Figure 2: Single Family Residential Utility Bill Survey City of Chowchilla Page 10
Utilities Rate Study 2025
SECTION 2: WATER RATE STUDY
The City of Chowchilla provides water service to a population of about 19,000. The last water rate study was conducted in 2020 in which the City adopted water rates through 2024/25.
2.1 Current Water Rates
Table 1 summarizes the current water rates which were adopted following the 2020 utilities rate study.
The previous rate study recommended 5.0% annual rate increases from 2020/21 through 2024/25. 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. The City bills monthly for water service on each customer’s combined monthly utility bill.
1. Fixed Meter Charges
All customers, residential and non-residential, are charged the same fixed charges based on their meter size. The fixed charge is levied regardless of water consumption and recognizes that even when a customer does not use any water, the City incurs fixed costs associated with maintaining the ability or readiness to serve each connection. Meter size represents the estimated demand that each customer can place on the water system. A significant portion of a water system’s design, and therefore, the utility’s operating and capital costs are associated with meeting capacity requirements. The City’s base meter size is a 1” meter. Larger meters are charged based on their estimated capacity represented by meter ratios recommended by the American Water Works Association (AWWA). These meter capacity ratios provide a basis for charging customers proportional to the capacity that is reserved for them in the water system.
Fixed charges are designed to recover the City’s fixed expenses and currently generate about 50% of total water rate revenues. Fixed costs include staffing, customer service, debt service, system maintenance, and repairs.
2. Commodity Charges
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. The first tier is billable up to the first 18 hundred cubic feet (hcf) of water usage. One unit of water, or one hcf, is equal to 748 gallons of water. If a resident uses over 18 hcf, the resident is billed in the second tier for additional water use. Non-residential customers are charged a uniform rate for all water use.
The commodity charges are intended to recover costs that vary based on the amount of water consumed and currently generate roughly 50% of total water rate revenues. Variable expenses include utilities and chemicals.
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Utilities Rate Study 2025
3. City Wide System Upgrade (Meter Installation & Retrofit Charges) The total cost for metering the entire City was approximately $4.5 million. To pay for the meter installations in 2012, 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 levied for a 12-year period and will begin to be phased out starting in 2025/26.
Table 1: Current Monthly Water Rates
City of Chowchilla
2025 Utilities Rate Study
MONTHLY WATER RATES
2024/25
METER CHARGES
Meter Size
1" $26.74
1 1/2" $42.55
2" $61.51
3" $112.07
4" $168.96
6" $326.97
COMMODITY RATE ($/hcf)
Single Family Residential
Tier 1: 0 - 18 hcf $1.35
Tier 2: Over 18 hcf $1.74
Non-Single Family Commodity Rate $1.46
METER INSTALL & RETROFIT CHARGES
2013 Metered Customers $6.51
2014 Retrofitted Customers $2.44
2015 Retrofitted Customers $2.44
1 - one hundred cubic feet (hcf) = 748 gallons
City of Chowchilla Page 12
Utilities Rate Study 2025
2.2 Water System Overview
2.2.1 Water System
The City maintains a water storage, treatment, and distribution system that provides water service to all residential, commercial, and industrial areas within the City. The City’s entire water supply is provided via groundwater. The City operates 7 wells, 37 miles of main distribution lines, 243 water meters, 199 backflow prevention devices, 750 fire hydrants, and related equipment. Water quality is closely monitored by State of California regulatory agencies to ensure compliance with Federal and State mandates. The City also manages a year-round conservation program. The City completed its citywide metering project in FY2018.
2.2.2 Water Customers
The water utility currently has about 4,100 total metered water accounts as shown on Table 2. The majority of customers are single family residential (SFR) with 1” meters. To be conservative, no major change in the customer base is anticipated over the next 5 years. Growth is estimated at 1.0% each year.
Table 2: Water Customers by Meter Size
City of Chowchilla
2025 Utilities Rate Study
Meter Size
Single Family
Residential
All Other
Customers
Total Number of
Meters
1" 3,617 274 3,891
1.5" 0 28 28
2" 0 108 108
3" 0 20 20
4" 0 18 18
6" 0 4 4
Total 3,617 452 4,069
2.2.3 Water Consumption
As shown on Table 3, total water use in 2023/24 was 975,056 hcf, representing a nearly 9.0% decrease from the previous year. The decrease in overall consumption is in line with other agencies Statewide who have also seen a reduction in usage in response to the multi-year drought and strong conservation efforts. Single family residential customers represent over 67% of total use. Average single family residential use is 16 hcf per month. At current water rates, the average SFR monthly bill is $48.34 (not City of Chowchilla Page 13
Utilities Rate Study 2025
including the City Wide System Upgrade Charges). To be conservative, this study does not assume any increase in total water consumption over the next five years.
Table 3: Historical Water Consumption Data
City of Chowchilla
2025 Utilities Rate Study
Consumption (hcf) [1] Two- Year % of
2022/23 2023/24 Average Total
Single Family Residential
Tier 1: 0 - 18 hcf 491,503 478,614 485,059 47.5%
Tier 2: Over 18 hcf 225,138 187,001 206,070 20.2%
Subtotal 716,641 665,615 691,128 67.7%
All Other Customers 349,808 309,441 329,625 32.3%
Total Water
Consumption 1,066,449 975,056 1,020,753 100.0%
Annual % Change -8.6%
1 – one hundred cubic feet (hcf) = 748 gallons
2.3 Water Financial Plan
Proposition 218 requires that utility rates be based on the reasonable cost of providing service to customers. The cost of service is summarized in a cash flow table that includes annual operating expenses, debt service payments, capital projects, repairs and replacements, and the accumulation of appropriate reserves. The water cost of service was developed based on the 2024/25 adopted budget, water capital improvement plan, and reserve recommendations based on industry standards. Over the five-year rate study period, rate increases are needed so that the Water Fund can continue to pay for operating costs, debt service, capital expenses, and to maintain reasonable reserves.
2.3.1 Water Revenues
Total income for the Water Fund includes revenues from Water Sales, the System Upgrade Charges, Disconnect/Reconnect fees, Connection Fees, Fines and Penalties, and Other Charges for Service. Water Sales are the major source of operating revenues, accounting for 85.0%. For 2024/25, budgeted revenues total $6.7 million which includes about $3 million in grant funding from the American Rescue Plan Act (ARPA). This is a one-time revenue source that will be used for infrastructure projects. Total budgeted Water Sales for 2024/25 is $3.2 million, representing a nearly 16.0% increase from 2023/24.
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Utilities Rate Study 2025
However, for this study, the Water Sales projection for 2024/25 has been adjusted downward to reflect actual consumption patterns as shown on Table 3.
2.3.2 Water Expenses
Water expenses include Salaries and Benefits, Operations and Maintenance, Debt Service, Overhead Allocations, Transfers Out and Capital Projects. Total operating expenses for 2024/25 are budgeted at $3.8 million. Capital expenses are budgeted at $4.4 million.
2.3.3 Net Revenues
Table 4 shows a three-year history of water revenues and expenses since 2021/22 and also includes the 2024/25 budget. As shown, the Water Fund has been operating in a deficit in which operating revenues exceed operating expenses for the past two years. For 2024/25, the operating deficit is projected at approximately $58,000. Including the budgeted capital expenses, the total deficit is estimated at $735,000 which will be drawn down from cash reserves. Without rate increases, the Water Fund will continue to operate in a deficit.
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Utilities Rate Study 2025
Table 4: Water Net Revenues
City of Chowchilla
2025 Utilities Rate Study
Actual Budget
2021/22 2022/23 2023/24 2024/25
OPERATING
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 [1]
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 Expenses $2,275,066 $3,733,158 $3,321,466 $3,751,391 Net Operating Revenues $602,738 ($527,219) ($79,348) ($57,827)
CAPITAL
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 [2] $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 - Does not include Depreciation
2 - 2023/24 Capital Outlay information provided by staff (email 3/13/2025) City of Chowchilla Page 16
Utilities Rate Study 2025
2.3.4 Projected Expenses
The following section details the total cost of service for the Water Fund based on the 2024/25 adopted budget and capital improvement plan.
2.3.4.1 Operating Expenses
Operating and maintenance expenses are projected at $2.9 million for 2024/25. Operating costs include salaries & benefits, operations, and overhead allocation expenses, but do not include capital, debt service, or depreciation costs. Table 5 includes a projection of operating expenses over the next five years. The escalation factors were determined based on projected inflation and input from City staff.
Salaries and Benefits are escalated by 10.0% each year to account for the need to increase overall salaries to align with regional standards. The Salaries and Benefits projection also includes one new water employee in 2025/26 at an estimated cost of $100,000/year. Energy costs are increased by 20.0% each year. Beginning in 2025/26, the expense projection includes $100,000 each year as a placeholder for future Groundwater Sustainability Plan (GSP) projects. The goal is to build a $500,000 reserve for GSP projects by 2029/30. All other expenses are increased by 3.0% each year and include System Repairs, Contracted Services, Liability Insurance, and Overhead Allocation expenses based on the CityWide Cost Allocation Plan.
Table 5: Water Operating Expenses
City of Chowchilla
2025 Utilities Rate Study
Budget Escalation Projected
2024/25 Factor 2025/26 2026/27 2027/28 2028/29 2029/30
Operating Expenses
Salaries & Benefits [1] $755,992 10.0% $942,000 $1,036,000 $1,140,000 $1,254,000 $1,379,000 Operations & Maintenance
Energy 809,879 20.0% 972,000 1,166,000 1,399,000 1,679,000 2,015,000 System Repairs 161,710 3.0% 167,000 172,000 177,000 182,000 187,000 Contracted Services 126,960 3.0% 131,000 135,000 139,000 143,000 147,000 Groundwater Management Plan 7,500 0.0% 100,000 100,000 100,000 100,000 100,000 Liability Insurance 74,457 3.0% 77,000 79,000 81,000 83,000 85,000 Other Operations 226,353 3.0% 253,000 261,000 269,000 277,000 285,000 Subtotal O&M 1,406,859 1,700,000 1,913,000 2,165,000 2,464,000 2,819,000 Overhead Allocation 732,186 3.0% 754,000 777,000 800,000 824,000 849,000 Total Operating Expenses 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.
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2.3.4.2 Debt Service
The water utility currently has two outstanding debt obligations: 1) a 2016 State Water Resources Control Board (SWRCB) Loan for $3,205,991 and 2) the 2017 CREB bonds for $8,160,000. Annual debt service for the SWRCB Loan is $160,300 and the last payment is due in July 2038. Annual debt service for the CREB bonds will range from $329,000 to $418,000 over the next five years and the last payment is due in June 2047.
Total debt service for 2024/25 is approximately $554,000. The CREB bonds debt service payment is partially offset by the federal government’s CREB subsidy, which is estimated to be about $68,500. The City does not anticipate issuing any additional debt for the water utility in the next five years.
Debt Service Coverage
A chief covenant for the City to secure revenue bonds/COPs is to maintain a specific debt service coverage ratio. A debt service coverage ratio is a financial measure of an agency’s ability to repay outstanding debt. For the Water Fund, the debt service coverage ratio means 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, thereby making the revenue bonds/COPs callable or payable upon demand. Thus, rates and fees must be set to meet this legal requirement.
2.3.4.3 Water Capital Improvement Plan
As shown on Table 6, the five-year Water Capital Improvement Program (CIP) includes $6.28 million (based on escalated costs) of water system improvements from 2024/25 through 2028/29. All capital project costs have been escalated by 5.0% each year beginning in 2025/26. Projects include Water Tanks Backup Generators, Well No. 15, 16, and 17 Development, Berenda Slough Water Extension, water main replacements, and meter replacements. In 2024/25, the City will receive $2.94 million from the American Rescue Plan Act (ARPA) which will be used to fund the Water Tanks Backup Generators, Well No. 16 Development, and Berenda Slough Water Extension. The remaining $3.34 million in projects will be cash-funded with water rate revenues.
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Utilities Rate Study 2025
Table 6: Water Capital Improvement Plan
City of Chowchilla
2025 Utilities Rate Study
2.3.5 Water Reserves
As of July 1, 2024, the water utility had operating fund reserves of approximately $2.63 million. The water utility’s proposed operating reserve target is 25% of annual operating expenses plus $500,000 (equivalent to one year’s annual debt service payment or a reserve for the Groundwater Management Plan). Adequate fund reserves protect the City when faced with unforeseen financial challenges such as emergency expenses and revenue deficits. Fund reserves are a critical tool that will allow the City to maintain its financial health and positive credit ratings especially during emergencies. Moreover, funding can be drawn from reserves to supplement rate revenues lost during drought conditions or other unexpected situations. It is acceptable if reserves dip below the target on a temporary basis, provided the City takes action to attain the target over the longer run.
2.3.6 Cash Flow Projection with No Rate Increases
The cash flow projection in Table 7 summarizes the revenues and expenses based on the 2024/25 budget and proposed reserve fund target if the City does not implement any rate increases. Without rate increases, the cash flow shows that the City will miss debt service coverage (line 50) beginning in 2025/26 and the operating reserve fund (line 54) will be drawn down by 2026/27.
Project # Project 2024/25 2025/26 2026/27 2027/28 2028/29 Total Funding Source W-10 Well No. 17 Development [1] - - - $110,000 $1,550,000 $1,660,000 Water DIF & Water Fund W-3 Water Main Replacement, Various Locations $250,000 $50,000 $50,000 $50,000 $50,000 $450,000 Water Fund W-4 Well No. 15 Development $380,105 - - - - $380,105 Water Fund W-6 Water Tanks Backup Generators $533,000 - - - - $533,000 ARPA Funds W-7 Well No. 16 Development $1,460,000 - - - - $1,460,000 ARPA Funds W-9 Berenda Slough Water Extension $944,230 - - - - $944,230 ARPA Funds Meter Replacements - - - $200,000 $200,000
Total Water Capital Projects $3,567,335 $50,000 $50,000 $360,000 $1,800,000 $5,427,335 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
ESCALATED PROJECT COSTS
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Table 7: Water Cash Flow Projection – No Rate Increase
City of Chowchilla
2025 Utilities Rate Study
Budget Projected
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
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 Systems Upgrade
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
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Utilities Rate Study 2025
2.3.7 Water Rate Options
To ensure the water utility maintains its financial health, L&T developed two water rate options based on whether the City hires a new staff member in 2025/26. Table 8 below summarizes the projected revenue adjustments for the water rate options. The rate options were presented to the City Council, and the City Council selected “Scenario 1: Includes new Staff Member.” The proposed revenue adjustments for Scenario 1 are 19.0% annual increases beginning in 2025/26 through 2029/30.
Table 8: Water Rate Option Comparison
City of Chowchilla
2025 Utilities Rate Study
Proposed Annual Water Rate Increases
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%
2.3.8 Water Scenario 1 - Cash Flow Projection
Over the five-year rate study period, water rate increases are proposed to meet the following objectives, in order of importance:
1) Fund operating costs
2) Fund debt service costs
3) Meet or exceed the debt service coverage requirement of 1.25 times the annual payment 4) Fund capital costs
5) The ending operating fund balance should meet or exceed the target of 25% of operating expenses plus $500,000.
The cash flow projection for Water Scenario 1 is shown on Table 9. The projections incorporate the latest information available. Key assumptions include:
Revenues
o The first revenue adjustment is proposed to take effect on July 1, 2025. Rate increases thereafter are proposed to be effective on July 1 of each year through 2029.
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o Growth is estimated at 1.0% each year. No major changes in the customer base are expected through 2029/30.
o Water Rates revenues for 2024/25 have been adjusted from the budget and are based on 2023/24 actuals and water consumption.
o Water-Bond System Upgrade Charges are estimated at $205,000 for 2024/25. The charges are anticipated to begin phasing out in 2025/26 through 2027/28. o Water Disconnect/Reconnect revenues are projected at $34,750 for 2024/25 and are not expected to increase over the next 5 years.
o Water Connection Fees are budgeted at $25,000 for 2024/25 and are not expected to increase over the next 5 years.
o Other Charges for Service are estimated at $25,100 for 2024/25 and are not expected to increase over the next 5 years. Other Charges for Service includes Standby Fees, Application Fees, Hydrant Meter Rent, Repairs Charged to Customer, Water Sales – LLMD, Bulk Water Sales, Water Turn Offs/Repairs, and Water Systems Upgrade.
o Investment Earnings are projected at 1.0% of the cash fund balance each year. o CREB Subsidy revenues are budgeted at $68,511 for 2024/25 and are not expected to change over the next 5 years.
o Other Revenues are projected to total $38,134 for 2024/25 and are not expected to change over the next 5 years. Other Revenues include Unrealized Gain/Loss, Collection Proceeds, Payroll Reimbursements, Miscellaneous Revenues, and Amortization of Premium. o Fines and Penalties are estimated at $50,000 each year and are not expected to increase. o Transfers In for 2024/25 are budgeted at $3.2 million, which includes $2.9 million in ARPA funds.
This is a one-time revenue source. For future years, Transfers In are projected at $305,000 annually beginning in 2025/26.
Expenses
o Salaries & Benefits are escalated by 10% each year to account for the City’s need to increase overall salaries. The Salaries & Benefits projection also includes a new water employee beginning in 2025/26 at an estimated cost of $100,000/year. o Energy is increased by 20% each year.
o 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 Groundwater Sustainability Plan (GSP) expenses. The objective is to build a $500,000 reserve by 2029/30 for future GSP projects.
o All other operating costs are projected to escalate by 3% each year. o Existing debt obligations include a 2016 SWRCB Loan and the 2017 CREB bonds. Annual debt service for the SWRCB Loan is $160,300 and annual debt service for the 2017 CREB bonds ranges from $329,000 to $418,000.
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o The Five-Year (2024/25 through 2028/29) Water CIP totals $6.3 million, of which $2.94 million will be paid for with ARPA funds. The remaining $3.34 million will be cash-funded. o Capital project costs are escalated by 5.0% each year beginning in 2025/26. o CIP costs for 2029/30 are estimated at $100,000.
o All other Capital Outlay expenses – Vehicles, Machinery & Equip, Fleet Program, and Infrastructure – are estimated at $113,000 each year and are not expected to change over the next five years.
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Utilities Rate Study 2025
Table 9: Water Utility Cash Flow Projection – Scenario 1: Includes New Staff Member City of Chowchilla
2025 Utilities Rate Study
Budget Projected
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
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 Systems Upgrade
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
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Utilities Rate Study 2025
2.4 Water Cost Allocation
Proposition 218 requires that agencies providing “property-related services” (including water utility service) set rates and charges that are based on the cost of providing those services. The revenue requirements detailed in the previous section determine the total cost of service, meaning the total amount of revenue to be recovered from water rates. The cost of service allocation determines how revenues will be recovered from customers based on how they use the water system. Additionally, the cost allocation will determine the amount of revenue which will be collected from fixed charges and usage rates.
2.4.1 Overview of Water Cost Allocation Methodology
The American Water Works Association (AWWA) recommends two primary methods to classify costs among various customers: (1) the Base-Extra Capacity Method in which costs are allocated to the different customer classes proportionate to their use of the water system; and (2) the Commodity Demand Method in which costs are proportionately allocated to each customer class based on their peak demand. Although the two methods vary in the way that costs are allocated, both result in rates designed to recover the reasonable cost of service during periods of both average and peak demands. The Base-Extra Capacity Method was selected for this rate study to provide consistency with prior rate studies. Furthermore, the City focuses its water system cost allocation based on the relative impact of various customer classes.
In the Base-Extra Capacity Method, costs are typically separated into four components: (a) Base Demand, (b) Extra Capacity (peak), (c) Customer Service, and (d) Meters and Services. The Base Demand and Extra Capacity categories are intended to recover the costs to deliver water to customers, while the Customer Service and Meters and Services categories are intended to recover expenses related to maintaining infrastructure in the system to supply water at all times under the proposed water rates in this study. A summary of each category is provided below:
Base Demand: Base costs include the expenses related to providing water under average, “base” demand conditions.
Extra Capacity: The extra category includes costs related to providing water above the system average demand (i.e. related to peak, “extra” usage).
Meters and Services: These include costs related to maintaining and replacing water meters. Customer Service: This category contains costs associated with serving customers, such as billing and answering customer inquiries.
All water utility expenses are allocated to each cost component based on the operating characteristics and design of the facilities. The cost allocation takes into account the average amount of water consumed as well as the peak rate at which water is utilized. For the water system to provide adequate service, it must be capable of meeting not only average demand, but also the maximum day or peak demand.
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The cost allocation determines the percentage of annual revenue to be collected from each rate component based on the actual costs attributable to each component and establishes that each parcel’s total water bill will not exceed the proportional cost of service.
2.4.2 Cost Allocation Results
Table 10 provides the allocation of all water expenses into the Base-Extra Capacity categories for Water Scenario 1 with 2024/25 serving as the base year. Costs are allocated according to how they are incurred by the City. Most operating expenses, debt service, and capital expenses are allocated amongst each function to varying degrees as these costs are directly associated with both the delivery of water to customers and the maintenance of the system. The City’s overhead expenses are allocated solely to the Meters and Services and Customer Service categories because they are fixed administrative expenses unrelated to water delivery.
Energy expenses are allocated solely to the Base and Extra categories based on water usage patterns. For single family residential customers, it is proposed that Base expenses be recovered from the Tier 1 commodity rate and Extra expenses be recovered from the Tier 2 commodity rate. Based on current water usage patterns, average monthly use per single family residential customer is 16 hcf per month. Thus, 16 hcf is the proposed Tier 1 breakpoint, and accordingly, Tier 1 is intended to recover costs associated with the first 16 hcf of consumption. Tier 2 is intended to recover costs associated with any additional usage above the first 16 hcf.
For all other customers, the commodity rate will remain a uniform rate, so the Base and Extra Capacity categories will be combined for rate design purposes. Commodity rate design is described further in Section
2.6.3. Based on 2023/24 total water consumption, usage through the first 16 hcf per month accounted for
51.9% of total water consumption.
Based on the proposed cost allocation in Table 10, 54.5% of total expenses are attributable to the commodity rates (i.e. Base and Extra), and 45.5% of total expenses are attributable to the fixed meter charges (i.e. Meters and Services and Customer Service).
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Table 10: Water Cost Allocation
City of Chowchilla
2025 Utilities 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%
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2.5 Water Rate Design Considerations
Following the allocation of costs, the next step is to derive the total cost responsibility for each customer class by developing unit costs of service for each cost function and then assigning those costs to the customer classes based on the respective service requirements of each.
2.5.1 Billing Units
The most common method to levy fixed charges is by meter size. American Water Works Association (AWWA) guidelines recommend using meter equivalents to assign demand-related costs to larger meter sizes. The ratio at which the meter charge increases is typically a function of either meter investment (estimated cost) or the meter’s safe operating capacity. Larger meters have the ability to place a greater demand on the water system and are therefore charged based on that potential demand. For example, based on the AWWA meter capacity ratios, a customer that has a 2” meter has 3.20 times the capacity equivalency of a customer with a 1” meter. (A 2” meter has a safe operating capacity of 160 gallons per minute (gpm) compared to a 1” meter which has a safe operating capacity of 50 gpm).
Table 11 shows the proposed meter equivalents based on AWWA standards. Each meter size is charged based on their proportional impact on the system.
Table 11: Proposed Meter Equivalents
City of Chowchilla
2025 Utilities Rate Study
Meter Size # of Meters
Operating
Capacity (gpm) [1] Meter Ratio
# of Meter
Equivalents [2]
1" 3,891 50 1.00 3,891
1.5" 28 100 2.00 56
2" 108 160 3.20 346
3" 20 320 6.40 128
4" 18 500 10.00 180
6" 4 1,000 20.00 80
Total 4,069 4,681
1 - Gallons per minute (gpm) safe maximum operating capacity for C712-10 singlejet type meter 2 - Meter ratio times number of meters
2.5.2 Single Family Residential Commodity Rate Tiers
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 City of Chowchilla Page 28
Utilities Rate Study 2025
maintenance, and/or conservation programs. Tiers cannot be assigned to customers solely based on conservation objectives. For example, public agencies may not arbitrarily raise the price of higher use tiers in order to offer a discount to lower water users. Because the City relies solely on groundwater for its supply, it can be difficult to assign additional costs to the higher tiers. It is proposed that the tier breakpoint be changed to reflect the average monthly water use of single family residential customers.
The current tier breakpoint of 18 hcf was established many years ago and was not adjusted during the last rate study. Because the City had just completed metering all customers, the 2020 study recommended waiting until the City had several years of actual consumption data before making any rate structure changes such as adjusting the tier breakpoint. Now that multi-year water consumption data is available, it is proposed that the City update its single family residential commodity tiers to reflect actual usage patterns.
2.5.3 Non-Single Family Residential Uniform Tier
Unlike residential customers who are a relatively homogenous group that uses water for similar purposes (bathing, cooking, irrigation, etc.), commercial water use varies widely based on the type and size of business. Consequently, the benefits of tiered rates are greatly diminished for non-residential customers and can result in unintended impacts such as high marginal rates for high-water-use businesses that have implemented substantial conservation measures. Therefore, L&T recommends maintaining the uniform tiers for all other non-residential customers.
2.6 Water Rate Design
2.6.1 Annual Revenue Requirement Allocation
Table 12 calculates the fixed charge and commodity rate revenue requirements for each year by applying the functional cost allocation percentages from Table 10 to the total annual revenue requirements. The total annual revenue requirement in each year is the amount proposed to be recovered from water rates as shown on the Scenario 1 cash flow projection (Table 9). The fixed charge revenue requirement is based on the Meters and Services and Customer Service categories from the cost allocation. The commodity rate revenue requirement is based on the Base and Extra categories.
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Table 12: Annual Revenue Requirement Allocation
City of Chowchilla
2025 Utilities Rate Study
Cost
Allocation %
Projected
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)
2.6.2 Fixed Meter Charge Calculation
The fixed meter charge recovers the City’s meter and customer service-related expenditures and is derived in Table 13. Meters and Services expenses are recovered based on the number of meter equivalents from Table 11. Customer Service expenses are recovered based on the number of meters and do not vary based on meter size. These two categories are then combined into a single monthly fixed meter charge that increases based on meter size.
For 2025/26, the proposed monthly fixed meter charge for a 1” meter is $29.29, which is the sum of the meter charge of $16.28 and the customer service charge of $13.01. For meters above 1” in size, the meter equivalent charge is multiplied by the meter ratio for the corresponding meter size to determine the meter charge. The customer service charge of $13.01 does not change based on meter size.
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Table 13: Water Fixed Meter Charge Derivation
City of Chowchilla
2025 Utilities Rate Study
Projected
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 A. METER EQUIVALENT CHARGE
Meters & Service Rev 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 Equivalent Charge by Meter Size
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
B. CUSTOMER SERVICE CHARGE
Customer Service Charge Rev Requirement 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 Customer Service Charge per Account $13.01 $15.48 $18.42 $21.92 $26.09 C. TOTAL MONTHLY FIXED CHARGE [1]
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"
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2.6.3 Commodity Rate Calculation
The commodity charges are intended to recover costs that vary based on the amount of water consumed.
Table 14 details the derivation of the proposed commodity charges for Water Scenario 1. The total revenue requirement for the base and extra cost functions are allocated between the single family residential class and all other customers based on actual consumption. As described in Section 2.4.2, the Base revenue requirement is proposed to recover costs associated with average water demand. Based on actual consumption data for 2023/24, single family residential customers made up about 72% of total base use, so they are allocated 72% of the Base revenue requirement. On the other hand, single family residential customers made up only about 61% of total extra (peak) water use, so they are allocated 61% of the Extra revenue requirement.
To calculate the commodity rate per hcf for each single family residential tier, each tier’s total revenue requirement is divided by the projected total water consumption for each tier. The projected consumption estimates are based on the average of 2022/23 and 2023/24 water consumption, the most recent data available at the time of this report. Based on the 2023/24 data, usage through the first 16 hcf per month comprises roughly 68% of usage, while projected Tier 2 consumption represents 32% of total single family residential water usage.
To calculate the uniform rate per hcf for all other customers, the base and extra revenue requirements are added together to determine the total commodity revenue requirement and divided by projected water consumption based on the average use in 2022/23 and 2023/24. To be conservative, it is estimated that water consumption will remain level over the next five years.
The proposed 2025/26 commodity charge per hcf for single family residential is $1.58 for Tier 1 and $2.29 for Tier 2. For all other customers, the commodity charge per hcf is $1.85 for 2025/26.
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Utilities Rate Study 2025
Table 14: Commodity Rate Derivation
City of Chowchilla
2025 Utilities Rate Study
Projected
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
2.6.4 City Wide System Upgrade (Meter Installation & Retrofit Charges) The total cost for metering the entire City was approximately $4.5 million. To pay for the meter installations in 2012, 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 will be levied for a 12-year period and will begin to be phased out starting in 2025/26.
2.7 Proposed 5-Year Schedule of Water Rates
The proposed five-year rate plan is shown on Table 15. All customers are proposed to be charged according to the proposed rate schedule shown. The first rate change is proposed to take effect on July 1, 2025, with subsequent increases each July 1 through 2029.
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Table 15: Proposed Water Rates
City of Chowchilla
2025 Utilities Rate Study
2.8 Water Bill Impacts
Table 16 show the impacts of the proposed water rates for a range of sample single family residential customers. For the first year of rate increases in 2025/26, actual bill impacts for customers will vary due to the updated cost of service allocation and new tier breakpoint. Moreover, water consumption, particularly for single family customers, typically varies due to seasonal variations in weather and/or other factors.
Hence, a single customer could face a range of impacts throughout the year. 2025/26 2026/27 2027/28 2028/29 2029/30
Meter Size Meter Size
1" $26.74 1" $29.29 $34.85 $41.47 $49.35 $58.73
1 1/2" $42.55 1 1/2" $45.57 $54.22 $64.52 $76.78 $91.37 2" $61.51 2" $65.11 $77.46 $92.18 $109.70 $130.54
3" $112.07 3" $117.20 $139.45 $165.94 $197.47 $234.99
4" $168.96 4" $175.81 $209.18 $248.92 $296.22 $352.49
6" $326.97 6" $338.61 $402.88 $479.42 $570.52 $678.89
Single Family Residential Single Family Residential
Tier 1: 0 - 18 hcf $1.35 Tier 1: 0 - 16 hcf $1.58 $1.90 $2.28 $2.74 $3.29 Tier 2: Over 18 hcf $1.74 Tier 2: Over 16 hcf $2.29 $2.75 $3.30 $3.97 $4.77 All Other Customers [2] $1.46 All Other Customers [2] $1.85 $2.23 $2.68 $3.22 $3.86 2013 Metered Customers $6.51 2013 Metered Customers $6.51 - - - - 2014 Retrofitted Customers $2.44 2014 Retrofitted Customers $2.44 $2.44 - - - 2015 Retrofitted Customers $2.44 2015 Retrofitted Customers $2.44 $2.44 $2.44 - - [1] one hundred cubic feet (hcf) = 748 gallons
[2] Includes commercial, multi-family, and irrigation customers
PROPOSED MONTHLY WATER RATES
Current
METER CHARGES
COMMODITY RATE ($/hcf) [1]
METER INSTALL & RETROFIT CHARGES
Proposed
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Utilities Rate Study 2025
Table 16: Sample Water Bill Impacts – Single Family Residential City of Chowchilla
2025 Utilities Rate Study
SINGLE FAMILY RESIDENTIAL BILL IMPACTS - 1" METER
Monthly Current Monthly Proposed
Use
(hcf) Bill
Use
(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%
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Utilities Rate Study 2025
2.9 Water Rate Survey
Figure 3 compares the City’s current rates to those of other regional agencies for a single family residential customer with a 1” meter using 16 hcf of water per month, the City’s average single family monthly consumption. The City’s water rates are expected to remain in this range as many other regional agencies are also facing financial pressures to raise rates in upcoming years.
Figure 3: Single Family Residential Monthly Water Bill Survey City of Chowchilla Page 36
Utilities Rate Study 2025
SECTION 3: SEWER RATE STUDY
The City of Chowchilla provides sewer service to a population of about 19,000. The last sewer rate study was conducted in 2020 in which the City adopted water rates through 2024/25.
3.1 Current Sewer Rates
Table 17 summarizes the current monthly sewer rates which were adopted during the last rate study in 2020. The previous rate study recommended 5.0% annual rate increases through 2024/25. The City’s current sewer rate structure includes two components – 1) Sewer Rate, and 2) Debt Service Charge.
1. Sewer Rate
Residential customers, including single family, multi-family, and mobile home customers, are billed a fixed monthly fee charged on a per dwelling unit basis. The rate for single family customers is higher because compared to multi-family customers, single family customers on average typically use more water per month, which equates to a greater volume of sewer discharge, and are therefore charged a higher sewer rate. The fixed rate provides revenue stability for the City and reflects the fact that the majority of the sewer utility’s costs are fixed.
By contrast, the majority of non-residential water consumption is for business needs and has a direct relationship to the amount of water discharged. Commercial customers are charged a volume rate per hcf based on 80 percent of metered water consumption. There are four sub-categories of non-residential sewer customers: Group 1: Extra-Low Strength (Schools), Group 2: Low Strength (General commercial and Churches), Group 3: Medium Strength (Hospitals), and Group 4: High Strength (Restaurants). The volume rates correspond to the cost to convey and treat the sewer pollutants of each group. Current sewer rates are provided in Table 17.
2. Debt Service Charge
To pay for debt service on existing obligations, the City levies a separate debt service charge. For residential customers, the charge is a fixed monthly fee charged per dwelling unit. For non-residential customers, the charge is a volume rate based on actual use. The Debt Service Charges currently generates $88,000 per year. This study does not recommend any changes to the Debt Service Charges.
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Utilities Rate Study 2025
Table 17: Current Monthly Sewer Rates
City of Chowchilla
2025 Utilities Rate Study
2024/25
SEWER RATES
Residential (Per Dwelling Unit)
Single Family $31.94
Multi-Family/Mobile Homes $23.57
Commercial Metered (Per hcf) [1]
Group 1: Extra-low Strength $2.98
Group 2: Low Strength $3.34
Group 3: Medium Strength $3.59
Group 4: High Strength $6.80
DEBT SERVICE CHARGES
Residential (Per Dwelling Unit)
Single Family $1.41
Multi-Family/Mobile Homes $1.05
Commercial (Per hcf) [1]
Group 1: Extra-low Strength $0.09
Group 2: Low Strength $0.11
Group 3: Medium Strength $0.11
Group 4: High Strength $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.
3.2 Sewer System Overview
3.2.1 Sewer System
The sewer utility’s purpose is to collect, treat, and dispose of residential and commercial sewer in an environmentally safe manner. Built in 1967, the 1.8 million gallon-per-day (MGD) wastewater treatment has received major improvements in 1977, 1995, and 2006. Total annual sewer flow is approximately 563,000 hcf. The City also maintains 4 sewage lift pump stations and 37 miles of sewer pipelines.
3.2.2 Sewer Customers
The sewer utility currently has about 4,700 sewer accounts as shown on Table 18. The majority of customers are residential which account for 96% of total customers. To be conservative, no major growth or change in the customer base is anticipated over the next 5 years.
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Utilities Rate Study 2025
Table 18: Sewer Customers
City of Chowchilla
2025 Utilities Rate Study
Customer Class No. of Customers
Residential
Single Family 3,610
Multi Family/Mobile Homes 870
Subtotal Residential 4,480
Commercial Metered
Group 1: Extra-low Strength 61
Group 2: Low Strength 87
Group 3: Medium Strength 10
Group 4: High Strength 13
Subtotal Commercial 171
Total Wastewater Customers 4,651
Source: June 2024 Sewer Billing Data
3.2.3 Fairmead Consolidation
The City is annexing Madera County Maintenance District 33 (MD-33), also known as the Town of Fairmead, to the City’s sewer system to provide wastewater collection and treatment services to the Town’s approximately 1,200 residents. Fairmead includes approximately 175 residential connections, Fairmead Elementary School, and a commercial property. All customers are currently connected to local individual septic systems.
The City received a grant from the SWRCB to upgrade and expand the treatment plant to annex Fairmead into the City’s wastewater system. The benefits to the City include extending the gravity sewer to the industrial park and upgrading the wastewater treatment plant to newer technology which allows for increased maintenance activities and extends the life of the treatment plant.
The estimated capital cost of the project is $23.0 million with completion anticipated in 2026. The City’s current ratepayers will not pay any capital costs related to the annexation of Fairmead. The entire project will be paid for with grant funding from the High Speed Rail Project and a grant from the SWRCB.
However, once the project is complete the City will incur additional operating expenses beginning in 2027/28. The operating costs are estimated at $164,388 based on the MD-33 Fairmead Proposition 218 Rate Study, July 2020 as shown on Table 20. Fairmead’s share of these 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.
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Utilities Rate Study 2025
Once the project is complete, Fairmead residents will pay a separate sewer rate to the City to pay for their share of operating costs. The proposed monthly sewer rate for 2024 is $31.81 (Table 4-1 in the MD-33 Fairmead Proposition 218 Rate Study, July 2020). Total annual Fairmead revenues are projected at $67,000 ($31.81 x 175 customers x 12 months). The sewer rate for Fairmead will be increased at the same percentage as the City’s sewer rates beginning in 2028/29. The High Speed Rail project will pay the utility bills for Fairmead customers for 10 years beginning in 2027 through 2037.
3.3 Sewer Financial Plan
Proposition 218 requires that utility rates be based on the reasonable cost of providing service to customers. The cost of service is summarized in a cash flow table that includes annual operating expenses, debt service payments, capital projects, repairs and replacements, and the accumulation of appropriate reserves. The sewer cost of service was developed based on the 2024/25 adopted budget, sewer capital improvement plan, and reserve recommendations based on industry standards. Over the five-year rate study period, rate increases are needed so that the Sewer Fund can continue to pay for operating costs, debt service, capital expenses, and to maintain reasonable reserves.
3.3.1 Sewer Revenues
Total income for the Sewer Fund includes revenues from Sewer Service Charges, Debt Service Charges, Connection Fees, Fines and Penalties, Investment Earnings, CREB Subsidies, and Other Miscellaneous Revenues. Sewer Service Charges are the major source of revenues, totaling $1.9 million and accounting for approximately 83.0% of total revenues. For 2024/25, total budgeted revenues are $4.8 million which includes $2.1 million in grant funding for the Fairmead Annexation Project.
3.3.2 Sewer Expenses
Sewer expenses include Salaries and Benefits, Operations and Maintenance, Debt Service, Overhead Allocations, Transfers Out and Capital Projects. Total operating expenses for 2024/25 are budgeted at $1.49 million. Capital expenses are budgeted at $3.3 million.
3.3.3 Net Revenues
Table 19 shows a three-year history of sewer revenues and expenses since 2021/22 and also includes the 2024/25 budget. As shown, 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 from reserves.
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Utilities Rate Study 2025
Table 19: Sewer Net Revenues
City of Chowchilla
2025 Utilities Rate Study
Actual 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
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Utilities Rate Study 2025
3.3.4 Projected Expenses
The following section details the total cost of service for the Sewer Fund based on the 2024/25 adopted budget and capital improvement plan.
3.3.4.1 Operating Expenses
Operating and maintenance expenses are projected at $1.49 million for 2024/25 as detailed on Table 20.
Operating costs include salaries & benefits, operations, and the overhead allocation but do not include capital projects, debt service, or depreciation. Salaries and benefits are escalated by 15.0% for 2025/26 and then 10.0% annually thereafter reflecting the need to increase overall sewer salaries. The salary projection also includes the addition of a new hire in 2025/26 at an estimated cost of $100,000 per year.
Energy is increased by 20% each year. All other expenses are increased by 3.0% each year and include System Repairs, Contracted Services, Liability Insurance, and Overhead Allocation expenses based on the City-Wide Cost Allocation Plan. The operating costs for the Fairmead Annexation are included beginning in 2027/28 and are escalated annually by 3.0%.
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Utilities Rate Study 2025
Table 20: Projected Sewer Operating Expenses
City of Chowchilla
2025 Utilities Rate Study
Budget Projected
2024/25 2025/26 2026/27 2027/28 2028/29 2029/30
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 City of Chowchilla Page 43
Utilities Rate Study 2025
3.3.5 Sewer Debt Service
The sewer utility currently has one outstanding debt obligation—the 2017 Wastewater Revenue bonds for $3,310,000. Total annual debt service is approximately $180,000. This debt service cost is partially offset by the federal government’s CREB subsidy, which is estimated at about $82,000. The monthly Debt Service Charges pay for the remaining debt service.
Debt Service Coverage
A chief covenant for the City to secure revenue bonds/COPs is to maintain a specific debt service coverage ratio. A debt service coverage ratio is a financial measure of an agency’s ability to repay outstanding debt. For the sewer fund, the debt service coverage ratio means that annual sewer 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, thereby making the revenue bonds/COPs callable or payable upon demand. Thus, rates and fees must be set to meet this legal requirement.
3.3.6 Sewer Capital Improvement Plan
As shown on Table 21, the Five-Year Sewer Capital Improvement Program (CIP) includes $27.2 million (based on escalated costs) of sewer system improvements from 2024/25 through 2028/29. All capital project costs have been escalated by 5.0% each year beginning in 2025/26. The largest project is the Fairmead Consolidation project totaling $23.0M, comprising 84.6% of the total CIP. The Fairmead annexation will be funded entirely with grants from the High Speed Rail and the SWRCB. The remaining $4.2M of capital projects will be cash-funded with sewer service charge revenues. Projects include Sewer Main Replacements, Digester Rehabilitation, Other Aeration System Upgrades, and installing a Screw Press.
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Utilities Rate Study 2025
Table 21: Sewer Capital Improvement Plan
City of Chowchilla
2025 Utilities Rate Study
3.3.7 Sewer Reserves
As of July 1, 2024, the sewer utility had operating fund reserves of approximately $4.17 million. The sewer utility’s operating reserve target is 25% of annual operating expenses plus one year’s annual debt service payment. Adequate fund reserves protect the City when faced with unforeseen financial challenges such as emergency expenses and revenue deficits. Fund reserves are a critical tool that will allow the City to maintain its financial health and positive credit ratings especially during emergencies.
Moreover, funding can be drawn from reserves to supplement rate revenues lost during extraordinary circumstances, such as a drought. It is acceptable if reserves dip below the target on a temporary basis, provided the City takes action to attain the target over the longer run.
3.3.8 Sewer Cash Flow Projection – No Rate Increase
Table 22 summarizes the revenues and expenses based on the 2024/25 budget in addition to the reserve fund balances if the City does not implement any rate increases. Without rate increases, the cash flow shows that the City will miss debt service coverage (line 54) by 2027/28, and the operating reserve fund (line 58) will be drawn down by 2029/30.
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.
ESCALATED PROJECT COSTS
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Utilities Rate Study 2025
Table 22: Sewer Cash Flow Projection – No Rate Increases City of Chowchilla
2025 Utilities Rate Study
Budget Projected
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
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) City of Chowchilla Page 46
Utilities Rate Study 2025
3.3.9 Sewer Rate Options
To ensure the sewer utility maintains its financial health, L&T developed two sewer rate options based on whether or not the City hires a new staff member in 2025/26. Table 23 below summarizes the projected revenue adjustments under each option. The rate options were presented to the City Council, and the City Council selected “Sewer Scenario 1: Includes New Staff Member.” The proposed revenue adjustments for Sewer Scenario 1 are 4% annual increases beginning in 2025/26 through 2029/30.
Table 23: Sewer Rate Option Comparison
City of Chowchilla
2025 Utilities Rate Study
Proposed Annual Sewer Rate Increases
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
3.3.10 Sewer Option #1 – Cash Flow Projection
Over the five-year rate study period, the sewer rate increases are proposed to meet the following objectives, in order of importance:
1) Fund operating costs
2) Fund debt service costs
3) Meet or exceed the debt service coverage requirement of 1.25 times the annual payment 4) Fund capital costs
5) The ending operating fund balance should meet or exceed the target of 25% of operating expenses plus one year’s annual debt service by 2029/30.
The cash flow projection for Sewer Scenario 1 is shown on Table 24. The projections incorporate the latest information available. Key assumptions include:
Revenues
o The first revenue adjustment is proposed to take effect on July 1, 2025. Rate increases thereafter are proposed to be effective on July 1 of each year through 2029.
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Utilities Rate Study 2025
o Growth is estimated at 1.0% each year. No major changes in the customer base are expected through 2029/30.
o 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. o Fines and Penalties are estimated at $50,000 for 2024/25 and are not projected to increase. o Sewer Connection Fees are budgeted at $5,000 for 2024/25 and are not projected to increase. o Investment Earnings are projected at 1.0% of the cash fund balance each year. o Misc. Reimbursement is budgeted at $2,070,700 for 2024/25. For future years, misc. reimbursements are estimated at $5,000 each year.
o CREB Subsidy Revenue is projected at around $82,000 for 2024/25 and are not projected to increase.
o Other Revenues are estimated at $12,000 for 2024/25 and are not anticipated to change over the next five years.
Expenses
o Salaries & Benefits are escalated by 15% in 2025/26 followed by 10% each year thereafter to account for the City’s need to increase overall salaries. The Salaries & Benefits projection also includes a new water employee beginning in 2025/26 at an estimated cost of $100,000/year. o Energy is increased by 20% each year.
o Operating costs for the Fairmead Annexation begin in 2027/28 and are escalated by 3% each year.
o All other operating costs are projected to escalate by 3% each year. o The 2017 Wastewater Revenue bonds are the only existing debt obligation. Annual debt service ranges from $174,000 to $189,000.
o The Five-year (2024/25 through 2028/29) Sewer CIP includes a total of $27.2 million in projects. o The Fairmead Consolidation project totals $23 million and comprises 84.6% of the total CIP. The entire project will be grant funded.
o Capital project costs are escalated by 5.0% each year beginning in 2025/26. o The remaining $4.2M of capital projects will be cash-funded with sewer service charge revenues.
o CIP costs for 2029/30 are estimated at $300,000.
o All other Capital Outlay expenses – Vehicles, Machinery & Equip, Fleet Program, and Infrastructure – total $110,000 and are not expected to change over the next five years.
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Utilities Rate Study 2025
Table 24: Sewer Utility Cash Flow Projection – Scenario 1: Includes New Staff Member City of Chowchilla
2025 Utilities Rate Study
Budget Projected
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
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) City of Chowchilla Page 49
Utilities Rate Study 2025
3.4 Sewer Cost Allocation
Proposition 218 requires that agencies providing “property-related services” (including sewer service) set rates and charges that are based on the cost of providing those services. The revenue requirements detailed in the previous section determine the amount of revenue to be recovered from sewer rates.
The cost of service allocation determines how revenues will be recovered from customers based on their estimated impact on the sewer system.
3.4.1 Overview of Methodology
The determination of the sewer flows, sewer loadings, and the revenue requirements of the sewer utility provide the basis for performing the cost of service analysis. The concept of proportionate allocation to each customer class indicates that allocations should take into consideration the quantity of effluent a customer contributes in addition to the strength of sewer effluent.
The key factors used to assign sewer utility costs are estimated effluent (flow) going to the wastewater treatment plant and effluent strengths, measured in biochemical oxygen demand (BOD) and total suspended solids (TSS). Higher levels of BOD or TSS typically equate to increased treatment costs. The total revenue requirement shown in the sewer cash flow projection is the net cost of providing service and is allocated to the flow, BOD and TSS parameters. These allocations are then used as the basis to develop unit rates for the sewer parameters and to assign costs to each customer class in proportion to the sewer services rendered.
3.4.2 Sewer Cost Allocation Results
Table 25 includes the cost allocation analysis for Sewer Scenario 1. All sewer expenses are allocated to flow, BOD, and TSS with 2024/25 serving as the base year. The assignments are based on industry standards and input from the City.
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Utilities Rate Study 2025
Table 25: Sewer Cost Allocation
City of Chowchilla
2025 Utilities 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%
3.5 Sewer Rate Design
The cost of service analysis calculated the revenue requirements for the cost parameters of flow, BOD, and TSS. The next step is rate design which determines how those revenue requirements are collected from each class. The City would like to maintain its current wastewater rate structure. The current sewer rate structure includes a fixed charge for all residential sewer customers. Non-residential customers classes are billed a volume charge based on metered water use that varies based on sewer strength.
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Utilities Rate Study 2025
Because a residential customer’s peak usage does not directly affect sewer discharge, a fixed sewer rate is appropriate for the residential class. The fixed rate provides revenue stability for the City and reflects the fact that the majority of the sewer fund’s costs are fixed.
By contrast, the majority of non-residential water consumption is for business needs and has a direct relationship to the amount of water discharged. Moreover, the strength characteristics vary significantly between different types of businesses (i.e., an office versus a restaurant). Thus, a volume charge per unit of water used is an appropriate rate structure for non-residential customers.
3.5.1 Flow Analysis
Water consumption is used as an approximation for sewer flow because effluent is not metered.
Estimates of sewer flow are based on 2023 and 2024 winter water usage for residential customers and 2023/24 consumption for non-residential customers.
For residential, average winter water consumption is commonly used as a proxy for sewer flow. During the winter, it is assumed that the majority of metered water use is discharged into the sewer and is not used for outdoor irrigation. Based on average winter water consumption in 2023 and 2024, monthly single family residential flow is 8.8 hcf. Average monthly flow for multi-family customers is 6.7 hcf.
To account for water used for outdoor irrigation that is not discharged to the wastewater system, it is assumed that 20% of commercial demand is for irrigable needs and is therefore not included in the total flow calculation. Total effluent is estimated at roughly 563,000 hcf as summarized in Table 26.
Residential customers account for approximately 80 percent of all effluent generated. Commercial customers represent the remaining 20 percent.
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Utilities Rate Study 2025
Table 26: Sewer Flow Analysis
City of Chowchilla
2025 Utilities 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%
Subtotal 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 2023 and 2024 consumption data
3.5.2 Sewer Loading Estimates
Table 27 summarizes the proposed flow and strength characteristics by customer class. Total flow is based on 2023/24 consumption as detailed on Table 26. The recommended loadings are not proposed to be adjusted from current and are based on guidelines from the State Water Resources Control Council (SWRCB) Revenue Program and standards utilized by other water agencies.
City of Chowchilla Page 53
Utilities Rate Study 2025
Table 27: Sewer Loading Estimates
City of Chowchilla
2025 Utilities Rate Study
Flow
Wastewater Strength
(mg/l)
Wastewater Loadings
(lbs)
Customer Class (hcf) BOD TSS BOD TSS
Single Family 380,160 250 200 592,890 474,312
Multi Family 70,028 225 180 109,215 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
3.5.3 Unit Cost Allocation
The 2025/26 revenue requirement from Table 24 is divided by the appropriate billing units from Table 27 to derive a unit cost for flow, BOD and TSS as detailed in Table 28.
Table 28: Sewer Rate Unit Cost Derivation
City of Chowchilla
2025 Utilities 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
City of Chowchilla Page 54
Utilities Rate Study 2025
Table 29 summarizes the rate calculation by customer class. For residential customers, the unit cost for flow is multiplied by the monthly flow from Table 26 and added to the unit costs for BOD and TSS. The volume charge for commercial customers is the sum of the flow, BOD and TSS unit costs multiplied by their respective loadings.
Table 29: Sewer Rate Calculation by Class
City of Chowchilla
2025 Utilities Rate Study
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
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Utilities Rate Study 2025
3.5.4 Debt Service Charges
The Debt Service Charges will remain the same through 2029/30. For residential customers, the charge is a fixed monthly fee charged. For non-residential customers, the charge is a volume rate based on actual use.
3.6 Proposed 5-Year Schedule of Sewer Rates
The five-year proposed rate plan is shown on Table 30. As described, the proposed 2025/26 rates have been derived based on a cost of service analysis. The projected rates for the subsequent years are calculated as the previous year’s rate multiplied by the proposed annual rate increase percentage shown in the cash flow projection.
Table 30: Proposed Monthly Sewer Rates
City of Chowchilla
2025 Utilities Rate Study
Proposed
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 City of Chowchilla Page 56
Utilities Rate Study 2025
3.7 Sewer Rate Survey
Figure 3 compares the City’s current rates to those of other regional agencies. The City’s sewer rates are expected to remain in this range as many other regional agencies are also facing financial pressures to raise rates in upcoming years.
Figure 4: Single Family Residential Monthly Sewer Bill Survey City of Chowchilla Page 57
Utilities Rate Study 2025
SECTION 4: SOLID WASTE RATE STUDY
The City contracts with Mid Valley Disposal to provide weekly solid waste collection to approximately 3,800 residential customers and 280 commercial customers. Mid Valley Disposal is a local, privately held recycling and waste management company that provides garbage collection services to 31 local jurisdictions in the Central Valley. Solid waste rates are set by Mid Valley Disposal, and the City adds a percentage to recover associated overhead costs. The last contract amendment with Mid Valley Disposal was in 2021 which extended the terms of agreement through July 1, 2031.
4.1 Current Solid Waste Rates
Table 31 shows the current residential solid waste rates. Each residential property is billed a flat rate through their monthly utility bill for standard services which includes three 96-gallon toters (Refuse, Recycles, and Green Waste). Tables 32 through 34 show the current commercial solid waste rates.
Commercial accounts are billed based on the size of the bin and the number of times picked up each week. The rate structure is set by Mid Valley Disposal.
Per the contract with Mid Valley Disposal, the solid waste rates will be increased by the annual change in the Consumer Price Index (CPI) each year and will not exceed 5.0% each year. The 2020 rate study recommended 19.0% increases for 2 years, followed by 3.0% annual rate increases through 2024/25.
Prior to the last study, the City had not increased solid rates to fully fund overhead costs in over 10 years, resulting in an operating deficit.
Table 31: Current Residential Solid Waste Rates
City of Chowchilla
2025 Utilities Rate Study
RESIDENTIAL SOLID WASTE RATES
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 toters for Refuse, Recycles, and Green Waste City of Chowchilla Page 58
Utilities Rate Study 2025
Table 32: Current Commercial Trash Solid Waste Rates
City of Chowchilla
2025 Utilities Rate Study
COMMERCIAL SOLID WASTE RATES
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
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
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Utilities Rate Study 2025
Table 33: Current Commercial Recycle and Organics Solid Waste Rates City of Chowchilla
2025 Utilities Rate Study
COMMERCIAL SOLID WASTE RATES continued
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
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
City of Chowchilla Page 60
Utilities Rate Study 2025
Table 34: Current Commercial Roll Off and Miscellaneous Solid Waste Rates City of Chowchilla
2025 Utilities Rate Study
COMMERCIAL SOLID WASTE RATES continued
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
City of Chowchilla Page 61
Utilities Rate Study 2025
4.2 Solid Waste Financial Plan
Proposition 218 requires that utility rates be based on the reasonable cost of providing service to customers. The cost of service includes annual operating expenses, debt service payments, capital projects, repairs and replacements, and the accumulation of appropriate reserves. The solid waste utility cost of service was developed based on the 2024/25 adopted budget and reserve recommendations based on industry standard practice. Over the five-year rate study period, rate increases are needed so that the Solid Waste Fund can continue to pay for operating costs and to maintain reasonable reserves.
4.2.1 Solid Waste Revenues
Total income for the Solid Waste Fund includes revenues from Refuse Collection Charges, Locking Lids, State Recycling Grant Revenue, investment earnings, and miscellaneous penalties as detailed on Table
35. Total budgeted Refuse Collection Charges for 2024/25 is $2.45 million, representing a 3.0% increase from 2023/24.
4.2.2 Solid Waste Expenses
Solid waste expenses include Disposal Service, Contract Services, Locking Lid Fees, Other Operations and Overhead Allocations. Total operating expenses for 2024/25 are budgeted at $2.5 million.
4.2.3 Net Revenues
Table 35 shows a three-year history of solid waste revenues and expenses since 2021/22 and also includes the 2024/25 budget. As shown, 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 $35,700.
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Utilities Rate Study 2025
Table 35: Solid Waste Net Revenues
City of Chowchilla
2025 Utilities Rate Study
Actual 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
4.2.4 Projected Expenses
The following section details the total cost of service for the Solid Waste Fund based on the 2024/25 adopted budget and capital improvement plan.
4.2.4.1 Operating Expenses
Operating and maintenance expenses are projected at $2.51 million for 2024/25 as detailed on Table 36.
Disposal service through Mid Valley Disposal is the largest expense for the utility, representing over
76.0% of total expenditures. Since 2015/16, disposal service expenses have increased nearly 153% as shown on Figure 5. The City has no control over these costs which are levied by Mid Valley Disposal.
Other operating costs include the Overhead Allocation which is set by the City. For this study, the cost for Disposal Services, Contract Services, and Locking Lid Fees are escalated by 5.0% each year to account for cost increases from Mid Valley Disposal. Overhead Allocation expenses are escalated by 3.0% each year.
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Utilities Rate Study 2025
Figure 5: Historical Disposal Service Costs
Table 36: Solid Waste Operating Expenses
City of Chowchilla
2025 Utilities Rate Study
Budget Escalation Projected
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 City of Chowchilla Page 64
Utilities Rate Study 2025
4.2.5 Solid Waste Debt Service
The Solid Waste Utility does not currently have any outstanding debt obligations.
4.2.6 Solid Waste Capital Improvement Plan
The utility does not have a capital improvement plan because the City does not have to replace any solid waste assets. Mid-Valley Disposal is responsible for any needed infrastructure projects.
4.2.7 Solid Waste Reserves
At the beginning of 2024/25, the Solid Waste Utility had operating fund reserves of $759,540. Without rate increases, the operating reserve fund will be drawn down by the end of 2028/29. Adequate fund reserves protect the City when faced with unforeseen financial challenges such as emergency expenses and revenue deficits. Based on staff recommendation, the solid waste utility’s operating reserve target is 25% of annual operating expenses.
4.2.8 Solid Waste Cash Flow Projection with No Rate Increase Table 37 summarizes the revenues and expenses based on the 2024/25 budget in addition to the reserve fund balances if the City does not implement any rate increases. Without rate increases, the cash flow shows that the operating reserve fund (line 29) will be drawn down by the end of 2028/29.
City of Chowchilla Page 65
Utilities Rate Study 2025
Table 37: Solid Waste Cash Flow Projection – No Rate Increases City of Chowchilla
2025 Utilities Rate Study
Budget Projected
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
4.2.9 Solid Waste Rate Options
To ensure the solid waste utility maintains its financial health, L&T developed two solid waste rate options. Table 38 below summarizes the projected revenue adjustments for the solid waste rate options. The rate options were presented to the City Council, and the City Council selected “Scenario 1:
4.0% Annual Rate Increases.” The proposed revenue adjustments for Solid Waste Scenario 1 are 4.0% annual rate increases beginning in 2025/26 through 2029/30.
City of Chowchilla Page 66
Utilities Rate Study 2025
Table 38: Solid Waste Rate Option Comparison
City of Chowchilla
2025 Utilities Rate Study
Proposed Annual Solid Waste Rate Increases
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%
4.2.10 Solid Waste Scenario 1 – Cash Flow Projection
Over the five-year rate study period, the solid waste rate increases are proposed to meet the following objectives, in order of importance:
1) Fund operating costs
2) Maintain reserves above the operating fund balance target The cash flow projection for Solid Waste Scenario 1 is shown on Table 39. The projections incorporate the latest information available. Key assumptions include:
Revenues
o The first revenue adjustment is proposed to take effect on July 1, 2025. Rate increases thereafter are proposed to be effective on July 1 of each year through 2029. o Growth is estimated at 1.0% each year. No major changes in the customer base are expected through 2029/30.
o Locking Lid Revenues are estimated at $22,000 per year and are not anticipated to change over the next five years.
o State Recycling Grant Revenues are estimated at $5,000 each year and are not projected to increase.
o Penalties are budgeted at $50,000 for 2024/25 and are not projected to increase. o Investment Earnings are projected at 1.0% of the cash fund balance each year. o Other Revenues are 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. Expenses
o Operating costs, including disposal services from Mid Valley Disposal, are projected to escalate at the annual rate of 5.0%.
o Overhead Allocation is increased by 3.0% each year.
o The Solid Waste Fund does not have any debt obligations or capital projects.
City of Chowchilla Page 67
Utilities Rate Study 2025
Table 39: Cash Flow Projection – Solid Waste Scenario 1: 4.0% Annual Rate Increases City of Chowchilla
2025 Utilities Rate Study
Budget Projected
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
4.3 Solid Waste Rate Design
For over 15 years, the rate structure has been determined by Mid Valley Disposal in accordance with the collection services agreement. Therefore, this study does not recommend making any changes to the current solid waste rate structure.
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Utilities Rate Study 2025
4.4 Proposed 5-Year Schedule of Solid Waste Rates
The five-year rate plan for the residential solid waste rates for Solid Waste Scenario 1 are shown on Table 40. The five-year proposed commercial solid waste rates are shown on Tables 41 through 43. The projected rates for the solid waste utility have been calculated based on the overall rate revenue requirements shown on the cash flow projection from Table 39.
Table 40: Proposed Residential Solid Waste Rates
City of Chowchilla
2025 Utilities Rate Study
Current 2025/26 2026/27 2027/28 2028/29 2029/30
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
PROPOSED MONTHLY RESIDENTIAL SOLID WASTE RATES
Proposed
RESIDENTIAL
City of Chowchilla Page 69
Utilities Rate Study 2025
Table 41: Proposed Commercial Trash Solid Waste Rates
City of Chowchilla
2025 Utilities Rate Study
Current 2025/26 2026/27 2027/28 2028/29 2029/30
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 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 TRASH
PROPOSED MONTHLY COMMERCIAL SOLID WASTE RATES
Proposed
City of Chowchilla Page 70
Utilities Rate Study 2025
Table 42: Proposed Commercial Organic & Recycle Solid Waste Rates City of Chowchilla
2025 Utilities Rate Study
Current 2025/26 2026/27 2027/28 2028/29 2029/30
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 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 Proposed
COMMERCIAL RECYCLE
PROPOSED MONTHLY COMMERCIAL SOLID WASTE RATES
COMMERCIAL ORGANIC
City of Chowchilla Page 71
Utilities Rate Study 2025
Table 43: Proposed Commercial Roll Off and Miscellaneous Solid Waste Rates City of Chowchilla
2025 Utilities Rate Study
Current 2025/26 2026/27 2027/28 2028/29 2029/30
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 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
ROLL OFF (DROP BOX) SERVICE
MISCELLANEOUS FEES
PROPOSED MONTHLY COMMERCIAL SOLID WASTE RATES
Proposed
City of Chowchilla Page 72
Utilities Rate Study 2025
4.5 Solid Waste Survey
The figure below compares the City’s current and proposed monthly residential solid waste bills with the bills of other local agencies. Both the current and proposed monthly residential solid waste bill are in the mid-range of surveyed agencies.
Figure 6: Single Family Residential Monthly Solid Waste Bill Survey City of Chowchilla Page 73
Utilities Rate Study 2025
SECTION 5: STORM DRAIN STUDY
Stormwater is a term used to describe water that originates during precipitation events. Stormwater that cannot soak into the ground becomes “runoff.” The function of the City’s storm drainage system is to collect runoff during wet weather events to prevent flooding. When precipitation falls on undeveloped soil and vegetation, it is largely absorbed into the ground and slowly runs off. However, when land is developed and covered by impervious surfaces such as rooftops, buildings, and pavement, it prevents that land from absorbing stormwater. Stormwater then runs off at a much faster rate, which can cause flooding or issues in local streams and bodies of water.
Storm drain fees are intended to fund capital improvement programs, operations and maintenance, clean water programs to mitigate the pollutants in stormwater, and other environmental services related to stormwater. Ongoing maintenance of storm drain pipes is important in reducing risks of flooding and sink holes in local neighborhoods.
5.1 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 but are exempt from the second step of a mailed ballot proceeding. 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 which seemingly clarified the definition of “sewer” in Proposition 218 to include both sanitary and storm sewer, thereby exempting storm drain rates from the additional ballot requirement. Yet, proponents of Proposition 218 have continued to threaten litigation against any agencies that move forward without a ballot vote. Proposition 218, effectively, froze storm drain fees at their existing rates, and essentially hindered municipalities from establishing new dedicated stormwater rates.
The Storm Drain Utility has healthy reserves and has historically fully covered its operating expenses each year. Due to the significant cost of the additional ballot voting requirement and because the City’s Storm Drain Fund is in good financial shape, this study does not recommend any increases to the storm drain rates at this time. The City is planning to apply for a Community Development Block Grant (CDBG) City of Chowchilla Page 74
Utilities Rate Study 2025
for the Kings Avenue project ($2.3 million) when the application period opens in Fall 2025. If the City does not receive grant funding, the City can re-evaluate the need to increase storm drain rates as needed. The results of the Storm Drain Rate Study are provided herein so the City has a record of the results should the City choose to revisit proceeding with a balloted storm drain rate in the future.
5.2 Current Storm Drain Rates
Table 44 shows the current monthly storm drain rates that were adopted in the 1990s and have not been increased in over two decades. The rates include two components – 1) Capital Charges and 2) Operation & Maintenance Charges.
1. Capital Charge
All customers, residential and non-residential, are charged the same flat charge of $2.61 per account. The capital charge is intended to fund storm drain infrastructure projects and currently generates around $126,000 each year.
2. Operations and Maintenance (O&M) Charge
Customers are levied 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. The City currently collects approximately $96,000 per year in storm drain O&M charges.
Table 44: Current Storm Drain Rates
City of Chowchilla
2025 Utilities Rate Study
Fee Amount Type
CAPITAL
Storm Drain Capital [1] $2.61 Flat Rate
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 [2] $2.20000000 per home
1 - Per account
2 - Greenhills only
City of Chowchilla Page 75
Utilities Rate Study 2025
5.3 Storm Drain System Overview
5.3.1 Storm Drain System
The City maintains the storm drain system, drainage ditches, reservoirs, pump stations and other facilities to provide control and disposal of storm water runoff. The system is maintained and operated through a storm runoff plan and program that is in compliance with State and Federal regulations.
The City has dealt with long standing issues with flooding and inadequate drainage in the City’s historic core for many years.
5.3.2 Storm Drain Customers
Table 45 summarizes the current number of storm drain accounts, the total square footage billed by customer classification, and total annual revenues by customer classification. Total projected service charge revenues for 2024/25 are about $217,000.
Table 45: Current Storm Drain Accounts & Annual Revenues City of Chowchilla
2025 Utilities 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 778 4,651,641 $20,539
Total 3,807 37,843,438 $98,007
TOTAL STORM DRAIN RATE REVENUES $217,242
City of Chowchilla Page 76
Utilities Rate Study 2025
5.4 Storm Drain Financial Plan
Proposition 218 requires that utility rates be based on the reasonable cost of providing service to customers. The cost of service includes annual operating expenses, capital projects, repairs and replacements, and the accumulation of appropriate reserves. The storm drain cost of service is based on the 2024/25 adopted budget, the 2024/25 through 2028/29 capital improvement plan, and reserve recommendations based on industry standard practice.
5.4.1 Historical Storm Drain Revenues and Expenses
Based on historical budget figures, the Storm Drain Fund has been doing well and covering annual expenses.
Table 46: Storm Drain Net Revenues
City of Chowchilla
2025 Utilities Rate Study
Actual 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
City of Chowchilla Page 77
Utilities Rate Study 2025
5.4.2 Storm Drain Revenues
Total projected 2024/25 revenue for the storm drain utility is approximately $3.4 million, including a $3 million Prop 1 grant to fund capital projects. This grant is a one-time funding source. The Capital Charge generates roughly $126,000 each year, while revenues from the O&M charges generate approximately $96,000, as shown on Table 45. Other revenues include Investment Earnings and Fines and Penalties.
5.4.3 Storm Drain Operating & Maintenance Expenses
Total operating and maintenance expenses are projected at approximately $130,000 for 2024/25.
Operating costs include Salaries & Benefits, Operations and Maintenance, and the City’s Overhead Allocation. For future projections, Salaries and Benefits are escalated by 10.0% each year, and all other expenses are escalated by 3.0% annually. The City is also planning to hire one new Storm Drain employee in 2025/26. Total salary and benefits for the new employee is estimated at $30,000/year.
Beginning in 2025/26, $20,000 is included for future Groundwater Management Plan projects. The projection of estimated future operating expenses is included below in Table 47.
Table 47: Storm Drain Operating Expenses
City of Chowchilla
2025 Utilities Rate Study
Budget Escalation Projected
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.
5.4.4 Storm Drain Debt Service
The storm drain utility does not currently have any outstanding debt obligations.
City of Chowchilla Page 78
Utilities Rate Study 2025
5.4.5 Storm Drain Capital Improvement Plan
Table 48 summarizes the storm drain capital improvement plan for the next five years totaling $5.87 million based on escalated costs. The projects include replacing storm drains on Kings Avenue and Sonoma Avenue as well as the Truman Pond Refiguration. The Sonoma Avenue project is paid for with a Prop 1 grant in 2024/25. The City anticipates funding the Kings Avenue project with a Community Development Block Grant (CDBG) when the application period opens in Fall 2025. The Truman Pond Refiguration project will be cash funded with storm drain fee revenues.
Table 48: Storm Drain Capital Improvement Plan
City of Chowchilla
2025 Utilities 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 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 Fund Total Storm Drain Capital Projects $3,209,673 $2,530,000 $0 $0 $0 $5,739,673
ESCALATED PROJECT COSTS
Cost Escalation (5% annually) 100.0% 105.0% 110.3% 115.8% 121.6% Total Storm 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
5.4.6 Storm Drain Reserves
As of the beginning of 2024/25, the Storm Drain Utility had operating fund reserves of approximately $2.07 million. The operating reserve target is 25% of annual operating expenses. Adequate fund reserves protect the City when faced with unforeseen financial challenges such as emergency expenses and revenue deficits. Fund reserves are a critical tool that will allow the City to maintain its financial health and positive credit ratings, especially during emergencies.
5.4.7 Storm Drain Cash Flow Projection with No Rate Increase Table 49 summarizes the revenues and expenses in addition to the projected reserve fund balances if the City does not implement any rate increases. The cash flow shows that the Storm Drain Fund is doing well and covering annual expenses. The City will not need any rate increases unless it does not receive grant funding for the Kings Avenue project.
City of Chowchilla Page 79
Utilities Rate Study 2025
Table 49: Storm Drain Cash Flow – No Rate Increases
City of Chowchilla
2025 Utilities Rate Study
Budget Projected
2024/25 2025/26 2026/27 2027/28 2028/29 2029/30
1 Rate Increase Effective Sep 1, 2025 Jul 1, 2026 Jul 1, 2027 Jul 1, 2028 Jul 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 City of Chowchilla Page 80
Utilities Rate Study 2025
5.4.8 Storm Drain Rate Options
To ensure the storm drain utility maintains its financial health, L&T developed two storm drain rate options based on whether the City receives the $2.3 million CDBG grant for the Kings Avenue Storm Drain CIP project. Over the five-year rate study period, rate increases are proposed to meet the following objectives, in order of importance:
1) Fund operating costs
2) Fund capital costs
3) The ending operating fund balance should meet or exceed the target of 25% of operating expenses.
Table 38 below summarizes the projected revenue adjustments for each storm drain rate option. The City is planning to apply for grant funding for the Kings Avenue project described in Section 5.4.5 when the CDBG grant application period opens in Fall 2025. In the past, the City has been successful with grant applications for similar projects. If the City does not receive grant funding, the City can reevaluate the need to increase storm drain rates at a later date and proceed with Scenario 2 or a revised storm drain rate scenario.
Table 50: Storm Drain Rate Option Comparison
City of Chowchilla
2025 Utilities Rate Study
Proposed Annual Storm Drain Rate Increases
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% Scenario 2: No Grant 28.0% 4.0% 4.0% 4.0% 4.0%
The cash flow projections incorporate the latest information available. Key assumptions include:
Revenues
o The first revenue adjustment is proposed to take effect on July 1, 2025. Rate increases thereafter are proposed to be effective on July 1 of each year through 2029. o Growth is estimated at 1.0% each year. No major changes in the customer base are expected through 2029/30.
o Storm Drain O&M Revenues for 2024/25 are estimated at $96,000. o Storm Drain Capital Replacement Revenues for 2024/25 are estimated at $126,000. o Fines and Penalties are estimated at $5,000 for 2024/25 and are not projected to increase. o Investment Earnings are projected at 1.0% of the cash fund balance each year. o Transfers In are budgeted at $131,900 for 2024/25.
City of Chowchilla Page 81
Utilities Rate Study 2025
Expenses
o Salaries & Benefits are escalated by 10.0% each year. o All other operating costs are projected to escalate at the annual rate of 3.0%. o Projections include a new Storm Drain employee beginning in 2025/26 at an estimated cost of $30,000/year.
o Projections include $20,000 per year beginning in 2025/26 for Groundwater Management Plan.
5.4.9 Storm Drain Scenario 1 – Cash Flow Projection
Storm Drain Scenario 1 includes $2.3 million in grant funding for the Kings Avenue project described in Section 5.4.5. Table 51 shows the cash flow projection for Scenario 1.
City of Chowchilla Page 82
Utilities Rate Study 2025
Table 51: Cash Flow Projection – Storm Drain Scenario 1: Includes $2.3M Grant City of Chowchilla
2025 Utilities Rate Study
Budget Projected
2024/25 2025/26 2026/27 2027/28 2028/29 2029/30
1 Rate Increase Effective Sep 1, 2025 Jul 1, 2026 Jul 1, 2027 Jul 1, 2028 Jul 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
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 City of Chowchilla Page 83
Utilities Rate Study 2025
5.4.10 Storm Drain Scenario 2 – Cash Flow Projection
The Storm Drain Scenario 2 cash flow projection included below as Table 52 shows the projected revenues, expenses, and proposed rate increases that would be needed if the City does not receive CDBG funding for the Kings Avenue storm drain project. In the past, the City has been successful securing grants for similar projects. The projection in Table 52 represents a worst case scenario including proposed annual rate increases if the City would need to fund the entire storm drain CIP with cash. If the City does not receive grant funding, it is recommended that the City reevaluate the need to initiate a storm drain balloting process to adopt rate increases.
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Utilities Rate Study 2025
Table 52: Cash Flow Projection – Storm Drain Scenario 2: No Grant City of Chowchilla
2025 Utilities Rate Study
Budget Projected
2024/25 2025/26 2026/27 2027/28 2028/29 2029/30
1 Rate Increase Effective Sep 1, 2025 Jul 1, 2026 Jul 1, 2027 Jul 1, 2028 Jul 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 be entirely cash funded with fund reserves City of Chowchilla Page 85
Utilities Rate Study 2025
5.5 Storm Drain Cost of Service Analysis
Proposition 218 requires that municipalities providing “property-related services” (including storm drain service) set rates and charges that are based on the cost of providing those services. The revenue requirements detailed in the previous section determine the amount of revenue to be recovered from the storm drain rates. In this section, the cost of service allocation develops an equitable means of allocating utility costs among its customers based on their estimated runoff burden to the storm drain system.
The primary storm drain service provided by the City is the collection, conveyance, and management of stormwater runoff from parcels. All parcels that contribute runoff into the City’s system, either directly or indirectly, take stormwater service from the City. Impervious area is commonly used as a proxy to estimate the stormwater runoff contributed by each parcel. Impervious surfaces are surfaces such as rooftops, paved driveways, and walkways that allow little or no stormwater to permeate into the ground. Estimated impervious area can be used to establish an adequate storm drain fee proportionate to the revenue needed to manage the runoff received from parcels.
5.5.1 Storm Drain Rate Structures
Rate structures for storm drain rates may include a flat fee, tiered charges based on water use, charges based on land area or parcel size, and impervious area measurements by parcel. The fee structures listed are in increasing order of accuracy and level of effort. The flat fee approach is considered the minimum approach and least precise. Comparatively, the most accurate method is to measure the impervious area of all properties which also requires the most effort.
The simplest approach would be the Flat Rate structure in which all customers are charged the same rate regardless of customer type or property size. The current storm drain Capital Charge is a flat rate charged to each account.
Another approach to levy storm drain fees is to measure the impervious surface area of each lot.
Measuring impervious area is conducted using aerial photography and geographic information systems (GIS). For residential properties, a representative sampling is sufficient to determine an average for a typical single family parcel. Unlike residential parcels, non-residential parcels differ widely in size and characteristics which makes sampling impractical and therefore all non-residential properties would likely need to be surveyed.
As described, this method is time-consuming because it requires a comprehensive survey of all parcels using GIS and aerial photography. For a simplified alternative, runoff coefficients can be used to estimate stormwater runoff by land use classification. Calculating runoff uses the Rational Method in stormwater planning based on the equation Q = CIA. The runoff volume (Q) from a parcel equals the runoff coefficient (C) multiplied by the standard rainfall intensity (I) across the drainage area (A). This concept can be used to estimate the relative load from a single parcel by multiplying the total area of the lot type by the runoff coefficient.
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Utilities Rate Study 2025
The advantage of the Impervious Area approach is that the charge will reflect each parcel’s actual stormwater runoff. The disadvantages are: a) a full survey of all City parcels is needed, b) the City’s billing system will need to be updated to reflect each parcel’s individual rate, and c) the impacts to customers will vary widely depending on customer type and lot size.
When the City decides to pursue increases for the storm drain utility, the project team will determine whether the storm drain rates should be calculated using actual impervious area measurements via GIS.
For this analysis, L&T uses standard runoff coefficients to estimate impervious area as detailed on the following tables.
Table 53 provides an estimate of impervious area within the city. Parcels within the City are divided into the following land use categories: residential low, residential medium, multi-family, commercial, industrial, vacant, schools/hospitals, and storm drain II for Greenhills. A runoff coefficient is applied to the total acreage of each land use category to estimate the total land area that is impervious. The runoff coefficients were developed from a survey of California agencies including the Fresno Metropolitan Flood Control District and Root Creek Water District.
Table 53: Estimate of Impervious Area
City of Chowchilla
2025 Utilities 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 City of Chowchilla Page 87
Utilities Rate Study 2025
Parcels that meet any of the following conditions are not proposed to be charged storm drain fees:
1) Parcels that solely comprise a street or roadway (either publicly or privately owned) and are considered to be part of the stormwater conveyance system. 2) Parcels comprised of an area which is part of the City’s storm drain system. 3) Parcels that do not receive service.
4) Parcels which detain all runoff on site.
Based on the cost of service analysis, the revenue recovery by customer class is proposed to be updated so that each customer class is paying their share of costs per the total percentage of impervious area as shown in Table 53. Figure 7 below compares the current revenue allocation with the proposed allocation. Under the proposed rates, commercial customers will pay less in total revenue with costs shifted to residential customers based on their proportional share of the City’s total impervious area.
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Utilities Rate Study 2025
Figure 7: Current vs. Proposed Storm Drain Revenue Recovery City of Chowchilla Page 89
Utilities Rate Study 2025
5.6 Storm Drain Rate Design
The rate derivation for the storm drain fee for each of the scenarios is detailed in the following sections
5.6.1 and 5.6.2.
To calculate the proposed O&M charge, the total annual O&M revenue requirement from the cash flow for each scenario is allocated between each customer class by multiplying the revenue requirement by the percentage of total impervious area in each (Table 53). Each revenue requirement is then divided by the total square footage in each customer class (also from Table 53) to derive a fee per square foot for each customer class.
To calculate the proposed capital charge, the total annual capital charge revenue requirement from the cash flow for each scenario is divided evenly between the projected number of accounts in each year of the five-year rate study period to derive a flat fee per account.
5.6.1 Storm Drain Rate Derivation – Scenario 1
As shown in the Scenario 1 cash flow projection (Table 51), it is proposed that annual rate revenues increase by 3.0% each year. Table 54 below allocates the total annual revenue requirement for 2025/26 to each customer class and Table 55 derives the O&M rate for each customer class.
It should be noted that the current storm drain O&M rate for Storm Drain II (Greenhills) is charged on a per home rather than per square footage basis. It is proposed that the rate be updated to a rate per square foot to be more consistent with the City’s other customer classes.
Table 54: Storm Drain O&M Rate Revenue Requirement Allocation – Scenario 1 City of Chowchilla
2025 Utilities Rate Study
2025/26
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
[1] Scenario 1 Cash Flow, Line 8
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Utilities Rate Study 2025
Table 55: Storm Drain O&M Rate Derivation by Customer Class – Scenario 1 City of Chowchilla
2025 Utilities Rate Study
2025/26
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
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
The rate derivation for the proposed capital charge per account for 2025/26 through 2029/30 is provided in Table 56.
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Utilities Rate Study 2025
Table 56: Storm Drain Capital Charge Derivation – Scenario 1 City of Chowchilla
2025 Utilities Rate Study
Proposed
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] Scenario 1 Cash Flow, Line 9
5.6.2 Storm Drain Rate Derivation – Scenario 2
The proposed rates for Scenario 2 are derived in the same manner as the proposed rates for Scenario 1.
However, the proposed annual revenue requirements are different for Scenario 2, reflecting the City’s need for additional cash to fund CIP projects should grant funding not be available. Table 57, Table 58, and Table 59 derive the O&M revenue requirements, proposed 2025/26 storm drain O&M rates, and proposed storm drain capital charges, respectively.
Table 57: Storm Drain O&M Rate Derivation – Scenario 2
City of Chowchilla
2025 Utilities Rate Study
2025/26
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
[1] Scenario 2 Cash Flow, Line 8
City of Chowchilla Page 92
Utilities Rate Study 2025
Table 58: Storm Drain O&M Rate Derivation by Customer Class – Scenario 2 City of Chowchilla
2025 Utilities Rate Study
2025/26
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) $0.0003288
Rate Calculation for Industrial
Total Revenue Requirement $2,424
Total Square Feet Industrial 566,280
Monthly Industrial Rate (per square foot) $0.0002877
Rate Calculation for Vacant
Total Revenue Requirement $2,038
Total Square Feet Vacant 952,432
Monthly Vacant Rate (per square foot) $0.0001438
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
City of Chowchilla Page 93
Utilities Rate Study 2025
Table 59: Storm Drain Capital Charge Derivation – Scenario 2 City of Chowchilla
2025 Utilities Rate Study
Proposed
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] Scenario 2 Cash Flow, Line 9
5.7 Proposed 5-Year Schedule of Storm Drain Rates
The five-year rate plans for Scenario 1 and Scenario 2 are shown in Table 60 and Table 61. The projected O&M rates for the years beyond 2025/26 are calculated by multiplying the 2025/26 rates for each customer class by the proposed rate increase for each year from the cash flow projection.
Table 60: Proposed Storm Drain Rates – Scenario 1
City of Chowchilla
2025 Utilities Rate Study
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 $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.
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Utilities Rate Study 2025
Table 61: Proposed Storm Drain Rates – Scenario 2
City of Chowchilla
2025 Utilities Rate Study
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.
5.8 Storm Drain Bill Impacts
The following tables illustrate the impacts of the proposed rates for a typical single family residential lot using the City’s average lot size of 7,800 square feet (SF) and a sample commercial parcel with a lot size of 10,000 SF. Table 62 shows the sample bill impacts for Scenario 1 and Table 63 shows the sample bill impacts for Scenario 2. Actual bill impacts will vary for each customer depending on customer classification and lot size.
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Utilities Rate Study 2025
Table 62: Storm Drain Monthly Bill Impacts – Scenario 1 City of Chowchilla
2025 Utilities Rate Study
Proposed
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%
Table 63: Storm Drain Monthly Bill Impacts – Scenario 2 City of Chowchilla
2025 Utilities Rate Study
Proposed
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%
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Utilities Rate Study 2025
5.9 Storm Drain Rate Issues
Prior to implementation, the City will need to consider the following issues:
• Proposition 218 Ballot Vote
Absent any changes to storm drain legislation, the City is advised to pursue the additional mailed ballot proceeding for any proposed storm drain rate increases. Although SB 231 clarified the definition of “sewer” in Proposition 218 to include both sanitary and storm sewer, thus exempting storm drain rates from the additional ballot requirement, proponents of Proposition 218 have continued to threaten litigation against any agencies that move forward without a ballot vote.
• Update Projections
The storm drain cash flow projections will need to be updated to reflect the most current financial information before the City proceeds with rate implementation. In particular, the financing approach to pay for the infrastructure projects in the storm drain capital improvement plan will need to be updated to reflect whether the City will fund projects with cash funding, grant funding, debt financing, or a combination of all three. If the City does not obtain grant funding for major projects, the City will likely need to adopt rate increases. • Rate Structure
The current fee structure includes both a flat fee and a charge based on square footage. To comply with Proposition 218, it is recommended that the City apportion costs based on estimated runoff area which is commonly used as a proxy for the capacity each parcel requires in the storm drain system. As demonstrated in the rates calculated in this report, industry standards for runoff coefficients can be used to estimate runoff, or the City could elect to complete a GIS and aerial survey in the future to determine the actual impervious area for all parcels within the City.
REPORT TO THE CITY COUNCIL
Item 5.1
CLICK HERE
TO RETURN TO
THE AGENDA
Meeting of: June 24, 2025
AGENDA SECTION: Deferred Business
SUBJECT: Resolution Designating Various Streets as Through Streets in Downtown Chowchilla
PREPARED BY: Jason Rogers, Director of Public Works
ATTACHMENTS: Resolution, Map
REVIEWED BY
ADMINISTRATOR ☒ REVIEWED BYATTORNEY ☒ REVIEWED BY FINANCE ☒ RECOMMENDATION:
That the City Council adopt the attached resolution designating certain streets within the downtown area as through streets.
BACKGROUND:
The City of Chowchilla Municipal Code (CMC) authorizes the City Council to designate through streets by resolution. These designations are necessary to formalize right-of-way preference and guide the installation of stop signs at intersecting minor streets that are not signal-controlled. Through streets are critical to maintaining safe and efficient traffic circulation.
REASON FOR RECOMMENDATION:
The purpose of designating through streets is to clearly define primary travel routes that allow vehicles to move with minimal interruption. These streets form the backbone of the local road network and are vital for emergency response, goods movement, and general mobility. Ensuring that intersecting streets yield appropriately helps maintain traffic flow and minimize delays.
Stop sign control on these routes improves intersection safety by:
• Reducing the potential for angle and side-impact collisions • Improving clarity and predictability at intersections • Enhancing pedestrian safety where crossing volumes are high.
Designating these corridors as through streets allows the City Administrator to implement appropriate stop sign control per the CMC. This supports traffic flow on major corridors and reduces confusion at intersections. Further, this designation complies with:
• California Vehicle Code (CVC) Section 21351, which authorizes local authorities to erect stop signs at intersections designated by ordinance or resolution; • California Manual on Uniform Traffic Control Devices (CA MUTCD), which governs the placement, size, and specifications of stop signs and through street control; • Best practices in traffic engineering, ensuring signs are placed based on visibility, intersection control logic, and safety metrics.
The following streets are proposed for designation as through streets in downtown Chowchilla:
• Ventura Avenue
• Riverside Avenue between 5th Street and 13th Street
• Kings Avenue
• Trinity Avenue between 3rd Street and 11th Street
• Orange Avenue between 5th Street and 15th Street
• Humboldt Avenue between 5th Street and 15th Street
• 3rd Street
• 5th Street
• 8th Street between Humboldt Avenue and Robertson Blvd • 13th Street
• 15th Street
• Howell Road
• Santa Cruz Blvd
These corridors have been identified based on their existing and planned function as priority travel routes through the downtown core.
In accordance with the CMC and CA MUTCD guidelines, stop signs shall be installed as follows:
Intersection Type Recommended Control
Minor street → Through street Stop sign on minor street only T-intersection with through street Stop on terminating street (stem) Through street ↔ Through street See checklist below
School zone or crossing Evaluate for added signage/stop control The following table will be used to assess whether an all-way stop is warranted when two through streets intersect, based on CA MUTCD Section 2B.07:
Criterion Threshold
Traffic Volumes Both streets >300 vehicles
Crash History ≥5 correctable crashes/year in past 3 years Sight Distance Limited to <200 ft due to curves/obstructions Intersection Geometry Complex or confusing layout
Pedestrian Volume High crossings, especially near schools FISCAL IMPACT:
Based upon the existing stop sign inventory in the city’s downtown, staff estimates installation of new signage at 12 intersections in the city for a total of $2,400. Costs associated with acquiring the new signs can be absorbed within the current Streets Department operating budget.
ALTERNATIVES:
1. Not to adopt the resolution
2. Modify the list of proposed through streets and direct staff to return with a revised resolution.
ACTIONS FOLLOWING APPROVAL:
Staff will coordinate the installation of stop signs as required at intersections with the designated through streets.
COUNCIL RESOLUTION # XX-25
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHOWCHILLA, CALIFORNIA
DESIGNATING VARIOUS STREETS AS THROUGH STREETS IN DOWNTOWN CHOWCHILLA WHEREAS, the City of Chowchilla seeks to promote traffic safety and efficient movement through its downtown core; and
WHEREAS, Section 10.24.050 of the Municipal Code requires that stop signs be placed on all streets intersecting a through street designated by resolution of the City Council; and WHEREAS, Section 10.24.060 confirms the legal authority to require stops at designated through streets and intersections by resolution of the City Council; and WHEREAS, this designation is consistent with the requirements of the California Vehicle Code Section 21351 and the California Manual on Uniform Traffic Control Devices; 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 following streets are designated, in part or whole, as official Through Streets:
• Ventura Avenue
• Riverside Avenue between 5th Street and 13th Street
• Kings Avenue
• Trinity Avenue between 3rd Street and 11th Street
• Orange Avenue between 5th Street and 15th Street
• Humboldt Avenue between 5th Street and 15th Street
• 3rd Street
• 5th Street
• 8th Street between Humboldt Avenue and Robertson Blvd • 13th Street
• 15th Street
• Howell Road
• Santa Cruz Blvd
3. The City Administrator is hereby directed to install stop signs on each and every street intersecting the designated through streets.
PASSED AND ADOPTED by the City Council of the City of Chowchilla this 24th day of June, 2025 by the following vote to wit:
AYES:
NOES:
ABSENT:
ABSTAIN:
APPROVED:
Mayor Kelly Smith
ATTEST:
Joann McClendon, CMC
City Clerk
REPORT TO THE CITY COUNCIL
Item 5.2
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TO RETURN TO
THE AGENDA
Meeting of: June 24, 2025
AGENDA SECTION: Deferred Business
SUBJECT: Second Reading and Adoption of Municipal Code Chapter 18 Zone Text Amendment Application No. 25-0094; and Approval of a City Council Resolution Approving General Plan Amendment Application No. 25-0094 to Implement 19 Programs Within the City’s Adopted Housing Element and the Accompanied Notice of Exemption
PREPARED BY: Jenna Chilingerian, AICP, Consultant Planner ATTACHMENTS: 1. Ordinance
1.A. Zone Text Amendment Application No. 25-0094
2. Resolution
2.A. General Plan Amendment Application No. 25-0094
3. Notice of Exemption
4. Public Input
REVIEWED BY
ADMINISTRATOR ☒ REVIEWED BYATTORNEY ☒ REVIEWED BY DIRECTOR ☒ RECOMMENDATION:
That the City Council consider and approve Municipal Code Chapter 18 Zone Text Amendment Application No. 25-0094 and City Council resolution approving General Plan Amendment Application No. 25-0094 to Implement 19 Programs within the City’s Adopted Housing Element and the Accompanied Notice of Exemption.
BACKGROUND:
The City Council conducted a duly noticed public hearing on May 27, 2025, for Municipal Code Chapter 18 Zone Text Amendments Application No. 25-0094 and General Plan Amendment Application No. 25-0094. At the conclusion of the public hearing and after deliberations, the Council introduced the Zone Text Amendment. The General Plan Amendment was also presented at the hearing; however, Council did not act on that matter. At this meeting, the Council is asked to (i) conduct the second reading and adopt the Zone Text Amendment Ordinance and accompanying notice of exemption and (ii) adopt the resolution approving the General Plan Amendment.
ANALYSIS:
The City of Chowchilla’s 6th cycle Housing Element was certified by the California Department of Housing & Community Development on October 2, 2024. As part of that certification, the City was required to complete certain zoning ordinance and General Plan amendments in accordance with the Housing Element Programs contained in the 2024-2032 Housing Element Update. During review of the City’s Housing Element, HCD determined that the City is required to implement changes in the development process to streamline review of housing projects and make it more feasible to bring new housing opportunities online. These HCD directives are imposed on local municipalities to streamline housing development in response to the Statewide housing shortage. The Housing Element programs coming before the City Council for consideration are as follows:
1. Program 1.g. (Employee Housing Act)
The purpose of Program 1.g is to add “large” employee housing as a permitted use by right in the use table for Industrial and Office Zones (I-H, PF, and OS) to further clarify the provision under the Employee Housing Act (Health and Safety Code Section 17021.6). The program also amends the Zoning Ordinance to include a new section, Agricultural Employee Housing, that describes the requirements and process for streamlined approval pursuant to Health and Safety Code Section 17021.8.
2. Program 2.b. (Density Increase)
The purpose of Program 2.b is to encourage higher density development by increasing density ranges in the MDR land use designation/R-M zone district, MHDR land use designation/R-MH zone district, and HDR land use designation/R-H zone district as follows:
Land Use/Zoning District Current Density Proposed Density MDR/R-M 2.0 to 8.0 du/ac 2.0 to 12.0 du/ac
MHDR/R-MH 6.0 to 16.0 du/ac 12.0 to 20.0 du/ac
HDR/R-H 10.0 to 24.0 du/ac 20.0 to 30 du/ac
3. Program 2.f. (Small Residential Care Facilities)
The purpose of Program 2.f is to allow residential care facilities serving six (6) or fewer people to be allowed by-right in all zones where residential use is permitted subject to only to the requirement of other residential uses of the same type in the same zone.
4. Program 2.g. (Large Residential Care Facilities)
The purpose of Program 2.g is to allow residential care facilities serving seven (7) or more people to be allowed by-right in all zones where residential use is permitted subject only to the requirement of other residential uses of the same type in the same zone.
5. Program 2.h. (Transitional and Supportive Housing)
The purpose of Program 2.h is to allow transitional and supportive housing as a use by right in all zones allowing residential uses subject to only the requirements of other residential uses of the same type and in the same zone including parking standards. In addition, the program will allow permanent supportive housing in all zones allowing residential uses (including emergency shelters) without discretionary action pursuant to Government Code Section 65651 (AB 2988), uses subject to only the requirements of other residential uses of the same type and in the same zone including parking standards.
6. Program 2.i. (Manufactured Home)
The purpose of Program 2.i is to allow Manufactured Homes (on Permanent Foundation) by-right in all zones that allow single-family uses pursuant to Government Code Section 65852.3(c).
7. Program 2.j. (Emergency Housing / Low Barrier Navigation Centers) The purpose of Program 2.j id to amend the definition of “Emergency Shelter” and allow Emergency Shelters by right without discretionary action in R-MH and R-H zoning districts, pursuant to AB 139. The program will also revise Table 18.54.040 of the Zoning Ordinance to change parking space requirement for “Emergency Shelters” to 1 space per employee but not to exceed parking requirements for other residential or commercial uses within the same zone, pursuant to State Law.
8. Program 2.k. (Guest House)
The purpose of Program 2.k is to define the term “guest house” or “guesthouse” as an accessory building not intended for permanent occupancy which does not have separate cooking facilities from the primary residence.
This distinguishes a guest house from an Accessory Dwelling Unit, which is subject to State Law.
9. Program 2.l. (Lower income opportunity sites)
The purpose of Program 2.l is to allow residential developments by-right, without discretionary action, where at least 20% of the units are affordable to lower-income households, on sites identified in prior planning periods pursuant to Government Code Section 65583.2, subdivision (c).
10. Program 2.m. (Boarding Houses)
The purpose of Program 2.m is to amend the Zoning Ordinance to allow a boarding house or rooming house by-right in Medium, Medium-High, and High-Density Residential Zones.
11. Program 2.n. (Reasonable Accommodations Procedure)
The purpose of Program 2.n is to provide objective guidelines for evaluating a reasonable accommodation request pursuant to Federal and State Fair Housing Law.
12. Program 3.j. (General Plan Land Use Designations and Zoning District Consistency) The purpose of Program 3.j is to amend the General Plan text to accurately reflect and correspond to the City’s zoning districts as identified in the Zoning Ordinance. Amendments are proposed for the General Plan Land Use Element to ensure text consistency between land use designations and zoning districts.
13. Program 3.k. (Density Bonus Ordinance)
The purpose of Program 3.k is to comply with the latest density bonus provisions of State Density Bonus Law (Government Code Section 65915).
14. Program 3.l. (ADU Ordinance Updates, Tracking, and Incentives) The purpose of Program 3.l is to amend the ADU Ordinance to comply with State Law.
15. Program 3.n. (Allow Duplexes By-right)
The purpose of Program 3.n is to allow duplexes “by-right” in Medium Density Residential Zones.
16. Program 3.p. (Removal of Subjective Judgment from Entitlement Review) The purpose of Program 3.p is to remove subjective language from entitlement review for Site Plan Review, Conditional Use Permit, and Planned Unit Development, and instead, provide objectives with regards to determining adverse effects and impairment to the integrity and character of zoning districts, thereby streamlining the review of multi-family residential projects.
17. Program 3.q. (Multi-family in Commercial Zones)
The purpose of Program 3.q is to allow multi-family residential buildings with five (5) or more units “by right” in the C-N zone district, to increase opportunities for housing.
18. Program 3.s. (SB 9 Ordinance)
The purpose of Program 3.s is to comply with SB 9 (Government Code Section 65852.21).
19. Program 3.t. (Water and Sewer Priority)
The purpose of Program 3.t is to establish specific written procedures to grant priority water and sewer service to developments with units affordable to lower-income households pursuant to Government Code Section 65589.7. The procedures are incorporated into the General Plan Public Facilities and Services Element.
To achieve these programs, the following code sections are proposed to be added or amended as shown in the attached exhibits:
• 18.60.030 (REPEAL AND REPLACE) Accessory Dwelling Units • 18.60.220 (NEW) Agricultural and Employee Housing
• 18.60.240 (NEW) Supportive Housing
• 18.95 (NEW) Housing Element Sites
• 17.26 (NEW) Urban Lot Split (Parcel Maps)
• 18.08 Land Use Tables
• 18.10 Low Density Residential Zone
• 18.12 Medium Density Residential Zone
• 18.14 Medium High Density Residential Zone
• 18.16 High Density Residential Zone
• 18.54 Parking and Loading Standards
• 18.58 Housing Density Bonus and Other Incentives
• 18.72 Site Plan Review Permits
• 18.80 Conditional Use Permits
• 18.82 Planned Unit Development Permits
• 18.92 Reasonable Accommodation
• 18.96 Definition of Land Uses
The following elements are also proposed to be amended, to achieve these programs, as shown in the attached exhibits:
• Table LU-3 2040 General Plan Land Use Designations
• Land Use Designations (MDR, MHDR, HDR, OS)
• Table LU-4 Land Use Density and Intensity
• Public Facilities and Services Element
ENVIRONMENTAL REVIEW ANALYSIS:
The City is the Lead Agency for this Project pursuant to CEQA Guidelines (Public Resources Code [PRC] Section 15000 et seq.). This update is subject to CEQA Guidelines section 15061, which states that “The activity is covered by the common-sense exemption that CEQA applies only to projects which have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA.” The proposed implementation programs of the Housing Element do include changes to the zoning code and general plan to bring it into conformance with state law and to promote more housing units in the city, but nothing in the proposed changes would alter the existing development potential of the City as expressed in the General Plan.
PUBLIC NOTICE AND INPUT:
Public Notice
Public notification regarding this Project was achieved by posting the agenda, with the agenda items being listed, at least 72 hours prior to the hearing. The City also published notice of this public hearing. The notice is attached to the Staff Report.
Public Input
The City was in receipt of an email and comment letter from the California Housing Defense Fund (CalHDF) dated May 21, 2025. The letter was submitted as a public comment concerning item 4.1 on the agenda for the Planning Commission meeting scheduled for May 21, 2025. The comment specifically concerns the amendments to the City’s regulations for ADUs and JADUs and requests amendments to the proposed ADU ordinance to comply with state laws, prior to approving the ordinance. City Staff reviewed the requested amendments and the referenced state laws, and in response, has amended the ADU Ordinance contained in Zone Text Amendment Application No. 25-0094. Amendments to the ADU Ordinance address 1) maximum unit size for detached ADUs, 2) front setback requirements, 3) design regulations, 4) parking requirements, and 5) impact fees. The amendments comply with state laws.
FINDINGS
Zone Text Amendment
Before a zone text amendment may be approved, all of the following findings shall be made by the reviewing authority identified in section 18.86.030 in the City’s Zoning Ordinance:
1. The amendment is internally consistent with the goals, objectives, and policies of the General Plan and this title. Zone Text Amendment Application No. 25-0094, implementing sixteen programs within the Chowchilla 6th Cycle (2024-2032) Housing Element would keep the City’s Zoning Ordinance up to date and consistent with state housing law. This update is consistent with the goals, objectives, and policies of the General Plan.
2. The amendment would not be detrimental to the public health, safety, or welfare of the community.
Zone Text Amendment Application No. 25-0094, implementing sixteen programs within the Chowchilla 6th Cycle (2024-2032) Housing Element would not be detrimental to the public health, safety, or welfare of the community. Amending the Zoning Ordinance in accordance with the adopted and certified Housing Element and state housing laws serves the community by properly planning for the City’s housing needs.
3. The amendment would maintain the appropriate balance of land uses within the city. Zone Text Amendment Application No. 25-0094, implementing sixteen programs within the Chowchilla 6th Cycle (2024- 2032) Housing Element would maintain the appropriate balance of land uses within the city.
4. The anticipated land uses on the subject site would be compatible with existing and future surrounding uses. Zone Text Amendment Application No. 25-0094, implementing sixteen programs within the Chowchilla 6th Cycle (2024-2032) Housing Element does not consist of any proposed development on sites within the City. Any future development would be subject to separate entitlements and would be analyzed on a case by case basis to ensure compatibility with existing and future surrounding uses General Plan Amendment
Before a general plan amendment may be approved, all of the following findings shall be made by the reviewing authority identified in section 18.88.040 in the City’s Zoning Ordinance:
1. The amendment is internally consistent with the goals, objectives, and policies of the General Plan and this title. General Plan Amendment Application No. 25-0094, implementing three programs within the Chowchilla 6th Cycle (2024-2032) Housing Element would keep the City’s General Plan up to date and consistent with state housing law. This update is consistent with the goals, objectives, and policies of the General Plan.
2. The amendment would not be detrimental to the public health, safety, or welfare of the community.
General Plan Amendment Application No. 25-0094, implementing three programs within the Chowchilla 6th Cycle (2024-2032) Housing Element would not be detrimental to the public health, safety, or welfare of the community. Amending the General Plan in accordance with the adopted and certified Housing Element and state housing laws serves the community by properly planning for the City’s housing needs.
3. The amendment would maintain the appropriate balance of land uses within the city. General Plan Amendment Application No. 25-0094, implementing three programs within the Chowchilla 6th Cycle (2024- 2032) Housing Element would maintain the appropriate balance of land uses within the city.
4. The anticipated land uses on the subject site would be compatible with existing and future surrounding uses. General Plan Amendment Application No. 25-0094, implementing three programs within the Chowchilla 6th Cycle (2024-2032) Housing Element does not consist of any proposed development on sites within the City. Any future development would be subject to separate entitlements and would be analyzed on a case by case basis to ensure compatibility with existing and future surrounding uses REASON FOR RECOMMENDATION:
Implementation of Housing Element Programs as presented would be an action consistent with the City’s recently certified Housing Element. Approval of this item would assist the City with meeting their goals for the provision of a wide array of housing development opportunities.
FISCAL IMPACT:
None.
ALTERNATIVES:
Deny the Planning Commission’s recommendation by voting to deny the Zone Text Amendment and General Plan Amendment.
Direct staff to make specific changes to the text amendments and bring them back for further consideration ACTIONS FOLLOWING APPROVAL:
File the Notice of Exemption with the County Clerk if the City desires.
Update the General Plan and Chapter 18 of the Municipal Code to reflect the adopted changes.
COUNCIL ORDINANCE # 528-25
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF CHOWCHILLA, CALIFORNIA ADOPTING ZONE TEXT AMENDMENT APPLICATION NO. 25-0094, AMENDING MUNICIPAL CODE CHAPTER 18 TO BRING INTO COMPLIANCE WITH THE CITY’S ADOPTED HOUSING ELEMENT (2024-2032 6th CYCLE
HOUSING ELEMENT) AND STATE LAW TO IMPLEMENT SIXTEEN HOUSING ELEMENT PROGRAMS (PROGRAM 1.G, 2.B, 2.F, 2.G, 2.H, 2.I, 2.J, 2.K, 2.M, 2.N, 3.K, 3.L, 3.N, 3.P, 3.Q, and 3.S); AND
ACCOMPANYING NOTICE OF EXEMPTION
WHEREAS, State of California Housing Element law was enacted in 1969 and requires jurisdiction to prepare and adopt a Housing Element as part of its respective General Plan; and, WHEREAS, the purpose of the Housing Element is to identify the community’s housing needs, to state the community’s goals and objectives with regard to housing production, rehabilitation, and conservation to meet those needs, and to define the policies and programs that the community will implement to achieve the stated goals and objectives; and,
WHEREAS, the Housing Element is one of nine state mandated elements that every general plan must contain; and,
WHEREAS, the 6th Cycle Housing Element Update was adopted by the City on September 10, 2024, and was subsequently sent to the Department of Housing and Community Development for review and upon completion of review, it was determined that the document substantially complies with State Housing Element Law and was therefore certified on October 2, 2024; and, WHEREAS, the Zone Text Amendment coming before the City Council for consideration would amend Chapter 18 of the City’s Municipal Code to bring into compliance with the City’s adopted and certified Housing Element and State Law, which would effectively implement sixteen 6th Cycle Housing Element Programs including Housing Element Program 1.g. (Employee Housing Act), 2.b. (Density Increase), 2.f. (Small Residential Care Facilities), 2.g. (Large Residential Care Facilities), 2.h. (Transitional and Supportive Housing), 2.i. (Manufactured Home), 2.j. (Emergency Housing / Low Barrier Navigation Centers), 2.k. (Guest House), 2.m. (Boarding Houses), 2.n. (Reasonable Accommodations Procedure), 3.k. (Density Bonus Ordinance), 3.l. (ADU Ordinance Updates, Tracking, and Incentives), 3.n. (Allow Duplexes By-right), 3.p. (Removal of Subjective Judgment from Entitlement Review), 3.q. (Multi-family in Commercial Zones), 3.s. (SB 9 Ordinance); and WHEREAS, the City as the Lead Agency, reviewed the Project pursuant to CEQA Guidelines and it was determined that this Project qualifies as being statutorily exempt per Section 15061 (b)(3) of Title 14 of the California Code of Regulations (the CEQA Guidelines) - Common Sense Rule.
WHEREAS, the Planning Commission carefully considered the staff report, recommendations, and all oral and written evidence during the public hearing and voted to recommend that the City Council approval Zone Text Amendment Application No. 25-0094; and
WHEREAS, the City Council held a public hearing on May 27, 2025, to consider the Zone Text Amendment Application No. 25-0094 during which the Council solicited public testimony, and considered the environmental assessment; and
WHEREAS, after the public hearing the Council introduced the Zone Text Amendment Application No. 25-0094 Ordinance; and
WHEREAS, the City Council now desires to adopt the Zone Text Amendment Application No. 25-0094 Ordinance described herein below in Exhibit ‘A’.
NOW, THEREFORE, the City Council of the City of Chowchilla hereby finds, determines, and declares the following:
1. The above recitals are true and correct;
2. That the City Council of the City of Chowchilla hereby finds and determines that there is no substantial evidence in the record to indicate that the Zone Text Amendment Application No. 25-0094 would have a significant effect on the environment as identified by, and evaluated with a Notice of Exemption;
3. That the City Council of the City of Chowchilla hereby finds and determines that all required findings for granting a zone text amendment can be made as identified in the City’s Municipal Code Section
18.86.030;
4. That the City Council of the City of Chowchilla approves Zone Text Amendment Application No. 25-0094, implementing sixteen 6th Cycle Housing Element Programs including Housing Element Program 1.g. (Employee Housing Act), 2.b. (Density Increase), 2.f. (Small Residential Care Facilities), 2.g. (Large Residential Care Facilities), 2.h. (Transitional and Supportive Housing), 2.i. (Manufactured Home), 2.j. (Emergency Housing / Low Barrier Navigation Centers), 2.k. (Guest House), 2.m. (Boarding Houses),
2.n. (Reasonable Accommodations Procedure), 3.k. (Density Bonus Ordinance), 3.l. (ADU Ordinance Updates, Tracking, and Incentives), 3.n. (Allow Duplexes By-right), 3.p. (Removal of Subjective Judgment from Entitlement Review), 3.q. (Multi-family in Commercial Zones), 3.s. (SB 9 Ordinance); and NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF CHOWCHILLA DOES ORDAIN AS FOLLOWS:
Section 1. Chapter 18 of Municipal Code of the City of Chowchilla is hereby amended as shown in Exhibit A.
Section 2. This Ordinance shall go into effect and be in full force after thirty (30) days after its final passage and adoption.
I HEREBY CERTIFY that this ordinance was introduced at a regular meeting of the City Council of the City of Chowchilla, held on the 27th day of May 2025, and passed and adopted at a regular meeting of the City Council on the 24th day of June 2025, by the following vote to wit:
AYES:
NOES:
ABSENT:
ABSTAIN:
APPROVED:
Mayor Kelly Smith
ATTEST:
Joann McClendon, CMC
City Clerk
Exhibit ‘A’: Zone Text Amendment Application No. 25-0094